1depd Posted May 15, 2011 Share Posted May 15, 2011 When you say someone paid "sticker" that means MSRP. If you meant that the dealer still makes about the same profit on a plan sale that they do on a regular sale (which is nowhere close to MSRP) then that would be closer to being correct. E.g. I just looked at an Escape where the difference between X plan price and MSRP was roughly $1450. X plan is roughly $150 over invoice and the dealer gets a spiff check from Ford on top of that for a few hundred (let's say $400). So the dealer makes $550 over invoice which is probably what they would make on a non plan sale, but it's $900 less than MSRP. I think I get what you are saying. Essentially the dealer makes approximately the same on a plan sale as they do on a typical regular sale, after negotiations. Correct? Quote Link to comment Share on other sites More sharing options...
akirby Posted May 15, 2011 Share Posted May 15, 2011 I think I get what you are saying. Essentially the dealer makes approximately the same on a plan sale as they do on a typical regular sale, after negotiations. Correct? Yes. Ford makes up the difference in profit with the spiff check. But if a dealer is able to sell a vehicle at MSRP then they probably would not accept X plan because they would be losing about $1000 in profit. Quote Link to comment Share on other sites More sharing options...
ice-capades Posted May 15, 2011 Share Posted May 15, 2011 Ford constantly monitors vehicle sales and inventory in all regions and zones and adjusts incentives accordingly. While I understand and appreciate their efforts, the constant and/or regularly adjusting og incentives is a constant source of frustration at the dealership level as staff have to constantly check the "Vincent" incentive program in order to make sure that the most recent/current incentives are provided to customers. Ford's inventory management focuses on "Days Supply" which is an industry standard based on the current sales rate. Unfortunately, while I understand Ford being conservative in its inventory management, as Ford continues to do better and better in both vehicle sales and profitability, the conservative inventory management in many cases is costing business as Dealers are constantly trying to "grow" their businesses. Production planning is obviously a very complex issue involving many outside suppliers and vendors that have to be coordinated. Ford has become a victim of its own success under CEO Mulally and now experiencing growing pains affecting both Dealers and customers alike. Just my thoughts for consideration related to this thread topic. Quote Link to comment Share on other sites More sharing options...
Awbaker77 Posted May 24, 2011 Share Posted May 24, 2011 X plan is higher than it used to be - by $275. It used to be under dealer invoice. The other benefits are the $100 cap on doc fees (these can be as high as $400-$600) and additional rebates (usually in cases where there is dealer cash available - x plan buyer gets the dealer cash, not the dealer). It's still a fair price and an easy way to buy a vehicle without haggling and without fear of being ripped off. One of our local dealers has a no haggle policy. They started with the X-plan. Then decided that if they could profit off of it, they could sell everyone at x-plan. Then they decided to drop their price about $150 below x-plan for everyone and maybe get the x-plan business from the other local dealers since they are now less expensive. When they priced out my order, the moonroof save me $4 on the price of the truck. They discounted it from $999 to $826 and the incentive to biuy the package including it was $830. Quote Link to comment Share on other sites More sharing options...
akirby Posted May 24, 2011 Share Posted May 24, 2011 One of our local dealers has a no haggle policy. They started with the X-plan. Then decided that if they could profit off of it, they could sell everyone at x-plan. Then they decided to drop their price about $150 below x-plan for everyone and maybe get the x-plan business from the other local dealers since they are now less expensive. When they priced out my order, the moonroof save me $4 on the price of the truck. They discounted it from $999 to $826 and the incentive to biuy the package including it was $830. How much is the documentation fee? That means they're selling at dealer invoice so the only profit they're making is the holdback minus the sales commission. That's a mightly slim margin. I don't see how they can do that on every vehicle. At least with X plan they get another $400 or so spiff check from Ford. Quote Link to comment Share on other sites More sharing options...
winterfrost Posted June 1, 2011 Share Posted June 1, 2011 What is ford thinking ! the incentives/rebates suck for june and my truck did not make it for the 10 day sale thanks ford. Quote Link to comment Share on other sites More sharing options...
hsfbfan Posted June 1, 2011 Share Posted June 1, 2011 What is ford thinking ! the incentives/rebates suck for june and my truck did not make it for the 10 day sale thanks ford. Ford is thinking that they are selling a lot of trucks without incentives so they are not offering much. Quote Link to comment Share on other sites More sharing options...
kenp77 Posted June 4, 2011 Share Posted June 4, 2011 Be patient with gas and food prices up and housing in the toilet economy is heading for the shitter and ford will deal sooner or later?? Quote Link to comment Share on other sites More sharing options...
bb37 Posted June 4, 2011 Share Posted June 4, 2011 As mentioned previously, the incentives depend on where you are located and how vehicles of different types are selling in your area. For the 2011 F-150 SCrew that I am taking delivery of on Monday, the incentives in central Indiana were $3500 with bank financing (3.49% for 60 months) or $4500 with Ford Credit financing (4.99% for 60 months). This was an X Plan sale, so doc fees were reduced, too. Quote Link to comment Share on other sites More sharing options...
