2019 SCrew MSRP vs Invoice

[ICEMAN 316]

Invoice is used to fool buyers into buying the car at a particular price. This is why dealers are willing to sell 2018 raptors at like $500 below invoice. Think about it first! the real invoice for any car is probably close to 20-25% of the MSRP.

Mr.Mamula is right on this one. My company is a vendor for 9 dealerships and I personally know the owners and GMs. The invoice we see is not the true invoice the dealership pays for the car from the manufacturer. Depending on the manufacturers it’s in the range of $1k-2.5k under the invoice we see. We don’t deal with Ford so I’m not sure what they’re true invoice is. But it’s not 20%-25% like Mamula says. But there’s usually trunk money for certain models (if they hit certain goals).


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[SSWIM]

Mr.Mamula is right on this one. My company is a vendor for 9 dealerships and I personally know the owners and GMs. The invoice we see is not the true invoice the dealership pays for the car from the manufacturer. Depending on the manufacturers it’s in the range of $1k-2.5k under the invoice we see. We don’t deal with Ford so I’m not sure what they’re true invoice is. But it’s not 20%-25% like Mamula says. But there’s usually trunk money for certain models (if they hit certain goals).


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25% About made me spit up laughing so hard.

 

[NH-Raptor]

I’m a former Ford rep, and I’ll tell you how it works...

As stated previously, mark up from invoice to retail is typically around 7%, with options being slightly higher. Invoice is not what the dealer pays, as they also receive 3% behind the scenes, and this is called “holdback”. So, for a $70K truck, the dealer pays about $2K below invoice.

In addition to holdback, the dealer gets the equivalent of 60 days of interest expense. To keep it easy, multiply the dealer’s loan value (invoice minus holdback) x interest rate / 6. For example, if the loan value is $60K, with an interest rate of 5%, then the dealer gets a credit of $500.

This interest credit is offered to allow dealers to stock two months worth of vehicles, without costing them interest expense for doing so.

If the dealer sells the car on the first day it arrives, they make an extra $500. If the vehicle stays in inventory for four months, it will effectively cost them $1,000 in interest expense. This is provided that they floor plan their inventory, i.e. don’t pay cash, which is what 99% of dealers do.

So, bottom line is, if you pay invoice for a truck, the dealer still makes holdback (3%) and 60 days of interest expense. Of course, there are factory to dealer incentives all the time on slower-moving vehicles, but there won’t be anything on the Raptor.

Generally, invoice less circa $2,500 is what the dealer effectively paid for the truck.

Hopefully this clears up any confusion.

 

[SSWIM]

I’m a former Ford rep, and I’ll tell you how it works...

As stated previously, mark up from invoice to retail is typically around 7%, with options being slightly higher. Invoice is not what the dealer pays, as they also receive 3% behind the scenes, and this is called “holdback”. So, for a $70K truck, the dealer pays about $2K below invoice.

In addition to holdback, the dealer gets the equivalent of 60 days of interest expense. To keep it easy, multiply the dealer’s loan value (invoice minus holdback) x interest rate / 6. For example, if the loan value is $60K, with an interest rate of 5%, then the dealer gets a credit of $500.

This interest credit is offered to allow dealers to stock two months worth of vehicles, without costing them interest expense for doing so.

If the dealer sells the car on the first day it arrives, they make an extra $500. If the vehicle stays in inventory for four months, it will effectively cost them $1,000 in interest expense. This is provided that they floor plan their inventory, i.e. don’t pay cash, which is what 99% of dealers do.

So, bottom line is, if you pay invoice for a truck, the dealer still makes holdback (3%) and 60 days of interest expense. Of course, there are factory to dealer incentives all the time on slower-moving vehicles, but there won’t be anything on the Raptor.

Generally, invoice less circa $2,500 is what the dealer effectively paid for the truck.

Hopefully this clears up any confusion.

Now you know that just cant be true. Everyone knows the dealer is making at least 25%. LOL HAHAHAH

 

[Johnkn]

the real invoice for any car is probably close to 20-25% of the MSRP.

WTF, so the invoice of a $100k MSRP vehicle is $20-$25K? What are you, 12? LOLLLLLLL

The post above is correct. Holdback, interest, incentives, etc. all potentially factor into true dealer margin/profit.

 

[jzweedyk]

Just press the Ignore button and Mamula will go away.

 

[mamula]

WTF, so the invoice of a $100k MSRP vehicle is $20-$25K? What are you, 12? LOLLLLLLL

The post above is correct. Holdback, interest, incentives, etc. all potentially factor into true dealer margin/profit.

The dealers cant be making a mere $2k - $6k in profit in car sales. I don't know the exact number but it is close to 20 percent of the MSRP. Think about it why do other f150 (non raptor) allow $6k - $13K discount of MSRP? what makes the raptor so special that it wont be discounted?
How do the dealers make profit selling XLT $13K under MSRP? of course some fools still pay MSRP for cars because they don't know any better

 

[mamula]

Just press the Ignore button and Mamula will go away.

You are a secret dealer. You and your folks are deceiving the American people!!

 

[SD1290]

The dealers cant be making a mere $2k - $6k in profit in car sales. I don't know the exact number but it is close to 20 percent of the MSRP. Think about it why do other f150 (non raptor) allow $6k - $13K discount of MSRP? what makes the raptor so special that it wont be discounted?
How do the dealers make profit selling XLT $13K under MSRP? of course some fools still pay MSRP for cars because they don't know any better

Because the end user receives factory incentives from ford on those particular trucks, they don’t produce near as many raptors so don’t need to do that.

That’s my guess anyway

 

[Johnkn]

The dealers cant be making a mere $2k - $6k in profit in car sales. I don't know the exact number but it is close to 20 percent of the MSRP. Think about it why do other f150 (non raptor) allow $6k - $13K discount of MSRP? what makes the raptor so special that it wont be discounted?
How do the dealers make profit selling XLT $13K under MSRP? of course some fools still pay MSRP for cars because they don't know any better

In all the Forums I participate in you son are absolutely the most misinformed bullshitter I've had the displeasure to encounter spreading your tin-foil hat conspiracy FUD. when you find yourself in a really deep hole I might suggest putting down the shovel and stop digging. In another thread you state that you will absolutely purchase a Raptor by year's end (leverging your superior product/margin knowledge and negotiating skills). Well, only 3 weeks left, be sure to post up your pics, we'd love to see them....