Pricing Question....needing someone with an insider understanding

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keny01998

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Ford is really giving discounts for cash sells? When I was buying mine they only had discounts for using FORD financing at some crazy high rate. Based on my experience they didn't want you to pay cash and wanted you to lease or finance.

Ford gave ridiculous mail in rebate or cash back if you pay cash or finance with someone else. When I got my 2019 in September, I got over $12k in cashback including $1500 PCO.
 

Jace

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Ford is really giving discounts for cash sells? When I was buying mine they only had discounts for using FORD financing at some crazy high rate. Based on my experience they didn't want you to pay cash and wanted you to lease or finance.
Mine wasn't a cash sale. They just took the private cash offer of the price like a normal incentive
 

Dclr

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Ford is really giving discounts for cash sells? When I was buying mine they only had discounts for using FORD financing at some crazy high rate. Based on my experience they didn't want you to pay cash and wanted you to lease or finance.

I had a similar experience.

The dealer I purchased from offered heavily discounted prices vs other local dealers. (similarly outfitted rigs) The catch was I had to finance the difference at 5% (purchase price less my trade) through their bank. (BBVA, not Ford)

I was told their lender gave them significant kickbacks which the dealer then used to further discount vehicles in their inventory.

I then asked about early payoff penalties and was told there was none to me but there was to the dealer and asked me not to pay it off for 4 months.

Long story short, I took the discount and agreed to pay 4 months of interest before I paid it off. Being a finance guy, I did the math and agreed.

Side note - I had no legal obligation to not pay it off immediately but decided to do so in the interest of supporting their business model.
 

TobyU

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They will screw you! That is what ALL dealers (new and used) do on trade ins.
ANY amount they really do give you, you could get more by selling to private individual.

THEY DOCTOR the numbers to make it look like you are getting more for trade..BUT in reality they simply came down LESS on sale price.

If you and I walk into the same dealership the same week and had the exact same trade in (lets assume different sale people to keep it covert) and you got a (inaccurate pricing alert)
54,205 sticker (with dest charge) vehicle for 52,805 and then "2000" for trade....you pay
50,805.
I forget about the trade and I have financing all ready and ready to sign and drive it home....
I get it for 51,494 ( a mere 5% discount and many an be had a lot more than this).
I pay 689.00 more. I am quite sure I can even dump the trade in for more than that.

So in this situation the dealer came down 2.5% for trade in person and 5% on fast sale outright.
The numbers will vary but unless you have a decent vehicle with a bad mechanical prob that makes it worth a LOT less than it would be- like overheating head gaskets etc, where you could trade it in and let them eat it....you will always get more by selling one yourself.
Not that hard to show to 2-3 people to sell. If it takes over 4 lookers- it's priced too high!

The ENTIRE way we buy cars at dealers (new and used) is BIZARRO WORLD!
But we accept it as normal and ok.

The only good think I can say is that by some people just paying sticker or not getting good deals...that allows (subsidizes) but only occasionally others to go in and get a much better deal by being a serious cash-in-hand buyer and being ready to walk if not good enough deal!

Sad but true.

We don't go into walmart or any other retail store and negotiate prices. I don't pay more or less than anyone else when I buy the same item at a store..... but vehicles....Bizarro World.
 

duneslider

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I had a similar experience.

The dealer I purchased from offered heavily discounted prices vs other local dealers. (similarly outfitted rigs) The catch was I had to finance the difference at 5% (purchase price less my trade) through their bank. (BBVA, not Ford)

I was told their lender gave them significant kickbacks which the dealer then used to further discount vehicles in their inventory.

I then asked about early payoff penalties and was told there was none to me but there was to the dealer and asked me not to pay it off for 4 months.

Long story short, I took the discount and agreed to pay 4 months of interest before I paid it off. Being a finance guy, I did the math and agreed.

Side note - I had no legal obligation to not pay it off immediately but decided to do so in the interest of supporting their business model.

