Equipment/Ordering/Rebate/Finance Questions?
01-16-2011, 09:08 PM
#1
FoMoCo Dude
Thread Starter
Equipment/Ordering/Rebate/Finance Questions?
I have worked with Ford for about 5 years now (12 years with GM previously) and would be happy to answer any questions y'all have about various programs that Ford offers.
I will never try to sell you anything (unless you ask by PM). I only would like to help y'all get the right answers to the many questions you may have about rebate & finance rate compatibility, ordering or equipment, etc. If for nothing else than to double check what your dealer is telling you.
If you do have rebate questions, include your zip code in your post so that I can check rebates in your region.
Sometimes it's almost 9pm before I can get on here...
I will never try to sell you anything (unless you ask by PM). I only would like to help y'all get the right answers to the many questions you may have about rebate & finance rate compatibility, ordering or equipment, etc. If for nothing else than to double check what your dealer is telling you.
If you do have rebate questions, include your zip code in your post so that I can check rebates in your region.
Sometimes it's almost 9pm before I can get on here...
Last edited by SKMLG; 01-28-2011 at 09:51 PM.
01-16-2011, 09:18 PM
#2
Fords For Life
generally how much below sticker price should I buy an F150 for if the MSRP is around 40-45K and its a 2010? Recommended price with rebates for FX4s and XLTs would be awesome thank you! ZIP: 66502
01-17-2011, 09:21 PM
#3
FoMoCo Dude
Thread Starter
ZiP 66502 shows Kansas City Regional rebates as follows:
FX4: $3500. +1,000 if financed with Ford, +1,000. if trading a 95 or newer (5,500 total).
XLT: As above +1,000. (6,500 total)
If you give up all the rebates, you could get 1.9% for 72 months or 0% for 60 months. This is not the better alternative with standard rates as low as they are.
Pricing: To figure out dealer invoice right on the lot, on a loaded truck take MSRP and subtract 8.5%, on a model with not a lot of options MSRP -8%. This is not to the penny but will have you within +/- $200.
My note on invoice pricing: If a dealer sells for invoice or shortly over, they only make the 3% credit from Ford. The better salespeople start to leave and you are left with young order takers that don't know the product very well. Anything else you buy from gumballs to a dryer have a 30% market average markup. Let the dealer make a decent profit and you may find them more willing to help you in the future if you have a problem.
OK, off my soapbox
To compare a 2011: The rebates are 2000 less, selling price will be within 1,000. Net difference to you of about $50. per month. Read about all the upgrades for 2011 and decide if $50 per month is worth it. If you drive them both back to back there is a marked difference.
FX4: $3500. +1,000 if financed with Ford, +1,000. if trading a 95 or newer (5,500 total).
XLT: As above +1,000. (6,500 total)
If you give up all the rebates, you could get 1.9% for 72 months or 0% for 60 months. This is not the better alternative with standard rates as low as they are.
Pricing: To figure out dealer invoice right on the lot, on a loaded truck take MSRP and subtract 8.5%, on a model with not a lot of options MSRP -8%. This is not to the penny but will have you within +/- $200.
My note on invoice pricing: If a dealer sells for invoice or shortly over, they only make the 3% credit from Ford. The better salespeople start to leave and you are left with young order takers that don't know the product very well. Anything else you buy from gumballs to a dryer have a 30% market average markup. Let the dealer make a decent profit and you may find them more willing to help you in the future if you have a problem.
OK, off my soapbox
To compare a 2011: The rebates are 2000 less, selling price will be within 1,000. Net difference to you of about $50. per month. Read about all the upgrades for 2011 and decide if $50 per month is worth it. If you drive them both back to back there is a marked difference.
Last edited by SKMLG; 01-17-2011 at 09:25 PM.
01-17-2011, 10:13 PM
#4
Senior Member
What about HOLDBACKS?
My note on invoice pricing: If a dealer sells for invoice or shortly over, they only make the 3% credit from Ford. The better salespeople start to leave and you are left with young order takers that don't know the product very well. Anything else you buy from gumballs to a dryer have a 30% market average markup. Let the dealer make a decent profit and you may find them more willing to help you in the future if you have a problem.
.
My note on invoice pricing: If a dealer sells for invoice or shortly over, they only make the 3% credit from Ford. The better salespeople start to leave and you are left with young order takers that don't know the product very well. Anything else you buy from gumballs to a dryer have a 30% market average markup. Let the dealer make a decent profit and you may find them more willing to help you in the future if you have a problem.
