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Any Questions for a Car Dealer?

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Comments

  • billingsleybillingsley Member Posts: 69
    I would love to know how to find the invoice price on things like extended warranties and other dealer add-ons. Would you use the same formula as you would to find the dealer price on the car itself?
  • sadcarbuyer1sadcarbuyer1 Member Posts: 2
    I had an 03 car with 52K miles on it. I was driving home from work last week heard a whirring noise then it decelerated to a complete stop. The diagnosis was a seized engine ($5,000)...no warning lights or previous problems. Tried to work with the dealership to fix the car to no avail...since it was past the warranty it was my tough luck. After shopping around my best financial option was to stay with the same brand car to help bury the old debt. I looked at the car last evening and at first glance I didn't notice anything. I brought the (SUV)car home and while loading some groceries in the back found a large dent in the rear door. It is bent inward so it wasn't very noticable. The paint is chipped off a lot on the inside of the door, also not noticable at first glance. I have not had the car 24 hours yet! I notified the dealer and he said to bring it in and they'd look at it. Later on my way home it was chilly and I put on the heated seats to try them out and they didn't work either! Can I demand a new car?
  • patpat Member Posts: 10,421
    is going to take a rest for a bit ...
  • Kirstie_HKirstie_H Administrator Posts: 11,242
    We've taken about a week off, now let's see if we can get this discussion back on track. This is a place to ask questions that a car dealer is most well-equipped to answer. It is not a place to argue with the dealers who participate on these boards about how much profit is too much, or whether their business practices are sleazy.

    The discussion title says it all - if you ask a question, please be prepared to receive an answer from the perspective of a car dealer. If you do not like the answer, that's fine - we have many other discussions in which mainly consumers participate, and you are welcome to visit those discussions and seek out other opinions as well. Gathering information from many sources, rather than just one, is often the best way to feel comfortable with your decisions.

    Arguing with and berating the helpful members who offer advice on these boards will only lead to posts being deleted, and the possible re-closure of this discussion.

    Thanks everyone!

    MODERATOR /ADMINISTRATOR
    Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
    2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
    Review your vehicle

  • kyfdxkyfdx Moderator Posts: 265,671
    ... I missed you guys.. :surprise:

    Edmunds Price Checker
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    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • graphicguygraphicguy Member Posts: 14,120
    That brings a tear to my eye to hear from you ky.....I can feel the love emanating!

    Oooops....I'm already off topic.
    2024 Kia EV6 GT-Line AWD Long Range
  • thenebeanthenebean Member Posts: 1,124
    yay! glad this is back!

    sorry, im off topic too - but i am a dealer (or at least work at one!) so i dont have any questions for myself...

    -thene :)
  • stickguystickguy Member Posts: 53,350
    for people on the domestic side, I guess GM so far, do you like the employee pricing for everyone deal? Does it make your job easier, or at least quicker? Does it make too many deals "minis"? or are you making up for it with volume?

    I guess it does cut down on the chances of hitting the jackpot deal on a laydown if nothing else.

    I could see this as something that the dealer might like, but not being advantageous for the salesperson.

    2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.

  • danf1danf1 Member Posts: 897
    It is making most deals fairly easy. Occasinally we get the person who feels that we are not being honest when we say that the price is not negotiable, but for the most part it is a matter of whether or not your credit is ok.

    We are making up in volume what we are losing in gross. I know this sounds unbelivable, but I had a salesperson sell 107 cars last month. Now he is a freak of nature and pays a full time assistant, but that is still a decent year for some people.
  • graphicguygraphicguy Member Posts: 14,120
    YOWZA....107 cars in 1 MONTH....

    I'll assume he's compensated for unit quantities more than his gross (or, lack of gross in this instance).

    Good questions, though. Are all employee pricing deals "mini commissions"?

    thene...has the domestics pricing scheme cut into your Nissan business?
    2024 Kia EV6 GT-Line AWD Long Range
  • danf1danf1 Member Posts: 897
    His unit bonus should have been in the five digit area. Of course he still gets paid on gross and finance income.
    Remember that there are other avenues to acchieve gross other than sales price.
  • thenebeanthenebean Member Posts: 1,124
    we've had some people coming in trying to get us to compete with those prices. thing is, with these programs, the manufacturer is compensating dealers with "commissions" for each vehicle, versus trying to make gross. we have a ford store, and ford is now doing the "family plan" pricing. nissan just cant match the pricing, because we dont have that money coming back from the manufacturer. i'd say its hurting business in our store a bit - but according to automotive news, nissan/toyota/honda still had growths in sales last month with the GM thing going on...

    so who knows!

