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

roadracer247

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One conspiracy I’ve always had about dealerships is their “No haggle” pricing strategy. I’ve always thought that sort of pricing scheme does nothing for the consumer and only benefits the dealers.

I understand everyone has to earn a living. I don’t mind paying an agreed upon “fair price” but it’s a hard pill to swallow when dealers put out a “take it or leave it” mentality.

Before someone jumps down my throat, I understand it’s my choice to patronize a dealership in the first place. So if I don’t like a listed price, I should look elsewhere. I’m just curious to hear the other side’s point of view...
 

13COBRA

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One conspiracy I’ve always had about dealerships is their “No haggle” pricing strategy. I’ve always thought that sort of pricing scheme does nothing for the consumer and only benefits the dealers.

I understand everyone has to earn a living. I don’t mind paying an agreed upon “fair price” but it’s a hard pill to swallow when dealers put out a “take it or leave it” mentality.

Before someone jumps down my throat, I understand it’s my choice to patronize a dealership in the first place. So if I don’t like a listed price, I should look elsewhere. I’m just curious to hear the other side point of view...

No one is going to jump down your throat.

So, there's many different ways to look at it. Luckily, I own/operate a family owned store, and not a corporate store, as it's a little easier to be flexible.

Consumers actually prefer a low to no haggle dealership. Something like 80% of consumers hate the haggling part about the car industry the most, compared to all other things in the buying process. They feel like they are at a disadvantage in the situation.

Dealerships spend hundreds of thousands, if not millions, each year advertising their inventory. Why would they advertise at a higher price than what they would accept for the vehicle? The days of a customer just driving by, happening to see the exact vehicle they've always wanted, coming in, and willingly pay too much for the vehicle...are long gone. A lot of dealership's have adapted Dale Pollack's methodology on turn and burn when it comes to vehicle pricing. Personally, we adjust our prices every 2 or 3 days to keep up with the market, to make sure we are always competitive. In 4 years, I have never dropped a price more than a few hundred dollars at a time, because we've never been that far above the market.

Any dealership that you've been to and offered a price less than their advertised price, and them say "nope, that's it. Sorry", are idiots. What they should do is explain how they came up with that price, where they rank against their competition and further emphasize why their price is justified. At that point, if you turn to walk away, it's on you, and the dealership can feel like they did everything possible.

I don't miss deals over a few hundred dollars, but I certainly don't have the ability to take thousands off of any of my advertised prices. I spend too much money to advertise a price that is significantly higher than I would actually accept on the vehicle. I have anywhere from 50-60 vehicles in stock (used) and I sell 45-55 a month. My average day in inventory is always between 21-24 days.
 

Stanley

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Let us know how it goes. They have some pretty decent listed prices as is so if they have wiggle room to negotiate I would check them out next time I need a DD.

I got a call back and the OTD with extended warranty is $38,153 and without is $35,164.

Once I called back she told me that she would text the price to me and that was pretty much the entire conversation which I liked.
 

13COBRA

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I got a call back and the OTD with extended warranty is $38,153 and without is $35,164.

Once I called back she told me that she would text the price to me and that was pretty much the entire conversation which I liked.

Ouch, $3k for an extended service contract? Hard pass. If you decide to go with that truck, let me know and I'll hook you up with an ESC.
 

13COBRA

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Both prices are to rich for my cheap ass blood. My limit is $30k otd. I'll keep living the hoopty life until I find the right deal.

Gotcha. Like I mentioned before, their price on just the truck is a steal. If it were a 5.5' bed, I would buy it for that, pay the shipping, then sell it up here.
 

bigmoose

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One conspiracy I’ve always had about dealerships is their “No haggle” pricing strategy. I’ve always thought that sort of pricing scheme does nothing for the consumer and only benefits the dealers.

I understand everyone has to earn a living. I don’t mind paying an agreed upon “fair price” but it’s a hard pill to swallow when dealers put out a “take it or leave it” mentality.

Before someone jumps down my throat, I understand it’s my choice to patronize a dealership in the first place. So if I don’t like a listed price, I should look elsewhere. I’m just curious to hear the other side’s point of view...
I've experienced this at a Ford dealership. I was looking at a used vehicle for about $14k. Asked their best price and they gave me the whole no haggle speech as they price competitively. Their price wasn't bad either.

I called back the next day and said best I could do was $12.5k and they accepted.

I'm sure a whole lot goes into that decision plus I know the car had been on the lot going on 60 days. Maybe they stick to their no haggle rule most of the time, who knows. But because of this I have a hard time believing no haggle.
 

13COBRA

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I've experienced this at a Ford dealership. I was looking at a used vehicle for about $14k. Asked their best price and they gave me the whole no haggle speech as they price competitively. Their price wasn't bad either.

I called back the next day and said best I could do was $12.5k and they accepted.

