XLT vs Lariat
More Turbo
Joined: Feb 2013
Posts: 618
Likes: 69
Just pulled up the spreadsheet I used to price a 2015 I almost purchased.
In 2015, the difference between invoice and MSRP was right around 17% on options. The difference between the two in 2017 is far less.
Up fitters switches were 107/125 in 2015 and today it is 115/125. (invoice/MSRP)
Clearance lights were 48/55 in 2015 and today it is 51/55.
The MSRP hasn't changed, but the spread between MSRP and invoice has certainly narrowed.
Adam
In 2015, the difference between invoice and MSRP was right around 17% on options. The difference between the two in 2017 is far less.
Up fitters switches were 107/125 in 2015 and today it is 115/125. (invoice/MSRP)
Clearance lights were 48/55 in 2015 and today it is 51/55.
The MSRP hasn't changed, but the spread between MSRP and invoice has certainly narrowed.
Adam
Tuned
Joined: Sep 2005
Posts: 272
Likes: 3
Just pulled up the spreadsheet I used to price a 2015 I almost purchased.
In 2015, the difference between invoice and MSRP was right around 17% on options. The difference between the two in 2017 is far less.
Up fitters switches were 107/125 in 2015 and today it is 115/125. (invoice/MSRP)
Clearance lights were 48/55 in 2015 and today it is 51/55.
The MSRP hasn't changed, but the spread between MSRP and invoice has certainly narrowed.
Adam
In 2015, the difference between invoice and MSRP was right around 17% on options. The difference between the two in 2017 is far less.
Up fitters switches were 107/125 in 2015 and today it is 115/125. (invoice/MSRP)
Clearance lights were 48/55 in 2015 and today it is 51/55.
The MSRP hasn't changed, but the spread between MSRP and invoice has certainly narrowed.
Adam
Where are you getting those numbers for today, meaning 2017? MSRP comes up on the build site, but not invoice.
Cargo Master
Joined: Dec 2003
Posts: 2,293
Likes: 2,046
From: Central MO
Except that it isn't. Financial institutions do not loan money for free. 0% interest does not mean that the loan costs you nothing. Banks are all about risk vs. reward. If you qualify for 0% financing, you represent a minimal risk in terms of the bank getting its money back. That said, its still a risk and thus they won't loan out their money and put it at risk without benefiting from it in some way. If you look at the fine print you'll see there is a charge $xx.xx per $1,000 financed. I've seen this up front in the form of a one time financing charge or something added to the monthly payment. Sometimes the price of the vehicle is discounted enough to mask it. You dig deep enough into the paperwork and you'll see that there is no such thing as a free loan.
There is none of this 'miss a payment and you pay interest to day 1' on typical 0% car loans. Ford is essentially paying the interest for you in lieu of you getting rebates. Typically, you are better taking the rebates and getting a low interest rate.
Cargo Master
Joined: May 2007
Posts: 3,336
Likes: 4
From: Western New York
Thanks for clarifying that point. As far as getting cheaper rates one of the best tools is double payments. Rather than run the load out full term doubling up on the payments can drastically change the amount of interest paid, especially if paying down the loan right from the start. Reduce the principle and reduce the total interest paid. But with vehicle prices approaching the stratosphere this option gets harder and harder for many.
Hotshot
Joined: Apr 2013
Posts: 10,120
Likes: 652
From: NH
Thanks for clarifying that point. As far as getting cheaper rates one of the best tools is double payments. Rather than run the load out full term doubling up on the payments can drastically change the amount of interest paid, especially if paying down the loan right from the start.
If you know up front you'll never be able to make extra payments, then go for the lowest interest rates.
On a side note, the build and price was showing a $500 rebate for financing with Ford (at 4.9%...choke...) but that rebate seems to have disappeared? It said it was good until October something.
Tuned
Joined: Aug 2016
Posts: 314
Likes: 11
From: Dallas / Ft. Worth Area
On a vehicle, the drawback of 0% interest is that you lose the rebates. If you read the fine print like you say, that charge of $xx.xx per $1,000 financed is the payment amount. So, if it is 60 months at 0%, that value will be $16.67. It's not a finance charge, but a payment amount.
