How do Ford Discounts Work
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Tuned
Joined: Aug 2017
Posts: 354
Likes: 15
How do Ford Discounts Work
So I am aware of "invoice" price, and then dealer holdbacks. Holdbacks are 3% of MSRP.
So Planet ford has a 2018 super duty MSRP $76,780, excluding Ford incentives for an asking price of $68,130.
https://www.planetford45.com/new_inv...9-1f8fe7c7829d
Invoice is right at $71,400, holdbacks of 3% is $2142 off, or $69,258. That is $1,128 MORE than what they are asking. How can they be asking over a thousand below all holdbacks subtracted from invoice?
What other money is in in it for the dealers? (I am trying to understand to help my negotiation skills)
Thanks!
So Planet ford has a 2018 super duty MSRP $76,780, excluding Ford incentives for an asking price of $68,130.
https://www.planetford45.com/new_inv...9-1f8fe7c7829d
Invoice is right at $71,400, holdbacks of 3% is $2142 off, or $69,258. That is $1,128 MORE than what they are asking. How can they be asking over a thousand below all holdbacks subtracted from invoice?
What other money is in in it for the dealers? (I am trying to understand to help my negotiation skills)
Thanks!
Post Fiend
Joined: Jun 2004
Posts: 9,293
Likes: 10
From: Parker, CO
So I am aware of "invoice" price, and then dealer holdbacks. Holdbacks are 3% of MSRP.
So Planet ford has a 2018 super duty MSRP $76,780, excluding Ford incentives for an asking price of $68,130.
https://www.planetford45.com/new_inv...9-1f8fe7c7829d
Invoice is right at $71,400, holdbacks of 3% is $2142 off, or $69,258. That is $1,128 MORE than what they are asking. How can they be asking over a thousand below all holdbacks subtracted from invoice?
What other money is in in it for the dealers? (I am trying to understand to help my negotiation skills)
Thanks!
So Planet ford has a 2018 super duty MSRP $76,780, excluding Ford incentives for an asking price of $68,130.
https://www.planetford45.com/new_inv...9-1f8fe7c7829d
Invoice is right at $71,400, holdbacks of 3% is $2142 off, or $69,258. That is $1,128 MORE than what they are asking. How can they be asking over a thousand below all holdbacks subtracted from invoice?
What other money is in in it for the dealers? (I am trying to understand to help my negotiation skills)
Thanks!
Post Fiend
Joined: Jun 2004
Posts: 9,293
Likes: 10
From: Parker, CO
No, the manufacturer rebate is listed as $1,000. The other incentives are included in the dealer savings.
See that list under Reed Price? That's all the incentives they included in that dealer savings price. It's typical internet special pricing that so many dealers throw out there. Nothing new.
See that list under Reed Price? That's all the incentives they included in that dealer savings price. It's typical internet special pricing that so many dealers throw out there. Nothing new.
Thread Starter
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Tuned
Joined: Aug 2017
Posts: 354
Likes: 15
No, the manufacturer rebate is listed as $1,000. The other incentives are included in the dealer savings.
See that list under Reed Price? That's all the incentives they included in that dealer savings price. It's typical internet special pricing that so many dealers throw out there. Nothing new.
See that list under Reed Price? That's all the incentives they included in that dealer savings price. It's typical internet special pricing that so many dealers throw out there. Nothing new.
Dealer discounts are $8,650, ford incentives are $1000, for a total of $9,650. $76,780-$9,650=Reed Price of $67,130.
So if I exclude the $1000 ford incentives the Dealer alone is discounting $8,650.
Difference between MSRP and Invoice =$5,380, holdbacks are $2,142, or a total of $7,522 of discounts. So the difference between 8650, and 7522 is $1,128.
How can they do that?
Post Fiend
Joined: Jun 2004
Posts: 9,293
Likes: 10
From: Parker, CO
I am not following you...
Dealer discounts are $8,650, ford incentives are $1000, for a total of $9,650. $76,780-$9,650=Reed Price of $67,130.
So if I exclude the $1000 ford incentives the Dealer alone is discounting $8,650.
Difference between MSRP and Invoice =$5,380, holdbacks are $2,142, or a total of $7,522 of discounts. So the difference between 8650, and 7522 is $1,128.
How can they do that?
Dealer discounts are $8,650, ford incentives are $1000, for a total of $9,650. $76,780-$9,650=Reed Price of $67,130.
So if I exclude the $1000 ford incentives the Dealer alone is discounting $8,650.
Difference between MSRP and Invoice =$5,380, holdbacks are $2,142, or a total of $7,522 of discounts. So the difference between 8650, and 7522 is $1,128.
How can they do that?
The "Manufacturer Rebate", which is completely different than "Ford Incentives", is $1,000.
So the terms you have to differentiate from is:
Dealer Savings
Dealer Discount
Incentives
Manufacturer Rebate
Basically the advertised price lumps Incentives (total of $7,000) and Dealer Discount ($1,650) into Dealer Savings (totaling $8,650). Then separates out Manufacturer Rebate ($1,000).
It even says so further down the page:
Discounted prices include all available applicable Factory Rebates and Incentives and Dealer Discounts
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Laughing Gas
Joined: Dec 2017
Posts: 1,077
Likes: 8
It’s funny how they seem kind of clueless about the rebates and discounts when you’re in the showroom but they can find every obscure discount under the sun when writing an ad. Basically they’re generously offering to sell it to you at $3700 OVER invoice. I think the Decepticons got their name from these guys!
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Junior User
Joined: Oct 2017
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From: Fort McMurray
It’s funny how they seem kind of clueless about the rebates and discounts when you’re in the showroom but they can find every obscure discount under the sun when writing an ad. Basically they’re generously offering to sell it to you at $3700 OVER invoice. I think the Decepticons got their name from these guys!
Sitting down with the accountant and saleslady and going over all the numbers was very frustrating. I think they do this on purpose to confuse the buyer to their advantage. Next time I buy a new vehicle I'll seriously consider using a buying service.
Mountain Pass
Joined: Sep 2017
Posts: 138
Likes: 11
From: The Woodlands
1st thing I would do is RUN from Planet Ford as fast as you can. They are some of the worst people to deal with and constantly play games. I would call Steve Fox at Ryan Ford in Sealy and tell him what you want and he can get it for you if he does not have it. I have actually had him contact a dealer that had the truck I was looking at and he managed to get the truck and sell it to me much cheaper than the original dealer would.
Mountain Pass
Joined: Feb 2017
Posts: 227
Likes: 8
From: Miami, FL
I think we (as customers) are crazy to believe that all dealers pay the same amount for vehicles from Ford. Invoice is a number, a number that is now very public. I don’t believe for a second that it is the price a dealer actually paid for the vehicle. And I don’t believe that Small Town Dealership in BFE, Wyoming with 5 trucks on the lot is paying the same price as High Volume Dealership outside Big City, TX who is selling thousands of trucks a year.
New User
Joined: Feb 2018
Posts: 2
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1st thing I would do is RUN from Planet Ford as fast as you can. They are some of the worst people to deal with and constantly play games. I would call Steve Fox at Ryan Ford in Sealy and tell him what you want and he can get it for you if he does not have it. I have actually had him contact a dealer that had the truck I was looking at and he managed to get the truck and sell it to me much cheaper than the original dealer would.
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