I'm sure a whole lot goes into that decision plus I know the car had been on the lot going on 60 days. Maybe they stick to their no haggle rule most of the time, who knows. But because of this I have a hard time believing no haggle.

That dealer/salesperson is weak. Anyone who signed off on a $1,500 discount on a vehicle that you, as a consumer, acknowledge was priced well in the market, would never work at my store.
 

jpro

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No one is going to jump down your throat.

So, there's many different ways to look at it. Luckily, I own/operate a family owned store, and not a corporate store, as it's a little easier to be flexible.

Consumers actually prefer a low to no haggle dealership. Something like 80% of consumers hate the haggling part about the car industry the most, compared to all other things in the buying process. They feel like they are at a disadvantage in the situation.

Dealerships spend hundreds of thousands, if not millions, each year advertising their inventory. Why would they advertise at a higher price than what they would accept for the vehicle? The days of a customer just driving by, happening to see the exact vehicle they've always wanted, coming in, and willingly pay too much for the vehicle...are long gone. A lot of dealership's have adapted Dale Pollack's methodology on turn and burn when it comes to vehicle pricing. Personally, we adjust our prices every 2 or 3 days to keep up with the market, to make sure we are always competitive. In 4 years, I have never dropped a price more than a few hundred dollars at a time, because we've never been that far above the market.

Any dealership that you've been to and offered a price less than their advertised price, and them say "nope, that's it. Sorry", are idiots. What they should do is explain how they came up with that price, where they rank against their competition and further emphasize why their price is justified. At that point, if you turn to walk away, it's on you, and the dealership can feel like they did everything possible.

I don't miss deals over a few hundred dollars, but I certainly don't have the ability to take thousands off of any of my advertised prices. I spend too much money to advertise a price that is significantly higher than I would actually accept on the vehicle. I have anywhere from 50-60 vehicles in stock (used) and I sell 45-55 a month. My average day in inventory is always between 21-24 days.

My daily was a 2007 Accord sedan that I bought in 2010 and kept until 2018. Sold it to my sister last year and it had 100k on it so it had plenty of life left in it. When I bought it, I didn't really negotiate, as the price was great. It was Honda certified pre-owned so when I saw it online I knew it was a fair price, but offered $1k less and they accepted the offer. I went to the dealership, test drove it, signed the paperwork and left.

With my current GT, I test drove it, then made an offer that was right at their asking price because it was about $2k under market value (maybe because it had a loud exhuast? LOL). It was hard to gauge the price because it was a base PP and the previous owner did Roush exhaust, Roush CAI, Eibach sportlines, added leather interior, the carbon fiber looking dash with shift knob to match, and GT350 steering wheel (keeps the hands cool in the Vegas heat!). It was everything I wanted and figured that all the extras would have cost close to $4k to buy and install, so I pulled the trigger at asking price rather than pay about $2k extra for another car and have to sink the other $4k in for mods/upgrades.

Both of these purchases were simple because of the wealth of info available nowadays on the market value of a car. I did extensive research and found great deals.

I'm wondering, do people come into your dealership and try to haggle on NEW car prices? I would imagine that with all of the transparency regarding the dealer's price, available rebates (dealership and manufacturer), etc. that new car buying would be straight forward. Just curious what goes on with new car purchases at your dealership.
 

T's03GT

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Haven't had the chance to read through this all the way yet, but badass idea for a thread for sure.

I have been debating finding a different truck to trade my Sierra on and I'm having issues on finding anything within a decent distance. I know the dealer in town would find me whatever I want. How does that process work, in your experiences? I'm guessing I would pay for shipping/delivery, then price of the truck and so on so forth. Well, what if the truck shows up and isn't what the pictures show and I decide to not go through with the deal? I'd hate for them to be stuck with said vehicle because I end up not wanting to buy/trade for it.
 

13COBRA

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My daily was a 2007 Accord sedan that I bought in 2010 and kept until 2018. Sold it to my sister last year and it had 100k on it so it had plenty of life left in it. When I bought it, I didn't really negotiate, as the price was great. It was Honda certified pre-owned so when I saw it online I knew it was a fair price, but offered $1k less and they accepted the offer. I went to the dealership, test drove it, signed the paperwork and left.

With my current GT, I test drove it, then made an offer that was right at their asking price because it was about $2k under market value (maybe because it had a loud exhuast? LOL). It was hard to gauge the price because it was a base PP and the previous owner did Roush exhaust, Roush CAI, Eibach sportlines, added leather interior, the carbon fiber looking dash with shift knob to match, and GT350 steering wheel (keeps the hands cool in the Vegas heat!). It was everything I wanted and figured that all the extras would have cost close to $4k to buy and install, so I pulled the trigger at asking price rather than pay about $2k extra for another car and have to sink the other $4k in for mods/upgrades.

