2023 Jeep Prices: MSRP, Invoice Price, Dealer Cost, and Holdback
How Jeep Invoice Price Works
Getting the best Jeep pricing doesn’t have to be complicated. Some manufacturers make it simple to save money by giving substantial discounts, rebates, and incentives. However, finding deals may be more difficult, so how do you know what to search for? The Jeep invoice price is a great place to start. Here’s how you get the best price on a Jeep before going to the dealership.
Jeep Pricing: Finding a decent discount on a new Jeep in 2023 is challenging. Many car buyers are paying more than the suggested retail price. You can still find a great deal by using an online shopping service and comparing prices on a new Jeep.
What is Jeep Invoice Price and MSRP?
The manufacturer’s suggested retail price (MSRP) for a Jeep is the price the dealer is advised to set by the manufacturer. This price is an estimate based on the model, trim package, color, options, etc. Jeep dealers aim to start their negotiation with you from or above the set MSRP.
Now let’s talk about what a Jeep’s factory invoice price means. This is where you want to start negotiations with the dealer.
The jeep invoice price is fundamentally what the dealer paid for a vehicle from the manufacturer. But there’s more to it than that.
Because cash-back rebates, dealer holdback, and other manufacturer incentives are made available, dealers can sometimes purchase new Jeeps for less than the advertised invoice price. That is, they have a considerably smaller overhead on that specific car.
Finding these vehicles can be difficult. However, RydeShopper has a tool to get you in touch with the right dealers at the right time to get your best deal on a new Jeep.
How to Find the Jeep Invoice Price
Starting your search online provides you the benefit of being aware of the critical aspects of obtaining a Jeep at a great price.
Knowing the invoice price and the MSRP gives you leverage when haggling with the dealer. It’s not always easy to find because dealers rarely publish how much they pay for the automobiles they acquire.
RydeShopper is one of the best online car-buying resources to find the invoice price of any specific model and trim level.
All you have to do with the tool is enter your basic information, and an itemized list describing the current MSRP and invoice for the selected make, model, and trim are given to you instantly.
The Difference Between Jeep Invoice price and Dealer Cost
Hidden benefit margins such as dealer holdback and manufacturer-to-dealer discounts are included in Jeep factory invoice pricing.
The amount a dealer pays the manufacturer for a new Jeep is known as the actual dealer cost, which might be significantly lower than the dealer’s invoice price.
What is Jeep Dealer Holdback?
The dealer holdback is a component of a new car’s price that is added to the manufacturer invoice price; it often amounts to 2-3% of MSRP. The dealer holdback is NOT a discount or rebate; it is meant for the dealer.
Jeep’s holdback is 3% of total MSRP
Before calculating the dealer holdback percentage, you must take the total MSRP and multiply it by 3% to get the full amount available.
The manufacturer returns this percentage of money for every vehicle they sell over time, usually making payment to the dealer every quarter. It’s important to realize that holdback isn’t often negotiable, and some Jeep dealerships will not negotiate the amount.
How to Calculate the Actual Dealer Cost of a Jeep
Calculating Dealer Cost of a New Jeep:
Jeep Factory Invoice Price
– Dealer Holdback¹
– Customer Rebate²
– Dealer Incentive²
+ Destination Fee
= Actual Dealer Cost
¹Jeep holdback is 3% of the total MSRP
What to Look For
Many factors affect how a dealer prices their vehicles in their local market. OEM dealer incentives, vehicle demand, and the longer the car has been on the lot significantly impact the asking price.
Pro Tip: Anyone who looks for posted Jeep invoice prices will discover it, and while it might be challenging to find, services like RydeShopper make it simple.
When shopping for your next Jeep, get ahead of the game and find out what the dealer paid before you go. This ensures you know how to make a fair profit new car offer on your next vehicle of interest.
Don’t get too excited, though. Running over to your local Jeep dealer does not necessarily mean you purchase the first car you see below the invoice.
These discounts typically apply to unsold models from the previous year, vehicles sitting on the lot for too long, or low-demand vehicles.
Unique combinations of options such as manual transmissions, base models with upgraded tech or comfort packages, or even polarizing colors can get you into a vehicle with the same or similar options— but potentially costing thousands of dollars less.
Vehicles with uncommon features in your area or missing features that aren’t on your “gotta-have-it” list are a great start. These are the types of cars you want to keep an eye on.
While Jeep dealers want these cars gone, they also want their customers to purchase the newest and flashiest models on the lot, so the vehicles available below invoice are not the first you’ll see when you walk in.
How to Find the Lowest Local Jeep Price
A little extra work can make a big difference. By researching sales trends over the previous year, you can learn which models are having trouble selling in your area and which models to emphasize when speaking with dealers.
Most importantly, understanding the MSRP and invoice price may help you make a reasonable offer and receive your best price by giving you an idea of how much the car is worth to the dealer. Without the trouble of bargaining.
NOTE: Leftover Jeep models are the most likely to sell below invoice. When a dealer still has last year’s model on the lot, they lose money daily and want it gone ASAP. Always keep your eyes peeled for a previous model year’s car on the lot.
Dealers spend a lot of money to get their flashy models on the first page of famous vehicle research websites to market their best and newest models. These models will be the hardest to get below invoice price as they are often the most profitable for dealers.