OT: Best pricing on a new Ford

Submitted by MgoHillbilly on
With the new addition to the family, the MgoWife will be getting a bigger vehicle. We test drove a lot of vehicles and have decided on a Ford. With regard to pricing, I assume many of you may know the best way to get a good deal. As far as Michigan ties, I'm an alum, but not a member of the alumni association. Vehicle would be registered in Georgia and I don't mind flying out to get it and driving it cross country to get it home. Any advice?

getsome

August 18th, 2017 at 4:10 PM ^

thats a great, smart option if possible (and willing).

i usually try to do the same with large purchases like televisions, appliances, tools, etc...floor models at best buy, home depot, etc offer virtually all benefits of new off the rack products at significant discounts 

swan flu

August 18th, 2017 at 3:32 PM ^

Im assuming you aren't considering the "bigger" comment, but don't get an automatic Focus or Fiesta. Their transmissions are absolute shit and Ford just got hammered by a class action lawsuit because of it.

Crentski

August 18th, 2017 at 3:49 PM ^

Be careful with taxes.  Not sure about tax law in michigan and georgia, but Virginia tax laws hit a lot of people with additional taxes for a situation you describe.  Basically, VA will charge you sales tax for all vehicles purchased while a resident, regardless of where you purchased the vehicle.  For example, if I purchase a vehicle in NC (close tax price) or DE (no taxes), VA will still charge me sales tax for the vehicle I purchased in the other states. This means, I would effectively be paying double the taxes if purchased in NC, or the same amount if purchased in DE (but now I have to get the vehicle back to VA). 

MgoHillbilly

August 18th, 2017 at 4:13 PM ^

That's ridiculous. I'll be mindful. I bought my truck in Albuquerque and drove it home because of the deal I got, but there were no taxes paid in New Mexico. The titling process was screwed up by someone over there though and caused quite a headache. Everything else was awesome. I'd do it again because that was a nice drive back.

MichAero

August 18th, 2017 at 5:49 PM ^

At least in California, they do not charge you more sales tax than the going local/state rate if purchased within a year from out of state.

I purchased a car in Colorado a few months ago before moving to Califonia and paid no extra taxes on it (because the taxes I paid in Colorado were greater than here in CA). I would be shocked if VA actually double charged like that.

F5

August 18th, 2017 at 6:12 PM ^

Your taxes are based off of where you are titling it (your residence). I live in Florida and if I bought a car in any state other than Florida the taxes would be the same. 5 years in the car sales business

WestQuad

August 19th, 2017 at 12:57 PM ^

That's probably true for a brand new car.  When I moved from California to New York,  I had to pay a sales/title tax on my car that I had for 5 years to bring it into the state.   It was bascially a sales tax on the current value of the car.   Not a tax I expected.

LSA Aught One

August 18th, 2017 at 3:50 PM ^

I work in the industry.  Manufacturers offer the biggest discounts at the end of a model year.  The 2018 models should be rolling out soon and dealers will be itching to get rid of the 2017 models to make room.  The discounts go up when the car has been sitting for a bit.  That said, search the dealer inventories on their websites; most all of them post their entire inventory online.  If you can find the rare 2016 that has been sitting but with no miles, you can usually negotiate a very nice price.  Make sure they do a full Pre-Delivery Inspection right before you take delivery so you don't get stuck with a bad battery or tires that have flat spots from sitting on the lot for a year.  

As far as the whole "lie to the dealer" thing above, the dealers know you are doing it.  Most of them don't care, because they either are able to absorb the additional cost or they have a program from their manufacturer that makes them whole.  The dealers make nearly all of their money on service, so the gross profit up front doesn't matter much.

UM Fan from Sydney

August 18th, 2017 at 3:50 PM ^

I'm a new father but am already in the planning phase of buying my next car, which will be a Nissan 370Z.

tspoon

August 18th, 2017 at 4:00 PM ^

Another vote here in favor of the economics of buying nearly-new.

I bought a two year old "luxury" sedan with ~25,000 miles that stickered over $40k for $22k and am very pleased.

There is no way I would have found myself happier about it had I consumed nearly 50% of the car's purchase price in those first two years.

 

The quality of so many brands is so high today compared to where it used to be ... really you are hardly rolling the dice anymore if the carfax is clean.

