Hey there.

Question for those that might know the real story. I was playing around and I found the perfect truck for me. Unfortuantely I can not really afford it right now but I had to call and ask.

It is an 08, F350 4x4.... But it has 6,000 miles on it. The price is not discounted because it is "used" or depreciated. It has never been registered, so it is still technically new.

Right now they are doing Plan A pricing and the 3500 rebate. The sales folk say they (Ford dealers) given the current pricing options can not lower the price anymore and that is it. I did do this once before on an Explorer and the same thign happened. Last time I was stupid, now I am curious.

Is that true? I always thought dealer demos were cheaper then new... because they have miles on them, they are not brand new.

If that is true, then this truck will never sell because I will just order one get all the incentives and go from there. Then I get a new truck and not one that has 6,000 miles on it.

Any insight here?

 

I actually have a friend who works at a ford dealer and i can ask him he is a salesman for them and he should know, i mean every tuesday he pulls up in a different 08 SD from the lot, lucky SOB

 

my 96 s10 was a dealer demo and I got it for less thasn a new truck

 

Less than 6,500 miles can be sold as new. Over 6,500 miles has to be sold as a used truck instead. If they sell it to you used you cant get employee pricing or rebates or special financing.
Consider that the dealer owes Ford the invoice amount on this truck no matter what. Lets say that is $40k. A-plan is probably $39k minus rebate and you are at $35.5k. If the dealer sells this to you as a new truck they get reimbursed the rebate and A-plan discount so they didnt lose any money. To sell it to you used you are asking the dealer to lose $5k or more out of their pocket.

There is a reason they drive demo's to the 6k mile mark and then park them. I would expect to save some cash on a 6k mile truck too but I think your negotiation is going to lie with free oil changes, bed liner, remote start, things that the dealer can add without compromising the guidelines.

 

Sounds like you and a couple friends should do some test driving!!Say about 505 miles.

 

Another common "trick" is for the dealer to buy the truck themselves. Now instead of owing Ford $40k (from my example) they owe their floorplan holder $35.5k (again from my example). They havent lost any money at all yet so if they sell you the truck for $34k they only lost $1,500 instead of $6,000. You can only sell something as new one time so regardless of the mileage this would be a used vehicle now. Its a big hassle and dealers usually only do this when forced to (or to help them hit spiff targets). Its much easier to convince a customer to buy it as new, get all the rebates, and compensate the mileage loss through maintenance or accessories.
On the bright side, its already broken in and I would assume any problems with it are already addressed.

 

What the others say is true. Anything less than 6500 (I thought it was 6000) can still be sold as new.

One thing to think about when buying a "demo". Tell the salesman "It's nice and all that the title says NEW, but one of your salesmen or dealer employees used this truck for a personal vehicle".

Seriously, I test drove my '01 V10 - it had only 25 miles after sitting at the dealer for over a year. There was no offer to drive a "demo" ... there wasn't one.

How a truck (or any vehicle) gets almost 6000 miles on it as a "demo" is beyond me.

I bought my '97 Cougar with 5916 miles on it, knowing it was a "demo". When I leased it, they tried to lease it at the full sticker price, without any rebates or discounts. I BLEW! The finance guy says "well it's new!" - I said "I'll call Ford, tell them the owner's girlfriend/wife drove it for 5900 miles (they told me that when I first looked at it) and see what they say about it." The guy immediately dropped the leased value $4000 on a $23,000 sticker. Saved me some bucks.

Seriously, it's most likely not a "demo" - a sales guy, sales manager, owner, owner's son, brother-in-law, SOMEONE used that truck for 6000 miles. Check the hitch for wear marks

Not that you shouldn't buy it - not at all. But definitely use the mileage for a leverage point.

 

The owner "bought" the truck and used it to tow his boat. So it was used for sure. The thing is, it is a manual and well ever try to find one on the lot? This is the only one I ever found that way, with my options. That is the key. I want a lariat, not an XL or a dually. The 6,000 miles makes sense now.

Since it will be a couple of months before I can even think of affording it, I wonder if they will still sell it to me at the Plan A pricing if Ford is not offering it? Have to wait and see I guess. Plus have to hope no other person wants a truck like that.

Appreciate the little insight there. BUT... I did buy my previous Ford that had over 8,000 miles and it was sold as new. That was back in 05, an Explorer. With this information that tells me they did something very wrong, but I did not catch it nor know about it.

 

I think the state DMV would have caught it as "new" with the mileage at 8000.

I bet they didn't report it as 8000

 

Actually it is\was on all the paperwork. I lived in MA at the time, so maybe it is different ??? It does not matter much now, just more interesting then anything else

 

Krewat, as I say the word DEMO I am also referring to dealer demo's, not just customer demo's. Dealers are allowed a certain number of "demo's" or sales cars if you will. Every dealer uses them differently. Sometimes only the owner will use one but other dealers use them as a way to lower salesman commission. We give you a car to drive but you only make 15% instead of 25% (or whatever). I have seen some dealers not use employee demo's at all but then I have seen extreme cases of 25-30 cars being used by the owner, his kids, wife, parents, in laws, EVERY salesman, etc. I know of a dealer owner in Ohio that also has a house in Florida. He leaves an Escape and a F350 there. He flies down there for vacation and when he arrives he has a daily car and truck to tow his boat just waiting on him. Ford Motor really doesnt care because once it hits the lot the dealer owes the bank, not Ford.

 

dont forget about the Program Cars. Thats when a dealer "gives" a new group of new trucks to the PGA, Rodeo, March Of Dimes, who ever to use for a week or so, with their advertising all over it, then put them back on the lot. A week after I bought my 250 I was putting something in the glove box and out falls a sheet of paper, showing where they let a non dealership employee drive MY truck. I was mad but calmed right down the truck hat 550 miles on it they could not have gone far.

 

The mileage cut off where the vehicle cannot be sold as new varies from state to state. Some allow only 5000, some up to 9000. Your state DMV will be able to tell you what the laws are in your state.

As for the truck, if the dealer is selling it as new AND it has not been registered, then remeber to get them to adjust the warranty. For example, say you get a 100,000 mile powertrain warranty. Because the truck has 6000 miles on it, your warranty covers you until 106,000 miles.

They should give you some paperwork that states what the exact mileage is when sold. Make sure it reflects the true mileage. Don't let them fudge the mileage statement.

Also, ask them to provide you with an Oasis report on this truck, just to see what warranty work has been done on the vehicle.

 

The funny part is the IRS (and the state) takes a dim view of using vehicles that way.

If the dealer is using inventory for their own use, they are supposed to buy it, pay sales tax, and everything else, and then sell it as used.

It's just like if I sell automotive starters. Is it OK to just take one out of stock and use it for my own personal car for a year and then put it back in a box and sell it as new? Nope.

The telling point in my own transaction was when I said "I'll call Ford and ask them if it's OK that you're selling it as NEW" - the guy turned a whiter shade of pale