Ford Cutting Dealerships Faster Than Expected

[Deanh]

The dealers net acquisition/transaction cost varies weekly because the contests and incentives vary weekly.

 

You might find the published dealer cost, and find the "National" incentives, but there are often $'s behind the curtain.

 

Because each FDAF dealer group has money they allocate to local advertising and local incentives (even dealer cash back), every market can have a different "deal". For example, Atlanta had an additional $500 last year on F150 SuperCrew's if they had the 4.6L engine.

 

The deal changes the cost. If the customer qualifies for a company/employeer/association discount, that affects the transaction cost, as there may be rebates involved that the customer might not even be aware of.

 

A sales manager would not even try to guess the "Cost" of a vehicle until he/she knew who was buying, what they qualified for, where they will register the vehicle and what day they will sign the deal. Dealers use a Ford site called VINCENT which is vin specific to determine today's extra deals - some you will know about and others you won't.

 

But, as long as you believe you got the best deal, it just doesn't matter.

pretty accurate...but most programs are nationally advertised anyway...invoice prices on vehicles do NOT change barring package discounts sometimes passed onto customers thru re-invoicing, those savings are passed on to the MSRP and invoice of the affected vehicle NOT as profit to the dealer. Rebates etc do constantly change but those TOO cannot be "sucked " up by the dealer, what is annoying is they can change day to day, a vincent breakdown Monday with a quote may cause tap dancing with the customer trying to explain the change....on Tuesday........

Edited September 17, 2007 by Deanh

[TomServo92]

What's wholesale on a box of corn flakes? A dishwasher? A pair of decent leather Oxfords? A super 100s suit?

 

How many things do you -know- the wholesale cost of?

 

I bet a lot of people would be shocked to know how much it costs to manufacture something like a DVD player vs. what they pay for it.

[RichardJensen]

they will continually question the deal.

This is undoubtedly part of the reality. You -always- wonder how much money you left on the table.

 

Even with best price dealers you wonder if you couldn't've gotten more for your trade, etc.

 

But those misgivings tend to fade over time--what sticks with you is the way you were treated.

[Deanh]

This is undoubtedly part of the reality. You -always- wonder how much money you left on the table.

 

Even with best price dealers you wonder if you couldn't've gotten more for your trade, etc.

 

But those misgivings tend to fade over time--what sticks with you is the way you were treated.

and the best thing is hearing an embelished tale from a beer swizler at the local telling you he paid 5 grand less...........funny how people never seem to want to tell people the reality of their deal, they just want to impress everyone with tall tales of the most incredible deal ever!

[NickF1011]

and the best thing is hearing an embelished tale from a beer swizler at the local telling you he paid 5 grand less...........funny how people never seem to want to tell people the reality of their deal, they just want to impress everyone with tall tales of the most incredible deal ever!

 

Heck, all these years I was quoting people MORE than I actually paid for my Cobra. It wasn't until I moved recently and was digging through paperwork that I realized I actually paid about $1500 less than I had remembered. :lol:

[jpd80]

I bet a lot of people would be shocked to know how much it costs to manufacture something like a DVD player vs. what they pay for it.

Well seeing as the one that goes in your computer is like $20, I'd say the mark up is savage.

[silvrsvt]

I bet a lot of people would be shocked to know how much it costs to manufacture something like a DVD player vs. what they pay for it.

 

 

But also DVD players are built in the scales of millions not 100's of thousands

[Deanh]

Heck, all these years I was quoting people MORE than I actually paid for my Cobra. It wasn't until I moved recently and was digging through paperwork that I realized I actually paid about $1500 less than I had remembered. :lol:

FUNNY...that is also true...people that buy the limited production vehicles like to brag about how much they paid.....

[Deanh]

But also DVD players are built in the scales of millions not 100's of thousands

off topic, but was in Fashion Island ( Newport beach ) this weekend...saw a watch, no BS $141,000........there were security guards at the doors to stop pilfering by dreamers like myself.........

[Milstar 04 Sport]

off topic, but was in Fashion Island ( Newport beach ) this weekend...saw a watch, no BS $141,000........there were security guards at the doors to stop pilfering by dreamers like myself.........

 

My wife works part-time 20 hours per week for a large company that sells accessories to department stores.

 

One day she returned from working, and left her paperwork on the dining room table. I stumbled across the paperwork, and was shocked to see what profit the stores were making, I just looked at belts, her company sold the belts for $ 4.00, and the retail price was $12.00.

 

And yet you will see ads for 1/2 price sales almost twice a month at these stores.

 

Now I know that there are overhead costs, and a $12.00 sale is properly not the norm, as most people will wait for a sale, then go shopping, including myself. I would be willing to bet, that most of her product is sold during the sales promotions.

