Q & A Session... - Ask a Ford Dealer

13COBRA

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My edit dude...About FMC credit
Ah. Sorry I kept looking at what I quoted.

It depends on the buyers credit, term requested, equity/inequity in trade, etc.

Unless you're terrible, <599, you wouldn't have to put anything down.
 
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AAG

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Why do dealers insist on ordering 3.31 geared F150s only? Finding one on a dealer lot with 3.73s is pretty much non-existent.
 

13COBRA

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Why do dealers insist on ordering 3.31 geared F150s only? Finding one on a dealer lot with 3.73s is pretty much non-existent.
Laziness, and they're the cheapest.

3.31s default on every order. They can advertise the cheapest prices if they don't add options.

The small fuel tank is also becoming pretty popular because it drops the MSRP by $595.

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Never_Enough

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What's the real deal w/these doc fees?

I've dealt with many dealers & never paid it. I always get it removed.
 

13COBRA

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What's the real deal w/these doc fees?

I've dealt with many dealers & never paid it. I always get it removed.
Technically that's discrimination and everyone who has ever paid one at that dealership have the grounds for a class action lawsuit.

I have an administrative fee, and my family pays it. Dealers use it on different aspects of the store. I use mine to fund quarterly employee appreciation days.

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tvspower

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Great Thread and thank you.. Question.... How is the ADMN FEE determined? And why does Ford or other manufactures allow this highway robbery?
 

Dusten

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How are salesman generally paid, ie how is their income calculated?

Sales and service writing are fields I've considered after I retire from my current line of work.
 

CobraBob

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Wow, one of the best threads ever! There's a ton of great info to read, and more coming. Thanks for starting this thread Nick.
 

daustin

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You said you own your own warranty company. Would I be able to buy your warranty and have it be valid nationwide with less problems getting things covered? I'm still under factory warranty as my car has been in service for 25 months with just under 18,000 miles.

Is it as comprehensive as the premium care or whatever Ford calls the highest plan? I can get a pro-rated refund on my Ford ESP. I bought the Ford ESP 72mo/60,000 mile warranty for my '14 mustang online, two weeks after I bought my car, from a dealership called Troy Ford in Ohio as I paid 33% of what my dealership's "best" price was, which they said was "employee pricing." I paid $720 for the premium care plan with a $100 deductible and first day rental vs. the $2100 my dealership wanted for the same thing.

Thanks for the thread and info!
 
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13COBRA

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Great Thread and thank you.. Question.... How is the ADMN FEE determined? And why does Ford or other manufactures allow this highway robbery?
Highway robbery is an interesting phrase.

Dealerships profit margins are at an all time low, and decreasing. With the amount of information available on the Internet, it's a perfect market system. The consumer has access to all of the same information dealerships do.

I can understand Administration Fees up to a few hundred dollars. I do know sone states allow theur dealers to charge extremely high ones. I'm pretty sure Florida has no regulatuons and dealers charge uowards of $700. Like I said earlier, dealers use it for different things; I use it for Employee Appreciation parties.
How are salesman generally paid, ie how is their income calculated?

Sales and service writing are fields I've considered after I retire from my current line of work.
Different for different types of dealerships. Traditional stores pay a draw the a percentage of gross profit, and when you hit different unit levels you get a higher percentage per deal.

I would not consider either of them great retirement positions. They're both fairly high stress and very time demanding.

Since profit margins are declining, a lot of dealers have gone to a salary plus a flat unit bonus.
Wow, one of the best threads ever! There's a ton of great info to read, and more coming. Thanks for starting this thread Nick.
Thanks Bob, means a lot coming from you.

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Dusten

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Highway robbery is an interesting phrase.

Dealerships profit margins are at an all time low, and decreasing. With the amount of information available on the Internet, it's a perfect market system. The consumer has access to all of the same information dealerships do.

I can understand Administration Fees up to a few hundred dollars. I do know sone states allow theur dealers to charge extremely high ones. I'm pretty sure Florida has no regulatuons and dealers charge uowards of $700. Like I said earlier, dealers use it for different things; I use it for Employee Appreciation parties.

Different for different types of dealerships. Traditional stores pay a draw the a percentage of gross profit, and when you hit different unit levels you get a higher percentage per deal.

I would not consider either of them great retirement positions. They're both fairly high stress and very time demanding.

Since profit margins are declining, a lot of dealers have gone to a salary plus a flat unit bonus.

