We'll just have to agree to disagree.
Incorrect. If a dealer provides you with the actual invoice for the vehicle provided to them by Ford, it does indicate what they paid to ford at the time the vehicle was built, not shipped. It also shows the 3% relief they receive. So true dealer cost is invoice less 3%.Indeed. That's right.
So, yeah, I suppose they can't even order from Ford at MSRP... Since they order at or below "dealer invoice."
You're flat Wong. My family had a Ford dealership for 97 years. I know what we did or didn't pay for vehicles and how it works with Ford. Sorry pal you're flat wrong on this.
If that is truly the case, then how can a handful of dealerships sell Broncos at invoice -1k and even invoice -2k and still be profitable? Genuinely curious.
They make it up in trade-ins and back end products such as warranties, accessories, marked up financing rates etc. I know many dealerships that use the vehicle simply as the means to get back end profit. Many dealerships avg $3000+ or more on the back end of deals. They want and need volume and must make their profit on used/trade-ins or in their finance departments.
Bronco Mania! Still waiting for my “Price Protected” 2 Door Base at $32K. With the current market, I an now considering flipping it and ordering a 2023 when the ordering window reopens, whenever that may be.
ONLY if there is a final buyer
legally "used" means titled, and/or in some states that it has reached a mileage threshold. In my day we had to pull vehicles out of demo service before that threshold because "used" meant that we then had to pay Ford, GM, etc for that vehicle and also not be able to sell it as new.
Cutting your price upfront in hopes of making it up on the back end doesn't sound like a very good business strategy. Especially since an invoice -2k deal would be below actual cost on any Bronco less than 70k. And one sub invoice dealer also sells those warranties at cost +50.
