Dealer beat ford z plan pricing

[NoisverWen]

Hi,

 

So I went into the dealership to buy a ford edge SE and expected to use ford's z plan. I can't afford much so I just went with the basic edge model. Dealer says he can beat the z plan. Shows me the invoice with retail price of about 29k and a bottom line price of 26.5k with the z plan and incentives. The dealer then shows me a second invoice for the same car with the retail price magically dropped down to about 27k and out the door price of 25.7k. He explained that he can't change the retail pricing under the z plan. Is this normal? It's still a good deal compared to truecar but it seems strange.

[akirby]

Do you have the dealer info? Name, zip code and the last 5 digits of the vehicle VIN or a description of the vehicle and the exact MSRP? I'd like to look it up on the X plan website.

 

There is only one Ford invoice and it shows msrp, invoice, A, Z, D and X plan prices. That doesn't sound legit.

[NoisverWen]

Its a 2017 Ford Edge SE AWD, interior ebony, exterior metallic, MSRP 31,535, VIN 98973, Zip 22312

[omar302]

The 2K difference matches the difference between a FWD and an AWD. Could it have been a mistake & they showed you an invoice of a FWD then an AWD?

[NoisverWen]

Sorry there was a flurry of papers at the time but I realized that there was only one invoice from ford for that car. The two other papers were the dealership pricing out the car for me. When negotiating with the guy I had trouble understanding why the starting point was different for the same car. I never seen that before. The guy didnt explain it well but like I mentioned before he said he could change the retail price outside the z plan but if using the zplan he has to use the price stated on the ford invoice. Hopefully this make sense to someone.

[akirby]

Its a 2017 Ford Edge SE AWD, interior ebony, exterior metallic, MSRP 31,535, VIN 98973, Zip 22312

 

I found it. Next time please include the dealer's name - makes it easier to find. Also the exterior is Magnetic, not metallic.

 

Here is what's going on. The price he quoted you looks to be the going retail price. My local dealer has the same relative discounts. Essentially there are $4850 in rebates currently available (including Ford Credit) plus the normal dealer discount of $3500 or so which gets you to the $8K off MSRP that Jerry's is advertising on all their Edges. And I don't know any dealer that sells all their vehicles to the public at 4% below dealer invoice which is what Z plan represents (more or less).

 

If you used Z plan you should still be an additional $1K cheaper. I bet Jerry's did not factor in all of the incentives on top of the Z plan invoice price.

 

Here is the best way to find out. Have Jerry's do an actual Z plan price form which should show all the incentives, etc. Or go to another dealer and get Z plan pricing on a similar vehicle. This one at Sheehy Ford is within a few dollars:

 

http://shop.ford.com/inventory/edge/details/2FMPK4G91HBC20841?zipcode=22312&year=2017&fyear=2017&ownerPACode=00070

 

You also need to check the documentation fee. Some dealers like to price low and add in a $800 doc fee to make it up. When using Z plan the doc fee is limited to $100. Can make a big difference.

[akirby]

Sorry there was a flurry of papers at the time but I realized that there was only one invoice from ford for that car. The two other papers were the dealership pricing out the car for me. When negotiating with the guy I had trouble understanding why the starting point was different for the same car. I never seen that before. The guy didnt explain it well but like I mentioned before he said he could change the retail price outside the z plan but if using the zplan he has to use the price stated on the ford invoice. Hopefully this make sense to someone.

 

What he was saying is true - when using Z plan the price is the Z plan price on the invoice plus the doc fee (limited to $100) plus tax, tag, title, etc. Period. No negotiation and nothing can be added to that price unless you want it (dealer extras/options like glass etching, mop and glo, etc.).

 

Without Z plan they set the price. However it would be extremely rare for a dealer to sell vehicles below the Z plan price unless they're making it up in doc fees, financing or unwanted dealer options they force on you. This is where you have to be really careful.

 

X plan is easy to beat. X plan now is around $150 above dealer invoice. However, Z plan is an additional 4% (roughly) below dealer invoice (around $1200). Now the dealer does get 3% holdback and some other incentives but A and Z plan are still way below what any normal dealer would charge. And Ford gives them a spiff check to make up the difference.

 

So ask yourself this - why would a dealership turn down Z plan which gives them an extra spiff check to sell you the vehicle for less money unless they're trying to make it up somewhere else?

 

I'd stick with Z plan to be safe and find another dealer. Also on their website they don't show the mfr incentives - they just lump everything into their "discount". That plus what you described sounds a bit shady.