Where's the rub on down-payment matching? [Archive] - Glock Talk

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PBCounty
04-28-2013, 15:50
The local Jeep dealer is offering down payment matching up to 8K. As in I put down 8K and they will match it. I've watched their inventory for a while now and the prices of the vehicles haven't been marked up from prior to this "deal." I know their has to be an angle here (no one is just going to knock 8K off a 30K vehicle that already sells like crazy to begin with)...but what is it?

Knighj1
04-28-2013, 15:54
It probably applies to one stock number, aka one vehicle on the lot

kirbinster
04-28-2013, 15:56
You have to finance with them at 24% interest rate? :)

PBCounty
04-28-2013, 15:57
They are pretty adamant that it applies to all of their Jeep / Dodge products...but then you never know I guess.

podwich
04-28-2013, 16:23
Well, find the car you want, make sure the price is within a fair range (TMV or something), make sure their interest rates are reasonable and loan terms are normal, put down your $8000, have them match their $8000, and go home happy.

My guess is you'll run into some kind of block along the way, but if you do, walk. Not much to be lost except a little time.

Dan_ntx
04-28-2013, 17:03
You use captive financing (theirs)...
You buy at MSRP leaving them plenty of front end profit...
Not many people put 8k down...
They need to sell the 13's before the 14's land on them...

And honestly, 8k is not a crazy discount. When I used to broker auto lease deals I would regularly buy new vehicles for more than 8k behind sticker. Dodge Ram trucks and Volvo sedans often had 8k or more off invoice, and there was a 3 or 4k gap between invoice and sticker.

Jeep had a banner year in 12, and did well in 13 but the key to keeping that going is to NOT have a lot full of last years models. Just ask Honda.

rauldduke1979
04-28-2013, 17:43
You use captive financing (theirs)...
You buy at MSRP leaving them plenty of front end profit...
Not many people put 8k down....

This was my thought as well. Yeah, they'll have a couple guys arrive with a check for $8k, but mostly people will come in with $500. Then Jeep sells a vehicle for $500 off MSRP which I bet is less than a run of the mill incentive.

czsmithGT
04-28-2013, 18:05
Let's say you find a new Grand Cherokee Laredo, basic 2 wd model, with a MSRP including delivery, tax, title, fees, etc of $31,000. Offer $30,000 and a down payment of $8,000 and tell them you want their matching $8,000 and you want to finance the $15,000 balance through your credit union. See how far off their counter offer is from what their advertising seems to indicate.

Z71bill
04-28-2013, 18:38
It's a Dodge.

Sorry - truth is sometimes harsh.

devildog2067
04-28-2013, 18:47
The local Jeep dealer is offering down payment matching up to 8K. As in I put down 8K and they will match it.

I never ran a sale like that so I don't know what the details are, but the short answer is... it's a lie.

Car dealers don't care how much you put down unless you need a down payment to get below an LTV cap. They're not going to "match" anything.

sierrafast
04-28-2013, 21:04
It's a Dodge.

Sorry - truth is sometimes harsh.

I partially agree. I would buy a Jeep Wrangler though..

PBCounty
04-29-2013, 01:08
I am so doubtful of the authenticity that I will have to talk myself into going in there. We will see.

BobbyT
04-29-2013, 01:55
I'd negotiate the final price first, then pull out the checkbook for 8k.

Otherwise the price is just going to reflect the "match". It's no different than combining your trade-in and new car price so that one looks appealing but the other is canceling it out.

TANSTAAFL.

MaxxAction
04-29-2013, 05:22
I'd negotiate the final price first, then pull out the checkbook for 8k.

Otherwise the price is just going to reflect the "match". It's no different than combining your trade-in and new car price so that one looks appealing but the other is canceling it out.

TANSTAAFL.

This...

the majority of those deals are based on you paying MSRP for the car. Most times that is spelled out and disclosed in the fine print of the ad.

southernshooter
04-29-2013, 06:07
I am so doubtful of the authenticity that I will have to talk myself into going in there. We will see.