 

And yes, I thought that a $4.00 to $8.00 profit is too much, until I looked around in one of her stores, and realized it was not _al-Mart, and a sales person would walk up to help you.

 

By the way, she does such a good job for her company and the stores that she services, that she always buys what she wants at her stores, at employee discount prices.

 

Come to think of it, my last belt from _al-Mart did cost $16.00.

[suv_guy_19]

My wife works part-time 20 hours per week for a large company that sells accessories to department stores.

 

One day she returned from working, and left her paperwork on the dining room table. I stumbled across the paperwork, and was shocked to see what profit the stores were making, I just looked at belts, her company sold the belts for $ 4.00, and the retail price was $12.00.

 

And yet you will see ads for 1/2 price sales almost twice a month at these stores.

 

Now I know that there are overhead costs, and a $12.00 sale is properly not the norm, as most people will wait for a sale, then go shopping, including myself. I would be willing to bet, that most of her product is sold during the sales promotions.

 

And yes, I thought that a $4.00 to $8.00 profit is too much, until I looked around in one of her stores, and realized it was not _al-Mart, and a sales person would walk up to help you.

 

By the way, she does such a good job for her company and the stores that she services, that she always buys what she wants at her stores, at employee discount prices.

 

Come to think of it, my last belt from _al-Mart did cost $16.00.

 

 

Normal profit margin is anywhere from 30 - 100%, The higher end profits are in things such as hardware stores from what I know.

[630land]

Anyway, back to topic, the first Metro Area combined Ford-Lincoln-Mercury dealer is in the Chicago suburb of Highland Park IL. Eventually, I am sure Mercury will be phased out, or just down to 2-3 models to please the old timers.

 

Here is link the the dealer web site, where it is promoted as being the first of its kind:

http://highlandpark.dealerconnection.com/

[Noah Harbinger]

Deanh, what these guys know about really running a new car dealership or the automobile buisness in general you could put in a thimble. They couldn't make a living selling cars if their life depended on it let alone operating a whole dealership.

 

There is a lot of pie-in-the-sky opinions about car dealers and the retail side of the business...none of which are worth a plug nickel. Most wouldn't know a good deal if it bit them in the ass.

 

Eh, I understand that you can't run a profitable dealership without using high pressure techniques, when there are other dealerships using them.

 

That doesn't mean I won't despise someone who uses customers' naivety and weakness to their advantage.

[Noah Harbinger]

I would be very surprized if current San Diego dealers practice the caveman like( Gieco? ) practices people speak of in this thread....business is way too competitive and with the info available on the net one can educate ones self to approxiamately what is the median prices paid for certain items on the street....however perhaps some are loss leader hunters walking in with guns drawn and the attitude that signals "Game On"ie I WANT IT IN BLACK NOT THAT ONE, and I WANT A . CD THROWN IN......... THAT scenario is usually what pre-empts the circumstances that posters seem to gleefully comment on so often...bottom line ...if that loss leader gleans your fancy you should EXPECT the dealer to make up part of that loss....I hate the practice personally, and blame dealers such as Ken Grody for pre-conditioning hostile customers......

 

That reminds me... which is your dealership?

 

When my dad got his Ranger, back during the "employee pricing" sales (at Perry Ford, National City), they kept trying to sell appearance-type add-ons, with a little pressure -- they brought out the saleswoman to testify how little commission she would make off the deal -- but apart from that there weren't any hard sales.

 

With other people I know: If they knew what they were looking for, what to expect on the price, they've gotten a good deal. If they didn't... I suppose it's not too much a surprise that the friend who won her down payment at a casino got taken to the cleaners so badly it has ruined her financial future for probably the next 5 years.

 

So in summary: Yeah, shopping for a car isn't that bad if you have the knowledge to know whether the dealership is trying to take advantage of you... but it should be more like buying a toaster, where any idiot can buy one without worrying about that.

[Deanh]

That reminds me... which is your dealership?

 

When my dad got his Ranger, back during the "employee pricing" sales (at Perry Ford, National City), they kept trying to sell appearance-type add-ons, with a little pressure -- they brought out the saleswoman to testify how little commission she would make off the deal -- but apart from that there weren't any hard sales.

 

With other people I know: If they knew what they were looking for, what to expect on the price, they've gotten a good deal. If they didn't... I suppose it's not too much a surprise that the friend who won her down payment at a casino got taken to the cleaners so badly it has ruined her financial future for probably the next 5 years.

 

So in summary: Yeah, shopping for a car isn't that bad if you have the knowledge to know whether the dealership is trying to take advantage of you... but it should be more like buying a toaster, where any idiot can buy one without worrying about that.

agreed ...but understand the ONLY way around this is to pay MSRP...no haggling no nothing, which is unacceptable to those that have created the bartering / negotiating backwards and forwards which in turn has been countered with the tactics you so disdain........