Price negotiated from MSRP

[brody.cepeaux]

Ah

Sorry if I wasn't clear, $62k is MSRP for the new truck I am looking at. The rural dealership (Camrose) that has that truck in stock also has a used equivalent (almost identical specs) posted for $42k, with 20,000km on the odometer and 16 months in service. I have not been in touch with that dealership other than to find out how much warranty was left on the used.

It's a very particular config (long box with a bench Big Horn level II) so when I went to a local Calgary dealership to test drive (a different configuration) and they found me the configuration I was looking for I know they had to factor in getting it from another dealership in their price. I'm trying to figure out what's a good dealer discount from the original Camose dealership. I figure the used one will probably come in at $40k after haggling, and if I can get the new one for $46k it's worth going new, otherwise used.

I'll be paying cash either way.

My advice is get one, they are a good truck. Ive got 16k on mine and only had a few issues that were minor to fix up.

 

[habfan]

Which province are you in? That will determine the programs. Here is the simple math.
MSRP = who cares
GKRP = the real "retail value" that banks use to determine the actual booking value of the truck
PREF = dead cost of vehicle on invoice

How to know if you get a good deal.
1. MSRP - all rebates = Normal selling price (they can do better but are not required to)

A ram SPORT in canada will have about 5800 profit in it for the dealer. You cant be a greedy bastard all the time, so you need to let them make a little money. If i was the sales manager on the deal and someone wanted a truck and we were making 2000 on the front end, I would take it meaning you could potentially get
MSRP - rebates - negotiation = price - after tax rebates (currently 2000 right now) Financing is agressive as FCA is allowing for 96 months at 3.99% and bank of canada rate is 3.45 on a house, meaning thats a crazy deal on financing in this day and age in our garbage economy.

Keep in mind, the dealership has absolutely zero requirement to allow the buyer to receive the consumer cash. ZERO. Its just good practice to give your customers a good deal. Some dealers in Alberta will go MSRP down to invoice cost so lets say MSRP is 60,000 and there is 5800 profit in that before consumer cash. They show you the invoice at $54,200 and sell it to you for that. Sounds good right? WRONG. Dealer just put up to $10,500 in their pocket on consumer cash.

Does this make sense? Sorry if im speaking dealer language and its confusing just let me know.

I’m in sask, but would buy from out of prov if it was the right deal. Heck I’d drive to BC if I got a really good deal


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[brody.cepeaux]

I’m in sask, but would buy from out of prov if it was the right deal. Heck I’d drive to BC if I got a really good deal


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There are absolutely places to avoid in alberta. Its truck world and the dealers here move large truck volume. Unfortunately im not at a dodge store anymore so i would not be able to get you the deal i used to be able to find. Good trucks tho.

 

[habfan]

Which province are you in? That will determine the programs. Here is the simple math.
MSRP = who cares
GKRP = the real "retail value" that banks use to determine the actual booking value of the truck
PREF = dead cost of vehicle on invoice

How to know if you get a good deal.
1. MSRP - all rebates = Normal selling price (they can do better but are not required to)

A ram SPORT in canada will have about 5800 profit in it for the dealer. You cant be a greedy bastard all the time, so you need to let them make a little money. If i was the sales manager on the deal and someone wanted a truck and we were making 2000 on the front end, I would take it meaning you could potentially get
MSRP - rebates - negotiation = price - after tax rebates (currently 2000 right now) Financing is agressive as FCA is allowing for 96 months at 3.99% and bank of canada rate is 3.45 on a house, meaning thats a crazy deal on financing in this day and age in our garbage economy.

Keep in mind, the dealership has absolutely zero requirement to allow the buyer to receive the consumer cash. ZERO. Its just good practice to give your customers a good deal. Some dealers in Alberta will go MSRP down to invoice cost so lets say MSRP is 60,000 and there is 5800 profit in that before consumer cash. They show you the invoice at $54,200 and sell it to you for that. Sounds good right? WRONG. Dealer just put up to $10,500 in their pocket on consumer cash.

Does this make sense? Sorry if im speaking dealer language and its confusing just let me know.

Ok so... if I get the math right , if I build out a sport model to come out to 70k I would look to get the consumer cash of 10500 and a bit of their 5800.
So anything close to 15k off and paying 55k plus Taxes is a good deal and any discount over 16k is really good.. is that right?

I just noticed some dealers in Calgary were offering much better advertised deals than here.

Also, with the 2020s rolling into dealerships, would dealers be getting any more incentives,or $ for old stock?

Good to have this knowledge

Thanks!




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[brody.cepeaux]

Ok so... if I get the math right , if I build out a sport model to come out to 70k I would look to get the consumer cash of 10500 and a bit of their 5800.
So anything close to 15k off and paying 55k plus Taxes is a good deal and any discount over 16k is really good.. is that right?

I just noticed some dealers in Calgary were offering much better advertised deals than here.

