This is my first post here but I am by no means new to forums.

I just put a deposit on a '13 screw lariat, with the off road package, eco-boost, platinum white. The dealer isn't my local one because they suck, this one is about an hour away. The reason is because I feel like the manager is being very straight forward with me, giving me invoice price plus $399 fee and tags of course, also the rebates at the time is almost there.

I am very excited, I just did this a week ago so they say the trucks are taking about 6-8 weeks now but they have to say 12 at most.

My questions are:

- Anyone have any information on how long they are taking to build them?

- Is "invoice" really invoice? He showed me the paperwork with "dealer invoice" for my build. Is there fudge room in there for them, I feel like this could be a ploy but they seem to be honest and he is giving me decent money for my trade (about 1000 under what I would expect to sell it out right).

- How do the incentives work as the truck is built and the new ones come out? Do they have the ability to back date of four example July rolls around and the incentives get worse than June?

Thanks.

 

Dealers don't really pay invoice for vehicles. There is also a "holdback" which is about 3% of invoice which they get back from Ford when it's sold. However, most dealers don't pay cash for the vehicles, they finance them through Ford on what's called a "floor plan". They do pay interest on this. Some dealers are willing to dip into the holdback, others won't touch it.

It sounds like you are being treated fairly. You could probably do a bit better, but it would take some hard core bargaining. I believe in being fair and don't mind paying a bit more to maintain a good relationship.

We have a tracking forum - when you get an order number from the dealer you can post and get status reports.

 

Thanks for the reply. I am getting "Invoice Price" from the dealer plus the $399 like I mentioned. They ordered it for me so chances are they do not have to pay anything. So they get a 3% rebate from Ford for this sale? I think I am being treated fairly as well just wanted to understand.

 

I just got an F-150 Friday. I ordered it back in March. The sales guy showed me their invoice and I got the invoice price along with the $2,500 incentive and then another $500. I could have gotten another $1,000 incentive but that would have required Ford financing but I went bank financing instead.

I'm kinda miffed at Ford and their incentives. They offer another $500 incentive to members of national law enforcement associations (as in the cops). They don't do the same for use fire people. Ah well, such is life.

The invoice had a $1546 "holdback".

There was a sales person fee of $250 on the buyer's order, but I didn't have to pay that. (The sales guy and I go way back, some 30 years - I've bought a lot of vehicles from him over that time and I think he's treated me quite well).

 

The 3% "holdback" is called FDAF, Ford dealers advertising fund, it is the advertising fund that dealers use to advertise locally.

 

Where did you find that info? I'm pretty sure FDAF is completely separate and it's added on to the invoice on a region by region basis.

 

also the mark up on doc fees.

 

Dealers set their own doc fees, subject to state and local laws that may limit them. They are not part of the invoice.

 

On my invoice there was a $765 advertising assessment.

The holdback, from what I gathered in speaking with my sales guy, is a payment from Ford to the dealer. That's where the dealer "made" his money.

Another guy I know, a Chevrolet sales guy, said that selling new cars isn't a great profit center for car dealerships. Their profits come from used car sales along with service department's income.

 

That varies region by region, and this is NOT included in the invoice prices that you look up on edmunds.com.

The dealer may not even make that money, because they probably buy vehicles from Ford the same way you probably do - they finance them. The holdback is supposed to help them pay the interest on the notes.

Parts department is also a cash cow. Regardless, I don't think it's fair to expect a dealer to LOSE money on a new vehicle sale. I would never personally try to negotiate into their holdback but I sure will get them as close to invoice as I can and I'll scream about excessive doc fees.