I ordered an 03 F-250 Lariat Crew V-10 4x4 a couple weeks ago. Salesman said he would sell it for $100 over invoice, I didn't even have to negotiate. I stopped into the dealership to check on the status of my order the other day. He said it is currently being built with all the options I wanted, no delays. He said the price came out to exactly what I printed out from FordDirect.com, plus the $390 Ford Dealers Advertising Fee and $20 for gas. I questioned this and he said all vehicles are assessed this fee by Ford, customer has to pay for it, no way around it. I didn't believe a word he said. I know the dealer doesn't have to pay for the gas the Ford puts in it at the factory. He said not to worry about the gas charge, thanks!. Has anyone ever heard of this FDAF???? I think it will go right to the dealer.

 

Believe it or not, your salesman's right. "FDAF" stands for Ford Dealer Advertising Fund, and it's a charge added by the factory (it will appear right on the invoice) to help local dealers with their advertising costs. Whenever you see an ad on TV from "your local Metro/ Bay Area/ Tri-County/ Tri-State Ford dealers," this is the fee that helps pay for those ads. It also helps fund local incentives that are sometimes used throughout the year. You'll find most "advice sources" (Consumer Reports, Edmunds) will tell you that you can expect to pay this fee, as long as it can be documented on the invoice, and that the fee is not unreasonably high. As for the gas, Ford assesses the dealer for the amount of gas put in at the factory, then re-imburses the dealer later for filling the tank. So, if they charge us for putting in 20 gallons at the plant, then pay us for filling a 38-gallon tank, we get paid for 18 gallons. The rest comes out of our pocket. Ford standards require us to deliver every new retail sale with a full tank. (Fleet sales get whatever is in the tank when it arrives on our lot.) Be thankful you're not buying a Mitsubishi- they add anywhere from $700-1,000 for advertising!

 

Yo Mark II,
Thanks for that info!

Also, ask about any fees that may jack-up the "final" price, even though you negotiated the "price"; such as clerical and messenger fees over the usual title/tag MVA fees and the "documentation" fees.

I like this site:
http://www.carbuyingtips.com/car3.htm

 

Thanks for the feedback. The salesmen was so "non-convincing" when he was describing this fee I found it very hard to believe. I'm anxiously awaiting it's arrival!

 

yo,
good for you!

My sis & BIL bought a new taurus yesterday with my "help" (of course!). It was an emergency buy because her 76 Grand Prix finally said no more please!

well, we got:
NO "FDAF"......yippe!
a full tank of gas, no charge!
No pin stripping, u/c, fabric protector or waggy dawgg in rear shelf
No "Messenger fee" or clerical/doc fees
Just NJ tax and $44.00 for reg/transfer fee (set by NJ)

Total discount (incl. the Fact. Rebates) off of MSRP (Including the Dest. Charge) was $5500.00

Had a great saleslady; no add-on's such as the FDAC, ESP, or fees...took our offer and got it OK'ed by GM; it was a bad business day there due to weather and wind chill. It also helped to be able to show them a pre-approved CU ck for the total.
A good day for M family!

 

The ad fee is added before reaching invoice.

Example: If invoice is 30,000 on paper the ad fee is included not tacked on over invoice.

If a car invoices at 30K that number includes dealer holdback and the ad fee.

I was a Ford salesman for a while and $100 over true invoice is pretty good. Do not pay a DOC fee or customer service fee. Every car dealership I have ever worked at did this. It was usually around 300 bucks. They claimed it was to pay saliaries of office help that processed titles, tags, and such. That is pure BS. It is tacked on profitt and nothing less.

True invoice minus rebate/or special APR(i.e. 0%) and NO DOC fee is a pretty good deal. When this happens the dealer likes to say they are losing money but they still get paid the holdback from Ford plus what ever they stick you with in the back...warranty, credit life, gap insurance, and so on. All new fords get full tank of fuel as mentioned above.

Just stand your ground and don't budge. $100 over invoice plus taxes, title, and tags is all you agreed to pay. Be firm and I promise the dealership will not let you walk out over it.

Please don't think the salesman is getting rich off you either. He is making what is called a "mini deal" because he did not make enough profitt. Usually around $100.

 

Thanks Stab!
I see that now in the Ford Invoice explanation.
"Total Invoice:
Total Invoice is the amount that Ford Motor Company charges its dealer for a vehicle. Total Invoice may not represent the actual dealer cost, as there are holdbacks, floor plan financing assistance, dealer advertising fund fees, shipping, and charges for gasoline that may be included in the total invoice. Additionally, there may be future rebates, allowances, discounts, and incentive awards provided from Ford Motor Company to the dealer. This data is provided for informational purposes only and actual pricing information may only be obtained from your local dealer."

The window sticker didn't list the fee nor did the saleslady menton it or add it on to the neg. price.

Anyway, sis got the car and did save a few $!

Be wll,
Al

 

Thanks Stab. Like I said, I walked into the dealer and said I wanted to factory order my truck. I had all the options listed to make things easy. The salesmen came back from the "secret room" and said we'll sell it to you for $100 over invoice minus applicable incentices when it arrives. I was happy, it was really easy and a good deal. Since learning I would have to pay FDAF, I'm wondering what else will be added once it arrives. The salesman may have forgot he wrote it all down on paper and gave it to me. It clearly states $100 over invoice minus incentives/rebates. I will stick to my guns, especially since I never see a "tri-state Ford dealers" advertisement on TV. Thanks for the info on the other fees. I'm bummed to learn that since I paid extra for the OWL AT (Steeltex) that my truck will probably come with BFG's. I'm going to ask the dealer to swap out for Steeltex's on a truck they have on the lot.