close

Privacy guaranteed - Your email is not shared with anyone.

Where's the rub on down-payment matching?

Discussion in 'The Okie Corral' started by PBCounty, Apr 28, 2013.

  1. PBCounty

    PBCounty

    Joined:
    May 11, 2005
    Messages:
    16,587
    Likes Received:
    2,838
    Location:
    Palm Beach County, FL
    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?
     
  2. Knighj1

    Knighj1

    Joined:
    Jan 11, 2007
    Messages:
    2,070
    Likes Received:
    6
    Location:
    AL
    It probably applies to one stock number, aka one vehicle on the lot
     

  3. kirbinster

    kirbinster

    Joined:
    Jan 28, 2013
    Messages:
    233
    Likes Received:
    0
    Location:
    New Jersey
    You have to finance with them at 24% interest rate? :)
     
  4. PBCounty

    PBCounty

    Joined:
    May 11, 2005
    Messages:
    16,587
    Likes Received:
    2,838
    Location:
    Palm Beach County, FL
    They are pretty adamant that it applies to all of their Jeep / Dodge products...but then you never know I guess.
     
  5. podwich

    podwich

    Joined:
    Sep 7, 2000
    Messages:
    4,543
    Likes Received:
    183
    Location:
    MI
    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.
     
    Last edited: Apr 28, 2013
  6. Dan_ntx

    Dan_ntx

    Joined:
    Jan 26, 2007
    Messages:
    2,248
    Likes Received:
    0
    Location:
    Dallas Area Texas
    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.
     
  7. rauldduke1979

    rauldduke1979

    Joined:
    Nov 9, 2008
    Messages:
    619
    Likes Received:
    0
    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.
     
  8. czsmithGT

    czsmithGT

    Joined:
    Jan 8, 2004
    Messages:
    11,758
    Likes Received:
    2,143
    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.
     
  9. Z71bill

    Z71bill

    Joined:
    Feb 19, 2007
    Messages:
    16,031
    Likes Received:
    3,165
    Location:
    Texas
    It's a Dodge.

    Sorry - truth is sometimes harsh.
     
  10. devildog2067

    devildog2067

    Joined:
    Apr 20, 2005
    Messages:
    16,322
    Likes Received:
    1,116
    Location:
    Chicago
    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.
     
  11. sierrafast

    sierrafast Coleccionista

    Joined:
    Apr 20, 2007
    Messages:
    1,264
    Likes Received:
    17
    Location:
    Southern TX
    I partially agree. I would buy a Jeep Wrangler though..
     
  12. PBCounty

    PBCounty

    Joined:
    May 11, 2005
    Messages:
    16,587
    Likes Received:
    2,838
    Location:
    Palm Beach County, FL
    I am so doubtful of the authenticity that I will have to talk myself into going in there. We will see.
     
  13. BobbyT

    BobbyT

    Joined:
    Jul 27, 2008
    Messages:
    1,817
    Likes Received:
    2
    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.
     
  14. MaxxAction

    MaxxAction

    Joined:
    Feb 26, 2005
    Messages:
    3,994
    Likes Received:
    1,343
    Location:
    TN
    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.
     
  15. southernshooter

    southernshooter

    Joined:
    Mar 10, 2003
    Messages:
    3,155
    Likes Received:
    59
    Location:
    Columbia, S.C.
    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.
     
    Last edited: Apr 29, 2013
  16. railfancwb

    railfancwb

    Joined:
    Sep 19, 2008
    Messages:
    7,361
    Likes Received:
    949
    Location:
    Shelbyville, Tennessee TN
    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.


    Posted using Outdoor Hub Campfire
     
  17. railfancwb

    railfancwb

    Joined:
    Sep 19, 2008
    Messages:
    7,361
    Likes Received:
    949
    Location:
    Shelbyville, Tennessee TN
    Of course, when selling big ticket items such as a car, suspension of disbelief by the would-be purchaser is essential to the sale.


    Posted using Outdoor Hub Campfire
     
  18. Z71bill

    Z71bill

    Joined:
    Feb 19, 2007
    Messages:
    16,031
    Likes Received:
    3,165
    Location:
    Texas
    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:
     
  19. Z71bill

    Z71bill

    Joined:
    Feb 19, 2007
    Messages:
    16,031
    Likes Received:
    3,165
    Location:
    Texas
    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:
     
  20. larry_minn

    larry_minn Silver Member Millennium Member

    Joined:
    Dec 16, 1999
    Messages:
    10,089
    Likes Received:
    1,350
    Location:
    Minnesota
    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. :)