Ford employee pricing question

[foghat]

Hey all,

Anyone know how the employee pricing works from the dealership's pov?

For example, say the msrp is $46,000 and invoice is $40,000

If the employee pricing discount on the car is $5000, does that mean the dealer only stands to make $1000 (if sold at msrp)? Or does Ford pick up he cost of the discount - and the dealer would still pocket the full $6000?

Am trying to figure out if it is reasonable to expect to pay less than msrp if employee pricing is in effect - in so much that the price after the discount could be lower than invoice.

I'm in Canada, not sure if that makes a difference.

Thanks.

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[Sterling Archer]

No idea how it works from a dealership perspective, but I do know that the A plan is traditionally the best possible deal you can get (with the exception of a model being phased out). I would guess that the dealers still profit, and it's actually Ford that takes the hit, but don't expect to be able to haggle much lower.

 

[cbrookre]

No idea how it works from a dealership perspective, but I do know that the A plan is traditionally the best possible deal you can get (with the exception of a model being phased out). I would guess that the dealers still profit, and it's actually Ford that takes the hit, but don't expect to be able to haggle much lower.

I think that the dealership gets the benefit in allocation not in profit, but that is information from like 10yr ago... IIRC it was 1.5 allocation per vehicle sold on X/A plan

 

[RisingForce]

Ford pays a A/Z/D/X pay to the dealer , so the amount will always end up higher than invoice for the dealer, hence they will not lose on the deal and actually make more money on A/X/Z/D than selling at invoice to walk-in consumers.

Example:

Vehicle MSRP $30000
INvoice $28000
A-plan $26800

Ford will pay dealer $1500 in Aplan commision, which added to $26800 puts it above the $28000 invoice price.

 

[L8APEX]

Who cares what they make? Just get employee pricing and pay no admin fees. That is what I did.

 

[foghat]

Who cares what they make? Just get employee pricing and pay no admin fees. That is what I did.

Of course you should care. If the employee pricing discount is covered by the dealer, then you likely will not get them to move below msrp on price.

If Ford Canada covers the discount, then, in theory, there should still be room to negotiate somewhere beween msrp and invoice and then tack the discount onto that.

 

[L8APEX]

Of course you should care. If the employee pricing discount is covered by the dealer, then you likely will not get them to move below msrp on price.

If Ford Canada covers the discount, then, in theory, there should still be room to negotiate somewhere beween msrp and invoice and then tack the discount onto that.

The rebate is from Ford. It is possible to negotiate a price better then employee pricing if the dealer is willing to give up some of their holdback.

 

[cbrookre]

Of course you should care. If the employee pricing discount is covered by the dealer, then you likely will not get them to move below msrp on price.

If Ford Canada covers the discount, then, in theory, there should still be room to negotiate somewhere beween msrp and invoice and then tack the discount onto that.

That is not how it works, the rules state that you have to declare up front and it is not negotiable, fixed price. You could negotiate on your trade in though.

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