ShadMSU

I have a friend that told me he can get me a discount on a new ford, of course the mustang GT. im curious to know how much of a discount are we talkin here? i heard it from many people "wish you had a ford discount" like is a huge discount or somethin. does the discount vary from employee to employee? or is it the same for everyone? :scratch:

Boomer

Does he work for Ford?
If so he gets A-Plan (which is 2% under Invoice)
and he can give out X-Plan pin numbers (which is 2% over invoice/4%over A-Plan)

If thats the case, when buying the new car, make sure the dealership knows your using an X-Plan PIN number (which your friend can get you)
and that they honour it.
You won't have to dink around with negotiations.

I usually go in and just ask for XPlan, rather than negotiating...this way its a set number/good deal...

ShadMSU

He's working at one of the factories that is making the new mustangs

Boomer

AAI in Flatrock
If thats the case, then it would be an X-Plan pin.
I think they last a year from when he gets one for you (he can hand out 2-4 a year I think) So when the time comes, let him know...he'll get the pin number.

kevinb120

Thats if the dealer allows it at first. I would think the supply would be better in MI though, so they may do it right away

ShadMSU

Sorry but im a youngin' i dont know much about buying a car. my mom did all the stuff for my first car. what does that xplan and invoice and percents mean? some say above others say under im confused

Boomer

Kev help out..but this is the jist i think...

Invoice: is what the dealer 'supposedly' pays for the car.

MSRP: (Manufacturers Suggested Retail Price) is what they are supposed to sell the car for.

Markup: dealers may add a price on TOP of the MSRP(like a limited edition car....some EARLY cobra's were going for 5-10,000 more than MSRP...) NEVER pay a markup.

Usually when you think your getting a deal on a car...the dealer has the play of INVOICE TO MSRP.

Lets say for arguement: Invoice is 25k, but the dealer sells it at 'sticker'(MSRP) of 30k. You talk them down to 27k (thinkin your getting an awsome deal...3000 off...meanwhile..they are still makeing 2000 on it)

APLAN is 2% under invoice, so you'd be paying 2% less than 25k for the car.
XPLAN is 2% over invoice, so you'd be paying 2% above 25K
+add taxes depending on your state and their percentages/and trade in etc.

ShadMSU

thanks that helps a lot

GhostTX

The whole "invoice" thing is nonsense any way. On a Corvette, the dealer actually pays around $10-12K under invoice for the car.

Talk about your markups...<_< A Dealer always is going to make money when you purchase a vehicle, you just need to be happy with whatever price you pay.

kevinb120

Invoice is estimated dealer "cost" of the vehicle before proffit. 2% proffit is figured in under invoice as "holdback" which is paid to the dealer after delivery. The idea of holdback is like taxes being taken out on your paycheck. It is the estimated percentage it costs a dealer to P.D.I(pre delivery inspect) a vehicle, maintain it on the lot, inspection, wash and fill the car prior to deliver, and cover average lot damage repairs or items that get lost over time(mats/manuals/keys, etc). Some people seem to forget that owning 2-5 acres of real estate in the middle of most urban areas are also free

Dealers keep the holdback money even if they send the vehicle to another dealer. That is why dealers tend to swap the same type of inventory to one another. If it is a "one-way" deal, a dealer buys the other vehicle at invoice. People that think there is some mystery money hidden that dealers get, well, they dont know what the heel thier talking about. Sometimes dealers get contest incentives for certain vehicles, usually the dealer ends up using this to discount the customer's price because of dealer price wars instead of keeping it. For instance, you can come buy any T-bird I have right now for 1000 below invoice, no questions asked, because Ford has a dealer rebate. Sometimes however, dealers gamble on the incentives versus units sold to get the money from Ford and loose.

My typical buyer will whine and moan all day about not getting enough off of an expedition when it is discounted $3500 from sticker, and they get $4000 in rebates. Then I ask for money down and they are like "well I dont have any money down". So, youre telling me you can't put more then $500 down but 7000 off is "no big deal". Believe me, well always give more away then what we keep on the average car. Customers are spoiled plain and simple. Try something like that at a BMW dealer. Why Americans are so enamored by axis-empire-built cars and just lay down for their Honda pooboxes is beyond me.(yes i have a little import-complex )

kevinb120

There is no exact rhyme or reason to Xplan pricing, but usually the "curve" is 200 over invoice at $15,000 to 300 under invoice on a $35,000 unit. A plan is typically the price minus holdback and local advertizing fees on an invoice. Ford actually pays the dealers back to 2% over invoice on either X or A plan sales, so its a no-loose deal for the dealer unless the vehicle can typically get more money(like a Mystic cobra or 007 T-bird or hybrid escape), which is why they can refuse the deal.

On a side note, I dealer exchanged a unit last week they did not want anything back(since we get paid on holdback here as well as markup, one way deals SUCK :bang: ). I went up with a dealer check for invoice and bought the vehicle just like anybody else does.(no tax or paperwork of course) If I have a family member say interested in a Lexus, we can actually go buy the vehicle from a friendly dealer and resell it new to my uncle. We have also bought used units at dealer cost from other dealers to sell to friends as well. B)

Boomer

Clear as mud

hey ... kev... question.

Being that you can access all the crap from ford US...can you access pricing etc for Ford Canada as well?
This would be a MAJOR help

derynf

My father-in-law is the maintence manager for a Vineyard management company. He has a contract with the local ford dealership for all his the company vehicles with service contracts. He has told me to tell them who I am and I'll get 3% over cost.

derynf

Kev,

Since almost everyone on this board is "pre-ordering" doesn't that change the cost picture. I know I for one won't let the engine get cold after backing it off the trailer before I drive it away. The dealers aren't have to Advertise these cars. Most don't know anything unless they monitor message boards like this as you do.

Therefore, on the 24th hundreds of enthusiast will descend upon the dealerships and hand over money for a car they probably know little about.

Thanks.

Dan

That would be excellent.

With regards to the "pins", does anyone know if this applies in Canada? Do Ford employees have pins to give to relatives/friends? How many each year?

kevinb120

I dont think I can. There are no provisions in my search for regions outside the us.

kevinb120

That is actually the average negotiated deal for a new car. On super high-volume units like Explorer and Taurus, you can usually get less then that. BUT, if they will do that for a new 05 Mustang within the first few months after release, I would go for that 100%.

kevinb120

No not really. Ordering a car just means you will have one that you like that you can actually FIND at a dealer. The line to order them will actually pick up steam AFTER people see the first ones rolling in traffic. I still have noticed only one in 10 Ford customers that come in even know there is a new one, mabye one in 3 have seen the concept, let alone the production vehicle. Keep in mind that hardly anyone knows the car is changing yet. The hybrid escape has 10 times more people that know about it, and they only expect to build about 4000 for this calender year in only 13 states. Apparently one of the local rental places at the airport has a few 05 foci already, about 20 people have called asking about it them this week, and they only have 2 or 3 of them(they dont even know its a Focus, I had to check with Hertz). Dealers do not have them here yet. Wait till the first few Mustangs start hitting the strip on Friday nights. :shock:

Grantsdale

Kev are you thinking that the stang is going to be scarce and dealers won't want to use any of the discount plans on it?

Also, derynf: I'm sure most of the people who will be pre-ordering the first day know a considerable amount about the 05 Mustang.

kevinb120

yup