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Incentives and purchase price


photomatt8

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Hi everyone... my first post here.

I am going to be purchasing a 2013 Explorer, my first Ford ever.

My question is, when do Incentives come into play? I usually pay no attention to incentives and I just offer the dealer a little above "invoice price" that I find on Edmunds.com. I have always dealt this way. For example, if I qualify for $1500 in current incentives, does that $1500 come off of the negotiated purchase price, or does that only come off of the "Sticker price"?

If sticker is $38,500 and I walk in and offer $36,000 would I get $1500 incentives off of the $36,000, bringing it to $34,500?

Thanks guys
Matt
 

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tmilicia

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I always try to negotiate for invoice minus all available incentives. Some dealers will go for it, some won't. The invoice price that edmunds gives you isn't the true invoice price. It doesn't include the fuel charge and advertising assesment that is added to every invoice from Ford. Figure about $700 above what edmunds says.
For example, on the new F150 I recently ordered, there is a $582 adv. assesment and $142 fuel charge (a little on the high side for 36 gallons of gas) on the Ford invoice.
 


peterk9

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I always try to negotiate for invoice minus all available incentives. Some dealers will go for it, some won't. The invoice price that edmunds gives you isn't the true invoice price. It doesn't include the fuel charge and advertising assesment that is added to every invoice from Ford. Figure about $700 above what edmunds says.
For example, on the new F150 I recently ordered, there is a $582 adv. assesment and $142 fuel charge (a little on the high side for 36 gallons of gas) on the Ford invoice.
A fuel charge?? I've never seen that here. The 4 vehicles I've had over the last 10+ years always came with a full tank of gas but there was never a charge listed for it anywhere.
I have never heard of an advertising assessment either.

Peter
 


peterk9

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Hi everyone... my first post here.

I am going to be purchasing a 2013 Explorer, my first Ford ever.

My question is, when do Incentives come into play? I usually pay no attention to incentives and I just offer the dealer a little above "invoice price" that I find on Edmunds.com. I have always dealt this way. For example, if I qualify for $1500 in current incentives, does that $1500 come off of the negotiated purchase price, or does that only come off of the "Sticker price"?

If sticker is $38,500 and I walk in and offer $36,000 would I get $1500 incentives off of the $36,000, bringing it to $34,500?

Thanks guys
Matt
Welcome to the Forum photomatt8. :wavey:
Matt, I'm not sure how the incentives are handled in the U.S. When I ordered my Explorer back in Dec. 2010, there was a $1000 Early Order incentive. When I picked up my Explorer in March 2011, there was another $1000 promotion in accessories or off the vehicle price. I was able to get both and I believe they came off the sticker price before we negotiated a final price.

Peter
 


phareous

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A fuel charge?? I've never seen that here. The 4 vehicles I've had over the last 10+ years always came with a full tank of gas but there was never a charge listed for it anywhere.
I have never heard of an advertising assessment either.

Peter
Yes the fuel charge, advertising assessment, and destination charge should appear on the invoice and come from Ford. The advertising differs by region. The destination charge is $825
 


phareous

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Hi everyone... my first post here.

I am going to be purchasing a 2013 Explorer, my first Ford ever.

My question is, when do Incentives come into play? I usually pay no attention to incentives and I just offer the dealer a little above "invoice price" that I find on Edmunds.com. I have always dealt this way. For example, if I qualify for $1500 in current incentives, does that $1500 come off of the negotiated purchase price, or does that only come off of the "Sticker price"?

If sticker is $38,500 and I walk in and offer $36,000 would I get $1500 incentives off of the $36,000, bringing it to $34,500?

Thanks guys
Matt
The incentives are between you and Ford and have nothing to do with the dealer.I went with x-plan so didn't negotiate but I would negotiate the price first and then have the incentives added after that. In my case they put the incentives onto my downpayment for the loan..you could probably also request a check if you wanted
 


photomatt8

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Welcome to the Forum photomatt8. :wavey:
Matt, I'm not sure how the incentives are handled in the U.S. When I ordered my Explorer back in Dec. 2010, there was a $1000 Early Order incentive. When I picked up my Explorer in March 2011, there was another $1000 promotion in accessories or off the vehicle price. I was able to get both and I believe they came off the sticker price before we negotiated a final price.

Peter
If the incentives only come off of Sticker price, what good are they?? Anyone can walk in off the street at any time and offer $1500 below sticker price, and walk out with a new car.
 


peterk9

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Yes the fuel charge, advertising assessment, and destination charge should appear on the invoice and come from Ford. The advertising differs by region. The destination charge is $825
That must be a U.S. thing. We only have a delivery charge, no fuel or advertising charges.

Peter
 


peterk9

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If the incentives only come off of Sticker price, what good are they?? Anyone can walk in off the street at any time and offer $1500 below sticker price, and walk out with a new car.
I guess if they are happy with that then okay. But I still negotiated a price after the incentives were taken off. I don't see how that is different than negotiating a price and then taking off the incentives.
I believe that is the way it went with me. I don't have a clear recall of the whole procedure now.
A call to a local dealer will likely get you the answer you're looking for. Happy shopping.:)

Peter
 


Since95

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Here's what I did for out the door. Invoice + Adv assessment + Fuel Charge + Tax & License + $55 doc fee - Incentives.

Note the invoice included the destination charge and I could have told the dealer to stuff it on the doc fee. At that point I was done and another $55 wasn't worth the hassle. In the end the dealer will make ~$1,300 including the factory holdback on the purchase and my nit-wit state will plunder ~$3,400.
 


phareous

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I guess if they are happy with that then okay. But I still negotiated a price after the incentives were taken off. I don't see how that is different than negotiating a price and then taking off the incentives.
I believe that is the way it went with me. I don't have a clear recall of the whole procedure now.
A call to a local dealer will likely get you the answer you're looking for. Happy shopping.:)

Peter
I think the thing is the dealer may try to make it look like they are giving you that money, taking it off theirselves when in fact it is not coming from them but from Ford. So for example they could offer $1000 less than sticker price and in reality they would not be giving you anything at all
 


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