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F450 invoice vs MSRP

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Old 10-16-2016, 06:18 AM
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F450 invoice vs MSRP

Speced out a 450 chassis cab this past week, will be installing air suspension and a tow body. The MSRP came out to $61,775. The dealer offered it to us for an even 6oK. This was before misc. fees and taxes etc. I did ask what invoice was, the question was either evaded or we got off on another track, not sure. I was not wanting to negotiate at that point anyway, as my wife and I needed to go home and review the packages and option list to see if there were any changes we wanted to make. Turned out there were several additions. Want to get it right the first time!
I'll be happy to get a price a little below invoice, but I'll need to press the dealer for that number so I have a starting point. In the meantime, the question I have is this: What % below MSRP might invoice be on a mid 60K truck? We have a goal of ordering this week as a delivery time of 14-16 weeks was projected. Thanks to all for your perspectives.
 
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Old 10-16-2016, 07:43 AM
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Tom, the best way to find out is to use the online non-Ford "vehicle builder" applications, so you can pick the trim, specs and options and in the end it'll give you the MSRP and invoice price on every single add-on along with the total invoice that you're looking for.

Here's two that I have found useful, but they're both for the pickup version of the truck and not a chassis cab that you're looking to buy. But that doesn't mean you can't still 'build' a truck with a bed on these websites, and then compare the MSRP between the pickup vs chassis cabs base price, do a little math and figure out a very, very close estimate of the invoice for a chassis cab with the exact features you're ordering. Aside from the bed, the trucks are otherwise identical and each option has the same invoice/MSRP pricing structure.

Build a 2017 Ford F-450 - Configure Tool | Autobytel.com -------> scroll halfway down this page and select trim/color/options

and

New Car Prices Configurable by Body Style or by Make and Model - Cars.com ---------> just fill out the info, but be aware that after you select the make/model and enter your zip code, it will take to you the 2016 model. You need to click on 2017 to switch to the correct year.

good luck.
 
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Old 10-16-2016, 10:00 AM
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Originally Posted by Tomc750
I'll be happy to get a price a little below invoice, but I'll need to press the dealer for that number so I have a starting point. In the meantime, the question I have is this: What % below MSRP might invoice be on a mid 60K truck? We have a goal of ordering this week as a delivery time of 14-16 weeks was projected. Thanks to all for your perspectives.
Actually if you can buy at invoice it is a fair number for both you and the dealer. Remember the dealer is not there to give vehicles away and for the most part the invoice number is accepted as a reasonable amount to pay. There may be a dealer or two who will go less but there are usually charges on the back side which will more than erase that gain. There is the X plan which is available from several pay to play clubs such as the EAA (Experimental Aircraft Association) which for $40 will get a pin number entitling you to purchase 1 Ford product a year at invoice plus a modest but guaranteed document fee. Currently there is also a Ford extra rebate of $750 when using this combination. Some dealers hate the plan, others don't care. I have it in my back pocket i case my dealer does not honor the original commitment but I am sure pretty sure that after this ordeal they might even go a little lower.

For better understanding of the customer/dealer relationship search out all of Frantz's posts. He is a very squared away commercial truck salesman who helps us here quite often and reminds us that purchasing a vehicle is a negotiation which both parties need to recognize fair and win/win.
 
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Old 10-16-2016, 10:32 AM
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My local Ford dealers (the volume dealers) are doing dealer invoice minus dealer hold back minus incentives which put me just over 10% off MSRP. Dealer hold back is only part of the story, there is BIG money from Ford for sales volume.
 
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Old 10-16-2016, 10:49 AM
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My dealer who is very open about what they make and how things are priced...as in the show you the paperwork, you don't have to ask. He even showed me the hold back and explained how it works. As he told me, the clock is ticking when that truck hit the dealer and its his goal to move it as fast as possible because he keep more of the hold back rather than plowing it into % costs.

Ask the dealer to show you the numbers, then just tell them want you will do.
 
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Old 10-16-2016, 11:27 AM
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Originally Posted by coolidge54
My local Ford dealers (the volume dealers) are doing dealer invoice minus dealer hold back minus incentives which put me just over 10% off MSRP. Dealer hold back is only part of the story, there is BIG money from Ford for sales volume.
I beg to differ with you. Dealerships pay pretty close to the same from dealer to dealer. If they take the holdback off they will make no profit. Read the posts by Frantz who fully explains the accounting and the urban legends about discount through volume purchases. Yes there is some benefit at having many more vehicles to sell but it is not a hidden bonus given to an elite few dealerships. Unless you prove to me otherwise, which does not consist of "my salesman says" I will continue to believe Frantz's description.
 
