Buying Vehicles Below Invoice

[TerryinMD]

Miklos,

Whoaa.. You got 13-14 mpg with a Dodge V-10. That's better than my 1500 with a 360 Ram. I was told by my dealer that I could expect 8-10 mpg with the V-10 in a 2500.

?????

Terry

 

[Miklos]

V-10 Mileage

13-14 empty, 8-10 working hard. Before I bought it, the dealer told me not to get the 4.10's, but I'm glad I did. I ran 285's on it that were 32" dia, no lift.

I don't have much experience with the late model 360's, but I did drive the company truck, a 96 2wd 2500 Dodge, 360ci auto, from Portland Or to Seattle Wa and back. I checked the mileage and got 18.37mpg. That was going 80mph with about 1000lbs in the back.

I can get pretty bad mileage no matter what I'm driving, if I try hard enough. It's easy to drive for good mileage too, though.

"Dont drive it like you stole it, drive it like you want it to last"

 

[cp1969]

The company where I work has agreements with Ford and GM, except it's not 'X' plan, it's 'X' plan plus 4%, which I figure is worse than going out an negotiating on your own.

Several people I work with have bought new Fords using this plan, but none that I've asked bothered to check Kelly's to see how much above (or below) dealer invoice that 'good deal' turned out to be.

I can't afford one right now, but the Dodge dealer's first offer over the phone was for $500 under dealer invoice to order a Cummins Ram, and unless I miss my guess, that's probably less than 'X' plan plus 4%, and may in fact be less than 'X' plan with no extra added on.

I also predict that once this 0% stuff goes away, showrooms will be empty. A lot of people have bought cars that they didn't really need but thought they couldn't afford to pass up such a deal, and won't be back for quite a while.

 

[dmccarty]

cp1969,

From the responses I'm wondering if people are comparing apples and oranges.

MSRP - List Price of the vehicle.
Right now on the trucks I'm looking into, 4x4, Crew Cab, Diesel, 8' bed, XLT package, etc runs $40,000 to $43,000. A 2001 that I researched, and has since sold, listed for $39,325.

Invoice - Rought 12% less than MSRP. The same researched truck's invoice was $34,795 or 11.52% less.

A Plan - I read as the Dealer Net price. It appears to be something like 5.5% LESS than invoice.

X plan - 4% above A Plan. The same researched truck's X-Plan price is 1.2% LESS than invoice, $34,392.

There was a $1,000 rebate that would also be subtracted to a final $33,392 but then we get into taxes! /w3tcompact/icons/smile.gif

I have never gotten a vehicle less than invoice. Course the last truck I bought was during the feeding frenzy where everyone had to have a large truck/SUV. I tried an AutoFinder type company in 1995 and the dealers would not even give them trucks to sell. Demand was to high. Right now the same AutoFinder company can get me a truck for $300 over invoice.

I went to the dealer last night and it was looking grim on finding the truck I wanted. But suprise suprise they actually had a SRW 350, 4x4, Crew Cab and A MANUAL 6 speed on the lot. For some reason the dealers are not ordering the 6 speeds and I don't get it. Its the only manual I have seen in the dozens of inventories I have researched. Drove the truck and was very impressed. Very.

Today, we started talking price. X-plan makes most of the discussion a no brainer. The big deal will be the trade in on my truck. I researched the dealers prices on used cars and they are coming in at NADA retail values. So I want NADA value for trade in on my truck... Seems fair to me. /w3tcompact/icons/smile.gif They still will make at least $2,000 on the trade in and at least 4% on the new truck plus whatever incentives the dealers get.

If they hold out on the trade in price I won't buy. Eventually in a few months I think there will be rebates on the 2002. The low interests loans only go so far on 40,000 dollar vehicles.

I'll post what happens.

Later...
Dan

 

[gerard]

Don't feel bad Terry - I get around 9mpg around town in a Ram 2500 w/ V8. Get 14 or 15 maybe if all highway. Not impressed with the mileage though, thats for sure!

 

[cp1969]

Your post pretty much confirms my suspicions--that better deals can be had than X plan.

The nearby Ford dealer has been selling new cars and truck for $50 over dealer invoice since at least 1988 (that's when I bought my first one from him). His profit was always the dealer holdback, which is around three percent of MSRP. Nowdays, $50 over dealer invoice is no bargain--for instance, the Dodge dealer who offered to order a Ram for $500 under dealer invoice. Where are they making their money? Holdback on this truck would be around $1000, so they're willing to make $500 to order one. $500 is still a fair amount of money for taking an order and prepping a vehicle.

Wish I could afford it.

 

[dmccarty]

I have talked to lots of people here at work and nobody as ever seen a dealer that was pricing at Invoice. And certainly NONE of the dozens of dealers I have visited with over the years are selling at Invoice to start. The only dealer that I know of that does this is in OK and he has a no haggle dealership. Its Dodge which I'm not interested in buying but he is winning kudo's from people who deal with him.

Certainly there are no dealers in the central portion of NC that are selling at invoice that I know of and I have visited lots lots in person and via the web.

I ended up buying a new truck on Saturday. The sales dude did not know that I was eligible for X Plan. His starting over was 5% under MSRP. He also threw out the price they were giving me for trade in. One I knew my trade in I told him was purchasing under the X Plan. I don't have the exact number on the deal since the bottom line, i.e., my loan amount after the trade in was a few bucks better than I thought, so I did not work out the percentages. But I had to be 12-13% below MSRP. The trade in price was $500 lower than I wanted and after 30 minutes of haggling the dealer had moved up $400 which was good enough.

There ain't no way in H.ll that the dealer was going to sell me a new truck for 12-13%($3000+) LESS than MSRP without X Plan.

You had better frequent that dealer to keep him in business! /w3tcompact/icons/smile.gif

If I could have gotten a 2001, they had one in which I was interested but it sold, I would have gotten another $1000 off X Plan or 3.9% financing.

The bottom line in my area is that the X Plan is the best anyone is going to get unless they are a dealer/brand employee.

Later...
Dan McCarty

 

[cp1969]

From Kelly's Blue Book, the Ford Super Duty, typically equipped as on my nearby Ford dealer's lot, lists for $37,520. It can be bought by anyone who walks in for $32,965, which is $50 over dealer invoice (and roughly 88% of list price). Better deals than this can be had, though, because in addition to the $50, the dealer will be making 3% of MSRP which amounts to $1125.60. This money is up for negotiation.

You could very well be correct about geography having an influence. If everybody who walks in pays MSRP without quibbling, you'll have a hard time buying one for invoice--the predominant fool (with money) always sets the prices.

Apparently it's harder to sell vehicles around here than where you're at.

 

[IllMarty]

I think most dealerships do not give much in trade and make alot there also. I just bought our van which listed for 36,600 for 31996 which was invoice price(87% of list). Dodge also kicked in the $1500 rebate which lowered the cost to 30496 or 83.33% of list.The dealer made his 3% hold back. They were willing to give me 5,000 for my trade which I sold to Carmax for 6,500. Kelley listed this trade-in being sold retail as 9300 asking price, so the dealer is trying to make 4,300 on the trade, which will in all actuallity would be sold for 8,000 or so. Invoice is just the starting point around Chicago unless the vehicle is in high demand.