MSRP vs Dealer Invoice

Raven

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There's been a lot of discussion here about dealers pricing these TRX's well over MSRP. I was fortunate to get one bought at MSRP. Now I'm getting bent over on my trade. Clearly dealers need to make a profit but it needs to be fair. Anyone here have an idea of what a dealer will make on these trucks if sold at MSRP?
 

RobR651

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The POC for every truck shows the invoice pricing and MSRP pricing. FWP or factory wholesale pricing is the second column which is considered “invoice”
 

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So is this sum total of what the dealer makes or are there other hidden margins?
 

48thRonin

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Have you tried checking vroom, carvana or carmax? Their offers are usually very competitive and depending on the tax savings, you might be better off selling to one of them. Or you might even be able to use their offer to get a better trade offer from your dealer.
 

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There’s zero incentive for a dealer to offer you anything better than MSRP on these trucks unless you have a relationship with the dealer and you have spent a lot of coin there over the years. They’re in high demand. If you don’t take it someone else will. As @48thRonin mentioned you could always shop the trade around and bring those quotes back to the selling dealer. There’s a tax savings in trading it in on the truck you’re buying so you have to take that into consideration as well. Dealers will generally offer you less as a trade in as opposed to you outright selling to them because of that tax benefit. The trade market is actually very good right now and has been for a bit. I got $4k less than I paid on my 2015 Ram Laramie when I traded it in. I could’ve got a few grand more if I sold it independent of the dealer but the tax savings was basically a wash for me… Just food for thought.
 
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Thanks for the good information. Dealer is offering $51K for my loaded 2020 1500 Limited trade. They are going to turn around and sell it for over $60k. I know they need to make some money and I get the tax savings part but I think they are $5K shy on their offer.
 

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Don’t forget to add in the holdback the dealership gets too. On a level 2 TRX they make close to $10k plus whatever they make off of your trade.
If you feel you aren’t getting enough for your trade, price it on kbb.com. That will give you a pretty good idea of it’s worth. Also get an offer from vroom, Carmax and AutoNation. All of this can be done without leaving home.
 

JTR

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Thanks for the good information. Dealer is offering $51K for my loaded 2020 1500 Limited trade. They are going to turn around and sell it for over $60k. I know they need to make some money and I get the tax savings part but I think they are $5K shy on their offer.
Just for reference, I got $53,500 for my '19 longhorn trade in. 26k miles. They have been trying to sell it at 60k for a few weeks without any takers. The time is now because I think we are past the peak as they are not turning the vehicles around as quick as they were in May.
 

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Thanks for the good information. Dealer is offering $51K for my loaded 2020 1500 Limited trade. They are going to turn around and sell it for over $60k. I know they need to make some money and I get the tax savings part but I think they are $5K shy on their offer.
bet they get 57 for your truck. Offer isn't that bad, especially if it offsets the sales tax like my home state (Washington) Does.
 

JTR

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bet they get 57 for your truck. Offer isn't that bad, especially if it offsets the sales tax like my home state (Washington) Does.
That 57k number is what I was thinking. Which means OP may be able to get them to budge a bit but probably not much. Maybe 2 months ago, that would have been a lock in $56k trade-in. Things are so volatile right now in the used vehicle market.
 

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I also got $53,xxx for my 2019 Longhorn trade in May. I think the value went up a couple thousand later in May and June. It is my understanding that the used market has peaked and actually gotten a little weaker in July
 

Mxsledder

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Anyone know the name of the dealer taking orders at 5k under sticker? Can’t seem to find it.
 

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Anyone know the name of the dealer taking orders at 5k under sticker? Can’t seem to find it.
 

wac45

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Anyone know the name of the dealer taking orders at 5k under sticker? Can’t seem to find it.
I ordered a 2022 from Scott at Leman Auto-Morton 309-275-7257. They are offering $5k off msrp. I was very satisfied with the process and he was very straight up. They are located in Illinois.
 
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cortc

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The invoice is what the dealer pays and there is also a holdback that varies by model and time on the lot. It typically is around $1,200 for the RAMs.

I paid invoice for mine minus holdback and no dealer fee, owner is a very good friend. Overall dealer profit on a fully loaded TRX at MSRP with no ADM is around $8K...

Compared to most of the other trucks they sell on any given day it’s a very profitable sale.
 

JTR

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The invoice is what the dealer pays and there is also a holdback that varies by model and time on the lot. It typically is around $1,200 for the RAMs.

I paid invoice for mine minus holdback and no dealer fee, owner is a very good friend. Overall dealer profit on a fully loaded TRX at MSRP with no ADM is around $8K...

Compared to most of the other trucks they sell on any given day it’s a very profitable sale.
This. You did a great job my friend. Obviously this is an outlier arrangement with your friendship but you did a great job explaining the financial arrangement on the dealer side.
 

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The used market is falling in terms of trade in values for us owners, but dealer pricing on used cars is not falling with trade in pricing. Market is adjusting now, as dealers are starting to shift into the unknown. How long will they sit on these trade ins? If it’s longer, like we’re seeing in July, it means the obvious - us buyers are finally fed up with the market and sitting it out.

So this is why we’re going to start seeing our trade values fall. Dealers are starting to slow down on used sales, and with them not getting new cars, they’re starting to pump up the margins on every used unit.

My F150 value has dropped almost $3,000 since June on Carvana instant purchase offer, and only 600 miles more on it since the first trade offer.

Used values have peaked, dealers know it, and with less buyers we’re sitting out and waiting for used car prices to drop. Hence, the lower trade values. Used ADOM (average days on market) is elongating already.
 
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Scottk

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Anyone know the name of the dealer taking orders at 5k under sticker? Can’t seem to find it.
Happy to order your TRX for you call or text me what you would like
 
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