factory holdback
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Junior User
Joined: Jul 2003
Posts: 60
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From: upstate new york
factory holdback
I am currently trying to negotiate for a 04' F-250 Lariat with options ....... has anyone ever actually negotiated around the holdback double dip of a vehicle ..... I am not using any plans ( A,B,X ) .... this will be an ordered truck ..so to my understanding if they charge me the factory holdback (which would be invoice price ) , that is pure profit , plus they get the holdback from the factory ??? Is this the way it works , or am I on another planet here ??? Any light at all would be better than the one I'm using .........
Lead Driver
Joined: Apr 2002
Posts: 7,746
Likes: 7
From: Tampa Bay, FL USA
factory holdback
"Invoice Total" is what the dealer pays Ford for the truck when it's delivered to his lot. In approx. 60 days, Ford will then cut a check back to the dealer for 3% of the sticker price, excluding freight (the "holdback"). If they're a Blue Oval Certified dealer, they'll get an additional 1-1 1/2% as well. I believe that amount is paid quarterly by Ford. So, if the dealer sells you a truck for the invoice amount, then they're making a 3-4.5% profit. There are occassionally "dealer cash" programs that give them additional amounts, but they run for short periods of time. (Right now, there are dealer cash programs on '03 T-Birds, ZX2s, and 2-door Explorers. I know of no dealer cash on the '04 Super-Dutys.) I hope that answers your question.
Last edited by 1956MarkII; Sep 20, 2003 at 08:55 AM.
New User
Joined: Aug 2003
Posts: 8
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factory holdback
Culprit2
Well you went to a great place for information. There’re guys on this forum like 1956MarkII that have a lot of great info and don’t mind sharing. I just ordered my 04’ F-250 on 9/12. It’s scheduled to be built on 9/29. I started negotiating at the X-Plan price, which was $198 lower than invoice. After bouncing that price off of 2 dealers, I finally bit the bullet @ $250 under X-Plan. (Total of $448 under invoice) Now don’t think for a second that the dealer didn’t make money. They still took $575 from me with the dealer holdback. But hey, the total holdback was $1017. At least I got $442 of it. I’ve also got a spreadsheet that breaks out all the charges you’ll see. If you want, I can e-mail it to ya.
Good luck!
Well you went to a great place for information. There’re guys on this forum like 1956MarkII that have a lot of great info and don’t mind sharing. I just ordered my 04’ F-250 on 9/12. It’s scheduled to be built on 9/29. I started negotiating at the X-Plan price, which was $198 lower than invoice. After bouncing that price off of 2 dealers, I finally bit the bullet @ $250 under X-Plan. (Total of $448 under invoice) Now don’t think for a second that the dealer didn’t make money. They still took $575 from me with the dealer holdback. But hey, the total holdback was $1017. At least I got $442 of it. I’ve also got a spreadsheet that breaks out all the charges you’ll see. If you want, I can e-mail it to ya.
Good luck!
Junior User
Joined: Sep 2003
Posts: 90
Likes: 0
From: Virginia
factory holdback
there is a lot of good info on GOOGLE... just type in .....dealer holdback.......
..here is a link to get you started
http://www.safecarguide.com/gui/neg/holdback.htm
..here is a link to get you started
http://www.safecarguide.com/gui/neg/holdback.htm
