Can I do better?

[DarthLepard]

The dealer offers invoice pricing, then tries to make his profit on doc fees, extended warranty, paint sealant, above market financing, and insurance. He's planning on making more than just the holdback.

A very broad and incorrect assumption. As a desk manager you "plan" on making exactly what you sell the vehicle for. You "hope" to be able to add some other profit along the lines, and profit comes when value exceeds price. But you have a chance of someone not opting for an ESC, any additional coverage, not financing, etc. A desk manager that "plans" on making profit on all of those is someone who will kill your bottom line in a hurry by not protecting your "front" gross.

A dealership will run about 50% or more warranty penetration (50% will get you replaced), so just because you don't see value in something doesn't mean its evil and you should scare everyone away from it. Unless you think over half the people who buy cars are just idiots........which everyone is entitled to their opinion I guess

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[OrlandoJJ]

A very broad and incorrect assumption. As a desk manager you "plan" on making exactly what you sell the vehicle for. You "hope" to be able to add some other profit along the lines, and profit comes when value exceeds price. But you have a chance of someone not opting for an ESC, any additional coverage, not financing, etc. A desk manager that "plans" on making profit on all of those is someone who will kill your bottom line in a hurry by not protecting your "front" gross.

A dealership will run about 50% or more warranty penetration (50% will get you replaced), so just because you don't see value in something doesn't mean its evil and you should scare everyone away from it. Unless you think over half the people who buy cars are just idiots........which everyone is entitled to their opinion I guess

Actually, I didn't say anything about the value of these items, just that the salesman/manager intends to do their best to add them to the "invoice" price.

Now, I can tell you that when I tried to order my Mustang, the manager DID "plan" to include paint sealant in the promised X-plan price he agreed to. In fact, he insisted that I purchase 2 paint sealant treatments, for a total of $1400, as a "voluntary" purchase on top of my x-plan price. When I declined to pay it, the x-plan price offer was withdrawn. That sounds to me like someone who was "planning" to sell me paint sealant. Just because a salesman offers to sell you a car at invoice, it doesn't mean you are going to walk out the door that day with a car at invoice.

 

[GT Pony]

The dealer offers invoice pricing, then tries to make his profit on doc fees, extended warranty, paint sealant, above market financing, and insurance. He's planning on making more than just the holdback.

Speaking of "hold back", does anyone have an idea on how much a dealer gets from Ford for selling a car? It's obvious dealers couldn't stay in business forever if they sold every car for "dealer invoice".

 

[Scorpion]

The X-plan saves you the almost $600 in dealer added fees.

 

[authoritah]

Speaking of "hold back", does anyone have an idea on how much a dealer gets from Ford for selling a car? It's obvious dealers couldn't stay in business forever if they sold every car for "dealer invoice".

Got my GT last weekend. According to the dealer price sheet, holdback is 3% of invoice (or MSRP, I can't remember for sure). Since the dealers (at least here in SF bay area) are happy to sell at invoice even without asking, I'm sure they are making it up in other things in addition to holdback

 

[TxBornSooner]

I have been talking with a 5 different dealers here in the Okc Metro. All have been open to taking the X-plan. One in particular has even printed out the window stickers for me with the X-plan vs Msrp. Most are not willing to go much lower than the 500 rebate that Ford is offering. I got my MCA membership today and will be getting one July 4th weekend right before the rebate expires.

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