Ford Flex Prices Paid and Buying Experience

Replying to: fipps (May 16, 2009 6:34 am)

Here are some quick notes that may be useful to those shopping for a new Flex.
 
To determine the vehicle's "dealer invoice" price, multiply the base price by 92.5% and any options by 85%. Add $700 (or $775 depending upon the date of manufacture) in Destination Charges and $700 for the dealer's regional marketing and advertising fee, and you've nailed "invoice" within a few dollars for any vehicle on the lot without having to resort to the web and any of the many available vehicle cost calculators.
 
Dealer "holdback" (or the amount the dealer receives from Ford after selling the vehicle" is 3.5% of MSRP. If you purchased a $40,000 vehicle "at invoice", an additional $1,400 of "haggling room" exists to the point beyond which the dealer would be selling the vehicle at a loss.
 
While it's not unheard, buying a vehicle at "dealer net", is the holy grail haggling and highly unlikely unless you happen to find a dealer that's cash tight with excess aging inventory or it happens to be near the end of an incentivized sales period "moving a unit" may mean more to the dealer than cash profit.
 
Ford offers several fixed-price "plans" for eligible customers. "X-Plan" is a discounted price for eligible employees of Ford business affiliates (or Ford shareholders) that is 93% of (or a 7% discount from) MSRP. For all but a very few vehicle combinations, the X-Plan price is approximately $100 below "invoice"; and because it's so easily qualified for, it should be the maximum any buyer should consider paying as the dealer simply plugs in the X-Plan price and that's that.
 
A and Z-Plan pricing is for Ford employees, families, and retirees and constitutes an 11% discount from (or 89% of) the sticker price. (So start chatting up that attractive parts clerk) While relatively few people qualify for either of these, it's also the price that's offered during "employee pricing" promotions. It pretty-much equates to buying the vehicle at the "dealer net", plus .5%, a tremendous deal by anyone's standards if you can get it.
 
Rebates and incentives are also tremendously important, especially when they're as large as Ford has been offering for the Flex. Most people are eligible for at least $3,000 in customer cash OR 0% APR financing, but some states (Michigan) are offering as much as $4,500 AND 0% financing through Ford (to qualified buyers). The key is knowing which rebates and incentives apply to the location where the vehicle will first be registered.
 
In addition to "customer cash back" rebates, Ford also offers certain "affinity" rebates to members of particular organizations like military service members, recent graduates, and left-handed cocker spaniel breeders. Ford also offers "Conquer" rebates for those trading vehicles of a certain make and/or vintage.
 
Finally, each "Plan" type can have its own additional incentives. For example, X-Plan buyers in PA are eligible for an additional $250 in cash back. These too vary from state to state, and it's essential to know which, if any, are being offered where the vehicle will be registered to ensure you know the best possible price you qualify to obtain.
 
ESP warranties can also be easily negotiated. Because dealer's don't have to keep them in inventory or outlay money to stock them, warranties can be a tremendous profit center for dealers. Also, because you can buy a Ford ESP warranty from any dealer, regardless of where you purchased your vehicle, they're much easier to negotiate, even though they don't have a traditional window sticker to look at to know what the "maximum" should be.
 
Fortunately, some dealers have taken to offering ESP warranties for sale on the internet, and they're even publishing their prices. Unlike the "we'll beat any other offer" game where no dealer will be willing to actually put their deal in writing, you can walk right in to the F&I office and lay out the price you can pay to buy the warranty elsewhere and give him a chance to beat it. Even the strictest dealers would be foolish to let the opportunity pass, as they know they've got the option of making a few extra dollars or not. Incredibly, some won't; but that's just as fine, unless you want to finance the cost of your warranty too. You can just go to another dealer who is willing to make the few dollars the other dealer doesn't want.
 
A great place to obtain warranty prices is www.fordwarrantys.com. Of course, you could just decide to buy from them, as they've been good enough to go out on the limb of committing themselves to offering a very fair and reasonable price. Even if your vehicle dealer won't beat the warranty price, you can negotiate VERY worthwhile extras like a first-day rental option if they'll only match the competitor's offer. Because you can buy a warranty from any dealer, and redeem any unused portion of the ESP at any point, there's really no disadvantage to locking in the best deal when you know you've found it, or holding-off until you're sure you have.
 
Of course, there are a thousand other useful and helpful hints and tips to buying a car, but these are what I've discovered in my long search for a Flex; and they managed to serve me pretty well. I hope they prove just as useful to someone else; and, of course, your mileage may vary.
 
Happy Flexing.

Replies to this message:
• idmd (May 17, 2009 6:35 am)
  • madlock (May 17, 2009 8:20 am)
    • idmd (May 17, 2009 8:24 am) and 5 more...

