textech

2017 Platinum


$65,695 MSRP
$(1,295) Destination
$64,400
$7,093 11.01%
$57,307 Price Before Rebates
$(1,000) Customer Cash
$1,748 Doc & Tax
$58,055 Final Price

Threw-in Bedliner, Wheel locks, Nitrogen & tint $1800 (bs)
I was able to get $1500 more for my trade than anyone else in town would
give me. So a little give & take on the dealer discount line…

Took 0% financing as well.

Feel like I left about $1k on the table but I got deal fatigue.

gregsf150stx

Lord, that will the the day when I give $60,000 for a truck. I can buy a house here for that.

Asaberan

I'm a little confused here. Maybe I've created too many spreadsheets, seen too many quotes, and had too many dealers try to pull the wool over my eyes, but does invoice INCLUDE or NOT INCLUDE destination? All of the deals we're working in this thread DO NOT INCLUDE destination. Are we not paying destination? None of the "target selling prices" include destination because we're removing it to get to real "dealer retail" in the first step.

However, Edmunds and one dealer who I'm working with to order a truck INCLUDED destination as a separate line item for $1295 in what is referred to as "INVOICE."

So, are we paying for destination?

Bigcat1185

iTrader: (1)

I have no idea. I just look at the MRSP and compare it to what I had to pay.

silvius

The reason destination isn't included is because the whole point is to calculate numbers only with money that the dealer is profiting from, meaning their markup. Destination isn't marked up, it is a $1295 amount that the buyer pays. So invoice is completely separate from destination meaning invoice does not include destination, but you of course still pay it and have to add it on at some point, preferably at the end where it is least confusing to you.

I'm not sure how your dealer does it or how Edmunds does it (and I would avoid Edmunds altogether because they are literally in cahoots with the dealership networks---this used to not be the case but it is now. Their 'what others are paying' price is something that I ABSOLUTELY DO NOT TRUST)

Yes, the buyer always pays for destination.

The process is indeed complex. Dealers like it that way because the more they can confuse, the more they typically profit. What you are doing is great in that you are trying to figure out the complexity on your own, ahead of time, so the dealer is less likely to be able to confuse you with numbers.

My dealer hated that. They spent almost no time with me after I signed the papers (even when I picked up my truck) and I would like to think it is because they thought "We hardly made anything off that jackass. Don't even explain the truck features to him post sale!" Luckily, this jived with what I wanted too; I didn't want to spend one second more than what I had to at the stealership.

silvius

Fair enough. But that isn't how we are calculating it on this thread, in order to maximize savings for the thread participants.

Asaberan

Thanks. This partially explains why I can't get close to my target buying price. I can't say the pricing delta is all that is attributing to this, however. Dealers here just don't want to do much dealing.

silvius

You're welcome. I read back through the last few posts and I guess a simple way for me to have put it was that your target price (given the way that the calculations are being done on this thread) doesn't include destination; you will still have to add that on in the end.

Toptobottom, did I get that right?

You may have to leave your area (another state) to get the best deal. To some people it is worth it; to others it is not.

toptobottom

When trying to figure out what the 'Dealer Markup' is (as Silvius correctly pointed out) we need to subtract the Destination charge because there is no markup on this number. If you took 13% off the $1,295 as well, then you'd get a false number. The main objective is to see what the Dealer is sacrificing and how much below Invoice we are truly getting.

This allows us to know what a Dealer should be able to discount in the 2 areas that we know of - Vehicle/Options and Holdback. Both of these come to roughly 10%. In our calculations, we strive for a 10 - 13.5% discount percentage that is highly dependent in which part of the US you're doing your shopping.

You did great in answering Asaberan's question.

A bit of clarification here as follows:

Now, obviously the Destination fee needs to come back into the picture as it's a fixed cost and ALWAYS gets included on the first line of documents which are commonly named 'Vehicle Sales/Purchase Agreement' or 'Buyer's Order'. That's the amount you'll see labeled as either 'Cash price', 'Selling Price' or 'Sales Price'.

A Dealer's Invoice printout will typically show the Destination charge added on the bottom with a Total Cost to the Dealer in the right hand column. In all my calculations, I like to just take our Dealer discount - which we've calculated without the Destination charge - then subtract the discount number from Total MSRP. That automatically includes the Destination charge back for us in order to derive the first figure on the documents I mentioned above. This is now our Target "Selling/Sales/Cash Price the Dealer needs to provide each Buyer before adding the rest of their own unique figures such as Rebates, Doc Fee & TTL all of which vary from state to state.

Here's the example below so it may help others to follow along.

$50,000 Total MSRP (inside blue box on lower right of Window Sticker)
$-1,295 Destination & Delivery
$48,705 Dealer Retail (vehicle + options/Ford discounts)

$48,705 X .13% =$6,332 Dealer discount

$50,000 Total MSRP (right here is how the destination charge is automatically added back in)
$-6,332 Dealer discount
$43,668 'Selling Price' BEFORE Rebate Incentives, Doc Fee and TTL

toptobottom

Very well said! Bigcat stated that he saved 25% off MSRP which is very deceiving for others because it's way too crude of a calculation that can't be applied by each member due to other circumstances that can affect that percentage. This in no way gives members following this thread any bearing on how to truly get the Dealer they're working with to give them the best possible deal.

When this thread was originally started, which is where I began my read, I found that members chimed in with numbers that were just all over the place and really helped nobody in the end. The reason I tell others to start reading at page 300 is because I pointed out that an apples to apples approach was the only way one could get a real sense of where they stood when dealing with any Dealer in the USA. That's why it's best to keep it flowing in this manner!