Dealer selling at his Invoice Cost?

[MojaveJoe]

Im in Southern California and wondering if there are any dealers in the 3 state area CA/AZ/NV who would sell me a new truck order for their invoice cost +$500?

I did this with a new order back in late 2003 for my 2004, with a dealer in Ohio. While I don't relish the idea of buying a new truck at today's prices, finding a new or used truck setup the way I want and without a bunch of options Id never use seems to be the best path for me now. Ive been the luxury route now and just want to get a good truck, with the basic stuff I want and pay a fair price for it. The way I see it, if a dealer orders a truck for you, their costs selling it are minimized so selling at or below their Invoice cost (with built in profit margins) should be a no-brainer for a large volume operation.

Been checking out Dave Smith in ID and their new inventory, without much luck so far on my option needs. So if I can order new and pay invoice price the new truck depreciation at drive-off should be minimized on day 1.

For me it comes down to buy a cheaper truck without everything I want and put the stuff on myself at aftermarket prices, or order new with all that stuff and avoid the aftermarket guessing games, and have it be nearly a push in overall price.

All advice and experiences welcome.

 

[jkalchik]

My understanding is that dealership accounting is Byzantine at best. Their real cost isn't invoice.

The short story is that they're going to make money on a sale, period. The sale won't happen if they're not happy with the price.

 

[RustyJC]

Dealer invoice less any rebates in effect at time of delivery is the going internet price for an ordered Cummins/Ram here in the Houston, TX area. The dealer makes his money on the holdbacks, etc. that you don't see reflected in the dealer invoice price. The articles I've read indicate that dealer profits on new vehicles are in the single digit percentages; the money is made in the finance office, parts and service as well as on the used car lot.

Rusty

 

[Regcabguy]

I didn't have any luck in the same states your seeking back in '06. DS and Dishman Dodge offered me good deals and I went with Dave Smith.
I asked for the identical price you're asking for to no avail. I would have liked to have gone local.

 

[tommyturbo]

Joe. My experience with buying new from a dealer is enjoyable and entertaining. I don't have anything against the dealer making a living and supporting
their families but the dealers always make profit on a sale. The factory gives them an amount per sale right off the bat, so they don't lose. My approach
is to walk in and basically state how much I am willing to offer, then it is on them to agonize over meeting it. The key is having good credit or an equity
line of credit or credit card or cash. Mine was good credit and I used a simple interest equity line with 4% interest and I doubled up on payments just like
a revolving credit card, saving interest. Next, after settling on the vehicle you want, total up the max retail window sticker selling price before any discounts,
then multiply times .65%. On my '08 the retail sticker was $44,790.00 times .65% =$29,113.50. I found one truck I wanted online in San Diego and two in
Texas, period. A 2WD with 4.11 axle was scarce as hens teeth. I went to Cerritos Dodge first and offered $29.000.00. The salesman had a cow! The manager
also squirmed a little too. They countered with $100.00 over mine but I refused. Getting back in my '03 to leave, the manager and one salesman came up to
my window and begged me saying that it's only a little more a month an can give me a discount on accessories. Next, I called Champion Dodge in Downey and
asked if they would accept my $29,000.00. They called back three hours later and said yes. When I went to do the deal, they too came up with the same $100.00
over mine and accessory discounts. It took about an hour before the owner showed up and finally gave in. He said they are a small dealer and had less overhead
costs. They drove down to San Diego and brought the '08 back to Downey. I used this approach again at Longo Lexus to buy my wife a '12 350 ISC convertible.
The young salesman looked like he was poked in the ribs with a sharp tipped knife and wore out the floor to the manager's office. I said my wife is getting
hungry and we need to leave and go have lunch. Then we struck a deal. If you have a trade, wait until you agree on a selling price first, then bring up the
trade. That way the dealer can't play the number game.
It costs about the same to produce a car or a PU truck but the PU's have more markup and generate more profit.
Let the dealer work for your hard earned money. Remember the customer does have say so.
My $.02.
Tom

 

[TJJEEPER]

Joe, have you contacted Hunter Dodge out in Lancaster? I bought my '12 there and got a pretty good deal.

 

[SnoKing]

Tommyturbo

Well! My truck had a MSRP of 64,595. No way were they going to sell it to me for 41,987.(65 %) Just is not going to happen. That might happen with RV trailers, but not with cars and trucks.

Invoice plus some or all of hold back yes!

And they are not going to do a dealer trade on a vehicle and loose that kind of money. Something else is going on with your numbers, or you should start a company to buy vehicles for people for 5 or 10% of invoice. You would be very rich very quickly. But like Las Vegas you would find yourself ban from the tables!

SNOKING

 

[photowrite]

Dave Smith got my business 16 months ago because of their pricing, it was worth it to have the truck shipped to me in Nevada. The buying expirence was good and straightforward.