That is basically the exact same deal with mine. The price was significantly better than any other dealer even before the discount. I had to stay with them (ford) for 6 months though with a ridiculous rate over 8%. I even had to sign a paper saying I had to stay 6 months and that they would somehow get their discount back if I didn't, not sure if that was legally binding or not? Either way, I did the math and it still worked out better for me to play their game and take the discount. As soon as I made my 6th payment I paid it off.
 

Calidad

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Ford is really giving discounts for cash sells? When I was buying mine they only had discounts for using FORD financing at some crazy high rate. Based on my experience they didn't want you to pay cash and wanted you to lease or finance.
Thats the classic we’ll give upu some of your own money back game. You pay X% in interest over x time with a financed deal we’ll be nice and pay you $3000 of your own money but your still paying sticker. LOL

Just a numbers game folks.

The cash for Cash trend is being pushed now because the car loan biz is being looked at as the next big Subprime loan crash. IE they want to reduce their loan risk. But to make it attractive over zero% financing they kick you some cash credit
 

Lou Hamilton

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Thats the classic we’ll give upu some of your own money back game. You pay X% in interest over x time with a financed deal we’ll be nice and pay you $3000 of your own money but your still paying sticker. LOL

Just a numbers game folks.

The cash for Cash trend is being pushed now because the car loan biz is being looked at as the next big Subprime loan crash. IE they want to reduce their loan risk. But to make it attractive over zero% financing they kick you some cash credit

They tried that with me.

Even though I qualified for 0% interest for 72 months, they said I can get an additional $2000 off the price if I went with the 6% interest loan for 72 months. The interest over 72 months was like 3-4x the $2000. As you can imagine, I declined. :)

Now I keep my money in my account, gain my own interest and pay the minimum monthly payment. At this point, I am MAKING money on the deal. LOL
 

Proud Okie

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Dealer is out nothing. They will be happy to take the 2,000.00 off the bottom line. All the dealer does is apply for it and they receive a credit. I think they have a page, on the main Ford site, where you can apply for the incentive and have it sent directly to you. I would be sure and read the fine print before I started counting on the rebate though. Usually there are model restrictions and delivery must fall within the dates listed. When I bought my 2019 stealth limited (in November), they had a 2,000.00 rebate but it was only certain models/trim levels and truck had to be sitting on dealers lot for 60 days. Your cash deal is probably predicated on either the 2K or a cheaper rate on finance. Cash sale still can mean financed but through another source, like a credit union or bank.
 

TobyU

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Dealer is out nothing. They will be happy to take the 2,000.00 off the bottom line. All the dealer does is apply for it and they receive a credit. I think they have a page, on the main Ford site, where you can apply for the incentive and have it sent directly to you. I would be sure and read the fine print before I started counting on the rebate though. Usually there are model restrictions and delivery must fall within the dates listed. When I bought my 2019 stealth limited (in November), they had a 2,000.00 rebate but it was only certain models/trim levels and truck had to be sitting on dealers lot for 60 days. Your cash deal is probably predicated on either the 2K or a cheaper rate on finance. Cash sale still can mean financed but through another source, like a credit union or bank.
Even if the dealer gets every penny back, they still don't want you to get a good deal. Remember the first thing they want to do is sell cars so if they have to sweeten the deal to get the sale they will but all in all it is in their nature, and their blood, no car dealer wants you to get the best deal possible. It's like they feel personal satisfaction getting you to pay $500 more then you might have it's sad but this is how their mentality works.
 

duneslider

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Even if the dealer gets every penny back, they still don't want you to get a good deal. Remember the first thing they want to do is sell cars so if they have to sweeten the deal to get the sale they will but all in all it is in their nature, and their blood, no car dealer wants you to get the best deal possible. It's like they feel personal satisfaction getting you to pay $500 more then you might have it's sad but this is how their mentality works.

I haven't met a car dealer yet that didn't make me feel dirty and like I was being ripped off by the end of the deal.
 

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