Confused on my X-plan price and upfront cash

[neuroboy002]

Hi everyone,

 

I am purchasing my very first car and was grateful to receive an X-plan pin to help with the cost. I recently returned from

the dealership and signed my paperwork. This my vehicle order confirmation:

 

2009 FWD FEH Limited

MSRP: $31,330

Retail: $30,635

Dealer invoice: $28,358 (Without Other Charges)

A/Z Plan: $28,286.34

D-Plan: $28,386.59

X-Plan: $29,381.64 (With Other Charges below)

 

Other Charges: 3 Gallons of gas - $11.34

FDAF - $360

Destination & Delivery - $695

 

Two things surprised me (You'll have to forgive me for mentioning these, but this is my first time purchasing an item of this magnitude):

 

1. I plan to pay this car off in one year. I was not aware that the banks Ford use

will normally penalize $75 for closing a balance early. I wasn't too happy about

that.

 

2. The dealership I went to required a 10% non-refundable deposit, or $3000. :slap:

Again, I didn't know this was standard, but at the same time, I didn't care too

much. I planned to pay off the care ASAP. Also this dealership was in walking

distance of my parents' home as opposed to a 8 mile drive elsewhere.

 

I've got no timetable as to when my vehicle will be built. I did take a look at my dealer's ordering list while he was away from his desk and stock inventory of certain 2009s, including the FEH Hybrids, were already being built. I didn't see any "clean" models, just ones that said "locked-in" for the production plant.

 

Should I have been charged 10% or was the dealer being greedy? Also, I thought FDAF was already included in the X-Plan price? I have read forums regarding this topic and answers conflict. I am looking forward to hearing any advice orcomments you have. Thanks.

[bbf2530]

Hi everyone,

 

I am purchasing my very first car and was grateful to receive an X-plan pin to help with the cost. I recently returned from

the dealership and signed my paperwork. This my vehicle order confirmation:

 

2009 FWD FEH Limited

MSRP: $31,330

Retail: $30,635

Dealer invoice: $28,358 (Without Other Charges)

A/Z Plan: $28,286.34

D-Plan: $28,386.59

X-Plan: $29,381.64 (With Other Charges below)

 

Other Charges: 3 Gallons of gas - $11.34

FDAF - $360

Destination & Delivery - $695

 

Two things surprised me (You'll have to forgive me for mentioning these, but this is my first time purchasing an item of this magnitude):

 

1. I plan to pay this car off in one year. I was not aware that the banks Ford use

will normally penalize $75 for closing a balance early. I wasn't too happy about

that.

 

2. The dealership I went to required a 10% non-refundable deposit, or $3000. :slap:

Again, I didn't know this was standard, but at the same time, I didn't care too

much. I planned to pay off the care ASAP. Also this dealership was in walking

distance of my parents' home as opposed to a 8 mile drive elsewhere.

 

I've got no timetable as to when my vehicle will be built. I did take a look at my dealer's ordering list while he was away from his desk and stock inventory of certain 2009s, including the FEH Hybrids, were already being built. I didn't see any "clean" models, just ones that said "locked-in" for the production plant.

 

Should I have been charged 10% or was the dealer being greedy? Also, I thought FDAF was already included in the X-Plan price? I have read forums regarding this topic and answers conflict. I am looking forward to hearing any advice orcomments you have. Thanks.

 

 

Hi Neuroboy. :D Your post is not completely clear as to whether the Dealer is charging you the "FDAF", "Destination" and "3 gallons of gas" charges on top of the X-Plan price on your Purchase Contract. So, several things:

 

First - The only other charges (besides the X-Plan price of $29,381.64) you should see on your Final Purchase Contract are Tax, Title and License, a $75 maximum "Documentation Fee" (Fords rules) and charges for any dealer added equipment you may ask for (if any). The Dealer is prohibited by Ford from adding any other fees or charges to your purchase.

If that Dealer is adding "FDAF", "Destination" or any other charges to the X-plan price, they are breaking Fords X-Plan rules, ripping you off, and they know it. All of those "other charges" (gas, FDAF and Destination) are already included in the $29,381.64 X-Plan Price. They should not be added to the X-Plan price. Any information to the contrary on this or any other forum, is incorrect.

 

Second - Finance arrangements are not part of X-Plan pricing. So essentially, if you sign paperwork that states there is a $75 for early payoff, you are bound by that contractual obligation. Try to negotiate it out of the loan paperwork. You have to remember that technically this is the Dealer you are dealing with, not Ford.

