codeman94

Ive been thinking of what good incetives would really help get me into a new car....and figure all of you guys had those thoughts too...so I got to thinking...what would be a good incentive to get Ford more business and I thought of this....

Similar to a returning customer incentive, but the opposite.

here it is....No matter what your payoff is, as long as you are buying a new Ford product, and you are trading in a non ford product...your negitve equity is payed off.....think its good? I mean, it would be up to the dealer I suppose cause they have to take on the trade, but I thought it would be a good spin off of the "swap your ride program"
But it won't help me any cause all I own are ford products...

any body else got any new ideas that would be win-win?

05fordgt

Cody, its a valid thought, but it would be impossible for any dealer (Ford or other) to just pay off a negitive equity of a car, without adding it into his or her new loan. You have to look at it with the perspective of the dealer. If someone comes in with say, a Dodge Ram 2500 H/D (no year in mind) and wants to buy a new 2008 F250 Super Duty. The Dodge he's trading is worth say $25,000, but he owes over $37,000 on the truck (this is because the last truck he had before the Dodge, he traded in to purchase the Dodge, he was in negitive equity on, and flipped the negitive into the loan for the Dodge).

Now he is $12,000 out of pocket. Most Ford dealers (in my area anyhow) sell Super Duty truck for $300 to $700 over invoice for gas or diesel engines (the diesels area a little more, since there not as prevelent). This plus the holdback can't justify simply giving, in this case, $12,000 to sell a car and take a $10,500+ loss on a car. Its a neat idea, but not realistic.

codeman94

yeah..I suppose you are right....that would be a situation where it would be a total loss.....I couldn't imagine being flipped that badly....But if Ford got behind the dealerships and wanted the business bad enough. IF ford thought thier Ford Truck was so much better than the dodge, and was certain that when it is time for that guy to buy another truck, he will come back to ford, I think it would be worth it to them....I'm trying to think Mega Big Picture. If I was Ford, I would not see that 10+K a loss...I would see it as an investment.....Ford would make right with the dealer some how.

05fordgt

Ford may see it as an investment, but the dealer is the one who loses his shirt. It goes without thought, that a dealer IS a business and is in the business to make money, just like any other company in America. Plus, to answer your question about being flipped that badly, trust me, it happens more than you would believe!!