What do you guys think the best way to negotiate the price is.... 6 mo from now?

1873 Views 10 Replies 5 Participants Last post by BMAZZ007, Jul 7, 2010

starbai

Discussion Starter · Jul 6, 2010

Hey everyone...

Most of you dont know me yet.. I am relatively new to the forum and try not to post unless I have something relevant to add to the discussion... been mostly trying to soak up as much info an learn as much as I can.

I am not ready to purchase the new 5.0 yet... for a number of reasons such as waiting for a bit of the hype to wear down, my own personal finances etc... etc...

Best I can figure it is, about 6-9months I'll be ready to go.

And its a good thing I'm looking into it now, beacuse of the new rules of Ford's X-Plan.

I have a few options here so please bear with me as I explain, and please give your opinion based on your experiences as what the best way to pick this car up for the best price is...

First of all here is the car I'm looking at:

2011 6spd Manual, 5.0 GT Coupe Premium 401A
3.73 Gears
HID Lamps/Security Package
Comfort Group
Brembo Pkg

With Destination, the MSRP on this car is: $37,695
With Destination, Using the Price List Guide I found on this site, the price of this car @ Dealer Invoice with Holdback is: $34,597

So heres the dilemma, when I'm ready to purchase, do I go in, trying to get that $34,597 on negotiation skills alone? Is there any possibility to do any better than that, or is it generally accepted that thats the lowest the dealer will go bar none? - When I say lowest dealer will go, I'm asking if thats the lowest the DEALER WILL sell at without taking into consideration any coupons, or MFG rebates?

The reason I ask is the next monkey wrench I want to throw into the equation:

Ford X-Plan --- First of all, I know no one that works for Ford in any capacity. So the only way I can obtain this PIN as far as I know, is to purchase a minimum of 100 Shares of Ford Stock... and then wait 6 months (the reason for this thread so far in advance from my purchase date) --

After the 6 months, I will qualify for this plan. The issue is that right now ford is trading around $10 a share which equals out to $1000 to get this plan. Of course this isn't money down the drain, if ford's stock does better (or at least doesn't go down significantly) I haven't really lost much if any money...

The question is, how much of a discount can I expect from the x-plan? Does it make that goal of $34,597 just easier to obtain? Or is it possible to get that 34,597, with an even further discount to hope for with that x-plan... Ie, total price of something like 32k?

I've read elsewhere that the average x-plan disount is $2800, but its unclear to me if this is a Ford rebate that can be further subtracted from a negotiated price, or if its only an amount off of MSRP?

Ultimately, I'm trying to determine how worth it is it for me to tie up $1000 for the next 6 months (not to mention the risk of losing a significant amount of it if their stock tanks for any reason)... Can I get this deal on my own, or can I get it on my own and make it even sweeter with an X-Plan?

Guys I know this is a long read... but its not something I can easily discuss with a dealer... they aren't willing to explain and talk me through this over the phone, not to mention they're of course not going to just come out and tell me, hey we'll give you the car for invoice + holdback, without me coming in and sitting down and seriously working on numbers... Something I'm not willing to do for at least 6 months.

Again the main reason to ask this question is to determine whether or not I should be trying to lay the ground work on this X-Plan or not... $1000 tied up for 6 months... worth it or not? And what can I realistically expect with it?

Seriously want to thank anyone that has read through this whole thing and I appreciate any advice and thoughts you have on the subject...

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ModularMuscle

· #2 · Jul 6, 2010

Here's some real help. Don't buy the Ford shares for the discount. X-plan on the car you want is $133.11 OVER invoice. Retarded.

The true MSRP on the car you want is: $37,695 assuming you don't want a premium color paint.

