I will be purchasing a new 3500 Ram SLT CTD QC 4x4 LWB within a month to replace my old anemic Chevy diesel 3500. All reports indicate a glut of '06 Rams. Excess supply should lead to larger incentive packages that will lower out-the-door prices. Right now there is the employee pricing thing that is slightly under invoice, then the regional rebate. Does anyone have any reasonable suspicion that Dodge will increase their incentives next month?

I don't care if they are dealer or consumer based incentives since they both decrease the bottom line price. It's a west texas ranch truck so leasing isn't that attractive as it will have a jillion miles and a high likelihood of scratches from mesquite trees, dents from crazy cattle, and who knows what else when the lease would be up.

I'm excited about finally geting a truck that can do some serious work!

 

I don't know if there is really a huge surplus of vehicles left...??
After all we do still have 90 days before the 07s are going to be dominant in the market.

Typically speaking, July is a strong month for incentives - across the board.
A lot of people think that the Employee Price is a gimmick - but in all honesty it is a big savings for the consumer.

VERY RARELY will the dealer get a sneak peek at incentives before they actually take effect.
The June/July transition was one of these rare occasions - and I actually waited until July to purchase MY pickup...And I get EP all the time.

Another thing nobody realizes is that this "Employee Price" is actually a BETTER price than what dealer employees pay ordinarily.
Its not true Employee Pricing - it really is better.

 

The report I saw about excess inventory was an AutoWeek report at http://www.autoweek.com/apps/pbcs.dl.../60619016/1041

I picked that up from some long forgotten forum post a few months ago. Thanks whoever that was!

The report guessed that Chrysler would re-implement the EP program in July to help move inventory... and they did. To be honest, EP, plus rebates looks like about as good as it gets, however, I don't have near the expertise or historical perspective someone like you does. If there was a chance for some other dealer rebate or dealer incentive going in, than I'd hold out a little longer. I know when things get really bad, there are additional sales incentives and such provided to dealers that get passed along as better deals to consumers.

I'm not sure why everyone gets so passionate about EP being a scam. Call it what you want, but it is just a way the manufacture can reducing the price of a vehicle. I guess most folks must think that it's coming out of dealer profit or perhaps they just don't understand how the dealer and manufacture work together with inventory???

Is there a official end date for the EP program? Is it worth the risk of holding out for something unknown or get in now while the gettin is good? I'm looking for $12,000 off MSRP or more.

 

The end date for EP is July 31.
It COULD be extended - but I certainly wouldn't count on it.
And it's always a gamble whether to hold out for another month or not - but if it was me - I would buy this month (I did).

From all corperate reports I have been reading, sales have been huge across the board - so this 'excess' inventory should be dwindling.

And I wouldn't expect the any big dealer cash back on the 06s until the 07s are out in full scale.
And then your options are limited, and that won't even compare to what we have now.

 

Thanks so much! But... let me make sure I understand this correctly. I want to make sure I get the best deal I can from the best dealer I can find.

Let's back up to June, before the EP program. Say the invoice was 35,000 and the MSRP was 43,000. The dealer, could negotiate whatever you wanted above the invoice to make a deal (and some profit too of course), Chrysler added in the $3500 cash and that was the deal.

Now Fast-forward to today in July. The EP price should be at or lower than your invoice price was back in June. Then Chrysler adds on an additional $1500 cash back. That sets my price. You can't negotiate much because, if I reading your email correctly, the truck is selling at or below what the dealer paid for it. I'm assuming that Chrysler sends some amount back to the dealer to compensate for the effort, but that amount is too low to deal from and still make a profit?

What is confusing is that I got a first offer quote in June for $36something on a $43K MSRP. I needed to get the old truck sold so I waited and hoped for better discounts. Now, with EP, the cost is $35, but the dealer says they can't negotiate that price since it's set by Chrysler.

 

I think there is still a bit of a glut of 06's. I work at warren truck and they shut us down for 5 weeks for "inventory adjustment." Its only week two of the down time.

As an emp we actually are getting hosed on this current deal. For instance I lease all of my cars. Last month a 1500 quad 4x4 for about $150 a month with 1000 due at signing. This month its about 30 bucks more a month, plus to put salt in the wound now your only allowed 10500 miles per year instead of 12000. Thanks DCX!

P.S. to all salesmen that are not in emp regions...

We never pay full emp price. My T&C I got for 1700 under emp, plus it included my oil changes.

Joe

 

If anyone is still reading this, or still cares, here is what I learned about employee pricing and commissions. With EP, dealerships are paid on a sliding scale depending the model of car sold. In the case of a Ram Diesel, which is the highest commission, it is $1090. I was also told that dealerships had the option of taking a July 31st deadline or August 31st deadline for the end of Employee pricing program. I'm not sure what to think about the election of length on the EP, sounds odd to me, so the whole thing may be goofey but I thought I'd report what I learned.

 

Just seen your post. Yes, there is an overstock of Rams. But, it won't help you much because it is primarily 1500's (and dakotas). Short version why is, it's complicated. They are overbuilding 1500's but Heavy Dutys, especially diesels, are always good, steady sellers, more predictable, less overbuild, so less rebates.

Point is it's real hard to predict what the rebates will do month to month. I held off last year a few months because the rebates changed. Also, the dealership had 9 2005's left and they were all Power Wagons so I negotiated for a few hours and got the deal I wanted.

I used to work at a dealership and invoice isn't what the dealer paid for the truck. I used to look at the paperwork, even though I wasn't supposed to, to see what the real prices were. Also, the dealer gets bonus money back for hitting target sales month to month. That's why it can be real lucrative to shop/buy right before the end of the month. If they are trying to hit a target, you can get better deals.

As jgralka said, it is real common (read as always) that employees get 3 discounts. EP, factory incentives, and (what amounts to) a dealership incentive. There is a lot of competiton to get and keep customer's business because there are a lot of dealerships in the Detroit area.

Happy hunting!