Automotive

2018 Jeep Grand Cherokee Trailhawk - Finance Advice

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  • Feb 1st, 2018 4:15 pm
[OP]
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Mar 22, 2006
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Ontario

2018 Jeep Grand Cherokee Trailhawk - Finance Advice

Hi guys,

Hoping for some advice here. I have read some of the older threads with similar topics and discussions. However, I just wanted to be doubly sure that I am calculating this right.

Looking to buy a 2018 Jeep Grand Cherokee Trailhawk with the Luxury group + blind spot package. Went to a dealership and got price breakdown and it came out to $60,890. That is with about $10,000 worth of cash incentives. I have attached the quote here.

The Car Cost Canada report with the same options shows me an invoice price of $53,891.

Based off of what I've read, I should be offering the following:

Invoice + 3% - Discount + Freight + Taxes:
$53,891 x 1.03 = $55,507 - $ 4912 - $4221 - $1000 = $45,374 + $1,795 + $7,000 = $54,169 TOTAL

(There is a wal-mart employee discount in there - not sure which one it is)

Is this correct? I feel like I am doing something wrong here or the discounts are too good to be true.

What are your thoughts on a good price to offer the dealership.

Thank you very much in advance!
Images
  • car cost canada JGCT.PNG
  • Jeep Dealership Quote.jpg
38 replies
Deal Fanatic
Apr 5, 2016
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The Walmart discount should be the "Other Dealer Option" category which gave you $4221 off. Everything looks good, just the interest rate seems a bit high but you are getting quite a bit of discounts so it negates each other. Great vehicle, go for it!
[OP]
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Mar 22, 2006
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Ontario
bomber17 wrote: The Walmart discount should be the "Other Dealer Option" category which gave you $4221 off. Everything looks good, just the interest rate seems a bit high but you are getting quite a bit of discounts so it negates each other. Great vehicle, go for it!
Thanks bomber17. Any other way around the high interest rate? If I go to the bank directly, could I do better? Or is that the standard rate they will offer?
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Jan 9, 2018
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estel_mm wrote: Thanks bomber17. Any other way around the high interest rate? If I go to the bank directly, could I do better? Or is that the standard rate they will offer?
Normally at banks it's either a car loan through LOC which interest rates are still a bit higher (Prime + 3%) or what one of my friends did was he took money out of his mortgage at 2.4% and he is slowly paying it off with his mortgage fees.
[OP]
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Mar 22, 2006
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Ontario
deepanMedia wrote: Normally at banks it's either a car loan through LOC which interest rates are still a bit higher (Prime + 3%) or what one of my friends did was he took money out of his mortgage at 2.4% and he is slowly paying it off with his mortgage fees.
Thanks deepanMedia.

Another question for you guys if I may. For the specific model I want with the options I want, there was very little stock. Does it make a difference in negotiating when factory ordering a car?
Was going.to put a deposit down of 3k and pay the remaining down payment of about 7k after the 6-8 weeks of factory build.
Any issues with that?
Thanks for all the info folks.
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Jan 23, 2015
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estel_mm wrote: Invoice + 3% - Discount + Freight + Taxes:
$53,891 x 1.03 = $55,507 - $ 4912 - $4221 - $1000 = $45,374 + $1,795 + $7,000 = $54,169 TOTAL
If it were me, I wouldn't add the 3%. And get them to eat the admin fee too.

Invoice - Discount + Freight + Taxes = Done
Deal Addict
Jan 8, 2009
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estel_mm wrote: Thanks deepanMedia.

Another question for you guys if I may. For the specific model I want with the options I want, there was very little stock. Does it make a difference in negotiating when factory ordering a car?
Was going.to put a deposit down of 3k and pay the remaining down payment of about 7k after the 6-8 weeks of factory build.
Any issues with that?
Thanks for all the info folks.
Did you look at the Overland instead of Trailhawk +luxury group?I have a Summit which I got mainly for the HK Sound System. Used it was a similar price to the Overlands but if buying new I would have gone Overland. On the 17/18 you can add the HK to the Overland as an option. You also get the height adjustable suspension which is great for deep snow etc. If sound is important to you then you should listen to the difference between the Alpine and HK systems. Everything is supply and demand so likely you will get a better deal on an Overland.

The current platform is pretty much end of line. For some this is a benefit (tried and tested) and for others a disadvantage (looks like an old model soon after you buy it). It will also be the difference between buying a Benz/Chrysler developed vehicle vs a Fiat/Chrysler developed rig. The replacement will be lighter and more fuel efficient but will it be as "Jeep"? I am very happy with the one I have and intend to keep it long term. I find the V6 plenty powerful for me. I drive it carefully and am getting very good fuel economy for such a solid 4x4 vehicle.
[OP]
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Mar 22, 2006
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Ontario
Bianco13 wrote: If it were me, I wouldn't add the 3%. And get them to eat the admin fee too.

Invoice - Discount + Freight + Taxes = Done
Hey Bianco13 - I thought the minimum to offer was 3%, no? Would they even take an offer at invoice? Or do you mean, start there and haggle with them up to 3%?

