Price negotiated from MSRP

[stevetom84]

I'm starting to think my low offers are too low. $61k MSRP, and I'm asking for $49,500. Is that just crazy and I'll probably never get that? I really want a Limited, but need to keep the purchase price under $50k.

It won't be easy and will depend alot on time, location, and what rebates you're eligible for. You should be able to get close to 7% below invoice plus rebates. That should be somewhere in the neighborhood of 8.5-9k off without rebates. The rest would have to be made up by rebates.

 

[Cannonball]

I'm starting to think my low offers are too low. $61k MSRP, and I'm asking for $49,500. Is that just crazy and I'll probably never get that? I really want a Limited, but need to keep the purchase price under $50k.

5% below invoice is 52.7k. Apply the 1.5k November incentives and 1.5 of other rebates (USAA, penfed, conquests, mailer, Sams, realtor, etc) and your under 50k.

Dealer may not understand what you're offering. They may read it quick and think this guy wants 11% below invoice! Offer them 53k plus all applicable incentives/rebates. There are more than a few of us here that are getting in total over 20% below msrp on limiteds either ordered or from stock.

 

[Grunkster]

my msrp was 53,xxx, got it for just under 40K....Laramie

 

[stevetom84]

I'm starting to think my low offers are too low. $61k MSRP, and I'm asking for $49,500. Is that just crazy and I'll probably never get that? I really want a Limited, but need to keep the purchase price under $50k.

I would contact Gary at Koontz and get a price from him first and use his dealer discount (without rebates) for leverage at local dealers. They may not match it, but they may get close. I live in East Tennessee and was able to use his numbers to get a dealer down to within $900 of the dealer discount. I figured for $900 it's worth it to buy local and not have to deal with purchasing out of state. The biggest variable is probably what rebates are available at delivery, which ones you qualify for, and how they may stack. For example if your a USAA member, realtor, competing truck owner, etc...you can get some good rebates, if they stack.

 

[OldTNHillbilly]

I would contact Gary at Koontz and get a price from him first and use his dealer discount (without rebates) for leverage at local dealers. They may not match it, but they may get close. I live in East Tennessee and was able to use his numbers to get a dealer down to within $900 of the dealer discount. I figured for $900 it's worth it to buy local and not have to deal with purchasing out of state. The biggest variable is probably what rebates are available at delivery, which ones you qualify for, and how they may stack. For example if your a USAA member, realtor, competing truck owner, etc...you can get some good rebates, if they stack.

Thanks for this. I'm looking at trading in my current 2016 GMC Canyon SLE (71k miles), but I'm probably only going to pocket around 2-3k on it. So if I'm doing my math right:

2019 Limited
50k price (that's after black friday, conquest)
-1k USAA
-3k trade in
-3k down payment
...43k total
+4k TN tax/title (my guess)
47k all in

Even if I got a good loan rate somewhere of 3%, I'm sitting at $715 or so per month, which is about $90 more per month than I want to spend. I need to come up with another -5k off that all-in price to make this doable.

Maybe my tastes are outweighing my wallet.

 

[stevetom84]

Thanks for this. I'm looking at trading in my current 2016 GMC Canyon SLE (71k miles), but I'm probably only going to pocket around 2-3k on it. So if I'm doing my math right:

2019 Limited
50k price (that's after black friday, conquest)
-1k USAA
-3k trade in
-3k down payment
...43k total
+4k TN tax/title (my guess)
47k all in

Even if I got a good loan rate somewhere of 3%, I'm sitting at $715 or so per month, which is about $90 more per month than I want to spend. I need to come up with another -5k off that all-in price to make this doable.

Maybe my tastes are outweighing my wallet.

An additional $5k will probably be hard to make up, unless FCA comes out with some better rebates on the Limited. Looking at your numbers, I'm guessing you're looking at a 72 month loan. Here in East TN there are some credit unions that have 78 month loans at the same APR as 72. If that's an option and you don't mind an additional 6 months of payments, that could get you closer to the monthly payment your're look for.

 

[KJRam]

Did the limited rebate change after 11/20? I noticed at the beginning of November it was 3,000 (went up from 1500) but now when I checked today, I see it’s down to 2000. Which is all Black Friday related. At the beginning of November it was one Black Friday rebate and the traditional 1500 rebate.

 

[OldTNHillbilly]

An additional $5k will probably be hard to make up, unless FCA comes out with some better rebates on the Limited. Looking at your numbers, I'm guessing you're looking at a 72 month loan. Here in East TN there are some credit unions that have 78 month loans at the same APR as 72. If that's an option and you don't mind an additional 6 months of payments, that could get you closer to the monthly payment your're look for.

I emailed Craig at Koons to see what he could do for me. In the meantime, I'm looking for any TN dealerships that will entertain price matching.

 

[stevetom84]

I emailed Craig at Koons to see what he could do for me. In the meantime, I'm looking for any TN dealerships that will entertain price matching.

I was able to work out a deal with Dustin Nadeau at Lenoir City Chrysler Dodge Jeep Ram. Once you get a reply from Craig, you could try sending Dustin an email to see what he can do for you ([email protected]). No guarantees on what he can do, but certainly worth a try. Tell him Stephen E. sent you.