Replying to: madlock (May 16, 2009 11:38 am)

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• madlock (May 17, 2009 8:20 am)
  • idmd (May 17, 2009 8:24 am)
    • mchappell (May 21, 2009 4:18 am)
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Replying to: idmd (May 17, 2009 6:35 am)

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• idmd (May 17, 2009 8:24 am)
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  • dano72 (May 27, 2009 12:12 pm)
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Replying to: madlock (May 17, 2009 8:20 am)

Thanks for the reply. The other assorted fees are tag, title, etc and add up to maybe a few hundred. The biggy being the tax ~$2400. To me the 40K seems fair. It is essentially the USAA quote +$2500 to cover tax, tag, etc. If they said it was going to be $40100.00 that's not a deal breaker. I just want to be in the ball park.
 
Also, I'd imagine in today's economic climate the concept of getting all your money upfront may play a bigger part than in the past especially as 2010 are getting to ready to roll out and these car companies need cash now to stay afloat. They may make more on dealer financing but they still have to wait for that money to come in.

Replies to this message:
• mchappell (May 21, 2009 4:18 am)
• dano72 (May 27, 2009 12:12 pm)
  • kirkmom (May 27, 2009 12:32 pm)
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Replying to: idmd (May 17, 2009 8:24 am)

Replying to: idmd (May 17, 2009 8:24 am)

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• kirkmom (May 27, 2009 12:32 pm)
  • dano72 (May 27, 2009 1:02 pm)
    • madlock (May 27, 2009 8:18 pm)

Replying to: dano72 (May 27, 2009 12:12 pm)

Replies to this message:
• dano72 (May 27, 2009 1:02 pm)
  • madlock (May 27, 2009 8:18 pm)

Replying to: kirkmom (May 27, 2009 12:32 pm)

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• madlock (May 27, 2009 8:18 pm)

Replying to: dano72 (May 27, 2009 1:02 pm)

Yes, buying a single share of Ford stock qualifies you for X-Plan pricing. While most dealers will just as quickly negotiate down to that point (invariably invoice less ~100), but you cannot qualify for any further incentives which are often paired with X-Plan purchases without a PIN.
 
Ford has a shareholder relations number you can call especially for issuing X-Plan PINs. The contact number is widely available via Google.
 
WRT financing, one might as well finance where the best rate is offered, but even with recent "loosening", the credit market isn't what it once was; and walking into a dealer "locked and loaded" wise counsel for anyone. As most sales regions allow either/or in terms of cash or 0%, there's certainly no incentive to put-off arranging for financing in advance, especially if someone is going to be financing a substantial portion of an expensive vehicle.
 
Though we could have paid cash for the car, there were several reasons why we chose to not do so. Firstly, with such low interest rates and generally low availability of credit in the marketplace, to not use it when offered may lead to a future scenario when it's wanted and not available. Even at the additional cost, guaranteed access to funding and capital preservation certainly makes financing worthwhile, even at nominal interest rates,
 
Second, as Ford Advantage was the only reason why we chose to buy a vehicle at this time contrary to the general economic environment, partaking requires financing. We simply structured the loan term to create payments equal to the maximum coverage. Given the uncertainty of the times, I have absolutely no qualms about both securing funds and insuring against loss on a fee-for-service basis as I would have during a "normal" economic climate.
 
The matter of dealer attitude toward financing shouldn't be any mystery. With the exception of establishing that a buyer is capable of and qualified to purchase the vehicle in question, there is absolutely no positive connotation to the amount of "cash down" a buyer is prepared to place as there was once upon a time when individual dealers and banks worked more closely together and their customers' creditworthiness actually impacted that dealer's access to future financing, and the dealer played a meaningful part in assessing creditworthiness beyond just submitting computerized applications as they do today.
 
Nowadays, finaning has become such a "blind" process with all of the credit-making decisions made between the lending institutions and the credit reporting agencies, it is has become no more integral to they buying process than a "yes" or "no" to people who haven't arranged for it in advance. What has changed most, however, is that financing has become like every other part of the car buying process, a potential profit center; and many dealers place great pressure upon their sales associates to generate profits from every area including the vehicle, warranty, and financing. Such is the reason why denying the dealer an opportunity to lend is denying them the chance at additional profit.
 
And so much more the reason why each aspect of the transaction should be negotiated independently, without the presumption of any other. It should begin with determining the purchase price of the vehicle itself, and only then should any discussion of any extended warranty or service plan. Once that total is established, the discussion can then turn to trade-in value, and the buyer can be confident that each part of the transaction is determined fairly, and without any one being permitted to obscure another. Then, and only then, should financing be discussed, if necessary. And it doesn't always make sense to let the dealer make a "pitch", unless he can guarantee you a better rate in advance as it could create another inquiry upon your credit report which can have a negative impact upon your credit score.
 
In these days of no secrets, when customers are armed with every conceivable fact and figure, the era of high-margin sales are largely over. Dealers are having to depend upon much narrower margins from broader sources, which is why matters like warranties and financing can be so important to some dealers. From a banking perspective, a third-party financed deal is no different to the dealer than a cash transaction. Of course, no dealer should behave negatively if a customer doesn't require financing; unless he expects you to finance solely for his benefit. And if that's the case, the dealer should be just as eager to pay your interest too.