 

Third. Deposits are completely negotiable between the customer and Dealer. Nothing is "Customary". It is up to you to negotiate it to a minimum. In my opinion, a 10% deposit is very high for a vehicle when neither you or the Dealer have any idea if/when it will ever come in. Personally, I would give no more than a $500 deposit, with assurances in writing that you have the option to request and receive a refund if your vehicle has not been delivered within a particular time frame.

 

You have several things to straighten out with your Dealer before you go on with this purchase.

 

Good luck. :beerchug:

Edited June 8, 2008 by bbf2530

[nilkilla]

price looks about right. doing the math from invoice plus FDAF assesment, gas assesment, and D&D. since as you say those assesments are already included with the x-plan price you were given.

 

i've never seen a pre-payment-penalty from ford, nor any other banks that I deal with, but I guess anything is possible(i'm in FL btw, so could be different rules from where you are.). Just make sure to read your contract thoroughly!

[johnjyi]

This is from my experience:

 

1. The deposit should not be 10% or $3,000. This sounds more like the down payment to use the financing.

 

2. The only early pay-off charge I heard of -- yes, apparently this does exist -- is if you pay the loan off before three payments. As it was explained to me, this is so the lender can recoup the cost of financing.

 

3. If you use X-Plan, the only other fees should be freight, tax, title, and registration. There MAY be a dealer processing fee. However, this is not a "required" fee.

 

4. If you use the invoice method, you will need to add the advertising, fuel, and freight. Usually, the invoice method costs a little more than X-Plan, but that depends on the car.

 

Now, there is one thing going against you. You are getting a hybrid which is hot these days. Notwithstanding, you should still check the other dealer to see if they'll treat you any better.

 

Good luck!

[bbf2530]

This is from my experience:

 

 

3. If you use X-Plan, the only other fees should be freight, tax, title, and registration. There MAY be a dealer processing fee. However, this is not a "required" fee.

 

Good luck!

 

Hi exrub and neuroboy. :D Once again, you do not add a "Freight Charge"or any other such fees/charges to the X-Plan price. The X-Plan price already includes all such charges.

 

The only fees/charges that should be added are Tax, Title and Registration. a $75 maximum "Documentation Fee", and the cost of any Dealer added options (pinstripes etc.) you may have asked for, if any. Also any State mandated fees (i.e in NJ there is a tire recycling fee of $7.50).

 

All other fees and charges such as "Freight", "Destination and Delivery", "Dealer Prep", "Computer Usage", etc. etc. are already included in the X-Plan price.

 

Good luck. :beerchug:

Edited June 9, 2008 by bbf2530

[Walt]

1. I plan to pay this car off in one year. I was not aware that the banks Ford use

will normally penalize $75 for closing a balance early. I wasn't too happy about

that.

 

2. The dealership I went to required a 10% non-refundable deposit, or $3000. :slap:

Again, I didn't know this was standard, but at the same time, I didn't care too

much. I planned to pay off the care ASAP. Also this dealership was in walking

distance of my parents' home as opposed to a 8 mile drive elsewhere.

 

1. Are you purchasing the hybrid, or leasing it? The only time I have ever heard of a pre-payment charge, was with a leased vehicle.
   
2. I put down a much larger deposit than just 10%, but got my hybrid in 6 weeks.
   

[neuroboy002]

Hello and Thank you for yours and everyone else's responses. I appreciated them as they gave me a lot to think about. I feel really bad about the way things have gone.

 

My X-Plan price looks legitimate. Gas, D & D and FDAF look to appropriately add up to the invoice price. The $3000 leaves a really bad taste in my mouth. I really should have gotten in writing that if the vehicle was not received by a specific month, I a refund would be necessitated. During the meeting, the dealer made it sound like it would be a guarantee of an August delivery, but it does sound so optimistic.

 

I think part of the reason why I didn't argue too much is because it took me a few weeks of searching to find an X-Plan pin. Once that was completed, I was a little tired of the whole situation and wanted to just seal the deal for the car. The past few days have been pretty stressful and there doesn't seem to be much I can change. I hope 5 months down the line I am not still waiting for delivery. Up to this point, I just feel a bit swindled.

 

Hi Neuroboy. :D Your post is not completely clear as to whether the Dealer is charging you the "FDAF", "Destination" and "3 gallons of gas" charges on top of the X-Plan price on your Purchase Contract. So, several things:

 

First - The only other charges (besides the X-Plan price of $29,381.64) you should see on your Final Purchase Contract are Tax, Title and License, a $75 maximum "Documentation Fee" (Fords rules) and charges for any dealer added equipment you may ask for (if any). The Dealer is prohibited by Ford from adding any other fees or charges to your purchase.

