How Much Under MSRP

[akronharry]

Decided to look for a new F250. How much under MSRP is a fair price?
Thanks in advance.

[akronharry]

WOuld a Ram expert please take a look at this window sticker that I am considering:

http://www.chrysler.com/hostd/windowsticker/getWindowStickerPdf.do?vin=3C6UR5CJ5EG168168

Their price is 32,795...about 20% off the sticker.

My question is: Is there anything I am missing on this truck for towing?
I think everything is there to tow, but one of you may spot something I should have when towing and not listed on the sticker.

[JALLEN4]

Redsky wrote:
Forget about MSRP as it means absolutely nothing. Closer to reality is the dealer invoice but it is a high figure as the dealers all get the equivalent of rebates based on how many units they sell in a given sales period. At the end of the year making the next bracket will result in a higher rebate on every car and truck they sold during the period and they are much more eager to deal.

If I am shopping for a vehicle that is in short supply I do several things. First I go to the sale manager or the fleet manager and do not talk to a salesperson. The managers do not get a commission on the trucks so that is money that available from the deal at no cost to the dealer.

Second I will offer to pay $1,000 over dealer invoice. The sales manager knows that they are actually making a lot more than $1,000 on a truck at that price. If I go in at the last couple days of the month as they are more anxious to make their numbers.

Third I will make it a cash deal with no trade-in and no financing. For them it is a simple transaction and they can even sell a truck that is sitting on another dealer's lot with little difficulty.

Once I have the deal on the vehicle struck I will ask for add-on items and if they refuse then I will ask for them at their cost and with no labor for the installation. They have never refused all of the asked for freebees and always have installed add on items at their cost and with free labor. When they have a $35,000 to $50,000 sale on the table they do not want to screw it up over a few hundred dollars.

With my last SUV I got free mats and free tow hitch. With my last truck I got free chrome side steps, free bed liner, free tow mirrors, and free tool box. And I paid $6,000 under the MSRP for the truck.

It never hurts to ask for anything. If you are dealing with the fleet or sale manager you avoid the common ploy of the salesperson saying that they need to get their manager's approval.

Actual "Fleet" sales are those when the buyer has a fleet number issued by the manufacturer. These sales generally involve a fleet discount from the manufacturer not available to the retail purchaser.

Sales made by the Sales Manager and retail sales made by the Fleet Manager are normally commisionable in every dealership. You are not saving anything by purchasing from these people. Since the average new vehicle sales commission is around $150, there is not a huge savings available to begin with.

If you are offering $1000 over invoice, I am sure they love you and are amenable to give you some "freebies". On a forty-thousand dollar truck, $1000 over invoice and the holdback would represent around $2200 in gross profit. The average new vehicle gross profit among all dealers runs around $1200 year after year.

[JALLEN4]

GoPackGo wrote:
Yes, several dealers did give me the 'factory invoice' when I was looking to order my truck. Funny thing how some of them had a dealer upcharge of around $1000 INCLUDED in the invoice. This is the charge for paperwork prep, etc. Obviously not a factory invoice, even though it was stated as such.

If you do get anything from the dealer, look at each and every line.

Tim

Dealer invoices do contain "other" charges such as advertising. These are legitimate invoice items and can vary from dealer to dealer depending on what regional advertising associations they may belong to.

[JALLEN4]

pitch wrote:
Never pay cash!!!! Dealers receive a percentage on the volume of loans that write for the lender. Make sure that there is no prepayment penalty in the contract,(some states do not allow them) let the dealer finance and go home and write a check to the lender. I don't care who' name is on the check. Let the dealer earn a few points on his loan.

There is not a lot of direct profit in new car sales. Loan rewards, volume and performance incentives, floor planning and a myriad of other factors affect the bottom line.

There are enough people that buy well above list that profit on a single unit is not an overriding factor.

It simply does not work that way. If the loan is paid off in a short period of time, the dealer participation in the loan is charged back to the dealer. This is not the first rodeo for either the dealer or lender and they have seen these silly games forever.

[Cummins12V98]

If anyone wants something to show your local dealer. Contact Dave Smith Motors in Kellog, ID. They are the worlds largest Chrysler dealer and they also sell GM products.

They sell at invoice plus incentives. My Longhorn sticker was almost 62k. I paid out the door with WA State sales tax included 56,160. Price without tax was just under 52K. I actually got another 1,300 off because I was walking out the door and it was a cash deal.

[GoPackGo]

Yes, several dealers did give me the 'factory invoice' when I was looking to order my truck. Funny thing how some of them had a dealer upcharge of around $1000 INCLUDED in the invoice. This is the charge for paperwork prep, etc. Obviously not a factory invoice, even though it was stated as such.

If you do get anything from the dealer, look at each and every line.

Tim

[Goldstalker]

dbear wrote:
Where can I find dealer invoice? All I ever see is MSRP.

Just ask the dealer. Any reputable dealer will show it too you up front no problem. Many will email it to you.

[Cummins12V98]

john&bet wrote:

Cummins12V98 wrote:

john&bet wrote:
I bought my last one at 1% over invoice and the dealer never flinched.

Because you should have gotten it at invoice minus any incentives.

Don't worry about what I should have or did do. I am still happy 10 years later. JMHO.

JMHO also!

[dbear]

Edmunds only works for the makes/models it chooses. I'm looking at Ford and Ram class 4 and 5 chassis cabs. Edmunds doesn't even acknowledge they exist.

[john_bet]

Cummins12V98 wrote:

john&bet wrote:
I bought my last one at 1% over invoice and the dealer never flinched.

Because you should have gotten it at invoice minus any incentives.

Don't worry about what I should have or did do. I am still happy 10 years later. JMHO.

[GoPackGo]

edmunds.com

Also, sometimes your credit union can tell you.

[dbear]

Where can I find dealer invoice? All I ever see is MSRP.

[Cummins12V98]

john&bet wrote:
I bought my last one at 1% over invoice and the dealer never flinched.

Because you should have gotten it at invoice minus any incentives.

[pitch]

Never pay cash!!!! Dealers receive a percentage on the volume of loans that write for the lender. Make sure that there is no prepayment penalty in the contract,(some states do not allow them) let the dealer finance and go home and write a check to the lender. I don't care who' name is on the check. Let the dealer earn a few points on his loan.

There is not a lot of direct profit in new car sales. Loan rewards, volume and performance incentives, floor planning and a myriad of other factors affect the bottom line.

There are enough people that buy well above list that profit on a single unit is not an overriding factor.