Pricing question.

[francois.nc]

I know this may be an odd question, but I am going to ask anyway. It seems like every dealer at least here in Charlotte is willing to sell their cars for invoice + TTL and Doc Fee usually around 599. The x-plan turns out to be a better deal while the price is slightly higher then invoice but is made up by the maximum of 75 doc fee.

 

The real question I have I guess is how can dealers be selling cars all over the place for what they supposedly paid for it, sure they are killing it on the doc fees, but it seems to me that we are being played by this thing called invoice. We the consumer feel like getting the car at invoice is some great deal where I feel this cannot be the price a dealer is paying. Or even close for that matter.

 

Should we asking for invoice less 1000 or more. Am I crazy for thinking this, it just seems like none of them want to haggle since they are already giving us the best price by giving it to us at invoice, I just don't buy it.

[akirby]

I know this may be an odd question, but I am going to ask anyway. It seems like every dealer at least here in Charlotte is willing to sell their cars for invoice + TTL and Doc Fee usually around 599. The x-plan turns out to be a better deal while the price is slightly higher then invoice but is made up by the maximum of 75 doc fee.

 

The real question I have I guess is how can dealers be selling cars all over the place for what they supposedly paid for it, sure they are killing it on the doc fees, but it seems to me that we are being played by this thing called invoice. We the consumer feel like getting the car at invoice is some great deal where I feel this cannot be the price a dealer is paying. Or even close for that matter.

 

Should we asking for invoice less 1000 or more. Am I crazy for thinking this, it just seems like none of them want to haggle since they are already giving us the best price by giving it to us at invoice, I just don't buy it.

 

I thought everybody knew about holdbacks, but I guess not. The dealer actually pays 3% less than invoice. It's like a factory to dealer rebate. However, that 3% also has to pay interest on the car while it sits on the lot (known as floor plan). Even so dealers do not make a lot on a new car sale. Invoice plus $599 doc fee is a reasonable price. You can probably get another few hundred off that price but most dealers won't go below invoice (nor should they have to - they need to make some money to stay in business).

[choff1138]

I thought everybody knew about holdbacks, but I guess not. The dealer actually pays 3% less than invoice. It's like a factory to dealer rebate. However, that 3% also has to pay interest on the car while it sits on the lot (known as floor plan). Even so dealers do not make a lot on a new car sale. Invoice plus $599 doc fee is a reasonable price. You can probably get another few hundred off that price but most dealers won't go below invoice (nor should they have to - they need to make some money to stay in business).

 

 

Not everyone has working knowledge of dealers - you could try answering questions without being snarky - the question was one I had been having too, figuring that it had to be some type of kick back from Ford or something. Thanks for the actual details though.

[sandjunkie]

I bought my 2011 edge sport for $500 over invoice and with the $1000 cash back from Ford, I ended up paying $500 below invoice.

[Grey]

A. remember "no go deed will go unpunished". Truthfully, there are so many twists in determining vehicle cost that you can't predict true cost until you match a vehicle to a specific customer, on a partiular day, in a specific zip code.

 

So, let's you and I be friends, along with Vincent.

[francois.nc]

A. remember "no go deed will go unpunished". Truthfully, there are so many twists in determining vehicle cost that you can't predict true cost until you match a vehicle to a specific customer, on a partiular day, in a specific zip code.

 

So, let's you and I be friends, along with Vincent.

 

Thanks all for posting, I did know of the Holdback, but I still can't believe that is enough, I did google search and found some information about Dealer Incentives (back-door money) it is sometimes called.

 

About this Vincent thing, what exactly is that, I have heard some things, but not totally clear.. Something about a way to check on all incentives or something, does this check on these Dealer Incentives I speak of?

[akirby]

Not everyone has working knowledge of dealers - you could try answering questions without being snarky - the question was one I had been having too, figuring that it had to be some type of kick back from Ford or something. Thanks for the actual details though.

 

I certainly wasn't trying to be snarky. I was genuinely surprised because dealer holdback is now openly discussed on almost every internet article on price negotiations and I thought it was common knowledge by now.

 

Believe me - if I was being snarky it wouldn't be that subtle.

[akirby]

Thanks all for posting, I did know of the Holdback, but I still can't believe that is enough, I did google search and found some information about Dealer Incentives (back-door money) it is sometimes called.

 

About this Vincent thing, what exactly is that, I have heard some things, but not totally clear.. Something about a way to check on all incentives or something, does this check on these Dealer Incentives I speak of?

 

Vincent is the system that tells the dealer the incentives YOU are eligible for based on your information and a specific vehicle at a specific point in time. Some incentives are based on the specific vehicle and some are based on the customer's zip code, personal offers, etc. Vincent takes all of that into account and tells the dealer exactly what you're eligible for on that vehicle.

[akirby]

Thanks all for posting, I did know of the Holdback, but I still can't believe that is enough, I did google search and found some information about Dealer Incentives (back-door money) it is sometimes called.

 

There can be additional dealer incentives although the vehicle specific ones are also published on sites like edmunds.com.

 

But what you have to realize is these dealers don't just sell new vehicles - they have service departments and also sell used cars. It's been said that most dealers don't make any money on new cars - it all comes from the service dept and used cars. I think dealers make way more on used cars than new cars.

[sandjunkie]

Try Truecar.com

[rogersmj]

I was surprised at how much the dealers were willing to deal on this new and still somewhat hard to find vehicle.

 

We just signed for a 2011 Edge SEL FWD w/ 202A (leather, MyFord, etc) and roof rails in Candy Red Metallic. The MSRP on this vehicle is $34,085; invoice is $32,251; the dealer offered it to us for $100 under invoice ($32,151) and then we took the $1500 incentive from Ford PLUS another $500 because my wife graduated from grad school within the past two years. So our final price was $30,151, plus tax and doc fee. Going to pick it up this week!

[akirby]

I was surprised at how much the dealers were willing to deal on this new and still somewhat hard to find vehicle.

 

We just signed for a 2011 Edge SEL FWD w/ 202A (leather, MyFord, etc) and roof rails in Candy Red Metallic. The MSRP on this vehicle is $34,085; invoice is $32,251; the dealer offered it to us for $100 under invoice ($32,151) and then we took the $1500 incentive from Ford PLUS another $500 because my wife graduated from grad school within the past two years. So our final price was $30,151, plus tax and doc fee. Going to pick it up this week!

 

How much was the doc fee?

[rogersmj]

How much was the doc fee?

 

$124. Our sales tax is 7%.

[lowesdell]

My SEL was sticker of 34,660.

1910 off of sticker, 1500 rebate

Final 31250.

 

No doc fee, or it's probably more accurate to say that they built that into the $ off sticker

[akirby]

$124. Our sales tax is 7%.

 

That's a good price.

[lowesdell]

I still have to pay registration and sales tax at the dept. of revenue. That will be about $2k