Dealer Discounts

Jon99987

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.

kyfdx

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.

Edmunds pricing research is here:
https://www.edmunds.com/tmv.html