 

sULLY

August 18th, 2017 at 4:01 PM ^

Wife and I just leased a 2017 Explorer XLT.  Only real tip I can provide is to look into the Ford Technology Tour.  I don't know if that's going on in your area, but in the SE Michigan area, going to a Ford Technology Tour (rotates to different dealerships) will save you $500 on a purchase or lease.  I showed up, signed in with my email, and left.  A few days later, I receieved my $500 voucher via email and used it on my lease.  It's not a widely advertised promotion so many people are not aware of it.

Kevin13

August 18th, 2017 at 4:01 PM ^

a car leasing/sales agent to lease 6 cars for my employer. Got talking to them about cars and possibly looking for something for myself and if I should go new or get something a couple of years old because of depreciation.

He told me if you want something a couple of years old get a Ford/Chevy or GM product as he could get incredible deals on those. Always buy Honda and Toyota new because they hold their value better and you won't pay much more for a new one then you would for one a couple of years old.....

South TX MFan

August 18th, 2017 at 4:05 PM ^

Buying used is an option but this time of year you should be able to get a new vehicle cheap enough to cover the initial drop in depreciation. I bought my F150 King Ranch at the beginning of September last year discounted enough to cover it with $0 down and 0% financing.

markusr2007

August 18th, 2017 at 4:10 PM ^

1. Personally I never finance vehicles and I never will. I always save up and pay cash for them. That means going without for a long time. In my opinion, financing something over 36 or 60 months which is already almost fully depreciated (no value) by month 6 is just dumb.   Unless there are safety issues, drive that mother into ground first.

2. Have your specs down. Know what you absolutely want and will not compromise on. Model, make, color, feature sets. With a set vehicle spec at front of mind, you've effectively commoditized your car and the only question now is who to buy it from (lowest price).

They (dealers) will then bullshit their way through extra services, better support and add-ons that you don't want and then they will smirk and scoff if you say "no". Ignore it.  Dealers change ownership and staff regularly. Their promises are nothing that you can rely upon.

3. Know your budget.  If budget is an issue, then consider buying used cars with low miles >10,000. They are out there in all makes and models.  Carmax offers an interesting value proposition for this, but there are others.  Download the Carmax app to check it out. Easy to filter for Fords and models you want.  I have sold used cars to them for quick cash in the past.  I am also in the market for a used Jeep and will likely go this route.

4.  When buying new model cars,  I get 3 or 4 quotes for identical make, model and feature sets from different dealers, some several miles away.  You can submit requests online easily across multiple dealers. Then I let them bash each other over the head on lowest price to get the sale.  You have to double check their quote and specs because dealers are staffed by morons sometimes who leave off your specifically stated specs and then try to rope you into paying more with full court press at the dealer. They have a limit in how low they will go.  You can then try to low ball them even further, but always be ready to walk away.

5. Understand that right now there is a huge oversupply of vehicles on dealer lots and incentives to sell them off are NOT WORKING. There is also apparently a $1 trillion vehicle loan bubble in place (since 2008/2009) cash for clunkers, which will never be paid off.  So  I suspect most automakers and their dealers right now are pretty much shitting bricks and will be very happy to see you.

 

laxmangl29

August 18th, 2017 at 4:29 PM ^

Markus makes a few good points, schmeared with a lot of angst and B.S., but a few good points. 

I used to sell Fords in West Michigan. I was an internet sales manager at a top selling dealership in the GR market. Keep in mind, MOST sales people are good PEOPLE just trying to make a living. The advent of the internet has ruined many bad salesman and been a boone to the consumer. MOST salesmen are volume vs. price sellers these days. Easier to sell 20 cars and make your bonus, then sell 10 and Screw the customers. 

That beign said the Finance and Insurance guys can be pretty snakey. Secure your financing prior and only go with dealer financing if they get a better rate and match your prcing for things like gap insurance. The financing is where the majority of money is made in car sales and most sales people get a bonus off of what that guy can get you to sign for.

Markus probably had some bad experiences, which has tainted his viewpoints, but his basics were good. 

My advice: 

  • There is absolutely no reason an internet deal made should made over invoice. 
  • Make sure you are familiar with option PACKAGES, not just options. The packages (espeically with Fords) are the way most salesman finagle pricing
  • Have a budget and stick to it, but don't imagine a moonroof is free. Know the prices. Many forums will include actual invoice pricing for real vehicles and will happily show you what those actually cost. 
  • Submit what you want to a few different dealerships and work with the one that takes the best care of you (not necessariy the same as cheapest. Your call)
  • Dealer financing CAN be excellent. Most dealerships are able to offer better rates through their connections, but its always best to shop your financial institution to verify this.
  • DO NOT buy any sort of fancy salt proofing, anti theft, paint protection etc...
  • DO purchase gap insurance, but get a quote from your financial institution prior to meeting with the dealer. These policies usually cost $200 from your credit union, $1000 from the dealer. If they get you a better rate, don't hesitate to show your quote for GAP. They will match
  • Extended service plans are not worth it in my opinion, but they can be good protection/piece of mind.  HOWEVER powertrain warranties do not cover as much as you'd think (only Internally Lubricated parts)

    Feel free to reach out for more info!