    -thene :)
  • robr2robr2 Member Posts: 8,805
    Of course he still gets paid on gross and finance income.

    Does he do his own finance work as well?
  • danf1danf1 Member Posts: 897
    No he doesn't. There isn't enough time in the day for that.
  • robr2robr2 Member Posts: 8,805
    OK. I figured since he was getting paid on finance generated, he was handling that as well.

    There isn't enough time in the day for that.

    What does his self paid assistant do then??
  • danf1danf1 Member Posts: 897
    His assistant typically just takes the test drives and makes follow up calls for him.
  • ger3sfger3sf Member Posts: 29
    Do Ford employees in the US have a special pricing plan for the non-US brands (Jaguar, LR, Volvo, Mazda, Aston)? Seems that Jaguar, at least, would benefit from this promotion.
  • bmw3434bmw3434 Member Posts: 64
    I like the idea of this board. I am a BMW salesman, so like "thenebean" I have no questions for myself ... hmm.
    Any questions for me are welcome.
  • capitanocapitano Member Posts: 509
    From other discussions I know that the service department is usually a profit center for a dealership. Has the availability of pricing information on the net driven the profits on new car sales down enough to cause dealers to try to squeeze more profit from the service departments?

    I ask because lately it seems the Jiffy Lube model of loss leader oil changes combined with annoying pitches for every conceivable fluid flush and premature replacement of filters has taken hold of dealer service departments everywhere. Did Jiffy Lube put that much pressure on the service departments that they had to adopt that model to compete?

    I go in for the 15k mile service and without even seeing the car, the service guy is "recommending" air filter and cabin filter replacement. When I say I want just what's in the service book that came with the car, I get the "well, if you just want to do what's in the book..." comeback with the raised eyebrows.

    Got the same thing from a different dealer at the 5k oil change.

    Is there no place left where a guy can get an honest assessment of the maintenance needs of his vehicle without having to endure the F&I mop and glo song and dance routine all over again?

    Not trying to be inflammatory, but I am seeing this kind of business practice everywhere now. Just the other day I went to a tire shop solely to get tires rotated, because I am not going back to that dealer. They pop the hood and want to talk about power steering fluid and how black my oil is.
  • bobstbobst Member Posts: 1,776
    As I have said before, when I buy a car I don't much care if the dealer is honest or not.

    However, when it comes to service, we all want to go somewhere we trust. In our case, there is a local Shell service station that has treated us fairly in the past, and we go there for all non-warranty service.

    Also, there is a Honda dealer not far away that seems pretty good. At least they did some warranty service on our 97 Accord without trying to get us to pay for a lot of extra stuff.

    All you can do is keep looking around and using your best judgement to find an honest service center.
  • danf1danf1 Member Posts: 897
    When you go to Mcdonalds, do they ask you if you want to supersize your value meal? At Radioshack do they ask you if you need batteries with that remote you just bought? Its called up selling and everybody does it. If they don't then they are leaving potential profit on the table. You can always politely decline any additional service, but don't expect to not be asked.
  • geo9geo9 Member Posts: 735
    ARE you GM salesfolks getting any complaints of lowballing or the old
    "your cheating me on my trade" complaints ????????????

    I see a few mentions on some forums about this but raves about 10k
    off sticker on a new GM truck........................
  • capitanocapitano Member Posts: 509
    It is becoming painfully obvious "that everybody does it."

    However, I see a difference between a McDonald's guy asking me to supersize something and a service manager "recommending" an extra service. The McDonald's guy is just asking if I would like a larger portion of fries and a bigger drink, something I already asked for. He is pitching the better unit price angle.