There is none of this 'miss a payment and you pay interest to day 1' on typical 0% car loans. Ford is essentially paying the interest for you in lieu of you getting rebates. Typically, you are better taking the rebates and getting a low interest rate.
There is none of this 'miss a payment and you pay interest to day 1' on typical 0% car loans. Ford is essentially paying the interest for you in lieu of you getting rebates. Typically, you are better taking the rebates and getting a low interest rate.
I have never heard of the "miss a payment and you pay interest to day 1" on a car loan.
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Cargo Master
Joined: Dec 2003
Posts: 2,293
Likes: 2,046
From: Central MO
Thanks for clarifying that point. As far as getting cheaper rates one of the best tools is double payments. Rather than run the load out full term doubling up on the payments can drastically change the amount of interest paid, especially if paying down the loan right from the start. Reduce the principle and reduce the total interest paid. But with vehicle prices approaching the stratosphere this option gets harder and harder for many.
Cargo Master
Joined: May 2007
Posts: 3,336
Likes: 4
From: Western New York
The headlines seem to disappear when sitting with the finance guru but they can often find outside financing at less of a rate. We bought our Lincoln this spring and wound up with a 1.7% APR through a local credit union which the dealer found for us. We are happy with that. Investments stay invested when the APR can stay that low.
Posting Guru
Joined: Aug 2015
Posts: 2,399
Likes: 12
This is a great point. I take the Ford rebates, usually there is a $750 or $1000 rebate for financing w/ Ford. I do it, because I'll pay double or even triple payments which really reduces interest like crazy. If there's a month when I need cash for other things, fine, I make the minimum payment and don't worry about it.
If you know up front you'll never be able to make extra payments, then go for the lowest interest rates.
On a side note, the build and price was showing a $500 rebate for financing with Ford (at 4.9%...choke...) but that rebate seems to have disappeared? It said it was good until October something.
If you know up front you'll never be able to make extra payments, then go for the lowest interest rates.
On a side note, the build and price was showing a $500 rebate for financing with Ford (at 4.9%...choke...) but that rebate seems to have disappeared? It said it was good until October something.
Senior User
Joined: Nov 2011
Posts: 281
Likes: 1
You guys are killing me..... You spend multiple years drilling down the the things you like and don't like about the different Ford models and then spend the equal amount of time "gaming" the couple thousand dollars the dealer makes and on the sale of a brand new awesome model?
Do you have any idea what it costs to run a business? Or a dealership for that matter.
I know I will get jumped on for this, but those of you that see my point, I hope you defend me
Do you have any idea what it costs to run a business? Or a dealership for that matter.
I know I will get jumped on for this, but those of you that see my point, I hope you defend me
Tuned
Joined: Aug 2016
Posts: 314
Likes: 11
From: Dallas / Ft. Worth Area
You guys are killing me..... You spend multiple years drilling down the the things you like and don't like about the different Ford models and then spend the equal amount of time "gaming" the couple thousand dollars the dealer makes and on the sale of a brand new awesome model?
Do you have any idea what it costs to run a business? Or a dealership for that matter.
I know I will get jumped on for this, but those of you that see my point, I hope you defend me
Do you have any idea what it costs to run a business? Or a dealership for that matter.
I know I will get jumped on for this, but those of you that see my point, I hope you defend me
When I bought my Super Duty, the ******* had the nerve to present a price that equalled a payment of nearly $1,500 a month! So I had to get up and thank him for his time and walk out before a more reasonable offer was presented. This **** went back and fourth for a couple of days until an equitable offer was reached. It's a bull**** process.
Tuned
Joined: Sep 2005
Posts: 272
Likes: 3
The window sticker should show the invoice price, not the msrp. Dealers want to sell for as much as they can get. Many dealers will sell at or slightly below invoice, why, it's a sale and they still get holdback. If they weren't making money, they wouldn't do that.
When I bought my current truck, the dealer told me he likes sales like mine. I come in, we build the truck, it arrives, I pick it up, and they make 3% (holdback). For what, a few hours of work at most.