Both of these purchases were simple because of the wealth of info available nowadays on the market value of a car. I did extensive research and found great deals.

I'm wondering, do people come into your dealership and try to haggle on NEW car prices? I would imagine that with all of the transparency regarding the dealer's price, available rebates (dealership and manufacturer), etc. that new car buying would be straight forward. Just curious what goes on with new car purchases at your dealership.

We price all of our new vehicles less than invoice, minus all of the public rebates (available in our zip code). There really isn't a lot of negotiation in new vehicle sales, period.

Haven't had the chance to read through this all the way yet, but badass idea for a thread for sure.

I have been debating finding a different truck to trade my Sierra on and I'm having issues on finding anything within a decent distance. I know the dealer in town would find me whatever I want. How does that process work, in your experiences? I'm guessing I would pay for shipping/delivery, then price of the truck and so on so forth. Well, what if the truck shows up and isn't what the pictures show and I decide to not go through with the deal? I'd hate for them to be stuck with said vehicle because I end up not wanting to buy/trade for it.

If the truck is everything they say it is, then it's yours. If it's not, then they own it and didn't do a good job at their job. We don't charge for shipping/ delivery from another dealership as long as it's less than 300 miles.
 

T's03GT

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If the truck is everything they say it is, then it's yours. If it's not, then they own it and didn't do a good job at their job. We don't charge for shipping/ delivery from another dealership as long as it's less than 300 miles.

Awesome. I would feel slightly bad about the deal if it weren't what I was expecting, but they can't blame me for not going through with a deal when I do not want to. If I find what I am wanting, I was going to have the other dealer send videos/pics/everything to get the most out of what you can see or do without being in person. What do you typically charge for anything over 300 miles?
 

13COBRA

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Awesome. I would feel slightly bad about the deal if it weren't what I was expecting, but they can't blame me for not going through with a deal when I do not want to. If I find what I am wanting, I was going to have the other dealer send videos/pics/everything to get the most out of what you can see or do without being in person. What do you typically charge for anything over 300 miles?

What do you mean by "not what you're expecting"? Surely your local dealer has another vehicle in the same color, the same trim level, same options etc... might be on 10 different trucks...but I'm sure they can show you what to expect. Then, once they go buy the other one, it's your truck unless it gets back to the store and is damaged or missing an option that you requested.

Depends on if I'm hauling it or sending drivers.

That's what I assumed!

It's quite unfortunate haha
 

PIPO

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Does your dealer do courtesy delivery? Meaning instead of being delivered to the selling dealer in Kansas, it will be shipped from the plant to the dealer of my choice.
 

13COBRA

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Does your dealer do courtesy delivery? Meaning instead of being delivered to the selling dealer in Kansas, it will be shipped from the plant to the dealer of my choice.

Yep. We do it quite regularly. We have several commercial accounts in the Virginia/DC area that we sell to and have it delivered out there. The receiving dealer, of your choice, typically charges $250-400 for a courtesy delivery.
 

SHOdown220

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@13COBRA I've always kinda wondered how that deal worked where one dealer would bring in a vehicle from another to make the sale. When I bought my ST they didn't have what I wanted on the lot but worked with me looking at all these other dealers to find the trim/options I wanted. When we found the one I wanted it was 2 hours away and they sent someone right away to go pick it up and I came later that day to pick it up. I guess where I'm curious is do they purchase that vehicle from the other dealer or do they trade out a similar vehicle with the other dealer? If they purchase it is always at invoice pricing I assume?
 

13COBRA

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@13COBRA I've always kinda wondered how that deal worked where one dealer would bring in a vehicle from another to make the sale. When I bought my ST they didn't have what I wanted on the lot but worked with me looking at all these other dealers to find the trim/options I wanted. When we found the one I wanted it was 2 hours away and they sent someone right away to go pick it up and I came later that day to pick it up. I guess where I'm curious is do they purchase that vehicle from the other dealer or do they trade out a similar vehicle with the other dealer? If they purchase it is always at invoice pricing I assume?

Either.

They can either send a check, or transfer the vehicle to their inventory at invoice... or they can trade a vehicle to them at invoice and receive the new one back at invoice.

Some dealerships (Iowa mostly) trade at invoice minus holdback, but they always want a more expensive vehicle back so they get more holdback.
 

RedVenom48

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@13COBRA Do you think X-plan pricing is competitive with dealer employee pricing? Will a dealer honor an employee discount on top of an X-Plan code? Would you if you had an employee bring an X-plan code to you?

My lady is eyeballing a Wrangler Rubicon very hard, but we want to see what Bronco may offer. If the leaked dealer meeting info is any indication, we hope that Bronco will be directly competitive. Ive got 2 Ford dealers in my auto group (Earnhardt) as well as a Jeep dealer. X-plan pricing may be the make or break on our decision.
 

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