    The service guy is acting like he is a professional giving advice, but in reality he is just a salesguy padding his bottom line. He has no idea what my car needs. He just has a few products to sell. Perhaps I wouldn't be so disgusted with the whole mess if he said something like "as long as you're here, why not knock out item x and y which are due on your vehicle in z miles anyway, save yourself the extra trip." instead of what I encounter which is the "you need to do this or bad things will happen."
  • rroyce10rroyce10 Member Posts: 9,332
    ....... I'm sure it goes on every minute of every hour of every day -- no matter what the discount is ..

    Buyers always think their vehicle is cleaner and nicer than the guy next door .. do you think they discount the high miles, the $2,500 ding and the nasty rubber...? heck no.! .... they just find the highest info source they can find and try to use that .................. ;)

    Terry.
  • geo9geo9 Member Posts: 735
    But folks in the know stop over and visit ya at RWTV thread !

    Your info. worked for me 3 times...............Thanks again !!!!!!!!!!!!!!!
  • muggsymuggsy Member Posts: 5
    When you say that the price is not negotiable, does this mean that dealers are not able to negotiate prices with customers below the GMS price?
  • johnb647johnb647 Member Posts: 2
    Hi all,
    I'm going to start selling cars for a living, and I'm kind of torn between where to go. I really like what Chrysler has been doing with their vehicles lately, and I also like a lot of what I hear about the way Carmax does business. My choices right now are Citrus Chrysler in Dade City, FL, and the Carmax in Tampa. I haven't done much research on Citrus, so I don't know if they're a no-haggle dealership, pay a salary plus commission, are straight commission, or any of that. This is a brand new experience for me, and is a decision I've been mulling over for the last 8 years or so. I've got experience in motorcycle vehicle and parts sales, and retail parts and tires for cars. I've also worked as a mechanic in both motorcycle and car shops, but not extensively. Any and all advice will be greatly appreciated.

    John
  • volvodan1volvodan1 Member Posts: 188
    I sell Caddy's and Volvo's. The first thing I would tell you is I would love to just sell used cars. No CSI, no 5 test drives, no "I want to trade my $7,000 03 Taurus w/ 60,000 miles that I owe $11,000 on an 05 Escalade and keep my payment under $300." Second thing is it depends on the area. Where I am there are 5 Caddy dealers serving a population of 250,000. Next to impossible to hold gross in that situation. When I went to trainig in Dallas last year I was told there was 1 dealer in Dallas. If that's true, WOW. Our Volvo store is the only one in a 45 minute radius. Much easier to sell new in that situation.

    As far as the type of make, I would say theoretically Honda and Toyota are the best because I don't know of many markets they have flooded with too many dealers. They a least have the oppurtunity to make money the first few years a car is out because they don't have to drop their pants on every deal because there is another dealer 10 blocks away. But they don't always have the best reps because of arrogance because of the lack of competition.

    For me the dealer is the most important part of the equation and toughest to know until you sell for them. My owners have other businesses. They treat our dealership like a business, not like a car dealer. They are honest and ethical and have the same standards I do when it comes to doing business. Talk to each one and go with what you are comfortable with.
  • dialm4speeddialm4speed Member Posts: 110
    I'd like to know if it's possible to ORDER a car in this manner.

    Lets use the Dodge Charger as an example.

    Engine is the Hemi of course.
    No sound system of any kind
    No power anything
    Cloth seats
    No dvd/nav system
    No A/C
    No luxuries at all
  • rroyce10rroyce10 Member Posts: 9,332
    ......................... nope, you can't order it that way .....................................