The Invoice is - $35,128.60
Holdback is - $1,106.00 (Most dealers wont give you ALL of the Holdback if any)

Your best bet is to FIND the car first of all. Then make an offer relative to invoice, if they don't take it then you don't get a car. Or YOU move your price until you get the car. So tell them you will buy it for $200 under invoice or whatever. They will then look at it and decide, by the time this guy gets out of the Finance office will be be able to make the money back or not. So don't tell them you're not buying any warrantys etc up front before you go back to sign the paperwork. Then buy or refuse as you wish. Warrantys are a waste of money anyhow.

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Chilson

· #3 · Jul 6, 2010

The best way to get the best price is to set up a competitive bidding process from multiple dealers. Call multiple dealers tell them what you are looking for, tell them what you are doing is calling around to find out what each dealership wants as a mark up or mark down from invoice for a 2011 Mustang GT Coupe Premium (this is narrow enough that they can't say oh the price we gave you was only for this base Mustang but it will include any options you want). Tell them you would expect to be able to come on their lot and pick out any 2011 Mustang GT Premium coupe at the quoted mark up or mark down. Tell them you are only calling each dealership once, you will not disclose what the other dealers are offering (so they are all on a level playing field), and they must provide you with a quote in order to be in the running for your business. Doing this I got quotes ranging from sticker to $500 below invoice. There is a lot of great advice online for car buying tips. You won't know what a great deal is until you set up that competitive atmosphere. It is also best to call when you are almost ready, put the time crunch on them. Also deal with their fleet or internet manager. They are much more laid back than the floor sales guys and I think they are paid differently. Hope this helps. I don't know anything about the x-plan so I can't say anything there.

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starbai

Discussion Starter · #4 · Jul 6, 2010

Thanks for the opinion...

I will likely end up getting my own financing through credit union or otherwise so that was a great tip to not tell them that up front.

6 months from now, I dont know (and I suspect no one but ford does) what the inventory will be like on the lots...

I expect to have to (and dont mind) ordering the car I want. The question or caveat this adds to everything is how much more difficult is it to negotiate that 34,600 price on a car that has to be ordered (that is not on the lot collecting dust)

I'm not sure how you arrived at 35,128 for invoice, using the price list I calculated it as:

$33,191 = Straight Invoice
$34,597 = Invoice with Dealer holdback
$37,695 = MSRP.

Gonna have to order it most likely.

If X=plan is something like $200 over invoice, in this case $33,400 roughly... can I somehow get this price without having to risk a grand in the market?

So how do I get $34597 or less... $33,191 or better?

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starbai

Discussion Starter · #5 · Jul 6, 2010

Chilson said:
The best way to get the best price is to set up a competitive bidding process from multiple dealers. Call multiple dealers tell them what you are looking for, tell them what you are doing is calling around to find out what each dealership wants as a mark up or mark down from invoice for a 2011 Mustang GT Coupe Premium (this is narrow enough that they can't say oh the price we gave you was only for this base Mustang but it will include any options you want). Tell them you would expect to be able to come on their lot and pick out any 2011 Mustang GT Premium coupe at the quoted mark up or mark down. Tell them you are only calling each dealership once, you will not disclose what the other dealers are offering (so they are all on a level playing field), and they must provide you with a quote in order to be in the running for your business. Doing this I got quotes ranging from sticker to $500 below invoice. There is a lot of great advice online for car buying tips. You won't know what a great deal is until you set up that competitive atmosphere. It is also best to call when you are almost ready, put the time crunch on them. Also deal with their fleet or internet manager. They are much more laid back than the floor sales guys and I think they are paid differently. Hope this helps. I don't know anything about the x-plan so I can't say anything there.

Right, this is how I worked my deal out on my Accord... playing 4 dealers... the difference is they all had what I wanted in stock... and I was ready to purchase 2 days after I started making my phone calls.

I know you said you dont have any advice regarding x-plan, but thats okay I appreciate your advice either way...

The only reason this thread is started 6 months in advance is that to qualify for the xplan as a shareholder, you must hold the stock for 6 months in advance before you can qualify to request an X-plan pin...

