Frank_Ford

This looks like a fair deal but you should figure that the dealer is not loosing money on the transaction. You never know the incentives that Ford is offering the dealer to move inventory, especially last years model that they want to get rid of. This truck is a year old as soon as you buy it even though you are the first owner. The dealers really don't make a lot of money on selling new cars. The difference between the invoice from Ford and the sticker price is only a few thousand dollars. At one time they received an additional payment from Ford of 3.5% of the invoice when the dealer sold the vehicle and paid off his floor plan loan. Ford also has all kinds of packages for options they add to the vehicle that run up the sticker price but don't really cost Ford all that much. A lot of time it is better for Ford to build the vehicle with the optional equipment in order to use up their inventory and offer incentives for the buyer to buy the options. Sometimes however, Ford will offer these incentives to the dealer and the dealer may or may not tell you about them (they hardly ever tell you if the incentives are not listed on the sticker). When I bought my first car 52 years ago, my dad went with me and we got prices at three dealers. There wasn't $100 dollars difference between the three prices so I ordered it from the lowest price dealer and waited for 6 weeks while the factory built the car with the color and options I wanted. I sold my trade myself (a 1959 impala) for about $100 more that the dealer offered.

A lot has changed since then with these mega dealers that stock about anything anybody would want to buy. I don't even think that you can now order a car that will be made specifically for you from the factory. With all the rebates,incentives and dealer inventories, it becomes very hard to find the same truck and compare prices between dealers. However, understanding that the dealer needs to make money and he also is under a lot of pressure by Ford to move product and he doesn't keep the doors of his dealership open by only selling new vehicles, you should try to buy from someone in your town that you know who values his reputation in the community. There are a number of dealers in my town that have been in business for a long time and have good reputations in the community. The have great service departments, are active in the community, and you see them around town. Understand also that the dealer is going to want to make money on your trade in that will probably be more than the money he makes on the new vehicle. They are really going to make money on you by selling extras Extended warranty, paint protections, dealer installed options, credit life insurance, and the financing. It is not uncommon for a dealer to ask you what you want as a monthly payment and then add a ton of options, jack up the interest rate, and give you a long term loan. My feeling is when a guy tries to get you to do something like this, don't negotiate but just walk out and go somewhere else. You will never know all the places he is adding money to the deal and you can most likely do better somewhere else.

southchatham

Their is no loss unless you sell. Your point proves it. The 3 year old truck has just about the same value as the 1 year old truck. You should re do it using the same mileage.

Has anyone done any research on the peak value of a trade vs loss, how many years should you keep it before trading. I've done a quick turn around on a Ranger, 2 1/2 years and was not upside down. I've kept 2 trucks 13 and 15 years getting more for trade than the Ranger after loan payoff.

I would think maximum value might be at the end of your loan, 100% of the trade goes to lowering the cost of the new truck and the truck still has good value. If you did this every 5 years you would always have a newer vehicle and lower payments. Keeping vehicles longer is nice not to have a payment but it gets costly in repairs and when you get a new one you don't have much value making the payments much higher.

I think I'll do the 5 year plan from now on.

riptide88

Did the sales guy have to change his pants when he came in them lol Thats a sales guys wet dream to sell a vehicle based off of monthly payments.

gregsf150stx

funny, but true (probably has an orgasm right there!) LOL

they ask me what I want my payment to be, I say NEVER mention that word again. I have actually left when they bring me that 'four square"

toptobottom

Next time just place your hand across your chest and yell out "Four Square and seven Dealiars ago, the Sales Gnomes brought forth ridiculous quotes to me"!

acdii

Thats funny. I buy based on what I want to pay a month, but I never tell them that, don't need to because I have already calculated out the most I would pay and walk in with that price in mind on the truck I want. If they don't meet it or beat it, I walk. Has worked out well for me since I usually come in under what I was willing to spend. I paid less for my special ordered Platinum than I did for the on the lot Lariat, and I got a pretty good deal on the Lariat at the time too.

RubyRedX3

If the truck is a new 2018 that has been sitting on the lot for over a year with new 2019's sitting next to them, that truck is costing them money every day it sits there. In terms of taxes and interest on the note they had to buy the stock. If you go in with that knowledge, you can usually get a better deal.

You should have done what I did when I bought my Harley. In a nutshell....I bought a brand new 2016 H-D Breakout that had been siting on the floor thru two new model year cycles. i.e. a brand new 2016 that is on the floor when there were brand new 2018 models sitting next to them.

I told the dealer I was not going to take an instantaneous, 2 year hit on depreciation rolling it out the door. I researched the prices of of dealer retail for a 2016 and what the wholesale price was and after all; said and done rode home on that bike for $600 UNDER dealer retail, with no money down, and they ate the negative equity on my trade in.

The original price when we started discussions was $21,000.00 (price when new). They then lowered it to around $19,000. That is when I brought up the issue about depreciation.

2016 H-D Breakout
Dealer retail: $17900.00
Trade in: $14700

Purchased for $17330.00.
Dealer ate $1960 in negative equity on my trade in...2014 Honda CTX700D

riptide88

Thats not the same as what 13f150 is saying though, you're not walking in blind and buying the truck based purely on the monthly payments with no care about discounts or rebates.


Good luck finding a Brand new 2 year old left over truck on the lot lol

RubyRedX3

True but they are out there if you search deep enough. The Original poster stated that it was a 2018 model that had been on the lot since Jan 2018. That makes the vehicle well over 1 year old and a previous model year. He would have taken it in the shorts because the truck depreciating 13 months just by driving it off the lot. My point was that the dealer should eat the depreciation and not the buyer. The dealer is the one who failed to move his stock, so he should be the one to suck it up. In my real life experience I stated above, my bike was worth more than what I owed on it after riding it off the lot because the dealership ate the depreciation, not me.

gregsf150stx

Actually I didn't "take it in the shorts" because if you read the whole thread, I didn't buy the truck! :-)

but point aside, thread had been re-railed a bit.