    Terry.
  • mldj98mldj98 Member Posts: 378
    I would like to follow up on a question that johnb647 asked earlier about selling cars...
    I am getting ready to retire from the U.S. NAVY after 22 glorious years and have been thinking about where my next step in life should be...
    After pondering it for a while...I asked myself what I enjoy doing and what are my interest...then it came to me...cars!!!
    I do allot of reading and researching about all types of cars, trucks, etc...it is just a hobby of my I guess...in fact when I am out driving around with my 6 year old son we play this game on naming all of the cars we see by make and model...and let me tell you...my 6 year old has all make and models down pat! Now we are working on make, model, and year!
    Anyway, I am partial to Acura/Honda & Lexus/Toyota's for the main reason that I really believe in the product...for the last 20 plus years that is all I have owned!
    So my question would be this, are there salemans jobs out there that pays a salary & commission? And if so, can someone explain to me how exactly that works? I believe there is usually a minimum set number of units that every employee is suppose to sell in a month correct?
    The only thing that I do not like about the business is how when you pull into a dealership and see 50 salemans hanging out by the front door...to me that doesn't seem professional...especially when they are cokin' and smokin'. It would be a little intimidating to young females who might be put off by that scene.
    To close, I have to admit that I do not have any car selling experience...but I have worked in logistics for the last 22 plus years...transpo, contract buyer, accountant so to speak (took care of the command's budget) etc...but as I mentioned earlier, I do have allot of knowledge about cars...through reading and research....
    I do have a wife and 2 small children to think about as far as doing something with a steady income...I'm not looking to get rich per say (if it happens...great). I just want to do something that I enjoy....and can buy that loaf of bread for my family!
    Thanks in advance to all that can respond as it would be much appreciated!
  • thenebeanthenebean Member Posts: 1,124
    before i got into the business, i was a car fan - especially of nissans. my first car was a nissan, and had nothing but great luck with it. i figured if i were to sell anything, it would make sense to sell something i believe in. you would be surprised how many people ask me what I drive - and i can say NISSAN! (some others around here couldnt say that)

    anyways, there are many types of pay plans out there for salespeople, all depending on how the dealership likes to run. you'll find straight commission, salary plus commission, and salary (i think the no haggle stores work that way...not sure?)

    anyways, as far as finding a dealership that you think you'd like to work at, drive around, see where the salespeople are - see if they look happy, professional, and dont smoke on the front step of the dealership. if you do your research (like you would buying a car) you'll find exactly what you are looking for! and, if you get into the right place, it can be rewarding! however - it can also be VERY frustrating as well! and be prepared for long hours - 11 or 12 per day!

    good luck!

    -thene :)
  • graphicguygraphicguy Member Posts: 14,120
    So, is "super salesman's" assistant and emplyee of the store, or someone who he "pays" out of his pocket to do the test drives and follow-up calls for him?

    If the assistant isn't an employee of the store, how does management feel about a "non-employee" doing test drives?

    If the assistant IS an store employee, aren't they just another sales person at that point? That makes the "super salesman" no more than a "closer".

    Does this guy write his own deals? If so, then he's really just a sales manager with one salesperson working for him ("the assistant"), correct?

    Just curious!!!!
    2024 Kia EV6 GT-Line AWD Long Range
  • graphicguygraphicguy Member Posts: 14,120
    thene....it's good to hear that you are a true fan of the product you sell.

    Funny, I just bought a Toyota. My sales person was excellent. She was very knowledgeable about her products and very helpful in putting a complex deal on the table. That said, when I asked her what she drove, she pointed to a Ford F150. I have to admit, it gave me "pause" since it wasn't a Tacoma or Tundra.
    2024 Kia EV6 GT-Line AWD Long Range
  • thenebeanthenebean Member Posts: 1,124
    when i applied for the job, they asked me if i wanted to sell ford or nissan - and i said, you probably want to put me over at nissan, because if you have me selling fords, i wont last! i have to sell a product that i believe in - believe it or not, people can tell when you are being truthful about the praise you give a vehicle. its tough to fake enthusiasm for a product you dont think is worth the money. i have a tough time talking about the fords when i am over there selling (now that i do internet for both stores)

    everytime the new motortrend/road and track/car and driver/ etc mags come out, i buy them - read them cover to cover, and can talk to anyone about almost any car confidently. it not only helps to know YOUR product, but some about your competitors as well!

    our nissan store closes deals right around 47% - if only we had more people coming in! our salespeople here (and we are probably a rare dealership) get along so well - i invited them all to my wedding, we all went to our managers wedding - we have gatherings outside of work - and we work well together and help each other out as needed. people see that relationship we all have here, and the comfort level it brings, and people are more inclined to buy at a place that feels that way (again, see closing ratio!)

    whoa, i got a little off topic there - sorry!

    -thene :)
  • graphicguygraphicguy Member Posts: 14,120
    That's true of any business. If you have people who work together, it shows and in turn, makes that business better for all.