 

[tommyturbo]

SNOKING. Actually the lowball number I got was from a dealer in Norco CA advertising online 35% off for two
'07.5 longbed 2WD work trucks. They must have wanted to get rid of inventory. So, if it works for them the I will try it.
I took a business friend to Champion Dodge for a '12 1500 loaded QuadCab and he offered 35% off the sticker and wound up with about 32% off and
he also bought dealer installed accessories. Paid with a credit card. This was on Black Friday,2012.
You are right about numbers as the selling price was great but I traded in my '03 hemi and took a hit because it had a T bone accident repair on
record. My wife's '06 RX was also got hit on trade because of radiator and brake issues. That deal was three days before Xmas 2012.
My '08 deal was after Thanksgiving '08. Timing must help. It also depends on how bad the dealer wants to move stock.
TOM

 

[MojaveJoe]

Now there's some good info. Thanks guys.

So how do I find out about Mfr incentives, current or upcoming, to calculate them into my offer?

 

[SnoKing]

First you decide what you want! Then you contact the dealer via email and state that you are wanting to by a new truck at invoice, minus incentives, minus part or all of the dealer hold back. And ask the question, do you want to sell me a truck under those terms? BTW, I had to pay Washington sales tax on that 3K incentive discount.

SNOKING

 

[RustyJC]

I was just looking on the Tomball Dodge website (I'm just using it for an example) this morning. On their inventory page, they're showing a $3K factory incentive on '15 3500s and a $2K factory incentive on the '16s. In addition to the dealer websites, I think KBB, NADA or some others also keep a list of factory incentives.

Rusty

 

[tommyturbo]

Joe. Actually it is not your job as a customer to find whatever incentives or rebates or whatever to apply. It is up to
the dealer to scour anywhere there is money they can get from the manufacturer to honor your offer, also how bad
they want to move inventory. I go in to the dealer with confidence all around me and tell them that the purchase is not a need
but a want and I am not desperate to buy. When the shoe is on the other foot the dealer will respect you as a customer. They
might grumble behind your back but they understand that you are the customer and a source for referrals too.
As for SNOKING, of course the dealer wouldn't give me the time of day if they thought I was other than an individual consumer
buying only one truck and not reselling for profit.
TOM

 

[BILLUA]

I am actually dealing with Dave Smith motors right now... For a loaded Longhorn, they started at "Invoice" - $500 - incentives at time of delivery.

Working trade details right now. If it comes back reasonable, I'll be putting a deposit down and getting the truck ordered this week.

 

[Tuesdak]

End of the month is the best time to buy as they want to make their monthly numbers and are out of time to do so. Your Salesman's and others job sometimes depends on X number out the door no matter what plus other incentives related to number sold period. Clearance prices on 2015's also help IF you find one you want. Never ordered one so I can't say if this helps with that.

 

[tommyturbo]

JDoremire. You are right. I guess it matters how much the dealer wants to let it go for at the time. Poking the sales with a sharp stick in the ribs helps
them think about it more seriously though. All of my comments on buying strategy was for on the lot inventory. I don't know how to approach an ordered
vehicle sale. Then again ...
Tom

 

[SnoKing]

I am actually dealing with Dave Smith motors right now... For a loaded Longhorn, they started at "Invoice" - $500 - incentives at time of delivery.

Working trade details right now. If it comes back reasonable, I'll be putting a deposit down and getting the truck ordered this week.

INcentives are the ones that apply to the location you are going to title it at, and not the dealers locations. At times that can vary. SNOKING

 

[tommyturbo]

SNOKING. You are right again. For me, I could care less how the dealer finds ways to deal with my offer.
It's their job. Not Mine. For BILLUA I wish you the best on your purchase and really enjoy such a nice truck,
you lucky dog! My days are over financing anything more. Without retirement cash my body cannot take wrenching
in the shop to make payments for 4 or 5 years.
SNOKING, would you like to here about our used '08 Forest River Cherokee 25KS TT deal from Metro RV in 2009?
TOM

 

[rrl989]

I'd wait to hear from those that claim an easy $10,000+ Rebates off off MSRP and see how they did it?
That was not my experience though.

 

[grabinov]

Hey Joe,

Depending on your location, try Rydell CDJR in San Fernando. They're a new dealership (about a year) but Rydell is a No-Haggle place. Just tell them what truck you want and they'll tell you the price. It will be below invoice but as has been mentioned, that has various meanings. They can find it or order it with no effect on the price. I have a friend who is the service manager there, and they are working really hard to build a customer base for service through vehicle sales. I have been really happy there with the service. Seriously, I could list a number of SoCal dealerships I've quit due to poor service over my 25 years of Dodge trucks. I used to drive 50+ miles to San Bernardino just to find a guy I'd trust w my HD diesel truck.

They have no need to make money on sales (directly from the customer that is) given their circumstances and goals. The way Chrysler sends out recalls and TSB's, they could probably survive on manufacturer-funded work alone!