Dealer Discounts

Jon99987Jon99987 Member Posts: 1
edited August 2019 in Ford
Some dealers in the Seattle/Everett Washington area are advertising dealer discounts on Rangers in the $4500 - $5700 range. On the model I'm looking at, the invoice is $44116 and holdback is 1345, so their cost is $42771. After the dealer discount, the selling price is $40,395, or $2376 below their cost.

I'm trying to determine if they are actually loosing that money on the sale and hoping to recover it on the trade-in, or if there might be manufacturer to dealer incentives that are allowing them to price the truck so low.

Anyone have any insight? I'm getting lower trade-in offers than I expected, and they are saying it's because they need to recover their loss on the Ranger by making money on the trade-in. the KBB trade-in estimate on my vehicle is $13,500, and the best trade-in offer so far is $11,500. I suspect they'll put about $1000 into reconditioning it, then I think they'll be able to sell it for ~ $16,000. If they are actually taking a loss on the Ranger, then maybe this is reasonable, but if they are receiving additional incentives from Ford, then I'm not sure if it is.

Thanks.

Comments

  • kyfdxkyfdx Moderator Posts: 197,544
    Jon99987 said:

    Some dealers in the Seattle/Everett Washington area are advertising dealer discounts on Rangers in the $4500 - $5700 range. On the model I'm looking at, the invoice is $44116 and holdback is 1345, so their cost is $42771. After the dealer discount, the selling price is $40,395, or $2376 below their cost.

    I'm trying to determine if they are actually loosing that money on the sale and hoping to recover it on the trade-in, or if there might be manufacturer to dealer incentives that are allowing them to price the truck so low.

    Anyone have any insight? I'm getting lower trade-in offers than I expected, and they are saying it's because they need to recover their loss on the Ranger by making money on the trade-in. the KBB trade-in estimate on my vehicle is $13,500, and the best trade-in offer so far is $11,500. I suspect they'll put about $1000 into reconditioning it, then I think they'll be able to sell it for ~ $16,000. If they are actually taking a loss on the Ranger, then maybe this is reasonable, but if they are receiving additional incentives from Ford, then I'm not sure if it is.

    Thanks.

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