Join Date: Mar 2018
Location: United States
City/State/Province: Arlington VA
Go to truecar.com and spec out the car you want. It's possible one of your local dealers will have internet pricing through them that's lower than what they'll give to walk-ins. I ended up getting my new build for about 6% off MSRP because I received a really favorable Truecar quote on one of their in stock vehicles. I didn't want that particular car, but it told me that if they could sell that car for that price, they could sell any car for that price. It basically led to my talking to my dealer's internet sales guy, who was volume-focused and would rather get a deal done at a slim margin than hold out for a high margin and not get a deal done.
I believe that the economics on F-Paces are roughly this: the spread between MSRP and dealer invoice is about 3.5%. The dealer then receives an additional 3.5% in hold back to cover their inventory carrying cost. So their break-even point on the deal is at about 7% under MSRP. -- ASSUMING you pay their $xxx processing fee on the deal (it's a pure revenue item to cover their prep on the car, overhead, etc. etc.). They also have some additional money coming in for the number of sales they do as well (I believe tied to advertising incentives and the like), so even at a "break even" price they still benefit if they can get the deal done. Additionally, if you buy a new build through them, they still get the full hold back AND they get another build allotment from JLNA. BUT individual sales reps may not be incentivized to work with you at that price because their individual commission on the deal could be as little as a few hundred dollars.
Long winded way of saying, rather than negotiate off of MSRP, negotiate off of their greed point -- to their faces. Tell them that you know that everything over 7% off MSRP is pure profit to them, and that you want them to make a profit because they are a business and need to earn a living, but $xxxx is excessive on a commodity product you can get X other places including out of area, and that you don't value free loaner cars for service visits at $xxxx. They should offer you a better deal. If they don't, to heck with them, buy out of area.
Last edited by Hoopics; 04-21-2018 at 05:27 PM.