Been following some threads here, which prompted me to call a few dealers near me. I was able to order a 2022 F250 7.3 Lariat for $1,000 under invoice. The funny thing was that the dealer practically next door refused to budge under MSRP, not even $0.01! The guy said we could "talk" if I wanted an F150, but all Super Duty trucks were selling at MSRP and "even to our own family members and salespeople". I said, "maybe your salespeople should buy their trucks somewhere else because your neighbor is thrashing you.". Anyhow, as an inexperienced buyer, I was hoping someone on here could give me some insight.

1. If invoice is what the dealer actually paid for the truck from Ford, how can they sell it for $1,000 less than that? I used to sell cars in my younger years and even I can't answer this. Back then, the way we did it was through factory-to-dealer incentives which the customer did not see and we could make them think they were getting an amazing deal when, in fact, they were not. But in today's market, why would Ford give a dealer any incentive to sell a truck that they can't produce fast enough?
2. I thought that $1,000 under invoice was a great deal considering I don't have to fly to some other state (like the deal being offered by Zach at Granger Ford), but I read folks saying they wouldn't even start their negotiation for anything less than 10% or more off MSRP! Huh? Am I getting fleeced here with a measly $1,000 under invoice?

By the way, the dealer I spoke to said they generally do not give out this info to the customers, but if I wanted my truck within about 3 months, I had better stay away from a King Ranch, Limited or Platinum. Apparently the things slowing production down into the 6+ mo range was: Retractable running boards, spray in bed liners, sunroof, etc. He said the higher trims are produced on a "separate line" from Lariat and below. So if I ordered a Lariat and didn't add in those items, I should be good to go. If I really wanted a Limited, I'd have to wait "at least 6 months or more". He even showed me the dealership's last 100 orders with the order date and the date of production. Sure enough, Lariats ordered about 3 months ago were getting theirs delivered now while higher ups were still waiting.

 

Just ordered a 2022 F-450 King Ranch on the understanding we are good waiting 6 months for delivery, as we don't require the truck for towing until May/June 22.

I have purchased vehicles from the same local sales manager for the past 20 years, so have built up a relationship. Although the invoice shows MSRP, he has significantly increased the value of our trade-in, to the extent that we got more for a 2016 F-350 dually than we paid for it. By purchasing a new vehicle, he increased the trade in by $8K. For us it is a great deal, as we are happy at the price point we are paying and didn't need to play the game of driving to all the other local dealers. If you are happy with the price point, it's a good deal for you.

You can check out the tracking threads for new SD's on order - 1 spreadsheet for unscheduled orders and another for ones that have received the VIN. These show which options are being scheduled, or specifically which options are not getting scheduled. They are in the 2017+ Super Duty Board. The first post in each thread provides a link to the spreadsheet and how to add your order details.

 

I don't buy the idea that some trims are produced on a different line, possible I guess but that sounds completely made up. Then there may be certain options that have help up production but ordering a lower trim level has not helped my order one bit Mine will take every bit of 4 months from ordering to show up and it is an XL/STX.

As to whether or not you got a "good deal" that seems like something that should be researched before making the deal, not after. Sounds to me like they made you a great deal given the shortage of trucks.

 

mbronto you have a good deal on the purchase, well done. They can sell for less because they have hold back money from Ford, don't quote me but something like 3% of truck. Now your wait begines.

 

I'd also be interested in hearing what the real invoice price is.
Separate lines based on trim level? Doubt it. Ordered my 2022 F250 7.3L KR 5/19/21 and it was built 8/16/21 (no spray-in liner, no big hole in the roof, no "ultimate" option). But it's been sitting a few weeks in a Jack Cooper Transportation yard located about an hour's drive from here ... supposedly waiting for more vehicles to fill up a trailer load heading this direction.

 

My dealer showed me a breakdown of the invoice for the base plus all the options line by line. I went to https://www.nadaguides.com/ and confirmed they were all correct to the penny. I'm still not clear on how they can sell under invoice consistently. Someone mentioned here they have "hold back money from Ford" but I am not sure what that means. I'm also not sure why they would be so competitive on pricing to begin with when they can't keep up with orders. Unlike pre-COVID times, when I went to the Ford dealership now, they seemed to be doing me a favor when I asked for help looking at trucks and it took 15 minutes just to find a salesperson willing to do it.

 

As I understand it, Invoice price is the amount Ford charges the dealer when the truck ships. The dealer has terms with Ford on how much time before they have to pay the invoice (30 days?) after which the dealer has to pay interest like a loan until the invoice is paid.

The holdback is an amount that Ford credits the dealer when the truck is sold. It represents additional profit for the dealer. This is how the truck can be sold below invoice and the dealer still makes a profit. Ford offers additional financial incentives to dealers for meeting certain sales quotas.

Dealers also make profit when you finance through them and for "add ons" such as extended warranties, maintenance plans, fabric and paint protection, anti-theft glass etching, etc. These transactions are typically pushed by the finance guy who likely makes the dealer more profit on the sale than is earned on the sale of the truck alone.

Then there are the litany of dealer fees for processing the transaction. These can add up to several hundred dollars.

The dealer has no trouble making a profit by selling the truck at or below invoice.