My unit is on the way and I'm wondering what I should be paying.

My salesman is also a friend and I'm a little reluctant to "twist his arm". Different friend who used to work for a Ford dealer says that I shouldn't be paying the sticker price.

The sticker price with options is $35,919 plus $1250 in delivery for a total of $37,169 (Canadian)

When I ordered there was a promo of about $500 or $1000 towards delivery so I think I'll get that off the price but what I want to know how much "room" there is in the price for my friend/salesman to still make some money and give me a good deal.

(This is all forgetting that on the US Ford website a base model FWD FEH is listed at $26,505 and on the Canadian site it's at $31,499 ... current exchange says the Canadian price should be more like $27,186! )

 

You are "getting" you new FEH but you don't have a purchase price? How does this work when they are in short supply?

As for pricing discount, good luck since it is in short supply. You may want to visit sites such as Edmunds and find out the "dealer" cost and figure upward from there.

 

Well, I put down my $500 deposit in November so I guess that's secured the order, but I haven't actually signed anything. I suppose he's running the risk that I could change my mind. I will buy it at the full price, I'm not going to screw him - but I also don't want to be bent over just because I live in a place where these aren't the norm. If this was one of the 50 F-350's on the lot I know I wouldn't be paying sticker.

That's a good suggestion I'll check that out.

Anyone else have any suggestions on how much room a Canadian dealer might have to negotiate?

 

Here is an email from a local* Northern California dealer the other day (3/28). Gee, that reminds me, I should opt-out of their email now that I've got my car. Anyone can check local inventory and invoice pricing at www.forddirect.com

"XYZ* Ford home of write your own deal! Don't like the quote you got? Tell us what you want to drive, tell us what you want to pay....if it makes sense, you've written your own deal. XYZ* Ford will not lose a deal to another dealer because of price! Come in today and write your own deal!!!

Look at this weekends deals!!!!

2008 Escape Hybrids 51 in stock! And they all are $3000.00* off MSRP"

 

I have a dealer that doesn't sell ANYTHING higher than $98 over Invoice (including limited production Mustangs and FEHs). If they keep with this deal, I'll be buying from them and recommending them to anyone in the area.

There are two larger dealerships in the area that like to ask MSRP and then some. Shame on them...

 

When I got mine last November there was no room to bargain. The FEH is in high demand and they don't feel any need to budge. If I had been buying an Edge or an F150 or a Shelby it would have been different. Best I could do is argue them up $500 on my trade-in and throw in some running boards.

I did go through the Internet operator and didn't deal with the show-room floor guys. They operate under slightly different rules, and generally the price he e-mails you is the price you end up with.

BTW, doesn't "dealer's invoice" include the dealer's profit? They make it sound like "selling at dealer's invoice" is just passing the car from the factory to you without making any money on it.

 

I agree, there has to be some profit in Invoice. So, this makes MSRP... gravy. Paying over MSRP... bank.

 

See this description of "holdback" and how it can still be profitable to sell cars below invoice.
http://www.truck-auto-leasing.com/Ra...r-holdback.htm

 

Oh, there you go - good suggestion. From this article I did a google search like they suggest and came up with this at edmunds.com:

"Domestic manufacturers (Ford, General Motors and the Chrysler half of DaimlerChrysler) generally offer dealers a holdback equaling 3% of the total sticker price ( MSRP) of the car. Foreign manufacturers (Honda, Toyota, Volkswagen etc.) provide varying holdback amounts that are equal to a percentage of total MSRP, base MSRP, total invoice or base invoice, as indicated in the list below."

The whole article is here: http://www.edmunds.com/advice/incent...ack/index.html

So, on my FEH where the MRSP is $35,919 (incl options, but not delivery) the 3% would equal about $1077. So if I buy at full sticker price they make not only the mark up between dealer invoice and MRSP but also an extra $1077 from the hold back by selling it the day it arrives.

 

My experience with my recent purchase and purchases in the past has been that when you order the car you pay more then if you buy off the lot. They want those cars off their floor plan so they will deal. You would think that they could deal more with cars that are pre sold but not the case. Add the issues of how hard they are to get and you are bent over a barrel. You should be able to get him down some but his sales manager will dictate what they are going to do. So being your friend is not going to help you out all that much more then likely. Were it will hopefully come into play for you is in servicing and your future dealings with them.

Jon