Price negotiated from MSRP

[drstein]

" the Customer is responsible for a two hundred dollar Administrative Fee " for Employee Pricing from FCA......really ?

 

[Brianziggy64]

So here are the incentives that I pulled up on all Models. This is based on my zip code within the Atlanta Metro area, so yours may be same or different. So I am assuming that you get Employee Pricing plus the listed incentives and other rebates you qualify for. Also, I included pics of the ”disclosure” on each incentive. Note that they both expire on November 18th before Black Friday. So my guess is this is not their Black Friday sales incentive. Those will hit around Nov 18th or later.

 

[Ramster]

MSRP total after options - 47,010
Dealer price - 43,000
Manufacturers price reduction/redate - 8,000
My price before fees, taxes etc. 35,000

This was the last week in August, no trade-in.

 

[hortoni]

Hey all. Hopefully this is the right place. I was negotiating an offer today and am curious if I should jump on this.

2019 Rebel 5.7 Hemi (No eTorque) with Air suspension, pano sunroof, 12 package, spray in bed liner, tonneau cover, black leather, red exterior. MSRP 61,350

This is a non-titled dealer demo with 5500 miles on it. The offered sales price on it was $48,800 including all discounts and rebates that I qualify for, etc. I have a trade that of course helps confuse the numbers somewhat. My best guess on the trade value is that they are offering about $1000-$1500 more than it's worth as a trade so I would actually consider that as an additional discount off the truck. My best estimate with the trade is that this is $13,500 - $14,000 under MSRP for a 2019.

What would you do?

 

[Micko24]

By in itself without the trade is 48k? With 5500 miles? I think that’s still pretty high for a used rebel... maybe others came chime in on this... unless the Rebel has higher value than other trims...

 

[hortoni]

By in itself without the trade is 48k? With 5500 miles? I think that’s still pretty high for a used rebel... maybe others came chime in on this... unless the Rebel has higher value than other trims...

Without the trade I suspect the sale price would have been around $47k to $47.5k. I suspect they inflated my trade to meet payoff so the deal would look better to me.

yes, it’s been used but since not titled it still sold as new. I was told warrant starts the day I buy it.

 

[SilverSurfer15]

FWIW I bought my truck in January, but MSRP 59k and I paid 48k after all the discounts. Does seem high to me, IMO I’d spend a little More (if at all) and get a new one or spend less and get a used one.

I’d value that demo around 45 real money. I calculated this via a couple dealers told me my truck was worth about 46-47k as is, 42-44 stock. And I have 15k miles.

Edit: I meant to type around 46 on the demo not 45

 

[Cortesio]

MSRP - $63,590
Rebates - $5500
Discounts - $6090
Final Price - $52,000

Total Discount - $11,590 (18.2% of MSRP)

ETA:
There’s a couple caveats to my pricing. I had the dealer locate and bring the truck in from a dealer in the Chicago area to Iowa City. This somewhat limited my negotiating power since I wasn’t buying from their inventory.

Another local dealer ended up offering to transfer in the same truck for a purchase price of $49,750. Of course they offered that the following day after their salesman wasted hours of my time telling me they couldn’t budge on price and by that point I had already put a deposit down at the other dealership. As far as I can tell that dealer would have been losing money on the new sale and would probably clear a couple thousand on marking up my trade. I don’t know if they were planning to hose me in the F&I office or just needed to add another sale to their monthly tally but the dealership was sleazy enough I’m sure I would have had some surprise if I had tried to go for the cheaper deal.

 

[Willwork4truck]

Hey all. Hopefully this is the right place. I was negotiating an offer today and am curious if I should jump on this.

2019 Rebel 5.7 Hemi (No eTorque) with Air suspension, pano sunroof, 12 package, spray in bed liner, tonneau cover, black leather, red exterior. MSRP 61,350

This is a non-titled dealer demo with 5500 miles on it. The offered sales price on it was $48,800 including all discounts and rebates that I qualify for, etc. I have a trade that of course helps confuse the numbers somewhat. My best guess on the trade value is that they are offering about $1000-$1500 more than it's worth as a trade so I would actually consider that as an additional discount off the truck. My best estimate with the trade is that this is $13,500 - $14,000 under MSRP for a 2019.

