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-   -   Any Extra Charges in Invoice Price? (https://www.ford-trucks.com/forums/1127770-any-extra-charges-in-invoice-price.html)

Truckpilot1329 01-03-2012 12:40 PM

Any Extra Charges in Invoice Price?
 
The invoice price of an F-150 is about 10% below MSRP. So a truck with a sticker price of $40,000 has an invoice around $36,000. That's according to the pricing guides I've seen.

For those of you who recently bought a truck and saw the invoice paperwork, were there any extra charges put into the invoice price? For example, Regional Ad fees?

I recently visited a site called tlrue car, which supposidly gives you invoice pricing, but shows a $610 extra ad fee included in that invoice price.

Anyone knowledgable about this?

tvsjr 01-03-2012 02:11 PM

The "invoice" price most dealers will let you see (the same sheet that has X-plan on it) includes holdbacks and ad fees. Most dealers will very carefully guard their "true" cost. Most sites, such as Edmunds.com, show this price. Some (as you've found) may break out some of the included holdback, but probably not all of it.

That said, if a dealership is run well, the holdbacks/ad fees/etc. will basically run the business - pay the bills, keep the light on, etc., and potentially allow for some minor amount of profit per unit. The real profit comes from revenue above that "invoice" price, back-end dealer-adds (undercoating, extended warranty, etc.)

You may find some dealers willing to sell into holdbacks... especially for vehicles that are unpopular, have been on the lot a long time, etc. - basically vehicles that are costing them money and need to go away. Don't expect to find much of this behavior on an F150 - they're just too popular.

Also, remember that dealers all play games. Make sure you review the rebates (tell your salesperson to show you the incentives in Smart VINCENT) and get everything you can. I've seen dealers make a great deal on a vehicle, then "overlook" a rebate or two... which they then add in later, pocketing the rebate money as profit.

I typically order my vehicles, and my dealer always sells them to me at invoice, no BS back-end adds, and carefully reviews the rebates with me. The truck never sits on the lot so he has little money in it, I often finance through Ford so he gets some perks there, etc. All in all, he makes enough money from me to keep the business running and to pocket a reasonable profit for himself, but I don't get hosed either. They are also very easy to deal with, friendly, and I get other benefits - like getting tossed keys to a demo or used car to drive while my truck is in service (translating to $$$ savings for me).

stephen.osborne1 01-03-2012 04:59 PM

My local dealers include a "market adjustment" fee on each vehicle... Its on the window sticker but I've seen so many people not even ask about it and just paying it. It is essentially an extra fee added onto the MSRP allegedly to adjust it according to a certain vehicle's popularity in the region. It is BS and completely open to negotiation/ negation.

tvsjr 01-03-2012 09:47 PM

Yep, "market adjustments" are entirely arbitrary and are a cash grab. Look at limited-supply vehicles like the Shelby Mustang, etc. for great examples.

Other manufacturers do this far more frequently... whenever the newest Lexus comes out, you can be assured it will have a "market adjustment" until that model is sitting on lots all over the US.

All part of the game...

tseekins 01-04-2012 05:29 AM


Originally Posted by tvsjr (Post 11232597)
The "invoice" price most dealers will let you see (the same sheet that has X-plan on it) includes holdbacks and ad fees. Most dealers will very carefully guard their "true" cost. Most sites, such as Edmunds.com, show this price. Some (as you've found) may break out some of the included holdback, but probably not all of it.

That said, if a dealership is run well, the holdbacks/ad fees/etc. will basically run the business - pay the bills, keep the light on, etc., and potentially allow for some minor amount of profit per unit. The real profit comes from revenue above that "invoice" price, back-end dealer-adds (undercoating, extended warranty, etc.)

You may find some dealers willing to sell into holdbacks... especially for vehicles that are unpopular, have been on the lot a long time, etc. - basically vehicles that are costing them money and need to go away. Don't expect to find much of this behavior on an F150 - they're just too popular.

Also, remember that dealers all play games. Make sure you review the rebates (tell your salesperson to show you the incentives in Smart VINCENT) and get everything you can. I've seen dealers make a great deal on a vehicle, then "overlook" a rebate or two... which they then add in later, pocketing the rebate money as profit.

I typically order my vehicles, and my dealer always sells them to me at invoice, no BS back-end adds, and carefully reviews the rebates with me. The truck never sits on the lot so he has little money in it, I often finance through Ford so he gets some perks there, etc. All in all, he makes enough money from me to keep the business running and to pocket a reasonable profit for himself, but I don't get hosed either. They are also very easy to deal with, friendly, and I get other benefits - like getting tossed keys to a demo or used car to drive while my truck is in service (translating to $$$ savings for me).


Originally Posted by tvsjr (Post 11234741)
Yep, "market adjustments" are entirely arbitrary and are a cash grab. Look at limited-supply vehicles like the Shelby Mustang, etc. for great examples.

Other manufacturers do this far more frequently... whenever the newest Lexus comes out, you can be assured it will have a "market adjustment" until that model is sitting on lots all over the US.

All part of the game...

Very well posted sir and reps sent.


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