jrace Posted July 13, 2009 Report Share Posted July 13, 2009 I am getting ready to shop for an Edge. From that the dealers are saying, the invoice price is only like $2,000. less than the MSRP. So, they want to work up from the invoice price. How do I know that's the real invoice and what should I offer below MSRP? Thanks!! Quote Link to comment Share on other sites More sharing options...
bbf2530 Posted July 13, 2009 Report Share Posted July 13, 2009 (edited) I am getting ready to shop for an Edge. From that the dealers are saying, the invoice price is only like $2,000. less than the MSRP. So, they want to work up from the invoice price. How do I know that's the real invoice and what should I offer below MSRP? Thanks!! Hi jrace. :D Concerning Factory Invoice Pricing: First, the Dealer is generally correct. Invoice price is only approximately $2,000 less than MSRP on a vehicle priced like the Edge. But that difference will vary according to the price of the individual vehicle. The higher the MSRP, the larger the difference between Factory Invoice Price and MSRP. Here are two examples: I took a quick look and on an Edge that MSRP's for $33,225, the Invoice Price is $31,426 (a difference of $1,799). But on an Edge that MSRP's for $42,000, the Invoice Price is $39,281 (a difference of $2,719). So as you can see, the MSRP of your chosen vehicle will make a big difference in the MSRP/Factory Invoice price difference. Next, to find out an approximate Factory Invoice Price for an Edge equipped the way you are planning on buying, go to a site like Edmunds.com or KBB.com and use their online tools to work up pricing on your chosen Edge. Next, if you read the fine print on those Edmunds and KBB type websites, you will see that their Factory Invoice pricing does not include certain proprietary Ford charges that they have no access to ((Destination/Freight etc.) so add about $300 or so to the Factory Invoice price those sites list. That will get you in the general ballpark. Also, keep in mind that once you negotiate your initial purchase price, then you are entitled to have any Cash Incentives/Rebates deducted from the negotiated price. The Incentives/Rebates should not be figured into the purchase until after the price has been negotiated. Those Incentives are essentially "freebies" from Ford, so do not let the Dealer try to deduct them up front. Concerning price negotiations with the Dealership: First, do not base your price negotiations/offers on the MSRP price. Base your negotiations/offers using the Factory Invoice Price. So start off by offering them $200 below Factory Invoice Price. Expect to have them counteroffer somewhere above Invoice. Then keep negotiating until you get a price that you are happy with (keeping in mind the "Law of Diminishing Returns"). Also, shop and negotiate at more than one Dealership. Of course, these are just quick and simpe answers to your questions, so feel free to ask us any other questions you may have. Hope this information helps. Good luck. :beerchug: Edited July 13, 2009 by bbf2530 Quote Link to comment Share on other sites More sharing options...
jrace Posted July 13, 2009 Author Report Share Posted July 13, 2009 (edited) Hi jrace. :D Concerning Factory Invoice Pricing: First, the Dealer is generally correct. Invoice price is only approximately $2,000 less than MSRP on a vehicle priced like the Edge. But that difference will vary according to the price of the individual vehicle. The higher the MSRP, the larger the difference between Factory Invoice Price and MSRP. Here are two examples: I took a quick look and on an Edge that MSRP's for $33,225, the Invoice Price is $31,426 (a difference of $1,799). But on an Edge that MSRP's for $42,000, the Invoice Price is $39,281 (a difference of $2,719). So as you can see, the MSRP of your chosen vehicle will make a big difference in the MSRP/Factory Invoice price difference. Next, to find out an approximate Factory Invoice Price for an Edge equipped the way you are planning on buying, go to a site like Edmunds.com or KBB.com and use their online tools to work up pricing on your chosen Edge. Next, if you read the fine print on those Edmunds and KBB type websites, you will see that their Factory Invoice pricing does not include certain proprietary Ford charges that they have no access to ((Destination/Freight etc.) so add about $300 or so to the Factory Invoice price those sites list. That will get you in the general ballpark. Also, keep in mind that once you negotiate your initial purchase price, then you are entitled to have any Cash Incentives/Rebates deducted from the negotiated price. The Incentives/Rebates should not be figured into the purchase until after the price has been negotiated. Those Incentives are essentially "freebies" from Ford, so do not let the Dealer try to deduct them up front. Concerning price negotiations with the Dealership: First, do not base your price negotiations/offers on the MSRP price. Base your negotiations/offers using the Factory Invoice Price. So start off by offering them $200 below Factory Invoice Price. Expect to have them counteroffer somewhere above Invoice. Then keep negotiating until you get a price that you are happy with (keeping in mind the "Law of Diminiwshing Returns"). Also, shop and negotiate at more than one Dealership. Hope this information helps. Good luck. :beerchug: Thanks for that information, helps out a bunch. I really am hoping to get the best deal possible on this car. If anyone else has anything to share, please do. Also, what "freebies" should I be asking the dealership to throw in? They're already offering free oil changes and state inspections. Edited July 13, 2009 by jrace Quote Link to comment Share on other sites More sharing options...
akirby Posted July 14, 2009 Report Share Posted July 14, 2009 Clarification - edmunds, kbb, etc. dealer invoice does include the destination charge (or it's at least shown). What they don't include is the FDAF (advertising) charge. This is a legitimate charge from Ford to the dealer and covers local advertising. It varies based on the vehicle and geographic area so edmunds or kbb can't possibly know what it will be for you specifically. It typically runs around $400, so adding $400 plus the destination charge to the edmunds/kbb dealer invoice price will be really close. Quote Link to comment Share on other sites More sharing options...
bbf2530 Posted July 15, 2009 Report Share Posted July 15, 2009 (edited) Clarification - edmunds, kbb, etc. dealer invoice does include the destination charge (or it's at least shown). What they don't include is the FDAF (advertising) charge. This is a legitimate charge from Ford to the dealer and covers local advertising. It varies based on the vehicle and geographic area so edmunds or kbb can't possibly know what it will be for you specifically. It typically runs around $400, so adding $400 plus the destination charge to the edmunds/kbb dealer invoice price will be really close. Ahhh...Pronoun trouble! I was sleepy (attended a Sunday wedding :party: ) and akirby is correct. It is the FDAF (Ford Dealers Advertising Fund) fee that is not included (not Destination or Delivery). And since the FDAF varies according to several criteria, it can be as low as approximately $250 and as high as approximately $500. Since no single figure will hit the nail on the head, this is why you can only get a ballpark figure from sites such as Edmunds and KBB. Good luck. :beerchug: Edited July 15, 2009 by bbf2530 Quote Link to comment Share on other sites More sharing options...
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