I am thinking about buying a Jeep Liberty Sport 4X4. Priceline/CarsDirect.com shows me a price about $3400 below MSRP. Is there a catch? Where do they make their money? Should I just stick with my local dealer? It seems like a really good deal. But we all know if it sounds to good to be true....

So, what do you all think about this deal?

I would use carsdirect.com only from personal experience and from that of a close friend. I cannot comment on autobytel.com as I have never used them before.

How they nmake their money though is through sheer volume. The on-line seller (carsdirect.com) gets vehicles from fleet/manufactures for invoice (perhaps slightly less?) and makes their money on a slight mark-up. You the purchaser still pay above invoice, but less than MSRP. Carsdirect.com makes their cash on the mark-up and the volume of cars sold.

Remember MSRP is a HUGE mark-up that the dealer places on the vehcles so that when he gives you a cost say a few hundred bucks less, you feel like you have gotten a good deal. The truth is that only suckers pay MSRP. And if you are a good negotiator, you should be able to drive away from a dealership with only paying a slight percentage (read as $100-200)above invoice as a equitable deal. To negotiate a good deal, plan on being at the dealership for 4-6 hours, more if you are going to finance through the dealership, which is ALWAYS a bad idea! Remember, the dealer will use ALL possible means to squeeze every fraction of a penny out of you at your expense!!

Here is where carsdirect.com is beneficial. Their price will usually be just slightly higher than the vehicle's invoice. This can be ascertained by checking www.edmunds.com for the vehicle invoice price, (also check edmunds.com for the vehicle's True Market Value TMV). make sure you check the edmunds prices with the options you desire to get a true comparison.

Where I find carsdirect.com to be the best? Its for multiple reasons.

Reason 1. I DO NOT have to deal with car salesmen! Read some of the info at edmunds.com regarding dealership tactics to wear down, bully, and generally screw buyers. You will never buy from a dealer again.

Reason 2. My time is more valuable to me than the 4-6 hours I will be spending at the dealership purchasing a new car! I like to have my new car delivered to my house which is an option with carsdirect.com.

Reason 3. Did I mention that I don't have to deal with car salesmen and their shifty "Hi I'm your best pal" sales manager.

Reason 4. I don't have someone pressuring me to lease a car or trying to pressure me to "up-grade" to the LX or Limted or whatever crap I dont need edition of the car I want and can afford.

P.S. I have purchased over 5 new cars in my time, so i do have some experience at this.  :)

Go visit Edmunds.com and absorb all you can from this site, it will save you thousands of dollars, as well as your precious time and a big headache.

Good luck!! And remember, buying a new car should be a fun experience, not an exhausting one!

See if you have a local Jeep website, or a national one with local chapters.  I did this when I bought my Subaru and found out who the good and bad dealers were and where to get the best deal with the least hassle.  

When it came time to buy I walked in and offered $300 over invoice for a model I knew they had and the whole thing, with financing took less than an hour and a half.  Would have been less time than that if I wouldn't have been dicking around the lot so much.

Carsdirect.com is good to research options and gives you what the invoice is.  [url]www.edmunds.com[/url] will tell you if there are any factory to dealer rebates which they don't really tell you about but you can use in the negotiation process.

What are you so affraid of Godzilla?  Dealing with people who make profit?

Anyways, My bet is that carsdirect is showing you that big of a discount by using the factory rebate.  Can you get 0% intrest through cars direct?  Thats something I would be worried about.

I bought my Jeep $500 back of invoice, before the $1000 rebate and also got 0% interest

You kidding, I love profit (godzilla owns his own company)!

But, I have also dealt with numerous dealers including GMC, Ford, Jeep, and Dodge. I have financed through the dealer as well as walked in with financing from my credit union. I simply am well read and always do extensive research on the vehicle's I am considering for purchase. When I walk into a dealership I know exactly what I will pay and what percentage I will give to get the vehicle I desire. But I also know its the car sales-mans job to try and screw me for as much as the dealership can. Let the games begin!!

Now, I just simply don't have the time nor desire to negotiate. Especially since I know all the dealership's games and ploys from salesman to finance guy.

Its the car dealerships job to screw the buyer for as much as possible. Just not my idea of what ethical.

Max

We only screw the morons [:D]

The most gross profit I have ever seen was $23,000 on a Land Cruiser lease [}:D]

I have nothing but praise for carsdirect.com. I bought my last vehicle from them, & I will soon be buying my next vehicle. No bullshit fees, no bullshit dealer add ons, I paid what they showed and $3.50 for a temp tag & sales tax. No salesman trying to sell me something I didn't want. Believe me, it sounds too good to be true, my wife didn't believe it either and was really suspicious, but they are the only no b/s way to buy a car and the local dealers couldn't touch the price. She called the BBB and the company direct and asked all the same questions that you're asking. Carsdirect.com is the cats meow!

Something to consider.

Thanks guys, this is the type of info I was looking for.

BTT for the day shift.