Dealer Financing

[dngl]

When Ford Corp. offers special financing deals, what cut do dealers get if they sell the financing contract?

And, has anyone EVER been able to leverage that amount against the sale price of a truck?

I've got the truck build sorted out (or so I think), waiting to see if I get an X-plan pin, now I just need to find the best deal on financing--via FoMoCo or otherwise, and then it DORA time, I hope.

dngl

[dngl]

Second Question: Deposit.

How much... Obviously enough to keep me in the deal, and enough to let the dealer know you are serious. So, seeing as we are all trying to find $200 to $400 in savings, is $300 a good deposit number? Am I way off base here? B/C/M...what do you require?

Also, should you hold the deposit until you approve the DORA, or expect to hand it over when the dealer submits the order (assuming you have an agreement on price).

Many thanks,
dngl
www.broncofix.com
'74 Bronco "Weeble"
'73 Bronco "Wobble"
'dngl "falls down"

[mcbreth]

Special Financing- The dealer gets a "flat", usually $125. Good luck getting that.

Deposit- Depends on your relationship with the dealer. $500 is normal, some people pay more, some pay less. Due at time of order.

[SmokeyWren]

</font><blockquote><font class="small">In reply to:</font><hr />
Second Question: Deposit.

[/ QUOTE ] Look at it from the dealer's point of view.

If you order a truck that the dealer would <font color="blue">LOVE </font color> to have in stock, then he may not require any deposit. My dealer doesn't require a deposit for ordering an "ordinary" truck that he might order for stock.

But if you order a truck that only a Mother could love, then expect to pay a deposit of at least $1,000. Non-refundable! So if you back out of the deal after it's too late for the dealer to cancel the order, then the dealer will have your deposit to offset some of the floorplan costs while that unpopular truck you ordered sits on the lot unsold.

In our current market in our neck of the desert, if you order a manual tranny or XL trim or a Dooley or a regular cab, then you're going to pay a deposit. In some places if you order a 4x2 you're going to pay a deposit. It just depends on what's hot and what's not in that location when you order.

Another purpose of the deposit is so the salesman will know he's not wasting his time in processsing your order. But only $100 or so should be enough for that purpose.

A few months ago we on this board saw where Cochise processed an order for a guy in New York for a drop ship deal. The truck was one of those that only a Mother could love. No A/C, so it would never sell in Houston. And it was delivered to a dealer way up in New York. The buyer backed out of the deal, leaving Cochise with a truck 2,000 miles from Houston. That little deal cost ole Cochise a pretty penny, I'll bet. I hope he had a good non-refundable deposit on that deal. [img]/ubbthreads/images/icons/shocked.gif[/img]

[dngl]

That is what I figured. Not even gonna try for it, or even ask. Just wanted to know, and I appreciate your answering. Just trying to figure out how annoying to be should I place an order...

[mcbreth]

Typically the more annoying, the lower the order priority. [img]/ubbthreads/images/icons/wink.gif[/img]

[Cochise]

Smokey,

Cochise here. You are so right!

The following would address "Drop-Ship" units.
If I can "kill" the order... No harm, no foul!
I have had several of our "members" back out of deals as have Bobby and Marty. For no other reason than... "Oh!, I changed my mind!", "I want my deposit back." What the hell is that!? Thru your action(s) you have caused the dealership(s) to commit to purchase from Ford a unit with cost of 20/30/40/50 thousand dollars and drop-shipped hundreds of miles from our location(s). Do you think I/we could tell Ford... "Oh!, I changed my mind!" No, we bought it. I'm not going to fade that kind for heat for long. When I get stuck with one of these little nuggets someone gets a great deal! I am currently working with someone that is... how should I say it... "questioning" the deposit requirement(s). "Well!, I would think that 500.00 would be more than sufficient on a drop-ship!" In the first e-mail this person spoke of refusing the unit if there was "any" flaws! Yea!, Right!
Let's say you are a painter by trade or what ever. I have you quote painting my shack... 6000.00. You say you need 1000.00 deposit for materials. I'm cool with that. You go and special order the materials/paint. The next week I say, "Oh!, I changed my mind!" "I want my deposit back!" You're stuck with "X" gallons of "putrid pink" paint and the most god offal wall paper the world has ever seen. I'll be waiting by my mailbox for the check. [img]/ubbthreads/images/icons/wink.gif[/img]

On units ordered into my location.
If it's not a b/s unit, no problem. We will sell the unit retail! I have control of the unit.

[Blue74]

</font><blockquote><font class="small">In reply to:</font><hr />
When I get stuck with one of these little nuggets someone gets a great deal!

[/ QUOTE ]

That is how I got mine. Thanks Bobby.

Paul

[BWilliams]

</font><blockquote><font class="small">In reply to:</font><hr />
That is how I got mine. Thanks Bobby.

Paul

[/ QUOTE ]
Your VERY welcome [img]/ubbthreads/images/icons/wink.gif[/img]