Brand new under invoice??

[67go]

VanBortel Ford Rochester NY Sorry at invoice! Duh. At least no BS.

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[BimmerDriver]

Agreed on the warranty comments, the dealer has to service your car.

As for Koons, I tried to buy a car from them, but they are deceptive in their advertised price, so even though it cost me more, I went elsewhere just on principle.

My current car is ordered through Chapman. So far, it's been a painless experience.

 

[TentacleKitty]

Interesting reading the comments on this thread - some good information.

I am curious, if anyone knows. Let's take two scenarios:

1) A Mustang owner with a full factory bumper to bumper warranty (under 3 years and 36K miles) needs to get a new engine due to some issue. Let's say for this that the Ford factory warranty will cover all the parts and labor costs.

2) A Mustang owner with NO remaining warranties needs to get a new engine due to some issue. In this case let's say the owner is going to pay out-of-pocket all the costs for parts and labor.

My question is this: From the dealership standpoint, which scenario above is more "profitable" to them? I am guessing maybe #2....?

 

[Mastermind46]

Interesting reading the comments on this thread - some good information.

I am curious, if anyone knows. Let's take two scenarios:

1) A Mustang owner with a full factory bumper to bumper warranty (under 3 years and 36K miles) needs to get a new engine due to some issue. Let's say for this that the Ford factory warranty will cover all the parts and labor costs.

2) A Mustang owner with NO remaining warranties needs to get a new engine due to some issue. In this case let's say the owner is going to pay out-of-pocket all the costs for parts and labor.

My question is this: From the dealership standpoint, which scenario above is more "profitable" to them? I am guessing maybe #2....?

Opinion: Option 1. Because the owner does not care what the cost is. The dealer will markup whatever they can get approved since it is all covered. Option 2 two may have the owner cutting out as much as they can to save money. Plus if the entire job is covered, the owner is going to be much more happy since they didn't just spend thousands which may mean further business for the dealer.

 

[Zooks527]

The only time I've had a dealer care if I bought it from them is if I were asking for a loaner. In that case, about half of the BMW dealers I used would only do a loaner of you got it from them. The other half were smart enough to realize that customer service is why you'll keep coming back.

 

[Zooks527]

1) A Mustang owner with a full factory bumper to bumper warranty (under 3 years and 36K miles) needs to get a new engine due to some issue. Let's say for this that the Ford factory warranty will cover all the parts and labor costs.

2) A Mustang owner with NO remaining warranties needs to get a new engine due to some issue. In this case let's say the owner is going to pay out-of-pocket all the costs for parts and labor.

My question is this: From the dealership standpoint, which scenario above is more "profitable" to them? I am guessing maybe #2....?

#2.
The dealer is constrained on costs by their agreement with Ford in case #1. In case #2, it's whatever the customer will submit to paying.

 

[MustangorCamaro]

Agreed on the warranty comments, the dealer has to service your car.

As for Koons, I tried to buy a car from them, but they are deceptive in their advertised price, so even though it cost me more, I went elsewhere just on principle.

My current car is ordered through Chapman. So far, it's been a painless experience.

How long ago was that? I've purchased several cars from Koons and never had any issues. I even flew in and drove off in once without a contract beforehand. They honored to the dollar their email price. It was $7K off of a Focus and no one else would touch their pricing.

Yes they add back in delivery fee, but prior to Covid hardly anyone would beat their pricing even after adding that back. In fact we agreed on a base 2020 Mustang GT in March of 2020 right as Covid hit for $31k OTD. Take out SC taxes and registration and they were selling the car at $30,460. That was over $7k off of MSRP. Less than a handful of dealers in the country would match that price at the time.

Those days are long gone of course.

 

[wadewolf76]

I highly recommend Granger. Great people, great price. I will be buying everything I can from them until I'm no longer able or they change on me.

 

[BimmerDriver]

In regards to my comment about Koons:

How long ago was that? I've purchased several cars from Koons and never had any issues. . . .
Yes they add back in delivery fee, but prior to Covid hardly anyone would beat their pricing...

Yeah, it was two years ago, so we were in the beginning of the great lock-down, and I was put off by them advertising a selling price of $xxx and then adding back the delivery fee. In my mind, since that delivery fee is a) mandatory and b) on the Monroney (window) sticker and c) a non-negotiable item (i.e. the dealer has to pay it, so, so do we), it is a deceptive business practice.

I expressed my dismay to the sales manager, and if you can shrug over the phone, he did it.

So, I took that price to my local dealer, and although they didn't quite match it, when I considered the savings from flying up to VA and driving back, it was only a few hundred more, and I do prefer to support local businesses when possible.

Today my local dealer will not match the price, but Koons is dead to me just on principle.

 

[Fastoldman]

Actually Zooks, the Dealer is not constrained by the Manufacturer on what they can charge on a Service Contract. In some cases there could be more profit to a Dealer selling the contract than doing the repair. Most repairs are limited to extended service contract set rates, with those offering SAE flat rates preferred by Dealers. Some plans pay factory warranty rates, even on an extention and they are many times lousy and Dealers can find themselves working to repair an issue with little or no profit. Since there are over 5000 parts on the average car there could be numerous examples where a Dealer would come out ahead getting a customer to pay for a repair himself and others where the profit on a Ext. Service Plan was to their benefit.

Let's just say that if you are tracking your car , have not made any changes that would affect a contract ( like tuning, removing cats, etc. ) I would get a plan. The big costs today are seldom the driveline, they are all the crazy computer modules , electronics, etc.

 

[Zooks527]

Actually Zooks, the Dealer is not constrained by the Manufacturer on what they can charge on a Service Contract.

Sure, but that wasn't the question I was answering.

The question asked boiled down to "In which scenario can the dealer make more money, (1) replacing an engine under warranty or (2) replacing an engine at the customer's sole expense?", and in that case, the dealer is absolutely constrained for what he can charge for the warranty repair cost (not the extended warranty cost itself) by his agreement with Ford.

Let's just say that if you are tracking your car , have not made any changes that would affect a contract ( like tuning, removing cats, etc. ) I would get a plan. The big costs today are seldom the driveline, they are all the crazy computer modules , electronics, etc.

Without question. After buying only 1 extended warranty in my 41 prior years of buying cars, I bought one for the Mustang because of all the electronic nonsense. Anything mechanical will likely shake out during the 5/60 powertrain warranty, but the reliability of the electronics is surely not going to improve with age.

 

[Fastoldman]

You are correct, but the odd thing is a Dealer is constrained by what Serv. Contract is in force, as many pay at different levels, so he may make very little with some. Ford Extended Service Contracts pay well so most Dealers like them. Others will pay a warranty rate and these are disliked because they have set figures and many can be set at the same figure to do a similar repair on a Focus as a Mustang. Thankfully Ford is like the first example so that helps all of us as consumers.

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