Sorry for all the questions - just want to get the best deal possible for my wife. Thanks.
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estel_mm wrote: Hey Bianco13 - I thought the minimum to offer was 3%, no? Would they even take an offer at invoice? Or do you mean, start there and haggle with them up to 3%?

Sorry for all the questions - just want to get the best deal possible for my wife. Thanks.
No man, there is no minimum offer. I'd start at invoice, do 1% at most 2% and stay there. Offering 3%+ is only something I would do for a special order low inventory unit that is high demand.
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[OP]
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Ok awesome. Didn't even realize that. I will stick with 1%.

Does it matter if its factory ordered?
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estel_mm wrote: Ok awesome. Didn't even realize that. I will stick with 1%.

Does it matter if its factory ordered?
Depends on the dealer. Typically dealers are willing to move more stock inventory therefore a lower cost than 'special' ordered. But it's a Jeep and I don't see why you shouldn't have any issue. This isn't a 707hp Jeep were talking about here. I would even go as far as searching autotrader or jeep.ca inventory to see if there is a dealer with one in stock.
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[OP]
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koffey wrote: Depends on the dealer. Typically dealers are willing to move more stock inventory therefore a lower cost than 'special' ordered. But it's a Jeep and I don't see why you shouldn't have any issue. This isn't a 707hp Jeep were talking about here. I would even go as far as searching autotrader or jeep.ca inventory to see if there is a dealer with one in stock.
Thanks koffey - the manager looked last night and he told us there is one left in Ontario with the trim, colour and options we wanted. But he said that the inventory doesn't update right away so it may be gone already. We actually preferred ordering it so that we can put a deposit down and have a few weeks to save up a bit more for a bigger down payment. Wanted to know if that would hurt my negotiating tactic of invoice +1% etc.
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estel_mm wrote: Thanks koffey - the manager looked last night and he told us there is one left in Ontario with the trim, colour and options we wanted. But he said that the inventory doesn't update right away so it may be gone already. We actually preferred ordering it so that we can put a deposit down and have a few weeks to save up a bit more for a bigger down payment. Wanted to know if that would hurt my negotiating tactic of invoice +1% etc.
Do it anyways, the worse that can happen is the GM says No and makes a counter offer. Incentives are to be given to you by the manufacture. I'd take the invoice price+everything else, add 1% unless it exceeds $500, else offer +$500 and that would be my starting point.
@bobblehead
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[OP]
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koffey wrote: Do it anyways, the worse that can happen is the GM says No and makes a counter offer. Incentives are to be given to you by the manufacture. I'd take the invoice price+everything else, add 1% unless it exceeds $500, else offer +$500 and that would be my starting point.
@bobblehead
Ok fair enough. Will do.

I think I just realized that I calculated wrong though - I did not add the additional options I wanted on the car to the invoice price - so that will bump it up a bit - but moving down from 3% to 1% will help balance that out.

Update:
Ok guys, here is my new calculation - let me know what you think:

Invoice Price = $53,891
Additional Options (Paint + Luxury + Blind Spot) = $3,235
Subtotal Invoice = $57,126

$57,126 x 1.01 (dealer profit) = $57,697
$57,697 - $4,912 - $4,221 (incentives) = $48,564
$48,564 + $1795 (freight) = $50,359
$50,359 x 1.13 (HST) = $56,905
$56,905 - $1,000 (bonus cash after tax) = $55,905

Total offer price is $55,905

What do you guys think?
Last edited by estel_mm on Jan 30th, 2018 11:59 am, edited 1 time in total.
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estel_mm wrote: Hey Bianco13 - I thought the minimum to offer was 3%, no? Would they even take an offer at invoice? Or do you mean, start there and haggle with them up to 3%?

Sorry for all the questions - just want to get the best deal possible for my wife. Thanks.
Koffey offered some great advice... The last 2 new vehicles I purchased (factory ordered) were at invoice price - discount + freight + taxes.
If you feeling throwing the dealership an extra $500 will close the deal, do so. But if they start playing game with you be prepared to walk out.
[OP]
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Mar 22, 2006
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Bianco13 wrote: Koffey offered some great advice... The last 2 new vehicles I purchased (factory ordered) were at invoice price - discount + freight + taxes.
If you feeling throwing the dealership an extra $500 will close the deal, do so. But if they start playing game with you be prepared to walk out.
Thank you @Bianco13 and @koffey - very much appreciate the advice! I redid my calculations in my last post - does that look like a fair offer price? Thank you!
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Yes, I'd start there, but I don't know what this $1000 cash off after taxes is, else I'd leave it be haven't seen it on the site either, think I'm missing it anyways.
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koffey wrote: Yes, I'd start there, but I don't know what this $1000 cash off after taxes is, else I'd leave it be haven't seen it on the site either, think I'm missing it anyways.
Thanks koffey - its part of the incentives - it was in the quote they offered me + in the car cost canada report - see attached.
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  • CCC Incentives.PNG
[OP]
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Mar 22, 2006
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Thanks koffey - yes I am in the GTA - Mississauga. Will do.

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