Scubaz66
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- Oct 20, 2021
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Staying off topic as I promised however, since the subject has come up regarding automobile pricing I thought I'd provide some useful tactics for understanding automobile purchasing terminology. I may have posted this a few hundred pages back, but here is my synopsis of the terminology. These are only my opinions or actual numbers based on previous purchases and extensive research. Please keep in mind I'm retired AF and not wealthy, so I must spend wisely. I don't have the same liberty as those with wealth. If money is no object spend to your hearts content, but if you're on a budget a little research goes a long way in obtaining happiness. Trust Me! When that RAM Truck arrives, you'll be the happiest person on the block and grinning from ear to ear!!I agree with your synopsis regarding using the word "Scam" instead of "Business Model" Regardless!! "NO ONE" will finance a consumer for 36-72 months interest free regardless of what method was utilized to come to a price agreement. I used the word "Scam" not out of context, but as a general identification as to how the "manufacturers" utilize methods to deceive the consumers. I'll use Walmart as an example: They use the "Roll Back Prices" method to make consumers think they are providing a great deal when in fact "They" like most businesses are in business to make a profit.
The reason for my post was not to belittle the auto industry, but to educate the buyers to educate themselves on what obstacles to think about when planning to spend $60-$100K on an automobile. Do your research!! (not directed specifically at you) This Forum is an AWESOME tool for the individual thinking about purchasing a new automobile. Lots of educated people on this site helping others navigate the automobile purchase price from understanding the MSRP, Dealer Invoice, Friends and Family Pricing, Dealer Hold Back and where to purchase to get the best deal and the list goes on.......
This is my last post on this subject because it is my personal opinion regarding the subject and we all have our opinions. I'm not interested in ticking off Brutal H0.
MSRP: I think everyone understands this. Manufacturers Suggested Retail Price. An inflated price to gain the most profit on the product and usually inline with other like products. IE, GM Products vs RAM products.
Dealer Invoice: What the dealership pays the manufacturer for the automobile. Roughly 11-12% below MSRP
FWP is Factory Wholesale Price. Roughly 7% below MSRP
FFP is Friends and Family Pricing. Roughly 8% below MSRP
EP is Employee Pricing. Roughly 11% below MSRP
Dealer Hold Back is. An amount manufacturer returns to a dealer after the auto has been sold. If I recall these are Factory Incentives to encourage the dealer to sell as many autos as possible. Dealer Hold Back on my $60K RAM Big Horn was approximately $1750.00. Therefore if the dealer sold you the vehicle for Dealer Invoice they still make $1750 on the sale. Not bad for a few hours of work.
Now let's talk about BDI or Below Dealer Invoice. Yes! It is possible to purchase a vehicle below Dealer Invoice as I did using a Tread Lightly Incentive where I was able to purchase my truck at 1% below Dealer Invoice. I was also lucky enough to obtain an additional $500 deduction using Pentagon Federal Credit Union since I'm a member.
I hope the above information will help those members who are still researching and planning to purchase a new RAM Truck. The above information is readily available on the World Wide Web. Given the above information I was able to purchase and save right at 8K under MSRP.
I used this savings to purchase new, wheels, tires, toneau, cover, weatherproof mats, nerf bars, armor truck bed coating,
tinted windows, wind deflectors, fender flares and a personalized dash mat.
OH! I'm grinning from ear to ear every time I drive it through town. It defiantly turns heads......