The JCNA incentive is back with the reasonable restriction that you need to have been a member for 6 months at the time of closing.

2014/15 XF = $1,500
2014/15 XJ = $2,500
2015/16 F-Type = $2,500

Applied to the purchase as a rebate.

This is the same information posted in the earlier thread, but I thought it would be more useful/noticeable with the new title.



Thanks to IRRBrogue for the details!

 

Not the same as on the other thread. You omitted the 2016 models???

 

It is pretty bad that they still have brand new 2014 cars sitting on dealers lots. I am sure the warranty clock started on them a long time ago.

 

Not really, I did a search awhile back, and there are only a few. I also found some '14 Porsches still on the dealer lots.

 

OK guys - I'm about to pull the switch on a 2016 R. I'm not yet a member. Will probably close the deal in Oct.

Are you saying I have to wait 6 months before purchasing if I want the rebate?

 

It means the rebate is only for existing JCNA members. Therefore you need to sign up for JCNA membership at least 6 months before taking delivery of the car if you want the JCNA rebate.

 

Wow - that hurts...

Thanks for the information though. Me wonders if I can use that during final negotiations?

 

Well it shouldn't impact your negotiations as its meant to kick in as a rebate, but if you're still negotiating you could always say that you were counting on that $2,500 rebate and see if you can use that as leverage to get them to drop the price a bit more or give you a better price on a trade-in.

Keep in mind that invoice is roughly 6% below MSRP, and there is no holdback on JLR vehicles, so the best you can probably expect on a 2016 MY is somewhere in the 5-6% off MSRP range unless you have some special connections, the dealership is having a volume sales event of some kind, or they are making up the profits on your trade-in.

 

Where on the internet did you read that Jaguar no longer has Buisness Builder money? It had to be something you read because in reality they have always had holdback.

 

I didn't say they didn't have business builder money, I said they don't have holdback. As I understand it, at JLR the business builder money is tied to quarterly sales and comes in on the back end, thus is only within the purview of the GM/sales manager/owners and is never seen by the salespeople. Most dealerships will not touch that money as part of a sales negotiation. They may occasionally dip into it as part of a larger sales event (as I indicated in my earlier message) but it isn't something that can normally be negotiated against as its used to support operating costs, etc. Audi, BMW, and Porsche have the same type of system as they also have no conventional holdback.

 

I think Jag is pretty satisfied with US F Type sales as most have become R's. More gross sales. Judging by stock on Cars.com within 500mi of Vegas not an unreasonable amount of stock almost all '16. So don't expect Jag money as there was on some '14 because Jag introduced '15 and '16 so quickly. Since '17 is not supposed to have V6 I suspect '16 will run longer.

 

Just wondering what your source is as I've not heard that before.

 

But the rumor is they will have the I6. No reason they wouldn't announce the new models at the end of the year like they always do unless the I6 isn't ready yet.

 

Business Builder-hold back-points it is all the same. It has nothing to do with quarterly sales. What are you using for a source? They do withhold money if your facility is not up to guide.

 

I've also read that Jaguar has no dealer hold backs. Here is my source...

What Is Dealer Holdback? on Edmunds.com

 

My source is the dealership. I had a frank discussion with my salesman and the sales manager about the price it was going to take to get me to make a purchase, and this all came up as part of that discussion. They could have been lying to me, I suppose, but I don't think they had any reason to do so. At the end of the day I got the car just above invoice before the JCNA rebate but it took a lot of negotiating.

Plus, the fact that JLR, Audi, BMW, and Porsche don't offer holdback is public record. The Edmunds site that TXJagR mentioned is one source, but you can find multiple sources that will confirm that online as well.

 

I want you to think about this from a business point of view. Would you buy something from a manufacturer for $100,000. pay interest to hold on to it until it sells & then sell it for just over what you paid for it? I think not. I have purchased cars with all the points taken out (at the time it was 6% of invoice) as a dealer employee. Please feel free to believe what you read on the internet or the salesman told you. Do you really think a dealer could survive making just over invoice selling cars? How would they stay in business? Please don't think for a minute "they will make it up in service". The truth is most stand alone Jaguar dealers are loosing money every month. That is why JLR is trying to "channel" the dealers together to be dual branded. The dual branded stores are all making money & yes Land Rover has Business Builder money as well.

 

I think you're missing my point completely. I said they do get the business builder money (or factory support money or whatever else you want to call it) on the back end, that is what covers the operational costs and insures they make a profit on the cars they sell, even if they sell a car at or below invoice, or sell one that has been sitting on the books for a while. However, unlike holdback which is something the salesman can negotiate with, that money isn't part of negotiation, and if a salesman is dipping below invoice they have to get clearance from their sales manager to do so.

I regularly negotiate against holdback when I'm speaking with dealers. If I know a model has a holdback of 3%, I usually target my negotiations around 2-2.5% below invoice, since that way I'm sure the salesperson will still get a commission. If I were to buy that car at 3% below invoice, the dealership would still make a profit on the car since they still have the business builder money on the backend, but the salesperson may not make a commission on the sale. Likewise for JLR, I could ask them to sell me a car at or below invoice, and even though they don't have holdback, the dealership would make some profit since they have the business builder money on the back end, but that starts cutting into the bottom line and would likely mean the salesperson would not make a commission. I always aim a bit higher when I know I won't be using the dealership for service as well.

As for the dealerships selling multiple brands, I touched on that in another thread earlier. Its a great idea as it insulates a less profitable brand with ones that are more popular. I agree that standalone Jag dealers have a hard time being profitable. Especially in the days where people can cross shop across multiple states to get the deal they want. It gets worse when the cars don't sell right away since floor plan costs continue to add up every month.

In any case, this is not really relevant to the JCNA discussion, so I'm not going to continue debating the topic. Hopefully I've clarified what I was trying to say.

 

I've known several dealer owners as friends over the years and they all say the same thing: every part of a deal has to stand on it's own. Trade, new car , finance, etc. But the cost and profit on cars is not so simple. The original or 1st invoice is meaningless as the volume or model volume incentives are what bring their costs down. Used cars are another story as the percentage profit is much higher in general unless they just own it too long. Finance is a big profit unless it's a manufacturer incentive which sometimes cost the dealer to use. Dealer overhead is very high, just look at the electric use. But most successful dealers are very well off so they don't sell at a loss. If it's way below invoice the manufacturer is putting the cash on the hood!

 

I just received the following attachment from the JCNA in regards to the new Jaguar rebate program. It pretty much confirms what was discussed above, and includes more detail on how to get the rebate, as well as the restrictions.