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What do dealers pay for Renegades?

by David Zatz on

The Jeep Renegade Trailhawk sells for $25,995, list. So what do dealers pay?

According to our sources, the dealers pay $25,141, for the base four-cylinder model with the nine-speed automatic and no options. Each option adds a little profit, in some cases as small as $16 (remote start), in others up to $120 (navigation/satellite radio). For the most part, these are not high-markup vehicles.

Jeep Renegade in mud

While car dealers also get other discounts, including a “holdback” which can be higher than the apparent built-in profit, they also have high expenses, including staff, property taxes, car preparation (cleaning, removal of packing material, basic checking, etc.), building leases in many cases, plant upkeep, insurance, and interest on loans for cars purchased on credit.

Dealers do not make any money on the $995 “destination charge.” (As far as we know, customers cannot pick up their cars at the factory to avoid this fee.)

Those fortunate enough to have a “friends and family” number given to them by an employee can get a lower price, bringing the cost down to roughly the dealer’s nominal cost before holdbacks and any other incentives. Given the short supply of Renegades, that is likely to be the only way to get a significant discount — as haggling generally doesn’t work well with cars that have a stronger demand than supply. (These numbers are available to member of numerous groups, including TreadLightly and the Plymouth Owners Club.)

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304

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