Last post on May 08, 1998 at 7:02 PM
You are in the Pickups - Archived Discussions
#1 of 17 Brutus
Apr 27, 1998 (10:31 pm)
The dealer invoice and MSRP pricing can be found under the "New Trucks" section. The 1998 Ford prices are the ones that first appear, but if you look to the left, you will see an option to click on 1997 models. That will give you the dealer invoice pricing for the 1997 F-150 models. Make sure to also look under the "Rebates and Incentive" area to see what may currently be available on the 1997 models. As far as what price you should pay, a good number to shoot for is generally: dealer invoice minus dealer holdback minus rebate/incentives plus 3%-5% profit. The holdback on Ford trucks is 3% of MSRP. Do the dealers still have a lot of 1997 models on the lots?
Apr 27, 1998 (11:49 pm)
Thanks Brutus. Nope, not any '97 F-150s that I can find. So, what would the price be based on what I gave you here? Do we subtract the plus 3% - 5% profit too? Thanks.
#3 of 17 Brutus
Apr 28, 1998 (3:32 am)
You really didn't give enough information to give you a good price. On the first vehicle, the dealer invoice price for F-150 XLT Supercab 2wd, shortbed, spec 507A is $18,441. Then you have to add the $640 destination charge. The thing that you don't mention are the other options, which can add thousands to the cost. For example, the auto transmission adds $824, the CD player adds $340, the 5.4 V8 adds almost $600. The 4wd will be thousands higher. What you need to do is figure out all of the options and then go into new trucks and add everything up. And remember, the 507a package includes a lot of stuff like air conditioning, power steering, etc. You don't add those options in again. You only add in the options that are on the truck and not included in the special package for the truck.
I can use a hypothetical situation to show you how to figure out a fair price. Let's assume you have a truck with a MSRP of $23,000 and a dealer invoice price of $20,000. Let's also assume there is a $1,000 rebate and the destination charge is $640. The dealer holdback would be 3% of the $23,000 MSRP price, which equates to $690. Now we are ready to calculate the true cost of the vehicle to the dealer.
Base dealer invoice $20,000
Total dealer invoice $20,640
Dealer cost $18,950
Th delaer cost is how much the dealer paid for the vehicle. Now, the dealer needs to make a profit. A 5% profit would add about $950 to the price of the vehicle. So, if you could get the truck for $19,900, that would be a pretty good deal. That is $740 below the total dealer invoice price (actual dealer invoice price includes destination charges). You're below dealer invoice because of the rebate. Ford is not currently offering any rebates on the F-Series. If you back out the rebate, a good deal on the truck would be about $20,950, which is a few hundred over dealer invoice price. Usually, that's what you're shooting for, a price within a few hundred of dealer invoice. That still puts you more than $2,000 below the MSRP price we used in our example.
There is one thing that I am not sure about in my calculation. I calculated the 3% holdback on the MSRP before adding in the destination charge. I'm not sure if you are suppose to add in the desination charge before you calculate the 3%. Maybe our Townhall host, Motormouth, will answer that for us.
You can also check out the value on the used vehicle you mentioned by going into the "Used Truck" section of this site. The first thing I notice about the vehicle you mention is the mileage. This site recommends a deduction of $.09 for every mile over $14,200 on a 1997 truck. That is a deduction of over $2,000 for a truck with 37,000 miles on it. It sounds like the truck you mention, assuming a 2wd shortbed Lariat, should have a base MSRP of closer to $17,500 plus any options.
I'm not sure where you live, but if you're anywhere near Oklahoma, there is a Ford dealer there who will sell you a new truck for $99 below dealer invoice. I live in Dallas and ordered my truck from him. My price of $99 below dealer invoice is $4,200 below MSRP. The airfare to get up there to pick up the truck will be $90.
#4 of 17 One minor detail...
Apr 28, 1998 (6:28 am)
Ironback is requesting info on "New '97 Ford XLT & Lariats" pickups, not '98.
I would assume that any dealer having leftover '97s this late in the '98 model year would be willing to discount more heavily simply to move the trucks before they qualify for "Antiques - Never Registered" status.
#5 of 17 Woops! Clicked on "Post" Too Soon
Apr 28, 1998 (6:37 am)
I meant to add that, the advise you gave him on how to find the '97 prices is excellent, thank you! But what I was getting at was there may be signifcant discounts to move the merchandise since any dealers who are still in possession of them may be paying monthly interest on them.
My guess, in this case is to use the guide as a starting point to work downward... but I'd look to maybe split the difference in cost between what the "new" '97 prices claim and what the "used" prices (low milage) list at. Of course, the dealer will point out that the vehicle is technically "new" since it has not been titled, but you can always counter with, "Yes, but you know as well as I, that it's nearly two model years old..."
Good Luck in your search!
#6 of 17 Brutus
Apr 28, 1998 (2:01 pm)
He/she asked me to calculate the price on the three vehicles mentioned in the first post. One was a 98 XLT, one was a 98 Lariat, and one was a used 97 Lariat with 37,000 miles. That's the reason I ran the 98 figures. By the way, do you add the destination charge to the MSRP before you calculate the 3% holdback?
#7 of 17 Good question.
Apr 29, 1998 (7:45 am)
I'm not in that department... you would have to e-mail one of the editors for an answer to that. I'm just a sysop.
May 05, 1998 (3:17 am)
you said that I could buy a Ford truck in
Oklahoma for $99 below dealer invoice.
OK is a pretty big place can you narrow it
down for me. Because I will fly out there to
#9 of 17 Brutus
May 05, 1998 (12:16 pm)
They have a website at www.isbellford.com. They will pick you up at the airport in either Enid or Oklahoma City. If you know what you want, you can order by phone. That way, you only have to pay the one way air fare to pick it up. That's what I did. Of course, I don't have my truck yet. I'm at five weeks as of today, and was told to expect a 12 week wait.
May 06, 1998 (2:35 am)
thanks for the info brutus
i will give it a shot....