price question
Thread Starter
|
Junior User
Joined: Jun 2010
Posts: 61
Likes: 0
price question
I have only bought one new vehicle in my life, my current 04 f150. It now has 220,000 miles on the clock and I am ready to up grade to the 2011 F250. I bought the f150 off the dealers lot. I noticed that alot of you guys are ordering your own specs. my question is; Can you get a better deal ordering the truck or buying from the dealers stock ?
Freshman User
Joined: Jun 2010
Posts: 35
Likes: 0
My personal opinion is when you special order a vehicle you pay invoice less any rebates from the manufacturer. Assuming you sign the papers on the truck within a few days of it hitting the dealers lot from the factory, they get the entire hold back in there pocket, FORD's holdback is 3% of MSRP, plus they get any special cash FORD throws to the dealer for Marketing or what ever.
If you buy off the lot, it depends on how long the vehicle has been sitting there, in VT you can tell by looking at the inspection sticker, they put one on the day it shows up from the factory. If its been there a few days, again you should be able to pay invoice less rebates. If its been there a few months, they have already used up some of the holdback on making payments on the vehicle, so in this case I've paid around $400 or $500 over invoice less rebates. Hope this helps.
If you buy off the lot, it depends on how long the vehicle has been sitting there, in VT you can tell by looking at the inspection sticker, they put one on the day it shows up from the factory. If its been there a few days, again you should be able to pay invoice less rebates. If its been there a few months, they have already used up some of the holdback on making payments on the vehicle, so in this case I've paid around $400 or $500 over invoice less rebates. Hope this helps.
Thread Starter
|
Junior User
Joined: Jun 2010
Posts: 61
Likes: 0
yes, that helps, I am in California, The dealer I use is a high volume one and to be honest, sharks ! probably going to do this in Nov/Dec hopefully they will be hungry for some xmas bonuses and some good rebates floating around !
Elder User
Joined: Apr 2010
Posts: 754
Likes: 0
If you don't qualify for x-plan thru the company you work for, join an organization such as the EAA (Experimental Aircraft Owners Assoc.) about $40 for the year and you can get X-plan pricing. Listed right on the invoice, no haggling and then take off any incentives. Yes, it is up to the dealer to accept it but I have never heard of any dealers not. X-plan = employee pricing + 4%.
Last edited by cford716; Jun 19, 2010 at 10:31 AM. Reason: spelling
Elder User
Joined: Apr 2010
Posts: 754
Likes: 0
When you keep referring to invoice price I am not sure what you are referring to. The vehicle invoice lists several prices including A-plan, X-plan, MSRP, etc. Are you referring to dealer cost when you say invoice?
Freshman User
Joined: Jun 2010
Posts: 35
Likes: 0
When i say invoice, I mean invoice price. I believe invoice could be called "dealer cost". And I'm pretty sure A-plan, X-plan, etc are all some percentage above "invoice".
Trending Topics
Post Fiend
Joined: Apr 2004
Posts: 5,158
Likes: 35
From: North of Salt Lake City
Invoice is the amount the dealer pays to Ford when the vehicle is delivered to the dealership. You have to remember that after the dealer sells the new vehicle, Ford pays the dealer a "holdback" which varies by model but is typically 4% of MSRP. The true "cost" to the dealer is invoice minus holdback. That amount equals A/Z/D plan. For my truck, in round numbers, MSRP = $61,000, Invoice = $54,0000, True Dealer Cost = $52,000.
Remember three significant price levels 1 - MSRP, 2 - X-Plan (which is $100 over invoice) and 3 - A/Z/D plan. If you buy close to or below X-Plan, you can feel good about the price.
Remember three significant price levels 1 - MSRP, 2 - X-Plan (which is $100 over invoice) and 3 - A/Z/D plan. If you buy close to or below X-Plan, you can feel good about the price.
FTE Stories
Ford Trucks for Ford Truck Enthusiasts
AEV FXL Super Duty - the Super Duty Raptor Ford Doesn't Make
Brett Foote
Lobo Vs Lobo: Proof the F-150 Lobo Should Be Even Lower!