Also, with the 2020s rolling into dealerships, would dealers be getting any more incentives,or $ for old stock?

Good to have this knowledge

Thanks!




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Thats a tough one to answer but here is how that decision is made. If the inventory mix of 2019 trucks is 40% or less of availability at the dealership the programs historically are slightly better than the newer model year. Not always the case tho and i am pretty sure the guys who make this decision just snort a like of cocaine and then decide whatever they want, because it never makes sense. Usually the real blowout dollars come from the dealership giving up gross profit just to make the vehicle go away. Reason being is the dealership finances the inventory from the factory. They get an invoice every month for interest on that vehicle so to the dealer that vehicle keeps getting more and more expensive to let sit.

To answer your question about the deal, yeah ram historically has had $10,500 or close to it in program money on the hood of every truck eveet money for at least 7 years (since before i was involved with the dealer too) if tou got $15000 off of the real MSRP (make them show you a factory window sticker or generate one yourself online) then you are doing good and its a fair deal for you and the dealership is probably making ok money at about $1500. They want more but i believe in selling volume and giving the customer a good deal so they cone back.

To ask a dealership to sell it at cost is insulting to the business and i would caution against that. No matter how mich you dislike dealerships asking people to work for free is wrong. Put yourself in their shoes and ask yourself “if my boss asked me to clock out then handle this customer who took 3-6 hours of my time to sell him something” would you be happy? So treat your salesman good and they tend to do the same back to you. If not then you are in the wrong dealership. I have a few places i would recommend and a few places i would run like hell from because dealing with these stores on a professional level i was able to see some real doozies.

Let me know if i jargoned to much again

 

[Rancidlunchmeat]

That’s my experience with all these “preferred” pricing plans, they aren’t very good. Good for someone who doesn’t want to put any effort into shopping but bad compared to what you can get. Like the truck I just posted when I edited his comment you quoted.

Although 2500 discounts are a bit different, 9% isn’t great.

True, HD discounts aren't in line with those on the 1500's, and especially in CA, the Power Wagons are even seen as more like Halo vehicles with prospects for large dealer markups. The dealer that would accept the Affiliate pricing still wasn't too keen to do so (the truck was actually still in transit), and sold it yesterday to somebody willing to pay more.

 

[brody.cepeaux]

True, HD discounts aren't in line with those on the 1500's, and especially in CA, the Power Wagons are even seen as more like Halo vehicles with prospects for large dealer markups. The dealer that would accept the Affiliate pricing still wasn't too keen to do so (the truck was actually still in transit), and sold it yesterday to somebody willing to pay more.

Unfortunately the assumption you are making is incorrect. If you actually qualify for advantage plan pricing this is how it works.

Pref Price + $25 less any rebates and incentives you qualify for.

This is governed by FCA directly and there are several pieces of additional paperwork you would be required to sign off on to get this pricing. I have audited this paperwork and can say with 100% surety that this is how it works. Now many dealers refuse to do this program and there are no rules in FCA dictating that a dealership must offer this. The real legwork is to find a dealer that will do this.

The paperwork is also audited by FCA and if there is a mix up or an overcharge the dealer faces hefty fines and chargeback of all programs that were applied. I saw one once where the chargeback was $21,500 to the dealer. Paperwork must be perfect and all there.

 

[SamuelaiBurt]

What dealership? I'm in Calgary and I did a test run at a dealership that didn't have my configuration in stock and their 'best offer' was only $2K below MSRP-rebates, but I know they would have had to source the truck from another dealer.

I'm up here in the Fairview area I don't want to give away too many personal details but only reason the price was so good was because I found a truck with exact same options advertised online in Calgary for the 70k ish and they price matched it. Used autotrader to find comparables

 

[Rancidlunchmeat]

Unfortunately the assumption you are making is incorrect. If you actually qualify for advantage plan pricing this is how it works.
<snip>

I'm not sure in any of that how I'm making any assumptions incorrectly. The Dealer wasn't thrilled with selling the vehicle at Affiliate pricing, and it was still in transit. I received all the numbers and confirmations over the phone and email, I was required to provide my control number to them to get the price quote. I didn't sign anything, put down any deposit, or provide anything in writing other than my control number and address for precise tax purposes. I had arranged to make the 4 hour drive to finalize the deal tomorrow, last night after 5pm I received an email from the sales guy saying they had another buyer and since our deal wasn't finalized - they sold it.

The only assumption I'm making is that the person they sold it to paid more than my affiliate pricing, which I think is a pretty fair assumption.

 

[drstein]

I'm not sure in any of that how I'm making any assumptions incorrectly. The Dealer wasn't thrilled with selling the vehicle at Affiliate pricing, and it was still in transit. I received all the numbers and confirmations over the phone and email, I was required to provide my control number to them to get the price quote. I didn't sign anything, put down any deposit, or provide anything in writing other than my control number and address for precise tax purposes. I had arranged to make the 4 hour drive to finalize the deal tomorrow, last night after 5pm I received an email from the sales guy saying they had another buyer and since our deal wasn't finalized - they sold it.

