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The dealer and I agreed on a price for a ordered f350 which was dealer invoice. After looking up the invoice on NaDA, the invoice they are showing me is $968 more that nada. After asking the dealer about the discrepancy, he informed me it was a advertising assessment of $873 and fuel charge of $95.55. Is this legit or are they trying to scam me?
Dealer invoice should be the price the dealer pays for the truck including destination charges. Dealer invoice doesn't include factory incentives or dealer holdbacks, so the actual price a dealer pays is less than dealer invoice. Financing, advertising ... are all real costs to a dealer. The dealer I worked at (not Ford) was charged an advertising fee from the manufacturer that we passed directly to the buyer. The general formula was, factory invoice + (factory incentives) + (hold back) + direct advertising + interest = lowest price for vehicle. Then we added on all the paperwork fees.
According to NADA, dealer invoice includes the advertising. So if they don't cut the advertising out of my prize, I'll actually be paying $968 over invoice and then deduct rebates. Doesn't sound like a good deal but I'm open to advice. The amount of time I've been waiting for this truck, they should deduct the advertising.
You either pay it or you don't get the truck. It is that simple. You are still paying invoice but with the costs passed on to you for advertising and fuel. It is just like documentation fees. They are not part of invoice pricing but an add on to prep the vehicle for you.
NADA shows delivery but does not show any added fees such as fuel, documentation nor advertising.
Why would any dealer SALE a New truck at cost... that is a LOSS of money to them... lights & electric / man hours / handling / Rent / heating or AC.... / Insurance .
Well them your not paying it, and to keep the truck.
And walk away from the deal, in most cases it works. They'll give in.
There is not better line then "OK I can go spend my money somewhere else.
In order to protect your interests you have to be as ruthless as the Stealerships are. Other wise they'll screw you every time.
Stick to your guns and you'll be fine. Never blink
Oh yes it does.
With many of the dealerships it is a question of their Cashflow, they got to sell something even if they don't make a lot of money on it. Question is "how far are you willing to go to cover thine own ****" Many times you have to be willing to walk away from a deal to get it.
It absolutely drives a dealer ship crazy to see a customer with money to walk out the door. You can see the heads pop specially in today economy.
If you agreed on a set price, you are pretty much home free. If you simply agreed on a term like invoice price, whether you can buy it without the add-ons will come down to who blinks, or more accurately whether the dealership feels they can make enough profit by forgoing the advertising and fuel fees.
In this situation you really don't have anything to lose by trying to deal at your price. If they say no go and you want the truck, I would "split" with them by asking them to drop the advertising fee and you pay for the fuel, which it strikes me you will need regardless of when you pay for it. If they still say no, you can always back up and take the truck at their price.
Why would any dealer SALE a New truck at cost... that is a LOSS of money to them... lights & electric / man hours / handling / Rent / heating or AC.... / Insurance .
There is usually hold back money from the manufacturer as an incentive to move units. The other incentive for a dealership to sell at invoice is they get bonus money if they sell a certain number of units per month and hit their goal.
The fees they mentioned are real fees, but they are also part of the invoice cost and are documented on the invoice. Here's what I think actually happened though. Throughout the year the invoice and sticker price does go up. On the 2015 models it was a little over $900 bucks on SD models. So if NADA got the invoice price on an early build they were correct, but your truck may have been a later build.
The easy solution is to just see the invoice when the truck comes in and pay that.
It's not the worlds best, rock bottom, wasted 15 hours to save another $100 bucks, deal, but it's a vary fair deal and leaves enough room for your sales guy to make a living on the "back end" money talked about above. My repeat customers typically are happy to have a no hassle $100 over invoice cost on anything they want in stock or ordered.
In the future ask for an "out the door" price. If you want further breakdown info ask them how they arrived at that magic number. With that number you can compare various dealer to stealer bids.
The above fees are shown on the original order sheet from the dealer. My question arose when I price out the truck on nada.com and it came up over $900 less. If you add the two fees to the nada invoice price, it does come out exact with the original invoice quote. I was asking the question because nada.com states that the advertising costs are included in the invoice price they show. I basically thought I was getting ripped off and I wanted more information before I went complaining to the dealer. As of right now, they are giving me $1500 in rebates along with there invoice price. Plus of course doc fees, sales tax, reg., sticker, etc.
Well them your not paying it, and to keep the truck.
And walk away from the deal, in most cases it works. They'll give in.
There is not better line then "OK I can go spend my money somewhere else.
In order to protect your interests you have to be as ruthless as the Stealerships are. Other wise they'll screw you every time.
Stick to your guns and you'll be fine. Never blink
I have found that doesn't work like it use to. There are less dealers now, and that is why. Too much competition drop prices too much. Dealers have to make a profit, they don't HAVE to sell if they don't want to. If you walk out you HAVE to be willing to loose the deal.
To the org poster, how much under MSRP is the price? Is the truck worth what they are asking to you? No matter how much you pay for it, it will be worth less as soon as you sign the paper work.