I am a salesperson at a CDJR dealer in South FL. In Jan of 2023 I was introduced to a broker group and I had very consistent business with them to the point I didnt do much otherwise at work. All I did was msrp minus rebates, their broker fees ($800) would come out of the vehicle’s front end gross, etc. Everyone’s happy.
I started working at another CDJR dealer a few months ago with a ton of inventory, and I was hired on as the salesperson that handles brokers.
The thing is now when I pencil these leases, they suck big time now. It felt like yesterday that a Grand Cherokee was mid 600s or something… but now it’s 800s. 10k, just 1st due, no accessories or markup, just msrp-rebates. I use mdesking to pencil these, so it isn’t like I’m messing up a calculation somewhere.
I understand that interest rates are higher, CDJR cut rebates, I see that some of the marketplace posts are with all inceptions down etc.
Most of the deals posted on here are MSRP - dealer discount - rebates/incentives = lower payment. If you dealer is not going to discount off MSRP you’re not going to get the same type of deals posted here.
Exactly. Many of us with Jeep’s went out of state to find a dealer with 10-12% below MSRP back in 2021. While the deals aren’t as good now as they were in 2021, you can still find 8-9% below MSRP even now.
Also - doc fees in Florida are crazy high, so even adding in shipping from out of state you can save $600-800 just on fees alone.
CJDR dealers have a $hit ton of inventory. Seems like there would be motivation to move them. But I guess the owners like looking at them sitting on their lots.
I’m able to discount off msrp-rebates, but when I have the program roll payments down to match all the parameters posted, it’s a large front end loser on them
That’s why I’m asking. We have way tooooo much inventory and it’s leading to huge floor plan costs
There’s any easy fix for that. Tell your dealer principal or GM that a LHer group buy at 10-12% off MSRP across the board on those lot dogs and a spiff to knock down that ridiculously high doc fee needs to happen.
That kind of sale will produce quarterly numbers with a stair-step that will net a fat check from Stellantis, and make those Jerry Lundergaard floor plan night sweats disappear.
Hackr deals typically aren’t very profitable for dealers. They do them to increase volume and move lot anchors. The dealer is making money on the volume bonus not on the individual vehicle. If you’re expecting big front-end margins on these, I don’t think that’s a realistic expectation.
This is great advice, thank you. One of the reasons why I enjoy working with brokers is that you guys are a good resource to find out what’s going in today’s market. I was at a small mom and pop dealership before the one im at now and things were way easier last year.