JamieH

August 19th, 2017 at 12:55 AM ^

New car financing rates are around 3% right now I believe.  In general, you can take the money you would have spent on the car in cash and put it in an index fund and make more than 3%.  Sure, it isn't guaranteed, and honestly, right now with the markets at all time highs and with all of the political turmoil going on it might not be the greatest idea, but IN GENERAL, when interest rates on loans are as low as 3%, it is a better bet to finance your purchase and invest your money than it is to pay cash.

I could have easily paid off my current car and I have chosen to keep financing it because I'm making more money investing that cash than I wouold paying off the car.  

I do agree that once you've paid off the car, driving it into the ground is a good plan.   I just sold a 2003 Z a few years ago that had held it's value really well, but otherwise I tend to drive cars with the idea that I will drive them well past the point that they will have much value.  

MGoShorts

August 18th, 2017 at 4:24 PM ^

Not going to read through all the comments to see if this has already been suggested, but pitting dealerships against each other is a sure-fire way to improve deals. I work for an automotive finance company, and I can say that dealers make a ton of cash on fees tacked onto the price of the car, not the financing. Dealers negotiate a lot of these fees independently with other companies, so the amount of room they have to give can vary considerably.

Because of this, your best bet is to:

  1. Determine what car you want, and which featuresyou consider optional
  2. Find every car within driving distance of your house that you'd be willing to buy, regardless of how much its price varies from other options you have
  3. Have quick, high-level discussions with a salesperson for every vehicle to prove your interest - and make sure you get their email
  4. When you're done vetting out options, compile a master list of all vehicles, prices, and emails associated with the salesperson for every car
  5. Send out ONE email to all of them (yes, they'll all be able to see who they're competing with), and tell them what your current best offer is. Make it clear that you want someone to beat this deal - say it explicitly if you'd like
  6. More offers will come in, and they'll typically only respond to you, not the other dealers. Add the other dealers back onto the chain with every offer. This is my new best offer - beat this new offer
  7. After going through the email process for a bit, accept the best offer

At the end, you'll most likely end up with one of the larger dealers in your area, as their sheer volume of car sales allows them more flexibility on cost. Still, this process leads you to the absolute best offer and at least gives all dealers the chance to compete on price.

Sarasota13

August 18th, 2017 at 5:36 PM ^

And partially covered by others herein The very best deal you will ever get is the total change of a vehicle for a model year. For instance, Mercedes totally changed its GLK for the 2016 model year to a GLC. I was able to get 25% off the list price of a 2015 GLK after telling several dealers my requirements. Walked out on a few. If you buy from a dealer several miles away, it is good to buy from the same company group i.e auto-nation in the event there is a problem. Next best pricing is the end of a model year

Benoit Balls

August 18th, 2017 at 4:29 PM ^

thats a little tougher to come by these days, since dealers dont let as many sales people drive cars off the lot as they used to, but its a good startegy if you can find a demo that is the car you want, and you aren't super picky about color and options (im not saying you have to take puke green and crank windows, but Im saying if you dont "absoluttely have to have" the moon, if youre ok with it maybe not having one or two things you thought you might want)

Last Escape we bought for my wife, they were trying to coax her into getting one that didnt have everything she wanted because it was the only one they had in her color. The I asked if they had any demos, and as it turned out, the salesman we were dealing with was using one as his personal demo, and it had more options than she was looking for, and I got it for 4k beow sticker, all because it had 500 miles on it.

It may be a needle in a haystack, but its worth asking

ThatFatMan42

August 18th, 2017 at 9:00 PM ^

I was also going to recommend Costco.  Wife and I bought a new Highlander and the Costco price was $300 below invoice, or so the salesman told me.  Used their pricing and the threat of walking to take that price at another dealership and got the price at $400 below invoice.  

 

Not a huge thing for sure, but it helps show the benefits of shopping around and knowing what you're options are.  Also it's a good idea to generally research car sales and negotiating tactics.  The more you know the better job you can do negotiating and getting yourself a good deal.  

 

Also, don't buy a Ford.