Ford makes $10,000 per truck sold?
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Elder User
Joined: Feb 2013
Posts: 856
Likes: 3
From: Livonia, MI
Ford makes $10,000 per truck sold?
Wow. That's way more than I thought. Does that mean we can go in and haggle the salesman down $10,000?!!! here's the quote followed by the article:
"Analysts say F-Series trucks pad Ford’s bottom line by $10,000 for each one sold."
From The Detroit News: It's showtime for Ford's gamble on aluminum F-150 | The Detroit News
From The Detroit News: It's showtime for Ford's gamble on aluminum F-150 | The Detroit News
Fleet Owner
Joined: Mar 2003
Posts: 24,724
Likes: 74
From: Blue Hill Township
Wow. That's way more than I thought. Does that mean we can go in and haggle the salesman down $10,000?!!! here's the quote followed by the article:
"Analysts say F-Series trucks pad Ford’s bottom line by $10,000 for each one sold."
From The Detroit News: It's showtime for Ford's gamble on aluminum F-150 | The Detroit News
"Analysts say F-Series trucks pad Ford’s bottom line by $10,000 for each one sold."
From The Detroit News: It's showtime for Ford's gamble on aluminum F-150 | The Detroit News
Sent from my Telegraph using IB AutoGroup
Lead Driver
Joined: Jun 2005
Posts: 8,466
Likes: 726
From: Calgary Canada
Not every part of that profit is availible to haggle on. Plus, that's not true of every truck. If you are already getting the generous discounts that people on FTE keep bragging about, and I've heard up to $8000 off sticker, then there's no way there's $10k of profit left in that truck.
There are always people who buy trucks for full price, with every option. It's no secret that options and hgher trims are huge money makers for every manufacturer. I'm sure on some of those trucks, Ford probably makes $15k. That's absoloutley a good thing.
There are always people who buy trucks for full price, with every option. It's no secret that options and hgher trims are huge money makers for every manufacturer. I'm sure on some of those trucks, Ford probably makes $15k. That's absoloutley a good thing.
Junior User
Joined: Aug 2012
Posts: 66
Likes: 0
BUAHAHAHAHA, you people make me laugh, haggling with a sales person comes out of dealers profit and sales persons commission. Factory incentives come out of Fords profit.
Kind of makes me think how much it actually costs to make a car or a truck?
Kind of makes me think how much it actually costs to make a car or a truck?
Elder User
Joined: Jan 2014
Posts: 741
Likes: 2
From: IA/GA/HI/FL/VA/CA/ME
Agree, Corporate Ford may make $10k a truck, but that's completely different than dealer profit. I would like to get that number. How much a dealer makes on a loaded f150 if someone was to pay sticker.
I bought my 2013 FX4 with lux package on New Years Eve and the deal I got was pretty dang good. After factory rebates, trade-in assistance, and haggling with the dealership for a brief time, I was under sticker by around $10,000. About half of that was factory rebates, so it made me curious as to how much the dealership was making off the deal.
I bought my 2013 FX4 with lux package on New Years Eve and the deal I got was pretty dang good. After factory rebates, trade-in assistance, and haggling with the dealership for a brief time, I was under sticker by around $10,000. About half of that was factory rebates, so it made me curious as to how much the dealership was making off the deal.
Postmaster
Joined: Nov 2006
Posts: 4,517
Likes: 3
From: SE Wyoming
I am guessing you could find an unnamed "analyst" to tell you whatever you want, might as well of used the medias favorite term when they really have no proof: "Some say".
I damn sure hope they make money of every truck they sell I don't own Ford stock for them to be losing money. Lets just say the avg. is $10K that means they make a lot more than that off those $50K+ trucks and the lowly fleet XL trucks probably don't return half that much. That is also why rebates are usually higher for the fancier trucks and X plan pricing is better percentage wise on them.
I damn sure hope they make money of every truck they sell I don't own Ford stock for them to be losing money. Lets just say the avg. is $10K that means they make a lot more than that off those $50K+ trucks and the lowly fleet XL trucks probably don't return half that much. That is also why rebates are usually higher for the fancier trucks and X plan pricing is better percentage wise on them.
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Super Moderator
Joined: Aug 2003
Posts: 25,479
Likes: 742
From: Isanti, MN
They're probably comparing the sale price of the truck compared to cost of goods sold. But CoGS doesn't include business overhead, R&D, or other fixed costs , just manufacturing costs. The article states that they invested $1.8 billion in retooling their plants to make the new trucks.
So that means that, ignoring every other business expense, they would have to sell 180,000 trucks just to pay for the plant tooling to make them. The Ford website mentions that the trucks will have gone through over 10,000,000 miles of durability testing before the first truck rolls off the assembly line. Any clue what that costs?
It really sounds like you're making the error that millions of people do every day. Ford is NOT the place where you buy your truck. They are the manufacturer, who sells the trucks to an independent business who operates under a franchise agreement to sell trucks in their name. Believe me the dealer doesn't make anywhere near $10,000 on a truck sale. It's actually closer to a tenth of that figure.
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Super Moderator
Joined: Jan 2008
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From: Maine, Virginia
The incentives that are offered are a combination of the dealer giving up profit and the manufacturer offering money.
At the end of each quarter, Ford dealers are paid a "holdback" fee based on the vehicles sold and the volume sold. The F-series and Expy's are Ford's bread and butter while most everything else built makes some profit but not nearly as much.