Their "matching" just comes out of the price padding they have. Instead of giving a higher discount they just "match" your down payment with the excess price they have up front. This is done on trade ins also. Looks like you are getting a good trade in but you are really just about giving them your trade in for free.

railfancwb
04-29-2013, 06:32
In my area, fireworks can be sold for a couple weeks around NewYears Day and another couple weeks around the 4th. The tents always have signs bragging about the 50% to 80% discounts on everything. Yeah, right.

The cost to print price stickers is not changed by the numbers on the stickers.


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railfancwb
04-29-2013, 06:34
Of course, when selling big ticket items such as a car, suspension of disbelief by the would-be purchaser is essential to the sale.


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Z71bill
04-29-2013, 06:52
In my area, fireworks can be sold for a couple weeks around NewYears Day and another couple weeks around the 4th. The tents always have signs bragging about the 50% to 80% discounts on everything. Yeah, right.

The cost to print price stickers is not changed by the numbers on the stickers.


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Between Houston and College Station there are several fireworks stands that pop up every year - one always stands out -- the BIG SIGN that says - BUY 1 GET 10 FREE!

OMG what a deal! :upeyes:

Z71bill
04-29-2013, 06:58
This...

the majority of those deals are based on you paying MSRP for the car. Most times that is spelled out and disclosed in the fine print of the ad.

I saw one a while back that said $10K off (then in small print) off of AMSRP.


AMSRP = Adjusted Manufacturer's Suggested Retail Price

So they adjusted the price up then offered a big discount. :cool:

larry_minn
04-29-2013, 08:49
Regards sales. My dad told me he worked in hardware store one summer. They had some small toys. Huge box of them for $.10 each. Didn't sell a one.
So they put box in back, put small box by till "Sale 8 for $1" With only a dozen toys in small box. He was brining up handfulls of toys all day for the "sale"
I bought a new $45k Ford. We had verbal and as I went in to close deal I saw FORD had a new "0% for 12 months (or maybe 18? on all new purchases"
I ask salesman if I could get that. "sure, no problem. The total now will be $51k (area) " I ask why??? "Well for this deal we have to use the "blank" price. (likely similare to MSRP) So I paid it off.
If a person is careful, you can save some $$$ (over general public) Remember they have system/ this is what they do daily. IMO aim so BOTH parties win. I don't mind them making some money. I just don't want to finance the entire business for 3 months. :)

toshbar
04-29-2013, 08:56
L0Lchryco.

CAcop
04-29-2013, 09:57
I havent checked lately. How are dealers and manufacturers of cars doing lately? When we bought our latest car a few years ago they were offering 0% intrest on a 3 year loan. From what I could tell they only made $500 off the sticker price. That dealer was hurting bad.

I suspect with this thay are offering it firguring that most people are only going to drop $500-1,000. People are also probably going to go in and announce that they saw the match your deposit ad and the sales staff will act accordingly. If they do it right they might end up making money off the deal. The buyer is likely not going to negotiate as hard if they think they are getting $500-1000 off the MSRP when they might be able to get more than that without the matching.

I swear dealing with sales people is the best training you can get for interrogating suspects.

Z71bill
04-29-2013, 12:04
I havent checked lately. How are dealers and manufacturers of cars doing lately? When we bought our latest car a few years ago they were offering 0% intrest on a 3 year loan. From what I could tell they only made $500 off the sticker price. That dealer was hurting bad.

I suspect with this thay are offering it firguring that most people are only going to drop $500-1,000. People are also probably going to go in and announce that they saw the match your deposit ad and the sales staff will act accordingly. If they do it right they might end up making money off the deal. The buyer is likely not going to negotiate as hard if they think they are getting $500-1000 off the MSRP when they might be able to get more than that without the matching.