Calling up dealers right now isn't exactly the same thing as calling them 6 months from now as I'm hoping the dealer stock will be better by then, and the hype (therefore mark-up) will hopefully decrease by then to a reasonable area.

Also, where are you located?

When you were saying u had even an offer of $500 under invoice... was that under actual invoice or invoice with dealer hold back?

And since you have no info on x-plan I assume you were getting these offers without it...

As a result $500 under invoice is a good enough deal for me to not even consider tying up/risking $1000 for 6 months.

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ModularMuscle

· #6 · Jul 6, 2010

X-plan is worthless don't even tie your money up in teh stock for that reason. Like I said that will LOCK YOU IN AT $133 over invoice on the car you want.

I got my invoice price off of the actual invoice page from Ford on a car that exists. You probably aren't factoring in the $45 gas charge, and the FDAF (Ford Dealer Advertising Fee). Places like edmunds are notorious for leaving these out, but they are real charges that are on the invoice and not some BS $ that can be negotiated off by customer or dealer.

Also, dealers don't generally give away much holdback if any, unless the merchandise becomes worthless. You don't even see too much of it on the 2010s yet.

Located in Arizona

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Chilson

· #7 · Jul 6, 2010

Thank you for the info on the X-plan. I have owned Ford stock for years and never even thought about that. I thought the X-plan was for family of someone that works for Ford.

The $500 below is from Dealer Invoice with Holdback. So they are giving up $500 of their precious holdback. I live in Houston, TX and this was the best deal I could find in May when I ordered my car.

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Chilson

· #8 · Jul 6, 2010

I got the $500 off after the gas fee and the Ford Advertising and all of that was added in. I am still happy with my "deal".

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starbai

Discussion Starter · #9 · Jul 6, 2010

Chilson said:
Thank you for the info on the X-plan. I have owned Ford stock for years and never even thought about that. I thought the X-plan was for family of someone that works for Ford.

The $500 below is from Dealer Invoice with Holdback. So they are giving up $500 of their precious holdback. I live in Houston, TX and this was the best deal I could find in May when I ordered my car.

Wow, thats excellent information, thanks Chilison... Invoice with Holdback for the car I'm looking at is $34597... So I guess the best possible price I could even fathom getting 6 months from now is $34,000--- no-xplan necessary.

Modular thanks also for your help, now that I understand how the prices work, makes sense to not bother tying up that grand in shares for now.

$34, for a $37,600 car isn't too bad at all I guess...

Was hoping there was some way to finagle myself down to $32k, I guess we'll see where we're at 6 months from now, if need be I may have to drop a few things off my option wish list.

Thanks again guys for your help.

While I think I have the answer I need for now (dont bother with trying to obtain an x-plan) - I wouldn't mind hearing any one elses suggestions on how to get a better deal...

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Modshack

· #10 · Jul 7, 2010

starbai said:
If X=plan is something like $200 over invoice, in this case $33,400 roughly... can I somehow get this price without having to risk a grand in the market?

So how do I get $34597 or less... $33,191 or better?

Join the Mustang club for $50/yr and get an X Plan PIN number.......Part of the benefits of club membership, though not listed on their site. I confirmed Via email with them just last week..

Or of you're a SAM's club member, their no haggle price is $200 under invoice through their participating dealers..

Remember, the invoice you may find on various sites (edmunds etc) will not include the advertising assessment the dealer is required to pay...This can be up to $500 or more..

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BMAZZ007

· #11 · Jul 7, 2010

I am a Ford Sales Rep and leasing Consultant. If you are getting an X plan Deal I would Take it That's about the best you are going to get On a New car especially a Mustang 5.0, although you may get lucky. The dealers and Employees get A D plan which is a bigger discount than the X plan the x plan is aggressive its about 300 above invoice .The d plan is below invoice the only way you get that price is if someone who works at the dealership is family and we only get 2 per year.:smoke:

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