What would you do?

While I'm no sharpie on negotiation, the thing that changes the mix is the Rebel. It always carries a higher resale due to that trim.
How bad do you want a Rebel? A Laramie would likely be less costly but not have the off-road "chops" so to speak.
That many miles should not be just test drives, maybe a GM, sales manager or someone actually had it for a take-home vehicle. Has any service been performed? Oil changed yet? Any TSB's applied? Can you get a tonneau thrown in? ($550 is average the Mopar price for a tri-fold).
Your trade, does it save you sales tax as opposed to a cash deal (most states that's the way it is, trades save taxes).
Have you done a search for the same truck used around the SE?

Once you've looked into those things (if you even care, some don't) then see if you can get a couple K more off, or some accessories installed as part of the deal. Or, like in my case, the truck I ended up with was the truck we wanted so I "overpaid" as far as the real super negotiators say, but so what. That Rebel isn't as common (used with low mileage but a new warranty) as an old stock lot truck, and the discounts could make it fairly attractive as compared to a 20. Do you want it? Part of buying is emotions, it's not just a "tool" or we'd all be in crapboxes.

 

[drstein]

MSRP - $63,590
Rebates - $5500
Discounts - $6090
Final Price - $52,000

Total Discount - $11,590 (18.2% of MSRP)

PERFECTLY stated, for a change. I could blather on like some here, , but no need, good job !!

 

[zzzug]

With respect to November's "Employee Pricing," how would you all calculate/negotiate the price of the truck?

I Total Dealer Cost as a rough starting point for negotiations to see how much fat there is on a price quote. I calculate the dealer price with the following formula: (92.1% of Total MSRP as Total Invoice for Rams) + Destination Fee - (3% of MSRP as Holdback) = Total Dealer Cost. To calculate OTD, I then add taxes and fees, then subtract rebates (my state doesn't let you subtract rebates prior to calculating taxes).

So using the above formula, assuming there is a $55k MSRP 2019 Laramie, I'd figure the Total Dealer Cost to be: (92.1% x $55k Total MSRP = $50,655 Total Invoice) + $1695 Destination Fee - (3% x $55k Total MSRP =$1650 Holdback) = $50,700 Dealer Cost.

My question is how should I treat this "employee pricing" in modifying the formula and what effect this should have on negotiations? Should I replace the Total MSRP with the "Employee Pricing MSRP" number displayed on Ram's inventory search and then subtract the 7.9% to get Total Invoice (e.g. $55k Total MSRP now shows at $48.5k Employee MSRP; so 92.1% of $48.5k + $1695 - (3% of $48.5k) = $44,909 Dealer Cost)?

Or should I just treat the price difference between Total MSRP and "Employee Pricing MSRP" as an incentive amount to be stacked with rebates at the end of calculations? (e.g. $55k Total MSRP = $50,700 Dealer Cost. OTD = $50,700 + taxes/fees - ($55k Total MSPR - $48,500 Employee Pricing) - Other Rebates.

 

[Cortesio]

With respect to November's "Employee Pricing," how would you all calculate/negotiate the price of the truck?

I Total Dealer Cost as a rough starting point for negotiations to see how much fat there is on a price quote. I calculate the dealer price with the following formula: (92.1% of Total MSRP as Total Invoice for Rams) + Destination Fee - (3% of MSRP as Holdback) = Total Dealer Cost. To calculate OTD, I then add taxes and fees, then subtract rebates (my state doesn't let you subtract rebates prior to calculating taxes).

So using the above formula, assuming there is a $55k MSRP 2019 Laramie, I'd figure the Total Dealer Cost to be: (92.1% x $55k Total MSRP = $50,655 Total Invoice) + $1695 Destination Fee - (3% x $55k Total MSRP =$1650 Holdback) = $50,700 Dealer Cost.

