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Pacifica Hybrid Pricing

Discussion in 'Car Dealer Hangout' started by Sales Guy Dave, Dec 15, 2016.

  1. Sales Guy Dave

    Sales Guy Dave New Member

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    Has anyone else noticed that the markup on a Pacifica Hybrid is only $100?!? Does FCA really believe that this market is so competitive that it has to rationalize giving the dealers only $100 markup to be competitive? Does FCA really think that the buyer for a Pacifica Limited Hybrid is going to notice the difference between $46,090 and say, $48,090?

    How do I explain the difference to a customer who is seeing less for their trade on a more expensive Pacifica Hybrid than something comparable in a competitive make? This really makes no sense.
     
  2. 1999 White C5 Coupe

    1999 White C5 Coupe Well-Known Member

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    I find it dubious with the assertion that there is only a $100 markup on the Pacifica Hybrid.

    If a dealer sells a new Pacifica Hybrid - their total profit on the vehicle is only $100? There are numerous, and always changing, factory to dealer incentives that add profit. I realize other features of the sale can add profit for the dealer and salesperson, but I do not believe there is only a $100 markup (profit) if the vehicle is sold at "list price".
     
  3. BobbiBigWheels

    BobbiBigWheels I'm likely at work...
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    Your instance of saying the price of the Pacifica dictates the trade-value is what is wrong with the car business.

    As for the Hybrid Pacifica, ours reads between $1500 and $3000 depending on options.
     
  4. Sales Guy Dave

    Sales Guy Dave New Member

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    Obviously, the dealer will realize more than $100 profit on the sale of a Pacifica Hybrid. There is holdback and a dealer delivery allowance. However, the markup from invoice is exactly $100. The invoice amount is $45,990 and the MSRP is $46,090. Holdback and the delivery allowance is available on every new FCA product we sell. It is not unique to the Pacifica Hybrid. Also, note that this $100 markup is on the most expensive Hybrid Pacifica, the Limited.

    When I questioned our dealer sales rep from FCA, he gave the party line about being in a competitive market and the possibility of offering a higher delivery allowance on the Hybrid Pacifica. He didn't promise it, but he said it was being discussed. Here's the deal: If FCA has to position what is potentially one of it's hottest products in the market with only $100 markup from invoice, they are opening the door to dealers adding addendum stickers to the vehicle listing a "market price adjustment", or something along those lines. In other words, the dealer will determine the fair market pricing on the Hybrid, not FCA. That might work well in urban markets, but in the rural areas (where there is still a demand for hybrids) it will go over like a lead balloon.
     

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