This is my view.

I very much doubt Flood is losing actual cash on any warranty they sell, although the profit is minimal.

Look, if I tell you I am going to buy 5000 of a thing and another guy tells you he will by 500 of thing, who gets the better price?

 

No doubt, but normally you'd be encouraging your distributors to increase their yields, not lying and saying no such bonus exists! I'll figure it out here eventually.

 

My guess is that these particular dealerships specialize in moving that particular item and may go above the typical channels to get pricing.

"Look, Ford, I'm gonna advertise these things like crazy. I'm gonna dedicate a whole website just for these warranty sales. Plus, I'm gonna sell 5000 of 'em. Hook me up with a great discount."

It is better for Ford anyway, just b/c more warranties sold spreads their repair risk even further.

 

Yes, but they said "Flood buys the warranty at the exact same price that you do."

 

Oh, I suspect they do.


At the end of the year though, Ford probably rebates them some money based on the the amount they've sold.

I saw this quite a bit selling computer hardware. I would see deals on occasion where the other reseller sold stuff to the customer that I knew was below his actual cost. He would do that so his selling bonus would kick in, effectively lowering his true cost.

I am just speculating on the warranty deal though. There isn't a ton of margin in them, unless you really sell a lot of 'em.

 

Well there is a good margin in them at the general dealership level... that's why Flood has become popular on here. That being said, our finance manager has been here 6 years or so and told me it's only ever come up once or twice. Again, showing that the forums are not a good slice of the buying public.

 

Does your dealership offer a third party ESP or
or just ford's plan or both.
My salesman in the past only offered a third party plan, I guess if I wanted ford's plan I'd have to ask for it...... He never mentioned Ford
as an option.

 

Agree 100%. Look at how few "views" this section of the site has relative to how many 2017 SD's are rolling out.

In the Corvette world, there is dealer that specializes in GMPP warranties and sells them all over. Same deal as Flood; he has the lowest price.

Little bitty place too, up in Montana, IIRC.

 

Third party warranties are mess, IMO.
Maybe they've gotten way better, but I wouldn't consider one.

 

Zeigler told me on the phone that they had dealerships in Florida and they could sell Ford ESP in the state.

 

According to my dealer they are 35.00 over cost, and they would rather sell for that then make the big money. It pissed my dealer off as well, but I told them don't worry I will buy theirs, and they finally matched the price. I did the 8/100K warranty for 2100 with a 100.00 deductible!

 

No fees, no extra for CC payment, just no "no interest' finance like offered when buying with the vehicle sale.

This just out today in the news.


Large N.J. car dealer sold customers fake warranties, suit alleges

 

The first ESP that I bought from Flood I actually called Ford to verify that it was genuine and it was. Since then I have bought many from them

Frantz doesn't Ford have different price structures for vehicle costs for volume dealers over the small town dealers? If so why wouldn't the ESP prices be the same way?

 

From Flood Ford's website

Is this the same product that is sold at my local Ford Dealership?
Yes. These ESP contracts are backed by Ford Motor Company and are sold in all Ford/Lincoln Dealerships. Your ESP will be honored at all Ford and Lincoln Mercury Dealerships. We sell in volume and can therefore offer great discounts over your local Ford dealer.

So Ford must offer volume discounts

 

I certainly know very little about Fords and how they do business, but I do know on the Chevy/GMC side, its NOT have big the dealer is, its how many units it moves...hence you have dealers that the showroom is a carport, yes a carport, no walls, just a roof and only large enough for one truck, that sells units across the US and many others move a lot of volume out of towns that don't have a stoplight.

I am sure that Ford must be similar in its approach to its dealers on any product they sell, not the size, the number of acres, or the great cookies in the waiting room, but bottom line how do you move. The internet has changed the whole nature of the game.