Just curious how much money the stealership makes when they sell a vehicle on an X plan? I'm trying to get under that and wonder how much room they have to move. Thanks.

 

lol good luck

 

They wouldn't budge a bit off the x-plan price when I was looking at a new lightning. I think it was $28 or a little lower.

 

good luck is right...

if a dealership is even willing to sell to you at x-plan, then they are pretty much only making the holdback on the vehicle.

example, on my '03 truck.

the invoice price from ford, meaning, what the dealership had to pay was: $29834

xplan price was $29867

so even if you get them to honor xplan price, they are only making a whopping $33.00 dollars on the sale.

of course ford and all manufacturers give the dealership a certain amount of money or "holdback" for each vehicle that they sell. on a lightning it's around $1000.

good luck getting them to cut into that.

a dealership wouldn't stay in business long selling at invoice, much less cutting into the holdbacks.

later,
chris

 

The X plan Price that was on the printout (the one that lists all the vehicle options and at the bottom it lists the different plan prices) was right at $30K and I thought that was a little steep.

 

dealer makes approx 2K profit by selling, even at X-plan price.

 

WOW, frank s, you've been a member here for a LONG TIME!

I'm curious to know how the dealer could make that much profit on an x-plan sale.

I've got the factory invoice for my '03 right here in front of me and I just don't see how that is possible?

thanks,
chris

 

The indicated invoice price is a fantasy number. It is not indicative in any way of the exact cost of the vehicle to the dealer from the point it is shipped from the factory. I'm sure that there are folks here who can explain that a bit clearer.

The dealership could sell you a new Lightning at WAY below actual dealer cost (that's the critical number - "actual dealer cost", not the mythical "invoice price") and still make a tidy profit by, for example, SCREWING you on financing. In fact, this is where the money is at in the car sales game.

As alluded to in previous posts, there are also kickbacks from Ford to the dealer ("holdback" and other incentives), plus they can sell you dealer-added options...

Additionally, if you are the type that is averse to spinning wrenches, they'll get you but good over the lifetime of the vehicle on oil changes and other service.

Ford dealerships (especially those in close proximity to Ford manufacturing plants) sell lots of vehicles at prices below X-Plan all of the time. It's called A-Plan. Anybody can get an X-Plan PIN, A-Plan is the sweet deal for direct Ford employees.

If a vehicle sits on the lot for a long time (there are serious costs associated with keeping a $30,000 vehicle in inventory), you could get it at below X-Plan (or even below actual dealer cost) just to cut the dealership's losses. Not likely with a Lightning, but you never know...

For example, I know that Beechmont Ford in Cincinnati was moving 2004's recently at around $26,600 or so. They had two left on the lot when I last checked (a few weeeks ago).

 

You could just do like I did when I bought my 04 F150 Hertiage STX... I asked my friend who works at a Ford dealer out of state what they were actually paying for similar trucks. I went into the dealer knowing that and walked out with a truck that sticker for 22,500 and I paid 16,700 for it. After everthing was said and done the dealer made 500 on the truck, got his hold back and I financed through them so they got that credit also. Just make sure that you know what you want and do the research in a couple of places to find out what a reasonable cost would be for what you want. just my .02 though.

 

A frind of mine manages a Lexus dealership (which is how I got mine for way below "invoice").

Here's what he told me....

The dealer pays below what you see as invoice. And depending on the circumstances that can vary...Whatever they paid of it, and whatever they sell it for, they get the hold back of the MSRP (varies from 0-3% of the MSRP).

Depending how how many cars they sell, they also get bonuses from the MFG., and at any given time there are additional bonuses if they move so many units of any particular model the MFG wants sold.

They sell almost all of the RX330's at "invoice" or bleow just because it adds to their volume. This makes them one of the largest Lexus dealers in the State, which, since this is California, means they are one of the largest volume dealers in the Country. For this, Toyota rewards them even more with more bonuses.

It's just like the way the car sales men make their money...the more they sell, the higher their commision percentage is at the end of the month.

Can they sell for below invoice? Sure thing....and the mmore they sell the more they make.

Do they want to sell for below invoice. Of course not. Would you?

They also make money thru the banks they finance thru in the form of "kick-backs" (although for legal purposes it is not called that )

thru service contracts, and other such BS.

The selling price is only a small protion of where the dealer gets their money/profit from.

This of course does not mean anyone can walk in there and wlak out with a new L for 26,900. Usually ain't gonna happen...but it can happen.

 

The REAL money maker is the service department.

I thought any Ford dealer had to honor X-Plan since
it is a corporate plan ... I dunno, just what I heard ...
Kinda like HOUSE ACCOUNTS for the salesmen among
us ...

 

Simply not true. I've seen brand new Lightnings go for mid-$28k and that was in the first two quarters of the 2003. I don't think any dealership would sell at a loss just as a new shipment hits their lots.

 

I'm seeing SVT dealers around here (greater Boston area, there are quite a few)..........whom would NEVER even advertise SVT products, much less sell a Lightning for anything less than MSRP........advertising them at 28,500!!!!

Looks like dealers are looking to move these Gen 2's out awaiting the Gen 3's. I too was told dealer invoice on a L was just over 28k, plus the kickback they get. These are the same dealers that were selling the 03 cobras for 10k above msrp and getting it when they first came out.