Trading in the 2016 LT

[Pacfanweb]

RT:

 

They make that amount of vehicles after the manufacturer kickbacks and such. You can't find 10K of profit on an actual invoice on a $50k vehicle, even if you go from MSRP down to "Memo", as Ford calls it, which is well behind invoice. So that's all the consumer has to go on and that's where their only negotiating power is, and that's why I don't include that in my post...it's not info the consumer can get access to, so not part of the negotiation.

All the consumer can know is MSRP, and invoice price. And possibly any employee pricing like Ford's D and A plan, which are a bit lower than invoice price...but they are right there on the invoice as well.

Actual final profit varies, and depends on other factors, like # of units sold, etc. But yeah, I wouldn't be surprised if it was that high.

Don't know about "30-40 years ago", lol.

 

So I would advise folks to get that price fixed first.

 

And yes....if you have a bottom-dollar, final price worked out and THEN you throw in a trade....then sure, you're not going to think you're getting as much for the trade.....but what you're really getting is the actual price they're going to give you for it, not "what they allowed for the trade". Or the "trade difference". The average consumer, no way they can figure out what they're actually getting if they do it that way.

 

It's the dealer's duty to make money on the transaction and provide good customer service. It's the customer's duty to make sure they are okay with the price, and if they aren't, either negotiate it lower, or walk away.

 

Any competent buying advice will tell the consumer, and always has told the consumer, NEVER mention a trade up front. Always work out your final, out-the-door price first. And I say NEVER trade, but if you must, then throw that in after you have your final, total price.

This is the only way the customer can ever know truly how much they are getting for their trade.

 

And what they give for trades will typically be "rough book". Or lower. That's a whole separate negotiation, and that's why any buyer's advice will tell you to work it out separately, not as part of the sale. If "rough book" says your trade is worth say, $35k, but they dealer knows your model is only bringing $31k at the sale, then the book is out the window. Most folks don't realize this.

 

They aren't "cutting the trade in value"...they are forced to "show you what they REALLY are paying for your trade".

 

I fully agree about those stupid "add on" stickers. I see those all the time. There are some dealers that are in love with adding a few minor things and putting those on every vehicle on the lot. If I were going to buy new, I wouldn't even consider that price when I started negotiating. Not unless it was some significant add-on, like a lift and tires, etc.

[pickmeup]

Been buying for 50 years and nothing has changed. It is still a ''horse trading'' transaction. Odds say someone going to make out good, other person not so good.

[Pacfanweb]

Been buying for 50 years and nothing has changed. It is still a ''horse trading'' transaction. Odds say someone going to make out good, other person not so good.

 

Pretty much. It's very much a "your mileage may vary" experience. Depends on many different factors: Dealership, salesman, finance people, managers, etc.

 

And of course, you.

 

Biggest difference today is, there are more informed buyers out there now. But still plenty of folks who come in uninformed and the process goes exactly like it always has.

['17 Sierra]

 

You must not work in sales, then, and you clearly don't work in finance. The dealer absolutely, 100% "cares" if you finance it with them...whether they use GM financing or a bank.

 

Dealers make money on the financing, too. Those rates and fees are also very negotiable. They also often get kickbacks from financing companies, just like they get them from GM (or Ford or any other manufacturer), so yes....they care a LOT whether you finance it.

Most dealers much prefer that you finance it with them. Finance guys hate doing cash deals, because they don't make any money on them. They are reduced to simply being paper shufflers in those cases.

 

 

That is why you negotiate initially on the price of the vehicle and the price of the vehicle ONLY.....get that settled to your satisfaction before you let them know you also need financing. Don't ever mention trade until you get the sale price where you want it. Otherwise you will never know what you really got for your trade. (this is if you insist on trading, which you should basically never do unless you just like throwing away money)

 

That way your sale price is set, and you can then focus on how fair/unfair you think the financing costs are.

 

SPOT ON!!!

[Willyone]

oops

[Willyone]

It turns off the AFM (active fuel management) so the truck stops going into V4 mode and stays in V8 mode all the time.

 

 

 

Here you go. I don't have one myself but, several on the forum here do. http://www.rangetechnology.com/

 

Thanks for the answers!!

[Rayce08]

What the hell are you talking about? I work at a dealer and it's the same price financed or cash. This isn't 20 years ago. We don't care if you finance it since that's what 99.9% of the sales are.

 

what are you referring too ?....... its pretty simple , if he didnt put any money down or enough money down on the truck he has now he will be upside down after only a year IF trading in , again i dont know his situation , i dont know if he financed it or owns it out right ect....

 

and you should never payment shop if buying a car with dealer financing , that allows them to manipulate the interest rate to make money , which they do

 

 

You must not work in sales, then, and you clearly don't work in finance. The dealer absolutely, 100% "cares" if you finance it with them...whether they use GM financing or a bank.

 

Dealers make money on the financing, too. Those rates and fees are also very negotiable. They also often get kickbacks from financing companies, just like they get them from GM (or Ford or any other manufacturer), so yes....they care a LOT whether you finance it.

Most dealers much prefer that you finance it with them. Finance guys hate doing cash deals, because they don't make any money on them. They are reduced to simply being paper shufflers in those cases.

 

 

That is why you negotiate initially on the price of the vehicle and the price of the vehicle ONLY.....get that settled to your satisfaction before you let them know you also need financing. Don't ever mention trade until you get the sale price where you want it. Otherwise you will never know what you really got for your trade. (this is if you insist on trading, which you should basically never do unless you just like throwing away money)

 

That way your sale price is set, and you can then focus on how fair/unfair you think the financing costs are.

 

 

educated buyer right here .... everything he said is spot on