Michael S. Palmer
Ford's 2001 Explorer Sportsman Concept Looks For a New Home
Verdad Gallardo
10 Best Ford Truck Engines We Miss the Most!
Joe Kucinski
2026 Shelby F-150 Off-Road: Better Than a Raptor R?
Brett Foote
2027 Super Duty Carhartt Package First Look: 12 Things You NEED to Know!
Michael S. Palmer
10 Most Surprising 2026 Ford Truck Features!
Joe Kucinski
Top 10 Ford Trucks Coming to Mecum Indy 2026
Brett Foote
5 Best / 5 Worst Ford Truck Wheels of All Time
Joe Kucinski
Thread Starter
|
Junior User
Joined: Jun 2010
Posts: 61
Likes: 0
This is all well and good, but now out of curiosity, How does the dealer make money ?? They have to pay commissions to the sales reps, managers etc. I understand that they probably make money on the financing etc, but even still, if you manage to get the vehicle at invoice, doesn't seem like alot of incentive to the dealer ! the 4% holdback wouldn't seem to cover it.
Post Fiend
Joined: Apr 2004
Posts: 5,158
Likes: 35
From: North of Salt Lake City
4% on 61,000 is $2,440. That's a decent deal at a dealership. Most dealers will take that all day long knowing that they have to compete. I was a controller at a Hyundai dealer 18 years ago and trust me, we would have loved to have gotten that kind of gross on a new car sale. Back in those days, Hyundai had a flat $150 hold-back and we were rarely able to sell much over invoice. But I digress... A Hyundai isn't a Ford.
And yes, every deal has an opportunity to make back-end money as well but a sales manager has to be able to hold his own on selling at the highest amount possible for every deal.
There is no end to the "value-adds" in the finance office: (Credit insurance, unemployment insurance, undercoating, paint & interior protectors, theft recovery, financing markup, maintenance agreements, doc fees, prep fees, delivery fees, etc, etc, etc.)
Buying with an XPlan PIN assures that all fees are limited to $75. In my case, the dealer tried to sneak in VTR (vehicle theft recovery) at $495. No thanks. Dealer made the hold-back on my deal and that was fair for both sides.
And yes, every deal has an opportunity to make back-end money as well but a sales manager has to be able to hold his own on selling at the highest amount possible for every deal.
There is no end to the "value-adds" in the finance office: (Credit insurance, unemployment insurance, undercoating, paint & interior protectors, theft recovery, financing markup, maintenance agreements, doc fees, prep fees, delivery fees, etc, etc, etc.)
Buying with an XPlan PIN assures that all fees are limited to $75. In my case, the dealer tried to sneak in VTR (vehicle theft recovery) at $495. No thanks. Dealer made the hold-back on my deal and that was fair for both sides.
Senior User
Joined: Jul 2010
Posts: 436
Likes: 2
From: Salt Lake City, UT
If you are a USAA insurance member, you can get dealer invoice plus incentives... It's $100 better than xplan if you don't qualify for xplan. I just ordered mine last week through the USAA buyers program. It was a quick and easy process. Any of those options are great as it takes the negotiation out of it. And I had the same anti-theft fee on my invoice when the first wrote it up. It was $299 on mine, but I had him remove it. You have to look for it or they will breeze right past it when they review the invoice with you.
Post Fiend
Joined: Jan 2009
Posts: 6,521
Likes: 11
From: Greenwood, SC
My dealer makes money on used car/truck sales, service dept., collision repair. New car sales get customers in the door and they make very little money on new cars. One would think that new car sales would be the major source of income but it's not.
Do a search in the 6.7 forum and you will see some prices that some of us have posted up.
I paid invoice for my truck +$300. Trade off for me was that they gave me a good value for my '08 F250 that I traded in.
Do a search in the 6.7 forum and you will see some prices that some of us have posted up.
I paid invoice for my truck +$300. Trade off for me was that they gave me a good value for my '08 F250 that I traded in.
Junior User
Joined: Jun 2010
Posts: 50
Likes: 0
Gotta love the USAA program! Lets just say after reading stuff here, I'm still pleased with my deal and will reccomend tham to all!
Thread
Thread Starter
Forum
Replies
Last Post