.
Last edited by gregsf150stx; 01-17-2011 at 10:17 PM.
01-17-2011, 11:48 PM
#5
Senior Member
01-17-2011, 11:51 PM
#6
Senior Member
01-18-2011, 06:04 AM
#7
30066 ... X Plan buyer.
Looking for local rebates and curious if the Auto Show coupon could be used also. I had a $500 coupon sent by mail after the LA show but it expired. Heard there are $1,000 coupons at the North American International show and am headed to Detroit today.
Considering a XLT or FX2, probably a V6, 2WD. Replacing a Ranger and hoping to get reasonable economy. If they made a 3.7 powered Sport Trac that would be perfect.
Looking for local rebates and curious if the Auto Show coupon could be used also. I had a $500 coupon sent by mail after the LA show but it expired. Heard there are $1,000 coupons at the North American International show and am headed to Detroit today.
Considering a XLT or FX2, probably a V6, 2WD. Replacing a Ranger and hoping to get reasonable economy. If they made a 3.7 powered Sport Trac that would be perfect.
Trending Topics
01-18-2011, 08:58 PM
#8
FoMoCo Dude
Thread Starter
"What about HOLDBACKS?"
Greg,
Yes, that is the 3% I was referring to in my previous post. Holdback is probably the least understood part of the car business. Most people think it is just extra hidden profit sent to the dealer when he sells a car. Yes and No.
Let's explain exactly what holdback is and why it exists.
Ford knows that if dealers had to pay for all the cars to keep on the lot, he wouldn't because it would run in the millions of dollars. He would order one of every model for the lot and offer customers a factory order for whatever they wanted.
Ford wants customers to have a bunch of vehicles to choose from. The average to large size dealer with approx. 300 vehicles on the ground has to buy and finance all the vehicles on the lot with a line of credit called a "floorplan" account from Ford Motor Credit and pays interest, on every vehicle on the lot, on the first of every month. This is one reason why dealers push for sales at the end of the month, so they don't have to pay interest on the vehicle on the first of the following month.
The interest runs approx. 1% per month per vehicle. For the average to large dealer with $8-12 million in inventory on the ground, the check he writes is in the neighborhood of $80,000-$120,000. A MONTH.
Again, Ford wants lots of vehicles on the ground for people to look at, so as an incentive to carry lots of vehicles in stock they credit the dealer the equivalent of 3 months interest on the vehicle in the form of a credit every quarter. This is the 3% holdback.
Thus, if a dealer sells a vehicle within the 3 months, yes the extra is profit. Conversely if he sits with a vehicle for over 90 days (very common), he is losing money on it if he sells for invoice.
Being a sucker for paying a profit:
Here is how a dealership deals with an "out of policy customer concern". This is an actual example from less than 48 hours ago.
Customer comes in to service 4 days after buying a car complaining that the tire was fine for the first few days, then goes dead flat on day 4. Tire has a hole the size of rebar in it. Customer is very angry that they have to pay $280 for a tire.
Service manager calls sales manager; explains situation. Sales manager checks 2 things: multiple purchases from the same customer or profitability of the single transaction, then decides if he wants to pay for the customers tire or not. Invoice deal, don't expect much help or free spare keys etc..
Economics 101: Profit cures problems.
I don't want to debate what is fair pricing, that is between you and the dealer. However, how do you think a jewelry store's business would change if all of a sudden everyone had his invoice?
What I believe the current incentives will do: The current program is valid until April 4th. Trade rebate is good until Jan 30th.
Depending on what the rest of the car market does, they will probably turn the "finance with Ford" rebate into a standard rebate for everyone. I also believe they will extend the trade assistance rebate until Feb 14th.
Greg,
Yes, that is the 3% I was referring to in my previous post. Holdback is probably the least understood part of the car business. Most people think it is just extra hidden profit sent to the dealer when he sells a car. Yes and No.
Let's explain exactly what holdback is and why it exists.
Ford knows that if dealers had to pay for all the cars to keep on the lot, he wouldn't because it would run in the millions of dollars. He would order one of every model for the lot and offer customers a factory order for whatever they wanted.
Ford wants customers to have a bunch of vehicles to choose from. The average to large size dealer with approx. 300 vehicles on the ground has to buy and finance all the vehicles on the lot with a line of credit called a "floorplan" account from Ford Motor Credit and pays interest, on every vehicle on the lot, on the first of every month. This is one reason why dealers push for sales at the end of the month, so they don't have to pay interest on the vehicle on the first of the following month.