I swear dealing with sales people is the best training you can get for interrogating suspects.

http://www.usatoday.com/story/money/cars/2013/04/29/chrysler-first-quarter-earnings/2119855/

F106 Fan
04-29-2013, 12:27
Well, you have the sticker price so you know the MOST the vehicle will cost. You know that your interest rate shouldn't be higher than 2.9%. So, if their matching $8k down payment is more than you think they would discount the sticker price then you should be taking the vehicle (assuming $32k) for $16k financed. Plus tax, license and transportation fee.

If the vehicle was actually $32k (sticker price), an $8k match is 25%. That's a pretty big discount. It doesn't seem right!

Anyway, you know going in what you expect. If it doesn't work out, walk away. All you have lost is a little time.

Don't even get me started on the trade in. That is an entirely separate can of worms. We just wanted to get rid of our 20 year old truck and we got (more or less), $1k. Not a big deal for us because we just wanted to scrap it.

Richard

PBCounty
04-29-2013, 14:06
I'll think about it for a day and maybe give it a shot.

devildog2067
04-29-2013, 14:31
I'll think about it for a day and maybe give it a shot.

Why?

You can pretty much get the same deal on pretty much any new car on pretty much any day of the month, and the exceptions (like if the dealer has to sell one more car to hit its dealer cash bonus or whatever) are not ones you'll know about or that are advertised.

There's no secret pile of money that the dealer taps into (although that's not a bad idea, now that I think about it). There's no magical way that the dealership can afford to make less profit on a sale day. They still have to pay salaries and keep the lights on.

I used to do "red tag" sales and "one price" sales and "$5 car" sales and "factory clearance" sales to say nothing of Toyotathon and all of that stuff. With very few exceptions it's all the same. Sales are nothing more than a song-and-dance to drive foot traffic.

(For me, the most interesting part of this is... even with so many people telling you this, you're still thinking about going. As Rabbi likes to say, the psychology of sales is smarter than "you" are.)

PBCounty
04-29-2013, 14:43
Why?

You can pretty much get the same deal on pretty much any new car on pretty much any day of the month, and the exceptions (like if the dealer has to sell one more car to hit its dealer cash bonus or whatever) are not ones you'll know about or that are advertised.

There's no secret pile of money that the dealer taps into (although that's not a bad idea, now that I think about it). There's no magical way that the dealership can afford to make less profit on a sale day. They still have to pay salaries and keep the lights on.

I used to do "red tag" sales and "one price" sales and "$5 car" sales and "factory clearance" sales to say nothing of Toyotathon and all of that stuff. With very few exceptions it's all the same. Sales are nothing more than a song-and-dance to drive foot traffic.

(For me, the most interesting part of this is... even with so many people telling you this, you're still thinking about going. As Rabbi likes to say, the psychology of sales is smarter than "you" are.)

Oh, understood. I have been on the fence over this vehicle for a year now (hence me knowing the price has remained stable) largely because it's a different kind of vehicle than I've ever owned (I've never not had a pick-up). Even it was 10K cheaper than it is now, I'd still be doing the hem-haw. It happens however that my current vehicle is growing increasingly tired and my friends and GF wont shut up about me getting a Wrangler.

toshbar
04-29-2013, 23:09
Why don't you just pay cash for an 8 year old wrangler? Get one that's already lifted and got all the bolt-ons.

Oh, and DO NOT get a new wrangler with the Pentachrist power plant...they're warping heads all over the place.

PBCounty
04-29-2013, 23:13
Why don't you just pay cash for an 8 year old wrangler? Get one that's already lifted and got all the bolt-ons.

Oh, and DO NOT get a new wrangler with the Pentachrist power plant...they're warping heads all over the place.

I haven't heard about the warped heads...something to research. But otherwise, because around here even old and beat Wranglers command a premium and they don't come with a 5spd auto and 285 HP like the 2012+ models do.

railfancwb
04-30-2013, 21:14
I swear dealing with sales people is the best training you can get for interrogating suspects.

Plus one!

At one time I was the technical person backing the sales person, who was also my direct boss and the company president. Always exciting to find out what he sold that I had to deliver.






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