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Old 10-16-2016, 12:21 PM
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Originally Posted by Rasalas
I beg to differ with you. Dealerships pay pretty close to the same from dealer to dealer. If they take the holdback off they will make no profit. Read the posts by Frantz who fully explains the accounting and the urban legends about discount through volume purchases. Yes there is some benefit at having many more vehicles to sell but it is not a hidden bonus given to an elite few dealerships. Unless you prove to me otherwise, which does not consist of "my salesman says" I will continue to believe Frantz's description.
It seems like posted "what I paid for' is beginning to become another MPG thread...the longer it goes on the less they paid for and the better the mpg...LOL
 
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Old 10-16-2016, 12:25 PM
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Originally Posted by 17 Oaks
It seems like posted "what I paid for' is beginning to become another MPG thread...the longer it goes on the less they paid for and the better the mpg...LOL
Ha Ha.... Any story worth telling is worth embellishing!!
 
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Old 10-16-2016, 12:58 PM
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Originally Posted by Rasalas
I beg to differ with you. Dealerships pay pretty close to the same from dealer to dealer. If they take the holdback off they will make no profit. Read the posts by Frantz who fully explains the accounting and the urban legends about discount through volume purchases. Yes there is some benefit at having many more vehicles to sell but it is not a hidden bonus given to an elite few dealerships. Unless you prove to me otherwise, which does not consist of "my salesman says" I will continue to believe Frantz's description.

Disagree all you want, my Ford dealer can pocket $100k in a month of advertising money from Ford for selling a larger volume of units. They are free to do what they want with that money, including lowering the price of a few select trucks to get traffic in the door. My dealer told me most people won't buy the few heavily discounted trucks they advertise, but it gets people in the door and they end up buying something else. Go argue with my dealer if you disagree. lol
 
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Old 10-16-2016, 01:04 PM
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For the disbelievers here's the quote from my Ford dealer, that's a hair over 10% off MSRP.


Thank you for your follow up. It looks like $64689 minus the current rebate of $1000 puts you at $63689 sale price. The MSRP came out to $70890

Let me know when we can get together to order this baby!
 
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Old 10-16-2016, 01:18 PM
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Originally Posted by coolidge54
For the disbelievers here's the quote from my Ford dealer, that's a hair over 10% off MSRP.
In figuring the cost to the dealer you do not include Ford rebates. That is incentive to the buyer from FoMoCo. And you forgot to include the "minus the holdback" you originally posted. As far as $100K of dollars toward advertising? That barely pays for the utilities, taxes, a few salaries and interest on large dealerships, if that. So you may have the most open dealer ever but at the end of the day there is still some smoke going somewhere. I won't tell you that dealership is not telling you the story they want you to hear, but reality plays a large part and selling vehicles for zero profit will turn the lights off, mighty fast. Otherwise, all dealerships would be doing it.
 
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Old 10-16-2016, 01:35 PM
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I learned of the X,A,Z & D Plans through this forum. I used the low-IQ approach and simply asked several dealers if they would give me the A/Z Plan price. One finally said yes. No negotiation. 2017 F250 6.7L 4WD Platinum, MSRP $77435, my price $69813 before rebates. That is 9.8% below MSRP before rebate, 11.1% below after. I now know Ford's plans' pricing calculations, and I doubt a dealer would take a loss on a vehicle, especially not knowing me from Adam. There is probably an added incentive for the dealer somewhere, even beyond $275 plan fee and the advertising money, since advertising is netted out of the plan price calculations. Volume perhaps?
 
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Old 10-16-2016, 01:49 PM
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did you buy it?
 
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Old 10-16-2016, 02:41 PM
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Originally Posted by Rasalas
In figuring the cost to the dealer you do not include Ford rebates. That is incentive to the buyer from FoMoCo. And you forgot to include the "minus the holdback" you originally posted. As far as $100K of dollars toward advertising? That barely pays for the utilities, taxes, a few salaries and interest on large dealerships, if that. So you may have the most open dealer ever but at the end of the day there is still some smoke going somewhere. I won't tell you that dealership is not telling you the story they want you to hear, but reality plays a large part and selling vehicles for zero profit will turn the lights off, mighty fast. Otherwise, all dealerships would be doing it.

Maybe you can find someone to explain dealer invoice pricing to you, that price is dealer invoice minus dealer hold back. /eyeroll Or better yet just go find someone else to argue with.
 
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Old 10-16-2016, 04:32 PM
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Friday:

The tale of the tape"

MSRP: $75,325

My price: $70972

(-) Rebate/Incentives: $2250

My cost: $68722 This about a 8.75% discount off MSRP


+ Dlr Inv Tax $104, State Insp $23.75, Lic $6, Doc Fee $100, Tx Sales Tax (6.25%) $1397.78

Drive out: $70353.55


If I were to get the hold back, about $1800 that would have been about a 12% discount.. I will drive up there tomorrow and tell'um I want the hold back too...
 


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