Thanks Bob, means a lot coming from you.

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I wouldn't call it retirement. I will be 40 and collecting a pension. My wife is the bread winner. Its a job to keep near the hobby of cars, and keep some form of income coming in.
 

97ReoCobra

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This is a great thread and I appreciate 13COBRA for solving some of the mysteries of car buying. But... DOC/ADMIN fees make my blood boil. Mostly because of the BS reasons for them given by dealers. Most people understand a business has to make a profit. Dealers should just set the price as they need to. Don't make up some fancy titled fee thinking the buyer is too stupid to know exactly what it is. /rant

13COBRA, thanks for being honest about your "fee". I have no idea what your "fee" is or how many cars you sell per month. But even @ a "fee" of $200 X 50 cars/month those must be some amazing employee parties!



Highway robbery is an interesting phrase.

Dealerships profit margins are at an all time low, and decreasing. With the amount of information available on the Internet, it's a perfect market system. The consumer has access to all of the same information dealerships do.

I can understand Administration Fees up to a few hundred dollars. I do know sone states allow theur dealers to charge extremely high ones. I'm pretty sure Florida has no regulatuons and dealers charge uowards of $700. Like I said earlier, dealers use it for different things; I use it for Employee Appreciation parties.

Different for different types of dealerships. Traditional stores pay a draw the a percentage of gross profit, and when you hit different unit levels you get a higher percentage per deal.

I would not consider either of them great retirement positions. They're both fairly high stress and very time demanding.

Since profit margins are declining, a lot of dealers have gone to a salary plus a flat unit bonus.

Thanks Bob, means a lot coming from you.

Sent from my SM-N920V using Tapatalk
 

13COBRA

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I wouldn't call it retirement. I will be 40 and collecting a pension. My wife is the bread winner. Its a job to keep near the hobby of cars, and keep some form of income coming in.
Understood. I've always had a lot of fun and enjoyed the industry.

This is a great thread and I appreciate 13COBRA for solving some of the mysteries of car buying. But... DOC/ADMIN fees make my blood boil. Mostly because of the BS reasons for them given by dealers. Most people understand a business has to make a profit. Dealers should just set the price as they need to. Don't make up some fancy titled fee thinking the buyer is too stupid to know exactly what it is. /rant

13COBRA, thanks for being honest about your "fee". I have no idea what your "fee" is or how many cars you sell per month. But even @ a "fee" of $200 X 50 cars/month those must be some amazing employee parties!

The problem with just setting a price and not having a fee is then you inadvertently just priced yourself your fee above the competition.

With 2 clicks, you can search 1,000 cars by price low-high...the further from the top I am, the smaller chance I have of selling you a vehicle.

Some dealers that advertise the ridiculous prices will take out delivery charges off the invoice for advertising, then add it at the end.

It's just a game.

You pay fees on a ton of other things, why should car buying be different?

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cbj5259

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Not to repeat what everyone else has said, but I will...great thread 13Cobra.

I browsed through everything on here just to make sure this wasn't addressed and I don't think it was (if it was I apologize). I joined The Mustang Club of America a few years ago and as a member I have access to Ford "X-plan" pricing and can get a PIN # to provide to the dealer when I am ready to purchase a vehicle. I guess my question (kind of multi pronged) is X-plan pricing better than the usual incentive offers that come out every so often and also does it apply to leases as well or just for vehicles that are bought/financed? Would I be better off just waiting until a certain incentive comes along? Thanks for any information.

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13COBRA

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Not to repeat what everyone else has said, but I will...great thread 13Cobra.

I browsed through everything on here just to make sure this wasn't addressed and I don't think it was (if it was I apologize). I joined The Mustang Club of America a few years ago and as a member I have access to Ford "X-plan" pricing and can get a PIN # to provide to the dealer when I am ready to purchase a vehicle. I guess my question (kind of multi pronged) is X-plan pricing better than the usual incentive offers that come out every so often and also does it apply to leases as well or just for vehicles that are bought/financed? Would I be better off just waiting until a certain incentive comes along? Thanks for any information.

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X Plan is typically $50-100 over invoice. You still get the manufacturer rebates off of that price.

It applies to purchased or leases.

Very rarely, Ford will throw out a better incentive like they did 2 months ago when anyone with a competitive make qualified for A Plan pricing...which is 4% back of invoice.

A lot of dealers advertise invoice pricing, but to be honest it's $100 difference.

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