If that Dealer is adding "FDAF", "Destination" or any other charges to the X-plan price, they are breaking Fords X-Plan rules, ripping you off, and they know it. All of those "other charges" (gas, FDAF and Destination) are already included in the $29,381.64 X-Plan Price. They should not be added to the X-Plan price. Any information to the contrary on this or any other forum, is incorrect.

 

Second - Finance arrangements are not part of X-Plan pricing. So essentially, if you sign paperwork that states there is a $75 for early payoff, you are bound by that contractual obligation. Try to negotiate it out of the loan paperwork. You have to remember that technically this is the Dealer you are dealing with, not Ford.

 

Third. Deposits are completely negotiable between the customer and Dealer. Nothing is "Customary". It is up to you to negotiate it to a minimum. In my opinion, a 10% deposit is very high for a vehicle when neither you or the Dealer have any idea if/when it will ever come in. Personally, I would give no more than a $500 deposit, with assurances in writing that you have the option to request and receive a refund if your vehicle has not been delivered within a particular time frame.

 

You have several things to straighten out with your Dealer before you go on with this purchase.

 

Good luck. :beerchug:

[bbf2530]

Hello and Thank you for yours and everyone else's responses. I appreciated them as they gave me a lot to think about. I feel really bad about the way things have gone.

 

My X-Plan price looks legitimate. Gas, D & D and FDAF look to appropriately add up to the invoice price. The $3000 leaves a really bad taste in my mouth. I really should have gotten in writing that if the vehicle was not received by a specific month, I a refund would be necessitated. During the meeting, the dealer made it sound like it would be a guarantee of an August delivery, but it does sound so optimistic.

 

I think part of the reason why I didn't argue too much is because it took me a few weeks of searching to find an X-Plan pin. Once that was completed, I was a little tired of the whole situation and wanted to just seal the deal for the car. The past few days have been pretty stressful and there doesn't seem to be much I can change. I hope 5 months down the line I am not still waiting for delivery. Up to this point, I just feel a bit swindled.

 

Hi neuroboy. :D One thing I wanted to mention concerning X-Plan pricing: The price on your VOC labeled X-Plan, and the price that will be in the box labeled X-Plan on your Factory Invoice when your vehicle comes in (let's be optimistic), is the X-Plan price. They should both be the same figure. If they are, great, all is well.

 

Do not try to back into the X-Plan price by adding/subtracting/multiplying or dividing any other figures (i.e "Gas, D & D and FDAF") into the Invoice price, MSRP price, or any other prices. It will not work, and just serve to confuse things. The X-Plan Price on the VOC and later on the Factory Invoice is the correct pricing.

 

As far as the deposit: Instead of being upset about the deposit and no finalized delivery date, simply go into the Dealership (not over the phone) and speak to them about it. Let them know (politely) that you feel having to tie up $3,000 for an indefinite time period seems a bit unreasonable, and that you would like to negotiate now as to your options if delivery should take too long.

 

Better to speak up than sit around being upset. They may be willing to work with you.

 

Good luck. :beerchug:

Edited June 10, 2008 by bbf2530

[65fairlane]

I had a problem with not receiving a cash incentive on a purchase last year. What I found is that the BBB is your very good friend. I recommend you go back to the dealer and ask for either a guarantee of a delivery date or a reduction in the deposit amount if they cannot do that. If the answer is no, simply state that you'll file a complaint with the BBB.

 

I had to file one with my dealer when they withheld the cash incentive. On the day the complaint was due to be closed as unresolved and go against the dealer's BBB rating, like magic a check arrived.

 

I would not file a complaint yet, just talk to the dealer and gently state that $3000 is out of line, mentioning the BBB only if you get s**t. On my MMH I put down a $1000 refundable deposit.

 

The link to BBB is http://welcome.bbb.org/. Enter your zip code to start. Once you get to your local chapter's site, click on the File a Complaint link to file one. First, check out your dealer's rating on the BBB site, there's a link for that too. Never buy a car or any substantial purchase without checking the BBB complaint record for that business. It's more than once saved me from a big headache.

[Walt]

I recommend you go back to the dealer and ask for either a guarantee of a delivery date or a reduction in the deposit amount if they cannot do that. If the answer is no, simply state that you'll file a complaint with the BBB.

 

 

Sorry, but IMHO that is quite an abuse of BBB.

 

The OP is trying to order a vehicle that is in very high demand. There are many, many people right now trying to buy one of a relatively few vehicles.

 

Of course the dealer can't give guaranteed delivery date. Ford doesn't give the dealer one. :rolleyes:

 

And if the OP doesn't want to provide a deposit to demonstrate they are truly serious about buying one, their place in line will quickly be taken up by someone who will. There is absolutely nothing wrong with that.