Wildtrak vs Raptor Side By Side

bulldog17

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Maybe, small dealer. Says he can't get Broncos....Fraps, Explorers. Cars that people want to buy.
I asked about high adms and having allocations reduced, that's when he said they weren't sending vehicles so he had to charge high adms...
They're were a couple of new Broncos and explorers on the lot.
 

Shaggy

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Maybe, small dealer. Says he can't get Broncos....Fraps, Explorers. Cars that people want to buy.
I asked about high adms and having allocations reduced, that's when he said they weren't sending vehicles so he had to charge high adms...
They're were a couple of new Broncos and explorers on the lot.

That's a dumb reason to bump up the adms just because they don't get alot of them. They still make good money on them at MSRP..
 

Iceman

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You know someone will pay it
Probably right. Some people want to be the 1st and will pay whatever. Would be nice to have $ like that to not have to worry about price. Reminds me of the Scottsdale Barrett Jackson and the amount the new 2023 Corvette Vin #1 sold for- $3.7 mill!

 

Bukin 67

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Are ADMs subject to do the dealers decision to raise it or keep it MSRP? The ADMs are what the dealer keeps from themselves. Ford doesn't get any of that, right?
That's right. Dealers can charge extra (ADM) and Ford doesn't get anything over the dealer wholesale price.
 

Shaggy

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That's right. Dealers can charge extra (ADM) and Ford doesn't get anything over the dealer wholesale price.

I'd be curious what the profit is for the dealer and Ford when they sell a vehicle for MSRP.
 
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funkified

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I'd be curious what the profit is for the dealer and Ford when they sell a vehicle for MSRP.
Heres what I can figure from working in the industry for a short time. When Ford allocates vehicles to a dealer, the dealer pays Ford their cost on it. The dealer can then sell the vehicle at MSRP or higher with ADM. The difference in the dealer cost and MSRP in sales lingo is called the gross profit. Where the ADM goes? I dont know, I am assuming the dealer keeps it.

In terms of what Ford makes as the parent, I will have to speculate from here on. I'll assume that there is some kind of internal markup between them and the store. Freight and PDI/Destination charges also potentially generate some sort of small profit after shipping costs and the initial inspection. Some of the PDI likely goes to the service dept as the tech has to do an inspection on it, program the keys, fill it with gas, pull of the plastic off etc. The other factor I can think of is that when a vehicle lands the dealer is technically accountable for its cost, meaning the dealer has to front the money to pay for the vehicle before it is sold. Ford may finance that interally with the store with decent rates, or they may also have their own means of financing that, not sure what kind of agreements are there though. The longer a vehicle sits on the lot the more interest it accrues so its always in the best interest of the store to sell a vehicle in 30 days or less.

But to simplify what a dealer makes on a sale, think of it as 2 streams of profit which come front and back end of a deal. Service is its own dept and makes their own money.

Sale of the vehicle + (front end) + financing, warranties, Life and Dis plans, accessories, etc.... (back end) = Total Profit

Anyways that is what I know from my time, and talking with my buddies who still work in the industry. I could be totally offbase on some of this, as it is all heresay, I've never sat down and looked at the books of any store I worked for, nor was I in a managerial position privy to that type of info.
 

Shaggy

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Heres what I can figure from working in the industry for a short time. When Ford allocates vehicles to a dealer, the dealer pays Ford their cost on it. The dealer can then sell the vehicle at MSRP or higher with ADM. The difference in the dealer cost and MSRP in sales lingo is called the gross profit. Where the ADM goes? I dont know, I am assuming the dealer keeps it.

In terms of what Ford makes as the parent, I will have to speculate from here on. I'll assume that there is some kind of internal markup between them and the store. Freight and PDI/Destination charges also potentially generate some sort of small profit after shipping costs and the initial inspection. Some of the PDI likely goes to the service dept as the tech has to do an inspection on it, program the keys, fill it with gas, pull of the plastic off etc. The other factor I can think of is that when a vehicle lands the dealer is technically accountable for its cost, meaning the dealer has to front the money to pay for the vehicle before it is sold. Ford may finance that interally with the store with decent rates, or they may also have their own means of financing that, not sure what kind of agreements are there though. The longer a vehicle sits on the lot the more interest it accrues so its always in the best interest of the store to sell a vehicle in 30 days or less.

But to simplify what a dealer makes on a sale, think of it as 2 streams of profit which come front and back end of a deal. Service is its own dept and makes their own money.

Sale of the vehicle + (front end) + financing, warranties, Life and Dis plans, accessories, etc.... (back end) = Total Profit

Anyways that is what I know from my time, and talking with my buddies who still work in the industry. I could be totally offbase on some of this, as it is all heresay, I've never sat down and looked at the books of any store I worked for, nor was I in a managerial position privy to that type of info.

Awesome details on that. Never really know the dealers actually bought it from Ford. Figured Ford and the dealership don't make anything until the vehicle is sold.
 

jzweedyk

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I think the dealers are invoiced when it ships from the factory. They probably have X days to pay or finance it. ( it used to be called flooring, but I am not sure now) Big appliance dealers do the same thing. That is run through Ford credit or GMAC credit or what ever Chrysler uses. That's why dealers like you to order a vehicle, because you can pay for it before they have to, and they don't have to pay credit charges.
 
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funkified

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I think the dealers are invoiced when it ships from the factory. They probably have X days to pay or finance it. ( it used to be called flooring, but I am not sure now) Big appliance dealers do the same thing. That is run through Ford credit or GMAC credit or what ever Chrysler uses. That's why dealers like you to order a vehicle, because you can pay for it before they have to, and they don't have to pay credit charges.
ah ya that makes sense and would fill in the gaps of what I was saying. I think dealers carrying masses of inventory will be a thing of the past as well. They'll have a bare minimum on the lot and everyone else will order.
 

jzweedyk

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Even though it is a high ticket item, there are actually a lot of impulse buyers. See one they like and pull the trigger. So I think when things get back to normal, there will be a lot of vehicles on the lots.
 

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