One of Ford's luxuries over the dealer is that they don't have to sit on their slow moving inventory like a dealer may have to, Ford pushes them out the door and actually forces the dealers to accept certain models. The dealer finances the sale and Ford is paid immediately. I'm not sure if Ford actually finances any dealer purchases but I'd wager not.
At the end of each quarter, Ford dealers are paid a "holdback" fee based on the vehicles sold and the volume sold. The F-series and Expy's are Ford's bread and butter while most everything else built makes some profit but not nearly as much.
One of Ford's luxuries over the dealer is that they don't have to sit on their slow moving inventory like a dealer may have to, Ford pushes them out the door and actually forces the dealers to accept certain models. The dealer finances the sale and Ford is paid immediately. I'm not sure if Ford actually finances any dealer purchases but I'd wager not.
Junior User
Joined: Jan 2011
Posts: 64
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Agree, Corporate Ford may make $10k a truck, but that's completely different than dealer profit. I would like to get that number. How much a dealer makes on a loaded f150 if someone was to pay sticker.
I bought my 2013 FX4 with lux package on New Years Eve and the deal I got was pretty dang good. After factory rebates, trade-in assistance, and haggling with the dealership for a brief time, I was under sticker by around $10,000. About half of that was factory rebates, so it made me curious as to how much the dealership was making off the deal.
I bought my 2013 FX4 with lux package on New Years Eve and the deal I got was pretty dang good. After factory rebates, trade-in assistance, and haggling with the dealership for a brief time, I was under sticker by around $10,000. About half of that was factory rebates, so it made me curious as to how much the dealership was making off the deal.
Logistics Pro
Joined: Jul 2006
Posts: 4,512
Likes: 18
From: Detroit
How much money does a restaurant make on your $40 dinner? Next time you order a drink in a bar, ask the bartender to give it to you at his cost plus 10% and see how that goes over
Ford and the other domestics virtually give away their small cars to keep their fleet gas mileage averages up--and they have to make money. Americans seem to buy vehicles "by the pound" and as such, pickups and SUV's get huge markups. The American companies are finally making some small premium cars (for instance the Cadillac ATS gives the 3 series BMW a run for it).
And as has been said, the dealer's margin is quite small and they can't negotiate with Ford on the price they pay. EDIT--but do what you can to get the best deal possible for yourself. There are rebates and factory incentives which do effectively reduce the dealer's price from Ford.
In a few years, you may be able to buy a Chinese made facsimile of an F150 for $20k instead of $50k--just like you can buy a Chinese guitar for $200 that is a facsimile of a $800 American guitar. Not something I'd like to see...
George
Ford and the other domestics virtually give away their small cars to keep their fleet gas mileage averages up--and they have to make money. Americans seem to buy vehicles "by the pound" and as such, pickups and SUV's get huge markups. The American companies are finally making some small premium cars (for instance the Cadillac ATS gives the 3 series BMW a run for it).
And as has been said, the dealer's margin is quite small and they can't negotiate with Ford on the price they pay. EDIT--but do what you can to get the best deal possible for yourself. There are rebates and factory incentives which do effectively reduce the dealer's price from Ford.
In a few years, you may be able to buy a Chinese made facsimile of an F150 for $20k instead of $50k--just like you can buy a Chinese guitar for $200 that is a facsimile of a $800 American guitar. Not something I'd like to see...
George
Mountain Pass
Joined: Feb 2004
Posts: 165
Likes: 7
From: Denver
When I was looking, I emailed several dealers to get the "best" price on the truck, assuring them whoever gave me the best deal I would buy from (which I honored).
Some dealers would not give me a price on the internet.. some would.
After getting the best quote, I would tell the others my best price and ALL smaller dealers said "I cannot touch that price"
High volume dealers get them cheaper from Ford, it works that way in all industries. the more you sell, the cheaper they will give them to you.
I doubt ford made $10k on my truck, but you never know really..
Super Moderator
Joined: Jan 2008
Posts: 40,024
Likes: 1,519
From: Maine, Virginia
This is very true..
When I was looking, I emailed several dealers to get the "best" price on the truck, assuring them whoever gave me the best deal I would buy from (which I honored).
Some dealers would not give me a price on the internet.. some would.
After getting the best quote, I would tell the others my best price and ALL smaller dealers said "I cannot touch that price"
High volume dealers get them cheaper from Ford, it works that way in all industries. the more you sell, the cheaper they will give them to you.
I doubt ford made $10k on my truck, but you never know really..
When I was looking, I emailed several dealers to get the "best" price on the truck, assuring them whoever gave me the best deal I would buy from (which I honored).
Some dealers would not give me a price on the internet.. some would.
After getting the best quote, I would tell the others my best price and ALL smaller dealers said "I cannot touch that price"
High volume dealers get them cheaper from Ford, it works that way in all industries. the more you sell, the cheaper they will give them to you.
I doubt ford made $10k on my truck, but you never know really..
On a quarterly basis, Ford pays all dealers a hold back check based on the type and volume of units sold. The high volume dealer gets a larger check. This is why sometimes you read a sales pitch about a dealer offering a vehicle below invoice price. He's using his holdback money to sweeten the pot to move that vehicle that no one wants. I got my truck that way. Over a $1000 below invoice because it wasn't loaded up truck like most people want.
If you'll notice, dealership "processing" fees are getting higher by the year. These are non negotiable fees and they are there to protect themselves from educated buyers like us. X-plan caps these fees to like $75.00 but X-plan is 4% over dealer invoice, you're still leaving a bunch of money on the table.
Do Not worry about dealer profits. The dealer will negotiate with you as far as he is able, if you haven't purchased, he'll get up and walk away, just as any savvy buyer should do.
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