Was I being unfair to the dealership?
11-19-2007, 01:33 PM
#11
JK Super Freak
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Location: Grand Blanc, MI
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I disagree: Dealerships are for-profit, and therefore there IS a fee to do a "dealer swap."
Dealerships are privately owned, and Jill's Jeep is unlikely to deal with Joe's Jeep for no profit... so if Joe's dealership has a customer with cash in hand, and needs to get a JK from Jill's dealership, he's going to have to offer up a deal that puts $$$ in Jill's pocket at the end of the day. Since there's a loss of $$$ involved for Joe, why shouldn't he pass along that loss to the customer?
It's just common sense: Whether they explicitly declare a "dealer trade" fee on the contract or not, you've got to realize that they ARE charging you whatever extra $$$ it's costing them to trade with the other dealership. They may bury that charge under a line item like "delivery charges" or something, but you're the one eating the $$$, not them.
Dealerships are privately owned, and Jill's Jeep is unlikely to deal with Joe's Jeep for no profit... so if Joe's dealership has a customer with cash in hand, and needs to get a JK from Jill's dealership, he's going to have to offer up a deal that puts $$$ in Jill's pocket at the end of the day. Since there's a loss of $$$ involved for Joe, why shouldn't he pass along that loss to the customer?
It's just common sense: Whether they explicitly declare a "dealer trade" fee on the contract or not, you've got to realize that they ARE charging you whatever extra $$$ it's costing them to trade with the other dealership. They may bury that charge under a line item like "delivery charges" or something, but you're the one eating the $$$, not them.
Dealer trades are done invoice to invoice uness there has been accesories added to a vehicle. These would then be added on at dealer cost.
A dealer typically does not make a profit on a dealer trade.
11-19-2007, 02:19 PM
#12
JK Newbie
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11-19-2007, 09:28 PM
#13
JK Enthusiast
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I got both of mine on the (x) plan associates program , which I think its either 1% below invoice or 1% over, but I believe they make up the dif elsewhere . and by the way they don't have to honor this , I think.
11-20-2007, 04:39 AM
#14
JK Freak
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I paid invoice. Every option that I ordered on the vehicle, I got at invoice (trailer tow pkg, infinity, 24s pkg). I remember finalizing the new price after adding on the tow pkg to my existing order. I made them give me the tow pkg at invoice (under $100, I believe) but the dealer tried to increase the Doc fee. I caught them and said "Whoa, what's this increase in doc fee here?." They made up some mumbo jumbo and then I pointed out that the doc fee they were charging was more that what is statutorily allowed under Michigan law. They tried to tell me that the law recently changed.
Then I pointed out to them that I was an attorney and I actually happened to have a copy of the statute with me. Needless to say, my doc fee was reduced. This was my first new car buy.
Then I pointed out to them that I was an attorney and I actually happened to have a copy of the statute with me. Needless to say, my doc fee was reduced. This was my first new car buy.