X-Plan or Not?
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New User
Joined: Aug 2006
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X-Plan or Not?
I've been lurking for quite some time now and thanks to you guys, have learned a lot about the ins and outs of purchasing a new vehicle.
The time has come to ask a question.....I'm looking to purchase a 2006 F-350 in the next month or so. Would I be better off using the x-plan (I'm a stock holder and currently have a pin) or would I be better off negotiating a deal without it? My understanding is that with the x-plan I'm locked into a pre-determined price, but seeing how the 06s are a year old, I thought I might do better not using it (x-plan). Any opinions would be appreciated.
The time has come to ask a question.....I'm looking to purchase a 2006 F-350 in the next month or so. Would I be better off using the x-plan (I'm a stock holder and currently have a pin) or would I be better off negotiating a deal without it? My understanding is that with the x-plan I'm locked into a pre-determined price, but seeing how the 06s are a year old, I thought I might do better not using it (x-plan). Any opinions would be appreciated.
Post Fiend
Joined: Feb 2004
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From: Damascus-Boring, Ore
Unless you believe dealers are going to launch a F350 out the door for a lot less, your X-plan is the way to go. Here's the thing a lot of customers don't understand. If we make a profit, we get to keep it.... it's our money. If we lose money, we have to eat it.... and it's our money. If we do nothing at all.... it's Ford's money. Sooooo.... if faced with a deal that incurs a loss, there's very little risk in passing on it and hoping a better deal comes along.
The thing to watch out for, though, is the dealer that will take a paper loss and then make up for it, or then some, on the trade-in, finance, insuirance, and aftermarket side of the deal. There's a lot of ways to make money on the deal that has nothing to do with the actual selling price of the vehicle.
The thing to watch out for, though, is the dealer that will take a paper loss and then make up for it, or then some, on the trade-in, finance, insuirance, and aftermarket side of the deal. There's a lot of ways to make money on the deal that has nothing to do with the actual selling price of the vehicle.
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Thanks Polarbear. I guess the piece I was missing was that the dealer loses (or gains) nothing so long as the vehicle stays in their inventory. It was my thinking that a dealer would be more motivated to want to get rid of the older inventory especially if they owned it or were having to pay interest on it all the while it sat on the lot. However if Ford owns it, maybe that's not the case...
Btw, this will be a very clean deal...no trade, no insurance, no financing, and more than likely no aftermarket items except for possibly a bed liner.
Btw, this will be a very clean deal...no trade, no insurance, no financing, and more than likely no aftermarket items except for possibly a bed liner.
Post Fiend
Joined: Feb 2004
Posts: 10,728
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From: Damascus-Boring, Ore
Who is it that sez follow the money?
Somewhere there's a sales manager that gets paid a percentage of profit that his department... or the store makes. As long as it sits.... even if it's chewing up interest money... it's a no harm/no foul situation. In our biz, profits and losses are only booked when they're actually sold.
Now the used car biz- different story. For one, most dealers own their inventory. For another, there's a 60-day rule many stores use..... if it doesn't sell in 60 days, it gets wholesaled, and the profit/loss will get booked accordingly. You'd rather retail anything than wholesale it.
Somewhere there's a sales manager that gets paid a percentage of profit that his department... or the store makes. As long as it sits.... even if it's chewing up interest money... it's a no harm/no foul situation. In our biz, profits and losses are only booked when they're actually sold.
Now the used car biz- different story. For one, most dealers own their inventory. For another, there's a 60-day rule many stores use..... if it doesn't sell in 60 days, it gets wholesaled, and the profit/loss will get booked accordingly. You'd rather retail anything than wholesale it.