My question is how should I treat this "employee pricing" in modifying the formula and what effect this should have on negotiations? Should I replace the Total MSRP with the "Employee Pricing MSRP" number displayed on Ram's inventory search and then subtract the 7.9% to get Total Invoice (e.g. $55k Total MSRP now shows at $48.5k Employee MSRP; so 92.1% of $48.5k + $1695 - (3% of $48.5k) = $44,909 Dealer Cost)?

Or should I just treat the price difference between Total MSRP and "Employee Pricing MSRP" as an incentive amount to be stacked with rebates at the end of calculations? (e.g. $55k Total MSRP = $50,700 Dealer Cost. OTD = $50,700 + taxes/fees - ($55k Total MSPR - $48,500 Employee Pricing) - Other Rebates.

If I understand it correctly, FCA dropped a number of incentives and essentially replaced them with this month’s EP promotion. The Ram site still lets you build out new 2019 trucks with the “discounted” MSRP, but unless I was misled by my dealer you can’t order 2019’s anymore. The MSRP on the window stickers hasn’t changed nor has the amount a dealer paid for the truck sitting on their lot. You’re probably going to be negotiating in roughly same dollar amount plus or minus however the current incentives compares to the last.

 

[Alopez85]

Is this real? I spoke with them on the phone and they claim the pricing is legit. But I have a feeling I’m going to get there and they’ll pull the ole switcharoo on me, “oh sir no we can’t give you that pricing, it was a mistake”

 

[securityguy]

Is this real? I spoke with them on the phone and they claim the pricing is legit. But I have a feeling I’m going to get there and they’ll pull the ole switcharoo on me, “oh sir no we can’t give you that pricing, it was a mistake”

It will include all rebates...many of which you may not qualify for.

 

[SilverSurfer15]

It will include all rebates...many of which you may not qualify for.

Yea you can have them send you the buyers order via email. If they won’t, then you know....

 

[Texas Truck]

2020 Limited
MSPR - $71,900
Paid - $61,147 w/ 0% Financing / (includes $2k rebates)
Purchased 9/2019

2020 RAM LIMITED CREW CAB 4X4 (born 8/2019, delivered 9/2019) w/v8 HEMI-etorque
-Body colored bumpers; Bed utility group; Level 1 eq group; Tri fold tonneau; 3.92 gear ratio; Pano sunroof; Multi-Function tailgate; 33 Gallon tank; 22 inch wheels; RAMBOX; trailer brake control

MODS since purchase:
LED Cargo lights; LED 3rd brake light; Mopar all-weather mats; PPF front end; 35% tint front windows; hitch cover

 

[Alopez85]

Thanks for the replies. Its kind of what I figured and it doesn’t show anything on their page to see what rebates it includes.

Yea you can have them send you the buyers order via email. If they won’t, then you know....

 

[ryan74701]

dealership wont go any lower than $59k, idk, these damn trucks are so expensive, these incentives just don't seem very good for 2019's, I'm looking for around $54k.

New 2019 Ram All-New 1500 For Sale El Reno, OK | VIN# 1C6SRFKT1KN917079

Check out this New 2019 All-New 1500 Crew Cab LARAMIE LONGHORN CREW CAB 4X4 5'7 BOX for sale in El Reno, OK. We serve El Reno, Yukon & Midwest City. Call (405) 237-4064 for a test drive today! Stock# D19133

www.frontiermotor.net

 

[Timeless]

dealership wont go any lower than $59k, idk, these damn trucks are so expensive, these incentives just don't seem very good for 2019's, I'm looking for around $54k.

New 2019 Ram All-New 1500 For Sale El Reno, OK | VIN# 1C6SRFKT1KN917079

Check out this New 2019 All-New 1500 Crew Cab LARAMIE LONGHORN CREW CAB 4X4 5'7 BOX for sale in El Reno, OK. We serve El Reno, Yukon & Midwest City. Call (405) 237-4064 for a test drive today! Stock# D19133

www.frontiermotor.net

They probably do not realize you get rebates on top of the EP discount....or are trying to pocket it for themselves.

 

[ryan74701]

They probably do not realize you get rebates on top of the EP discount....or are trying to pocket it for themselves.

He said there is only $1500 in consumer cash available with EP discount.