How are dealers (Granger, Chapman) offering deals under invoice?

[itguy84]

As the title says how are Chapman Ford and Granger offering deals under invoice? I can’t figure out how it is financially feasible for them. My understanding is that invoice is what the dealer pays Ford for the vehicle, so how are they losing thousands per vehicle order?

Granger and Chapman both are selling a lot of vehicles to out of state customers on these forums, and the Ford Truck and Bronco forums.

someone help me understand this? Has anyone taken delivery either

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[Farkel]

As the title says how are Chapman Ford and Granger offering deals under invoice? I can’t figure out how it is financially feasible for them. My understanding is that invoice is what the dealer pays Ford for the vehicle, so how are they losing thousands per vehicle order?

Granger and Chapman both are selling a lot of vehicles to out of state customers on these forums, and the Ford Truck and Bronco forums.

someone help me understand this? Has anyone taken delivery either

From Edmunds.com:
Please note, however, that the invoice price is almost always higher than the amount the dealer actually ends up paying to the manufacturer. This results from a variety of discounts offered to the dealer that do not appear on the invoice. The two most common discounts are Dealer Holdback and Dealer Cash Incentives, and there are others that may be based on factors such as a dealer's sales volume for a particular month.

 

[LOL WUT]

High volume dealers get kick backs from the manufacture that offset potential losses from selling well below invoice.

 

[itguy84]

From Edmunds.com:
Please note, however, that the invoice price is almost always higher than the amount the dealer actually ends up paying to the manufacturer. This results from a variety of discounts offered to the dealer that do not appear on the invoice. The two most common discounts are Dealer Holdback and Dealer Cash Incentives, and there are others that may be based on factors such as a dealer's sales volume for a particular month.

That’s good to know

I canceled my order with my local dealer today, and he said they are full of crap if they are going to sell a Mach 1 at that price. I ordered one with Chapman. My dealer successfully got into my head today

 

[shogun32]

Chapman/Granger have low cost of living compared to many metro areas. They are selling every unit at a profit. Even Koons in metro DC will sell below 10% off MSRP. Nobody is losing even one red cent. Your local dealer is maximizing their profit on the back of ignorance/lazy consumers. No dealer "pays" Ford "invoice" for their cars. That is an egregious lie.

Grainger is booking a profit at 9% off on EB/GT sales. Lindsay Ford (metro DC, MD) made a profit when they sold me a EB/PP at 12% off. They were making profits on left-over 2020 GT at 15% off too.

I estimate 'cost' to purchase from ford is roughly 15% off MSRP or lower.

 

[wingnutt]

one word…volume.

it’s like those stupid house flip shows where they won’t even LOOK at a potential project unless they can make 100k+.

then there’s guys like me that will happily grab three of them that “only” make 33k

 

[cerbomark]

agreed. Their dealer cost is below invoice especially when it s a customer ordered car and it goes right out.
I have a Mach 1 on order from Chapman Ford. Super easy.

 

[IceAge]

Demographics play a huge part as well and individual dealers greed.

 

[Kermut]

I just wanted to add, that in the case of cars like the M1, dealers “not being able to match 2-4% below invoice” are likely full of crap, because it is my understanding that Ford won’t allocate those cars to the dealer without a customer order. So it’s not like you are poaching cars from the pool that they could potentially sell for more profit. Looking at you, Metro Ford of Oklahoma City….

Now, the dealer may very well ask you for a non-refundable deposit to offset the burden if you don’t accept the order, but that’s another story.

 

[shogun32]

t is my understanding that Ford won’t allocate those cars to the dealer without a customer order.

said "customers" may well be the sales guys, service underwriters, or mechanics employed by the dealership, however. Who inexplicably decide not to take delivery.

 

[Kermut]

said "customers" may well be the sales guys, service underwriters, or mechanics employed by the dealership, however. Who inexplicably decide not to take delivery.

The dealer I mentioned earlier had 4 Mach’s on the lot all with $6+ ADM and I’m 99% sure that’s exactly what they did to get them in inventory.

In all fairness they were polite but I definitely got a sleazy vibe from the place- when I asked them to match Granger it was all “If we do this we have a deal today right” sort of high pressure crap, but I guess my order literally wasn’t worth their effort, which I find confusing as it should have been either guaranteed money when I picked it up or another car they could mark the crap up out of.

 

[K4fxd]

My old man was a GM at a dealer in Mpls MN.

The invoice price we see is not the price the dealer pays for the car.

 

[Zelek]

You're always going to pay more than what the dealer paid for it from Ford. Otherwise, dealership goes under.

 

[ICU812]

A buyer is most likely to return to buy another fun car or that daily driver suv or truck, and maybe that over the counter part, and will tell others about them.
They may make less margin on the flavor of the week model( bronco/mach1) but make it up in volume of units out the door.
The returning business and word of mouth is better long term than a one sale pony, that raped the buyer once, and never gets any other business, from that buyer or anyone they know (word of mouth).
Dealers that want to earn a life long customer are in it to win it. Those that only care about getting the most out of that one sale, won't be around much longer.
The days of only shopping your local area ford dealers is over. Today you can send off an email to tons of them asking for a quote on a vehicle, without moving off the lazyboy.

 

[BabyPanza]

You're always going to pay more than what the dealer paid for it from Ford. Otherwise, dealership goes under.

Yes but a lot of what is going on now esp in DFW is price gouging, plain and simple. I wouldn’t buy a car off the lot from these guys if they had the last car on the planet. And Ford should do something about it, it’s so ugly!!

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