And let's make sure the dealers get a copy......

 

A month ago, Grapevine was advertising $20K over sticker for the KR's, Limited's, and Platinum's. And, I think they were getting it......

 

Great deal for someone that needs a serious tax write-off.

 

Met with my dealer GM last weekend to discuss an order and he stated PCO's will be released in August. Don't know how much, however it was targeted as a market share gain offer.

Also to note Holdback was changed from 3% to 2% early last year, so it's impacted the dealer profit and some of your negotiating leverage.

My dealer will not add an ADM on a new truck as it would damage their reputation.

 

I don't think prices will take a dump anytime soon, even used cars. I just bought a new toyota tacoma for work, for work I would have to pay whatever but this dealer was pretty fair and charged me in-between invoice and msrp. The lot was 90% empty a few random used cars at the front of the lot. no tacomas or tundras in stock. They had a stripper corolla in the showroom lol.

 

I assume if I turn in my drivers license before Aug with my order they wont issue me a PCO

 

I've struggled for decades trying to get my mind wrapped around this tax write off concept.

Let's suppose Uncle Sam wants a third of all income.

Let's suppose Wright nets $100,000 in income doing well inspections. Wright's accountant advises that buying a new truck over 8,500 GVWR used exclusively in his business might qualify for a Section 179 deduction, applying the entire cost of the truck against that $100,000 of net income.

So Wright heads over to Grapevine Ford, finds a truck with an MSRP of $75,000, to which the dealer added an additional $20,000 in "market adjustments". Pure profit for the dealer.

Wright figures he needs a $100,000 write off, so he is all too happy to pay $95,000 for the truck, plus fees which works out to the $100,000 he was looking for. He now has no income, and thus pays no income taxes.

Now let's consider Wright's cross town competitor.... her name is Penny.

Penny used to be married to Wright, and in the beginning, they both built their well inspection business together from scratch, having met and graduated from the same engineering college. They worked well together, until one day Penny discovered Wright had ventured a bit too deep in someone's personal well. Well, that was the end of that partnership.

On her own, Penny has done equally as well as Wright. She too, netted $100,000 in income. They had different divorce lawyers, but they retained the same accountant, so Penny received the same tax write off advise.

Penny went truck shopping. She stopped at Grapevine Ford too, but saw the $20,000 ADM, and had a good hearty laugh. She hadn't laughed that long, or that loud, in a long time.

She was still laughing when she spied a white XL on a different dealer's lot, way out in the sticks. What caught her eye were the words "2020 CLEARANCE" in the windshield. Apparently, this truck was a forlorn left over from a fleet order that got scaled back, leaving the dealer stuck with strippy truck that most retail customers had passed over. Despite low inventory, the general manager of the dealership was so tired of flooring a stale lot ornament that didn't bling or blink and still had to be washed once a week that he told the staff to blow the truck out at $500 over invoice.

$40,000 later, Penny was driving a new truck that had everything she needed. Nothing more was necessary, nothing less would do. But unlike her ex husband and current competitor Wright, Penny now has to pay income taxes on the $60,000 that she didn't give to the dealer.

The tax man's third of $60,000 is $20,000... so she cuts a check to Uncle Sam for $20K and calls it a day.

Wright paid zero in income taxes, choosing to go for a full write-off of all income by giving an extra $20,000 in pure profit to the dealer.

Penny paid $20,000 to our government.

Is Penny wise?

That's up to you to decide,

Just remember, Penny still has $40,000 left in her bank, that Wright doesn't have.

 

I really depends upon the frame of reference. Tax write offs are really best used to adjust your income exposure. That is why many wait until the end of the tax year to make charitable contributions. It should go without saying that there is no resource coming back to the charitable donor other than perhaps buying their way into Heaven. And that's not certain. That's just one example.

 

When I initially placed my order the dealers in the local area would not take X plan pricing.
I called around and found a dealer 250 miles away who agreed to the X plan pricing and put it in writing via email for whatever that is worth. Called up the first dealer about 10 days after placing the original order to cancel. He was fine with it then commented that they now take the X plan price. Whatever. At that point I was done with them. I hope the new dealer does not play any games when the truck comes in.....

 

They both need a new accountant. The accountant should have set them both up in an S-Corp. Take $30k in salary from S-Corp and depreciate the cost of the truck over 5 years to the S-Corp. They can avoid self employment tax and lower the taxes they will pay on the distribution from S-corp. 😂

 

In the DFW area beware of any dealership owned by Berkshire Hathaway. There are lots of dealers of every vehicle type. They are universally bad to deal with. They are the leaders at price gouging. Grapevine Ford and their evil sisters are marking F-150 King Ranches up by $15,000.

‘’I’ve bought 5 vehicles at Grapevine Ford over the years but I will never do business there again. In fact…..stay away from Berkshire Hathaway owned dealers. There are still good dealers out there but these BH shops aren’t in that class.

 

Unless you have a full-time job and an s-corp as a side gig.

 

Came down 10k since I last looked. This dealer had multiple trucks 20k over msrp.

https://www.riovistaford.com/new/For...2888c87464.htm

 

I agree market adjustment is here. We have hit the pinnacle, and now on the start of the downward line of this ride. Week by week it's going the right way.

With others, by Oct 1, whole new landscape and incentives and PCOs will be rolling.

I am shopping now to order a 2022, and found many dealers going to xplan no problem, and starting at MSRP.

So now it's onto searching for the old way, of invoice, minus holdback, and wait for those incentives/rebates and PCOs...

 

And doubtfully sold any at that price. Rio Vista isn't really in a position to try that.