The only assumption I'm making is that the person they sold it to paid more than my affiliate pricing, which I think is a pretty fair assumption.

I would say you are correct. Nothing on paper, no deposit, they sold it.

 

[Brroland19]

I received a offer for a 2018 mega cab 2500 bighorn. Can you let me know if anyone thinks there could be more money off I would be able to get? Thanks for the help.

MSRP $54,305
Dealer discount-$4,714
Manufacture discount -$3000
Total- $46,591 before tax,doc fees and tags etc.

 

[brody.cepeaux]

I'm not sure in any of that how I'm making any assumptions incorrectly. The Dealer wasn't thrilled with selling the vehicle at Affiliate pricing, and it was still in transit. I received all the numbers and confirmations over the phone and email, I was required to provide my control number to them to get the price quote. I didn't sign anything, put down any deposit, or provide anything in writing other than my control number and address for precise tax purposes. I had arranged to make the 4 hour drive to finalize the deal tomorrow, last night after 5pm I received an email from the sales guy saying they had another buyer and since our deal wasn't finalized - they sold it.

The only assumption I'm making is that the person they sold it to paid more than my affiliate pricing, which I think is a pretty fair assumption.

Ah crap sorry i copied the wrong quote. Wasnt meant for you. Sorry man.

 

[howie12]

ANyone have any insight on what kind of price I should be able to negotiate to on a new special order 2020 Laramie Longhorn 4x4? Best I have been able to do so far is dealer invoice minus all but $100 of the dealer holdback. AS usual for this time of year there seems to be no incentives at the moment since they are busy building for dealer stock. ANyhow the above deal gets me from a MSRP of $65,200(including transportation of $1695) to a dealer invoice of $59,751 minus all but $100 of dealer holdback gets me to a sales price of $57,951.

Comments would be most welcome

All the best,

 

[brody.cepeaux]

ANyone have any insight on what kind of price I should be able to negotiate to on a new special order 2020 Laramie Longhorn 4x4? Best I have been able to do so far is dealer invoice minus all but $100 of the dealer holdback. AS usual for this time of year there seems to be no incentives at the moment since they are busy building for dealer stock. ANyhow the above deal gets me from a MSRP of $65,200(including transportation of $1695) to a dealer invoice of $59,751 minus all but $100 of dealer holdback gets me to a sales price of $57,951.

Comments would be most welcome

All the best,

Seems like a fair deal to me. I don’t imagine there will be much for incentives on the hood of a 2020 until March 2020

 

[Willwork4truck]

I'm not sure in any of that how I'm making any assumptions incorrectly. The Dealer wasn't thrilled with selling the vehicle at Affiliate pricing, and it was still in transit. I received all the numbers and confirmations over the phone and email, I was required to provide my control number to them to get the price quote. I didn't sign anything, put down any deposit, or provide anything in writing other than my control number and address for precise tax purposes. I had arranged to make the 4 hour drive to finalize the deal tomorrow, last night after 5pm I received an email from the sales guy saying they had another buyer and since our deal wasn't finalized - they sold it.

The only assumption I'm making is that the person they sold it to paid more than my affiliate pricing, which I think is a pretty fair assumption.

Likely yes. To them a sale for more is always better. Course to most any business thats true. Sorry you missed out!

 

[Rancidlunchmeat]

ANyone have any insight on what kind of price I should be able to negotiate to on a new special order 2020 Laramie Longhorn 4x4? Best I have been able to do so far is dealer invoice minus all but $100 of the dealer holdback. AS usual for this time of year there seems to be no incentives at the moment since they are busy building for dealer stock. ANyhow the above deal gets me from a MSRP of $65,200(including transportation of $1695) to a dealer invoice of $59,751 minus all but $100 of dealer holdback gets me to a sales price of $57,951.

Comments would be most welcome

All the best,

Sounds like a decent deal on 2020 to me. I was going to mention that in CA 2020 Longhorns are on dealer lots, previously I've only seen Big Horns. I would assume that means that they're going to start feeling pressure to move the 2019s right quick.

 

[Fmrchvy]

Not sure how I did but I bought a 2019 Laramie 4x4 with sticker at 54,990 and negotiated down to 41,137 before taxes. Love this truck!

 

[SilverSurfer15]

Not sure how I did but I bought a 2019 Laramie 4x4 with sticker at 54,990 and negotiated down to 41,137 before taxes. Love this truck!

You did good

Do you know what your actual dealer discount was before rebates? And which rebates you got?

 

[Willwork4truck]

Yes, almost 14K off, them’s June deals!

 

[Bigjb1987]

Yes, almost 14K off, them’s June deals!

June favorite month of the year