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True pricing

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Old Apr 9, 2015 | 01:15 AM
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Default True pricing

I found some helpful information here (https://www.f150forum.com/f118/real-invoice-295404/) but escalated and veered off topic

Just trying to ball park how to get to triple net pricing

I know incentives/rebates fluctuate so how's this

start MSRP - 8/9% = invoice
then invoice - 2/3% of original MSRP to remove holdback
then - incentives/rebates to get true dealer cost
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Old Apr 9, 2015 | 09:19 AM
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Originally Posted by 4js8wh
I found some helpful information here (https://www.f150forum.com/f118/real-invoice-295404/) but escalated and veered off topic

Just trying to ball park how to get to triple net pricing

I know incentives/rebates fluctuate so how's this

start MSRP - 8/9% = invoice
then invoice - 2/3% of original MSRP to remove holdback
then - incentives/rebates to get true dealer cost
I'm not sure what you're trying to do here.
MSRP is listed on the window. Invoice is easy to see on NADA and other sites. Holdback is 3% of MSRP and rebates/incentives are available on Ford's website after inputting your zip.

There shouldn't be any guess work involved.
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Old Apr 9, 2015 | 09:52 AM
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Originally Posted by Lars99
I'm not sure what you're trying to do here.
MSRP is listed on the window. Invoice is easy to see on NADA and other sites. Holdback is 3% of MSRP and rebates/incentives are available on Ford's website after inputting your zip.

There shouldn't be any guess work involved.
Just confirm my understanding, thank you, wasn't sure if I had captured all the pockets of $ on top of true cost
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Old Apr 9, 2015 | 10:07 AM
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Default does this help?

Originally Posted by 4js8wh
I found some helpful information here (https://www.f150forum.com/f118/real-invoice-295404/) but escalated and veered off topic

Just trying to ball park how to get to triple net pricing

I know incentives/rebates fluctuate so how's this

start MSRP - 8/9% = invoice
then invoice - 2/3% of original MSRP to remove holdback
then - incentives/rebates to get true dealer cost
We just bought a 2015 XLT with FX4 add-on with 302A options and a few extras. Here is the breakdown on a completed sale: This includes a $1000 manufacturers rebate and the $4500 dealer incentive

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Old Apr 9, 2015 | 10:13 AM
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There is some guess work because dealerships will get additional rebates based on sales volume too I believe. But neither the customer nor the dealer knows for certain how many trucks they'll sell in a month. I'm sure dealerships have projections that are pretty accurate though.
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Old Apr 9, 2015 | 11:58 AM
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Originally Posted by dinojuice
There is some guess work because dealerships will get additional rebates based on sales volume too I believe. But neither the customer nor the dealer knows for certain how many trucks they'll sell in a month. I'm sure dealerships have projections that are pretty accurate though.
It's impossible to figure out without a strict definition of true cost and then going back after the sale. That didn't seem to be what the OP was asking.

To know the final true cost to a dealership, you would have to include the finance rate the dealer paid to the distributor for the vehicle, how long a vehicle sat on a lot compared to the mean time another vehicle would have sat on the lot, you would have to factor in a percentage of the volume discount, if any, the dealership receives. You would have to deduct any fees paid such as commission. You would have to add on any profit from the finance department, parts department, etc... Too many variables for an online forum in any case, and nearly impossible to figure out before the actual sale.
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Old Apr 9, 2015 | 12:06 PM
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Originally Posted by Lars99
It's impossible to figure out without a strict definition of true cost and then going back after the sale. That didn't seem to be what the OP was asking.

To know the final true cost to a dealership, you would have to include the finance rate the dealer paid to the distributor for the vehicle, how long a vehicle sat on a lot compared to the mean time another vehicle would have sat on the lot, you would have to factor in a percentage of the volume discount, if any, the dealership receives. You would have to deduct any fees paid such as commission. You would have to add on any profit from the finance department, parts department, etc... Too many variables for an online forum in any case, and nearly impossible to figure out before the actual sale.
Appreciate the response, but you missed the 'just trying to ball park how to get to triple net pricing' in my OP

First Ford purchase, I know roughly how far to negotiate with other makes but always like to know the threshold before my ask is just ridiculous, ie at or below their true cost

So based on that prior thread and some confirmation here, it seems like ~12% off MSRP (before incentives, rebates and what you mentioned) is getting close
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Old Apr 9, 2015 | 12:26 PM
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MSRP means nothing. I think you're missing that point. Find the invoice price and negotiate from there.
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Old Apr 9, 2015 | 12:45 PM
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Originally Posted by 4js8wh
Appreciate the response, but you missed the 'just trying to ball park how to get to triple net pricing' in my OP

First Ford purchase, I know roughly how far to negotiate with other makes but always like to know the threshold before my ask is just ridiculous, ie at or below their true cost

So based on that prior thread and some confirmation here, it seems like ~12% off MSRP (before incentives, rebates and what you mentioned) is getting close
I think you're missing the point of the response. You don't need to "ballpark" it, you have the relevant numbers. Invoice, holdback, and rebates/incentives.
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Old Apr 9, 2015 | 01:33 PM
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Originally Posted by 2015F150Platinum4x4
MSRP means nothing. I think you're missing that point. Find the invoice price and negotiate from there.
You're over-simplifying it, which leads you to be wrong here.

Checked NADA and Edmunds, Ford is like everyone else.

Go build anything above base/lower so Lariat, KR, Platinum etc you'll see the invoice price is always about 9% lower - the number that shows up the most is 0.907 - 0.909.

Sure, there might be an outlier but those are usually in the base/lower trims.

So MSRP does matter since it is an almost exact proxy for invoice + don't have to waste tons of time spec'g each build into Edmunds when shopping inventory across multiple dealers.
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