I was at a dealership today looking at an 06 F-350 CC PSD 4x4. On my trade in they were going to give me what NADA books it as a "Trade In" price. As soon as i mentioned i may be able to get X-plan they knocked 5 grand off my trade, and they said that was due to X-plan price decrease of the new truck. They told me that FoMoCo only gives them 600.00 back on the X-plan price, and that they could not give me what my truck booked for and the X-plan price.


SOOOOOOOOOOOO needless to say I didn't get a new truck tonight. If someone knows a little more about this trade-in / X-plan pricing sceme thing would you please let me know. Thanks a bunch!!!

PSDboy

 

I would negoitiate the trade


Then negotiate the new price. Maybe go to a different dealer?

 

Find another dealer with a similar '06, tell them you are an XPlan buyer--then see what you get for a trade-in.

I assume the first dealer was working from MSRP with $2500 rebate? If you look at a truck at $45,000 and you get a trade-in quote on that price, what do you expect them to do when you pull $6000 out of the deal with the XPlan? Lots of dealers in DFW area advertising $11K off MSRP--but it won't be an XPlan deal. I had one of the vouchers for '03-'04 owners giving me $5K off, and it would have worked with the X, but I am upside down too much right now.

Dealers have to make money--if you give them too much in a deal, your bad. If you try to set a deal they can't make money on--no deal.

 

I under stand the dealerships have to make money but I was unsure of the deal they were offering. My trucks trade value is just a little under 28 G. Retail value, if I / dealership were to sale it out right is 32 G.

So from what you are stating above is the DS was wanting to take an additional 5 G off of 27 G (due to the X-plan of the new truck) which would bring the trade in value of my truck down to 22 G. This could have brought a possible profit of around 9 to 10 GRAND, off of my trade. This is if they got the full 32,000 that the truck retails for. Thats a really good profit for the dealership if you ask me.


I believe I describeD the deal to good on my first post, sorry!

Does Ford assist the Dealership in recovering the cost from any of the Plans (X,A,etc) ?

Mark, PB, or anyone else,

Could you possibly shed some light on this? Thanks for the replies!!!

 

Man if I could type i would be dangerous....

What I meant to type last night was : I believe I didn't describe the deal to good on my first post. Sorry for the type' O.

 

I ended up with $12,000 k off msrp with x-plan and all other rebates. My 04 trade was $27,500. I tried three other dealers that were at $26,000 on my trade. I would say find a dealer tht is willing to deal. Also NADA is on the high side of true market value. Run the same truck on the other value calculaters and they will be considerably less than NADA.

 

I checked my trade on both edmunds and NADA. NADA was $32,455.00 and edmunds was $24,644.00. I got $27,500.00 trade. I thought it was fare since they knocked $12,000.00 off retail. Hope this helps ya. Polarbear would have given me the same deal. Hey Polarbear when you going to open a dealership on the east coast.

 

East Coast? OMG no.

The whole purchase thing needs to be broken down a bit.

1) What is the purchase price of the new truck. This actually has to be established first- the trade-in value could vary depending on what you're trying to buy (dealer's likely to "stretch" on an old stock unit, less likely to on hard to get merchandise).

2) trade-in value. This one isn't easy, because Kelly, NADA, Edmunds, et al aren't in the wholesale business, they just estimate valuations. Each used car manager could see your trade in a different light.

Normally, the dealer will give an inflated trade-in vs. a retail price. some dealerships are working off of their own dealer stickers that are over MSRP, so the trade-in value can be waaay inflated.

After that shakes out, you come up with a new difference figure. If there's a balance owed on the trade, that gets added (along with taxes and tags) to come up with an amount to finance. Any cash downpayment will reduce this amount.

3) Now the monthly payment discussion starts. Most dealers would prefer to talk about this up front. It makes sense- if you bump $20/mo, that's actually closer to $1000 on the amount to finance. Most car deals come down to this discusssion: how much a month, and how much out of pocket. That's fine- everyone has a budget- but when the monthly payments become a focal point, it's a lot easier for the dealership to take advantage of the situation.

Consider this- from a salesman's perspective, the toughest deal is the cash, no trade transaction.... simply because the only thing to talk about is price. The more variables thrown in, the more chances the dealer has of making money on other parts of the transaction.

 

The New trucks sticker price was over 47,000. X-plan would have brought it to around 42 G, at least thats what they told me and then 3 more g off for rebates. If the dealership would have give me there original offer of 26 g for trade in that would have given me around 9 to 10 g in the good, or money toward my new truck. I would have let them had the my trade-in truck for the 26 G which was 1800.00 under what the trade in value is. But the minute I mentioned i may be able to get x-plan pricing they knocked about 4 to 5 G off of my trade-in.

I understand they have to keep the lights on and pay the bills, and i thought what I was willing to let my truck go for was reasonable. But o-well. I appreciate Everyone's response!!!

PB,

I don't know if you can answer this or not. Does Ford assist the Dealership in recovering the discounted price from any of the Plans (X,A,etc) ? If so what precentage , or rough amount?


thanks again to one and ALL!!

PSDboy

 

Very well said Polarbear. I have found that if you do your homework before going to the dealer you can get a great deal. I seen what the high and low trade in value was on my trade. And I thought if I was right in the middle I would consider that a fair trade price. So I simply went to the dealer showed them the truck I wanted and what I would be willing to pay no more or no less. I took the guess work out of the dealing. I simply said if you give me this deal I will buy the 06 today. They took my 04 in to evaluate the trade value and came back and said they would like to offer $500.00 less on the trade. I said thank you for your time I will look for another dealer. They changed there mind on the spot and made the deal. I was happy and the dealer seemed to be happy with the deal. And I think thats the way it is suppose to be. By the way Polarbear thanks for your time. If my local dealer would have not come through with the deal. I was going to make the trip to your dealership. Yes pretty far but worth the no hassle dealing.

 

The question was- Does Ford assist the Dealership in recovering the discounted price from any of the Plans (X,A,etc) ? Yes they do- the percentage varies on the plan (greater amount on A/Z/D than X). This gets sticky, because it's in the dealer agreement that the dealer cannot vary on the Plan price, up or down. Basically, Ford (and GM) adjusts so there's a .5% markup from dealer invoice (that's point 5, not 5).

powerstrokedieselboy- I don't know what you were trading, but trade-in value can vary wildly from coast to coast. Out here, a '04 PSD Crew Lariat, good color, miles, and condition, will bring mid-high twenties. In the mid-west or east coast, the same truck will bring low 20's. I'm surprised more FTE'ers haven't keyed in on this- sometimes when you're trading geography can be your friend.

 

No doubt! If I ever trade, I'm going to Oregon Of course, no dealer would want a V10 XL

 

Thanks PB!!!

I have had 3 different dealers / saleman tell me pretty much 3 different things. One told me that they got 600.00 dollars back on from the X-plan price, one told me that they got nothing from ford and that the dealerwas on there own, and the other said they was compensated descentlyfor saling a vehicle at the x-paln price.


I was just trying to figure out what is the truth on the x-plan reimbursment to dealership. I want to make sure i am reading this correcxtly, the dealership gets a certain percentage back on the x-plan price. I just want to make sure of this, because I have had few unpleasant dealings with a few salesman making stories on how they are making no money on the deal when people use the x-plan, etc. I know this can't be the case or Ford would have no dealerships offering the X-plan.

Once again thanks to all!!!

PSDboy