    While Nissans aren't my "cup of tea", I do admire where they are today given where they were 5 years ago. I think my "bias" has more to do with the treatment I received at my local dealerships. A few years ago, I was in the market for a sports car. The 350Z had just been released and on my short list. Of the 2 Nissan stores that were local to me, both gave me a "sleazy" feeling in talking to their personnel. None of them asked me what I wanted.....just how "hot" the 350Z was. I was well aware of that fact, at the time.

    Now, if they had approached me with pointing out some of the features/performance of the car instead of coming out of the shoot with the "strong price" of the car, I may have a different opinion. Even the test drives at both dealerships were riddled with high pressure sales "closes" about how the Zs were bringing strong money. But, it kind of tarnished my perception of all Nissans and their dealerships, rightfully or wrongfully.

    From reading your posts, I can tell you aren't cut from that cloth, however. Too bad, you aren't anywhere close. Like Terry, danf, Craig, and some other delaership personnel who post here, I would enjoy doing business with any of you if I were in the market (which this year, has been quite a bit).
    2024 Kia EV6 GT-Line AWD Long Range
  • sbell4sbell4 Member Posts: 446
    I have been with Toyota for over 10 years and this business has been very good to me. I didn't know anything about cars except that you put gas in it and you change the oil every now and then.

    The most important factor in sales is dedication. You have to have an ability to work hard and be willing to learn from your mistakes. Be honest, sincere and have a long term plan of where you want to be 2,3,10 years down the road.

    You don't have to have car knowledge in the beginning but you do have to have the right personality and disposition or this gig will eat you alive.

    It isn't all fun and games but with that being said, I couldn't think of any other job in the world I would rather do. Even the best of the best ( that make it look easy) are working very hard and are very competetive.

    When selling, it isn't about the money....it is about the sale. The money just happens to come with the fruits of your labor.
  • toyotakentoyotaken Member Posts: 897
    I would concur with bsell in a couple of points. And I have been working with Toyota's for a bit over 10 years myself as well. First, although some knowledge of cars and interest is ok, the primary thing of importance in this field is being someone who likes working with people. All of the entheusaism in the world about a particular vehicle or product will not give you one additional sale. However, I have seen the most un-car people do very well in the business. The primary ingredient for who and when someone decided to purchase from is, in my opinion, the sales consultant. You can buy a Ford, Chevy, Honda, Toyota, etc. from many places within a few miles of one another in most cases. If someone wants a vehicle, they can buy it down the street just as well as they can from you. What makes them decided to do business at a particular place? The people there.

    There may be others that disagree, and truly there are customers that will purchase from whoever beats the price of their competitor by $5, but I think that is the minority. And quite honestly, those are not the customers that you want in your book of business. Honesty, follow-up, comittment, and length of tenure all are key ingredients. The most important of all, however, is the ability to meet, get along with, and communicate with all types of people. If you have this ability, this is a wonderful business to be in, with lots of new and wonderful experiences to learn from every day.

    And to reinforce what bsell said at the end in their post, I don't work with someone to purchase a vehicle to get a commission. The commission allows me to continue working with people to purchase their cars and support my family. I worry about making sure that the vehicle is sold and worry about whatever commission I get later. And notice I don't say that I sell cars btw. People purchase their vehicles from me. If I don't have the right vehicle at the right time for the right person, nothing I can do will "SELL" that vehicle. If I do a good job at matching a customer to what their needs are and making them aware that I am the best person to make sure that the process is easy, and will be there to service them correctly, then they purchase that vehicle from me.

    Sorry about going on and on, but I do love what I do and so do many in the business, but want others to know what its like.

    Ken
  • danf1danf1 Member Posts: 897
    Its hard to say if the assistant is our employee or not. He is paid from the salesman's commission, but we cut the check in order to withhold taxes.

    As far as management is concerned, this guy can do just about anything that he wants to. With his sales volume, gross, and customer loyalty we don't question his methods. We basically bought him from a smaller Chevy dealer in town. He accounted for over 50% of that store's business every month. In fact, Edmunds did a story about him a few years ago. So he may write his own deals sometimes. Once again, if management trusts you to make a profit they will typically let you be.