The interest runs approx. 1% per month per vehicle. For the average to large dealer with $8-12 million in inventory on the ground, the check he writes is in the neighborhood of $80,000-$120,000. A MONTH.
Again, Ford wants lots of vehicles on the ground for people to look at, so as an incentive to carry lots of vehicles in stock they credit the dealer the equivalent of 3 months interest on the vehicle in the form of a credit every quarter. This is the 3% holdback.
Thus, if a dealer sells a vehicle within the 3 months, yes the extra is profit. Conversely if he sits with a vehicle for over 90 days (very common), he is losing money on it if he sells for invoice.
Being a sucker for paying a profit:
Here is how a dealership deals with an "out of policy customer concern". This is an actual example from less than 48 hours ago.
Customer comes in to service 4 days after buying a car complaining that the tire was fine for the first few days, then goes dead flat on day 4. Tire has a hole the size of rebar in it. Customer is very angry that they have to pay $280 for a tire.
Service manager calls sales manager; explains situation. Sales manager checks 2 things: multiple purchases from the same customer or profitability of the single transaction, then decides if he wants to pay for the customers tire or not. Invoice deal, don't expect much help or free spare keys etc..
Economics 101: Profit cures problems.
I don't want to debate what is fair pricing, that is between you and the dealer. However, how do you think a jewelry store's business would change if all of a sudden everyone had his invoice?
What I believe the current incentives will do: The current program is valid until April 4th. Trade rebate is good until Jan 30th.
Depending on what the rest of the car market does, they will probably turn the "finance with Ford" rebate into a standard rebate for everyone. I also believe they will extend the trade assistance rebate until Feb 14th.
Last edited by SKMLG; 03-14-2011 at 09:27 PM.
01-18-2011, 09:49 PM
#9
Originally Posted by SKMLG
ZiP 66502 shows Kansas City Regional rebates as follows:
FX4: $3500. +1,000 if financed with Ford, +1,000. if trading a 95 or newer (5,500 total).
XLT: As above +1,000. (6,500 total)
If you give up all the rebates, you could get 1.9% for 72 months or 0% for 60 months. This is not the better alternative with standard rates as low as they are.
Pricing: To figure out dealer invoice right on the lot, on a loaded truck take MSRP and subtract 8.5%, on a model with not a lot of options MSRP -8%. This is not to the penny but will have you within +/- $200.
My note on invoice pricing: If a dealer sells for invoice or shortly over, they only make the 3% credit from Ford. The better salespeople start to leave and you are left with young order takers that don't know the product very well. Anything else you buy from gumballs to a dryer have a 30% market average markup. Let the dealer make a decent profit and you may find them more willing to help you in the future if you have a problem.
OK, off my soapbox
To compare a 2011: The rebates are 2000 less, selling price will be within 1,000. Net difference to you of about $50. per month. Read about all the upgrades for 2011 and decide if $50 per month is worth it. If you drive them both back to back there is a marked difference.
FX4: $3500. +1,000 if financed with Ford, +1,000. if trading a 95 or newer (5,500 total).
XLT: As above +1,000. (6,500 total)
If you give up all the rebates, you could get 1.9% for 72 months or 0% for 60 months. This is not the better alternative with standard rates as low as they are.
Pricing: To figure out dealer invoice right on the lot, on a loaded truck take MSRP and subtract 8.5%, on a model with not a lot of options MSRP -8%. This is not to the penny but will have you within +/- $200.
My note on invoice pricing: If a dealer sells for invoice or shortly over, they only make the 3% credit from Ford. The better salespeople start to leave and you are left with young order takers that don't know the product very well. Anything else you buy from gumballs to a dryer have a 30% market average markup. Let the dealer make a decent profit and you may find them more willing to help you in the future if you have a problem.
OK, off my soapbox
To compare a 2011: The rebates are 2000 less, selling price will be within 1,000. Net difference to you of about $50. per month. Read about all the upgrades for 2011 and decide if $50 per month is worth it. If you drive them both back to back there is a marked difference.
01-18-2011, 10:10 PM
#10
SKLMG
I understand what you are saying. I believe if you are happy with price than great. With my fords I deal with same dealer for each one. Get great customer satisfaction and have sent many friends and family there. EVERYONE DESERVES TO MAKE A LIVING!
I understand what you are saying. I believe if you are happy with price than great. With my fords I deal with same dealer for each one. Get great customer satisfaction and have sent many friends and family there. EVERYONE DESERVES TO MAKE A LIVING!