1depd Posted June 4, 2011 Share Posted June 4, 2011 As mentioned previously, the incentives depend on where you are located and how vehicles of different types are selling in your area. For the 2011 F-150 SCrew that I am taking delivery of on Monday, the incentives in central Indiana were $3500 with bank financing (3.49% for 60 months) or $4500 with Ford Credit financing (4.99% for 60 months). This was an X Plan sale, so doc fees were reduced, too. I'd take the Ford financing, then before you make a payment refinance with your bank (all credit checks for the same item within 30 days are considered one check). The truck still considered new, you won't have to pay the higher interest from Ford, and you get the $1k incentive. I just did this and saved myself the $1k as well as over 2% in monthly interest. I took deliver April 20 and don't have a car payment due until June 30. Quote Link to comment Share on other sites More sharing options...
Hydro Posted July 13, 2011 Share Posted July 13, 2011 (edited) As mentioned previously, the incentives depend on where you are located and how vehicles of different types are selling in your area. For the 2011 F-150 SCrew that I am taking delivery of on Monday, the incentives in central Indiana were $3500 with bank financing (3.49% for 60 months) or $4500 with Ford Credit financing (4.99% for 60 months). This was an X Plan sale, so doc fees were reduced, too. This is for zip code 90713, not sure if I'm reading this correctly, but I don't know what Ford is thinking. It looks like they lowered the incentives for this quarter. It's only $3,000 with Ford financing (2000 +1000) or $1,000 and measley APR's. Trucks are not flying off the lots, gas prices are up and no navigation available and assembly slowdowns. Looks like these are the rates until 10-3-11 Edited July 13, 2011 by Hydro Quote Link to comment Share on other sites More sharing options...
akirby Posted July 13, 2011 Share Posted July 13, 2011 Trucks are not flying off the lots, gas prices are up and no navigation available and assembly slowdowns. Yes they are. If inventory starts building up then they may increase incentives but right now I don't see it being necessary. Quote Link to comment Share on other sites More sharing options...
z06 Posted July 13, 2011 Share Posted July 13, 2011 X plan is higher than it used to be - by $275. It used to be under dealer invoice. The other benefits are the $100 cap on doc fees (these can be as high as $400-$600) and additional rebates (usually in cases where there is dealer cash available - x plan buyer gets the dealer cash, not the dealer). It's still a fair price and an easy way to buy a vehicle without haggling and without fear of being ripped off. Any way to know if dealer cash is available? I have a truck being built next week. Invoice with no fees deal. A little better than straight x plan. But if there is dealer cash available x plan may be the better deal. I think my dealer will go either way. And if there is I will have to find a pin. Quote Link to comment Share on other sites More sharing options...
akirby Posted July 13, 2011 Share Posted July 13, 2011 Any way to know if dealer cash is available? I have a truck being built next week. Invoice with no fees deal. A little better than straight x plan. But if there is dealer cash available x plan may be the better deal. I think my dealer will go either way. And if there is I will have to find a pin. Ask the dealer to check VINCENT for a X plan sale - that will show all available rebates. But wouldn't your dealer know if there is dealer cash? Edmunds.com usually shows dealer cash also. Quote Link to comment Share on other sites More sharing options...
Hydro Posted July 13, 2011 Share Posted July 13, 2011 Yes they are. If inventory starts building up then they may increase incentives but right now I don't see it being necessary. Well, it could vary be territory. My salesman was so surprised I came in to order a "truck". I inquired how they have been doing and he said trucks are NOT moving, not even the EB's. The Foci's and Edge's are the hot ticket right now. I'm sure their problem is inventory because they only had (1) 4x4 Lariat on the lot and (18) 4x2's (mixed models). I'm thinking the assembly line slowdowns are helping their inventory by keeping the numbers low, thus allowing the incentives to stay low. Hey, I want my cake and eat it too Quote Link to comment Share on other sites More sharing options...
Challenge Posted July 17, 2011 Share Posted July 17, 2011 Here in VA Trucks are selling pretty well, but the big pressure is for used vehicles. My dealer is really hungry for my 2004 Lariat. They've offered to "plus" up the trade in to offset any reduction in incentives at delivery. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.