    If you met his assistant, you would know immediately that he is not a salesman. He may wear the uniform, but he couldn't survive on his own I'm sure.
  • graphicguygraphicguy Member Posts: 14,120
    'Ya know, I've never been worried about price when I walk into a dealership. I'm confident I've done my homework before ever setting foot in a dealership. I've always felt I've had a pretty good handle on what any particular vehicle will sell for in my locale since I look at these boards, the local newspaper, and talk to those around me who've purchased something similar. I have no qualms whatsoever asking the person at the gas station that has a model similar to mine where they bought and if they thought they got a good deal. You'd be surprised how willing they are to divulge the details of their deals.

    If you know the product, have what I want sitting on the lot (or are willing to get it for me), treat me with respect, then we'll get to a deal 90% of the time. I'm always willing to pull the trigger on something if I walk in the front doors.

    On the other hand, I don't neccessarily shop cars for sport. I've heard a lot of that goes on. I just don't see that as a great way to pass the time.
    2024 Kia EV6 GT-Line AWD Long Range
  • graphicguygraphicguy Member Posts: 14,120
    Interesting way to sell cars.....with an assistant. I would think with the "employee pricing", this could be a real "boon" since no time is spent in negotiations....just product demonstrations. That's not such a bad thing.

    I know Saturn tried the "one price" scenario, but they didn't have appealing products for the longest time.

    I'm left to wonder if this is a "crossing the chasm" moment in the car biz. If the manufacturers decide to continue the "employee pricing" scheme, is it possible that they won't want to go back to the "old way"? IF they do, I would have to guess Honda, Toyota, Nissan, BMW, Audi, etc would have to follow suit to stay in the game, right?

    If so, that would be an upheaval in the way dealerships and manufacturers do business that would be unprecedented. It certainly would do away with the "prices paid" part of Edmunds threads.
    2024 Kia EV6 GT-Line AWD Long Range
  • danf1danf1 Member Posts: 897
    The prices paid forums would still be here. Where else would people be able to make up such ridiculous numbers. I found one post a few days ago from somebody that we sold. He claimed to pay about $2,000 less than he actually did. I had a good laugh at that one.
  • 151ranch151ranch Member Posts: 109
    LOL, there is definately more than one Cadillac dealer in Dallas. Maybe they meant Dallas city limits??? That being said, Sewell is the big cahona here, but even they have 2 stores in DFW. Most people shop the whole metroplex so I would say we have at least 8 in the area. We did have a lot more, but a lot of domestics packed it in in the late 80's - early 90's.

    The makes who have good here are the Europeans....which leads me to my next question.
  • thenebeanthenebean Member Posts: 1,124
    well some people feel the need to say they got a ridiculous price so they feel better about themselves (gosh forbid someone pays less than they do!)

    to me, i have xxx number of dollars to spend - i know what cars i can afford, what fall into my budget, and what i want to buy. i go from there - if it falls near my budget - im happy! who cares what everyone else paid? you are only going to be stressed and unhappy if you are always worrying about what everyone else does...

    just my 2 cents though...

    -thene :)
  • imidazol97imidazol97 Member Posts: 27,675
    Sounds lik he's an employee. He sure doesn't meet the independent contractor tests from the IRS. But it also sounds like he may have as much lattitude as the salesman with whom he works!

    2014 Malibu 2LT, 2015 Cruze 2LT,

  • 151ranch151ranch Member Posts: 109
    What's the deal with ED? no one here (D/FW) wants to help me :cry: I know that there's not much of a discount on the new 3's, but I will have to order anyway since the stores don't have any MT 3s. Is the commission on the EDs that bad?
  • nonjth13nonjth13 Member Posts: 91
    kirstie Edmunds helps me occupy my lunch break especially on rainy days like today. Thanks for rejuvenating this thread. Got to eat lunch and read some intelligent posts at the same time.
  • sbell4sbell4 Member Posts: 446
    Did you know that there is an estimated 326 million trillion gallons of water on Earth?

    off topic but interesting.
  • volvomaxvolvomax Member Posts: 5,238
    Yes, Salaried Ford employees have access to A and Z plan pricing w/ Volvo, Jag and LR.
    Mazda has S-plan.
    Aston doesn't have anything AFAIK.
  • mirthmirth Member Posts: 1,212
    But the Family Plan promotion only inlcudes Ford, Mercury, and Lincoln.
This discussion has been closed.