Dealer Markup

[Earplug]

When I purchased my first MME (before ADM stuff) was to calculate all of the cost's - MSRP, Sales Tax, License fees, etc. and then wrote a check for that amount. The car was on hold waiting for the guy that ordered it to show up. After 2 weeks of waiting for him to show I walked in with the check and presented it to them. They said let us call him one more time. 15 minutes later the car was mine. No haggle or junk add-ons.

You can do the same thing by securing your financing and walking in with a check. If they don't accept it - walk away!

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[leehinde]

I'm happy to keep mentioning that I bought mine on Valentine's Day this year from Walnut Creek (CA) Ford. The only 'add-on' was $90 to put Saran Wrap on the back bumper. I didn't catch it until I got home. Got financed from them at 5.39, IIRC.

 

[hedgehog99]

If you don't qualify for the $7500 and/or $2000 state of CA - then it might behoove you to find an out of state dealer willing to sell at MSRP.

I have to stick with a CA dealer as the $2000 CVRP applies to EVs purchased in state.
And since I make less than $150K, I qualify for the $7500 - just got my $7500 refunded for my 2022 Lightning I purchased last summer.

Ford financing - standard rates only apply to top tier credit applicants - last time I heard was 9.9%.

9.9% from Ford? So you think the 7.7% I got was actually a good deal?

 

[4sallypat]

9.9% from Ford? So you think the 7.7% I got was actually a good deal?

That's not bad but did you check if a CU can beat that ?

My CU beat Ford's standard rate by 1/2.

 

[RickMachE]

9.9% from Ford? So you think the 7.7% I got was actually a good deal?

It's irrelevant what anyone else got quoted for a rate.

The term isn't mentioned. That matters also.

You will get a rate from Ford Credit, based on your credit rating. They give it to the dealer, not disclosed to you. The dealer can, and likely will, then mark it up as much as they want to. The only rates that don't get marked up are ones they aren't allowed to, like Ford A-Plan, or a promotional rate (like O.9% for 4 years).

Instead of asking on a forum, you should lookup rates at banks and credit unions. PenFed has 4.89% for 36 months, 4.99% for 48 months, and 5.04% for 60 months. If you have good credit, that would say your 7.7% rate is awful.

 

[EVnewbie3000]

Walnut Creek Ford all the way. No shenanigans.

 

[fpasta]

I'm happy to keep mentioning that I bought mine on Valentine's Day this year from Walnut Creek (CA) Ford. The only 'add-on' was $90 to put Saran Wrap on the back bumper. I didn't catch it until I got home. Got financed from them at 5.39, IIRC.

Got mine there. What's Saran Wrap for bumper, 90$?

 

[The Black Horse]

spit in the dealers face. then don't buy the car. they are trying to screw you.

 

[leehinde]

Got mine there. What's Saran Wrap for bumper, 90$?

“EXTERIOR BUMPER PROTECTOR”

 

[IgorKl]

It’s 2023 - only stupid dealer will ask for ADM.
Morgan Hill and Walnut Creek Ford Stores historically do not charge ADM. Serramonte Ford stopped charging ADM for MME recently.

yes, auto loan financing may require some home work as usually.

 

[AllenXS]

Horse traders

 

[fmtexmme]

To reiterate what others have written, this is an unscrupulous dealer. Do not give them your business.

 

[alexgorod]

I'm trying to decide if 1) they are sloppy 2) they are greedy and stupid and think I can't do back calculation and check every line item, or 3) that's MO of all dealers. I haven't personally bought a car in 20 years, so just curious.

Are they ever sloppy to make mistakes that cause them to lose any money?

Actually, it happened to me once when the salesman forgot to include the sales tax in the out-of-door price.

 

[jay1122]

Huh, so OP is not qualified for the $7500 tax credit. I would check out the competitors that does not qualify for the tax credit instead of dealing with those crook dealers.

 

[eleven24]

Tell them you'll be back to buy a car from them during their going out of business sale if this is their business practice. Aside from saying no to any dealer installed option on the vehicle, also don't think you're done when you get to the finance guy. They do this 10-20x a day. It's smooth and polished. They'll present to be your friend, excited for you getting your new car, and then try to make you feel stupid for not saying yes to the BS they're going to try and sell you. Say no to all of those wheel, paint, ding, scratch, windshield, lost key fob & warranty packages. Immediately say no. Don't even let them do their presentation. Just say no. Then check their math. On everything. The contract is the bottom number, not how the math got them there. Say no to excessive Doc fees ($250 at most) and no to stuff like "online registration" since that is what the doc fees are anyway.

Your contract should show the agreed upon price, correctly calculated sales tax, acceptable doc fees, and the correct loan terms if you're financing through them.

Last point - if you can, get pre approved at an outside bank before you go in. Preferably a credit union. If the dealership can beat the rate, great. Let them. Dealer finance people also pad the rate they get from the bank, so keep that in mind. There is very likely room to negotiate on the loan rate itself because of this.

Let them feel like you're willing to walk on your new car. Even if you've waited 12 months for it.

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