 

[OldTNHillbilly]

I was able to work out a deal with Dustin Nadeau at Lenoir City Chrysler Dodge Jeep Ram. Once you get a reply from Craig, you could try sending Dustin an email to see what he can do for you ([email protected]). No guarantees on what he can do, but certainly worth a try. Tell him Stephen E. sent you.

their prices are all in the upper 50's, so I doubt they would come down an extra $8k, but thanks anyway.

 

[Ortiz7983]

Laramie 4wd
Black appearance package
Level 2
12” inch nav
Bed utility
Advanced safety

Msrp 62,650

That’s what I got. My MSRP was at $59,650 though.

 

[stevetom84]

their prices are all in the upper 50's, so I doubt they would come down an extra $8k, but thanks anyway.

I wouldn't necessarily look at the prices listed online. I got my number from Koons and they were able to get within $900 before taking into account rebates.

 

[OldTNHillbilly]

I wouldn't necessarily look at the prices listed online. I got my number from Koons and they were able to get within $900 before taking into account rebates.

hmmm, well I'll give it a shot. Craig already got back to me today, and I just sent him some links and pdfs. hopefully I can work out a deal before all the rebates/incentives expire in Dec.

 

[Socks]

That’s what I got. My MSRP was at $59,650 though.

What's up with the 3 page signature. You dont think it's a bit overkill? Felt like I scrolled down forever just to see the next comment.

 

[Ortiz7983]

It’s been

What's up with the 3 page signature. You dont think it's a bit overkill? Felt like I scrolled down forever just to see the next comment.

fixed already. Right after your post.

 

[durestos]

Also, is the 0% for 36mo a Chrysler finance thing or?

It is, but you would have to give up all rebates of course

 

[KJRam]

It is, but you would have to give up all rebates of course

The 0% for 36 months gives you a 1500 dollar rebate.

 

[Grunkster]

yea my dealer just confirmed that....I took the rebates lol

 

[Zinger]

It is, but you would have to give up all rebates of course

This is what the last dealer I talked to told me, and actually SHOWED me on his computer screen. He selected the financing and then showed how the $1000 Black Friday cash was no longer an option (greyed out).

The 0% for 36 months gives you a 1500 dollar rebate.

Another dealer told me you gave up $500 of rebate to get the 0% financing. However, see above!

Who knows what the heck is true? Based on my data from the dealers, I would say that there is no way you get $1500 in rebates if you take the 0%. Something is going to drop off unless they are wrong.

 

[JustAnotherGuy]

The rule of thumb absolutely applies to the big 3. Ram, Ford, Chevy (GMC). There is zero science to it. It's just generally speaking, at any time per year, if you are getting offered anything less than $10k off you are over paying. Period. Get them during a good time and you can expect up to $15k. I've had friends argue with me, and after a lot of prodding, they always come back with the deal I said was possible. Like I said before, none of us have any clue what the dealers pay, not even their employees. It's all smoke and mirrors.

This is not a thesis for my PhD. It's a general "truck buying for dummies guide". It's not a detailed explanation of how to get the best deal. There are tons of those and yet so many people end up thinking they got a good deal when they didn't. Why? Because they think they are "educated" thanks to the internet. I've helped a lot of people get good deals. All of them have read up on the same old stuff..."get the invoice and go from there"..."make sure you know all of the dealer incentives"..."what's the hold back"...it's all crap created by the dealer and factory network to make the consumer think they're educated. It's much simpler if you have a general idea of what discounts are available in what categories. And regardless of manufacturers, you can paint a fairly broad stroke and be somewhat accurate. American cars typically follow the same rules, and then the Germans follow their rules, and the Japanese follow their rules. You can reliably expect the best discounts on American cars.

If you want to play the game and negotiate down from invoice, fine. Just understand, if whatever number they give you is less than $10k off MSRP, at any time per year, you're not getting a great deal. As simple as that.


Quick Addition: When we bought my wife her loaded Platinum Escalade last year, we spent a few days negotiating on it. I used my rule of thumb. $10k+. It was christmas time so I figured $12-15k. Salesman got frustrated and went through all the BS about where the money would come from. They kept telling me they couldn't get there. Too far apart. They'll lose money. In the end, we got $16k off on a brand new loaded Escalade. I ignored their detailed explanations and succeeded by having a general idea of what kind of discount I could expect.

I don't think there is a rule of thumb you can apply to all truck purchases. You site $10-15k discounts in your initial post. That's quite a spread so why settle for $10 if $15 is available? The difference between MSRP and dealer invoice for Ford GMC, and Ram are not the same so trying to apply a single discount is of no value. MSRP is an absolutely made up number and has grown faster than dealer cost over the last 10-15 years.

An internet ad is also of little value as many will include every consumer incentive even though no one will qualify for all of them. They are designed to get you into the dealer as that is there best chance to sell you a vehicle.

You are correct that car dealers are wealthy (water is wet) but they make most of their profit from finance and add on warranties, service and warranty work. Just check the publicly available annual financials of Auto Nation. You are also correct that you may have to travel to get the best deal. Reading this thread proves that. Some people just don't want to deal with that hassle.

So read this thread, find out the dealer invoice and negotiate down from there. Do it over the phone, text or email. If you go into the dealer they have home field advantage. You can also visit fightingchance.net for a lot of good info on how the industry has changed pricing to deal with the information available on the internet. I have no affiliation, just good reading. Good luck in your search. I will be ordering a truck from Koons next month.