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Invoice pricing explained

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X plan pricing on my HyTi which has Nav, Sunroof, ACC, and Drivers package comes to $35,204.

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Murphy,

 

Wow, how I wish I would have known about Ford's 'thank you' to shareholders. I looked up that link and this flavor of X-pricing equates to 4% over employee pricing. Do you know how much employee pricing is? That + 4% has to be a darn site better than the best deal I could negotiate as John Q. Public. Had I known, I would've purchased Ford's stock. Given their aversion to Gov't bailout during the recession, unlike those other American car manufacturer bastuds, I believed Ford deserved our consumer dollars. And, had I made the leap and purchased their stock around the time I placed my order for the 2013 FFH, I would've made a cool 54.7%. Oct 31st 2012 price was $10.70/share. 13 June 2014 closing price was $16.56. Ain't no bank in the world that'll give you that kind of return.

 

I'm sure everyone's aware by now of Ford making it right with gas mileage estimates on the 2013/2014 models. Unlike GM that let people die over concealing their engineering mistakes, Ford fessed up on 12 June and issued a statement stating FFH owners will be getting a check for $775 to make up the difference in fuel cost (47mpg down to 42mpg). Ford lost 30-cents in stock price since their announcement but their brand value rose 56% in the latest Brand Z survey. Things are looking up and I still think they deserve our dollars. All companies make mistakes sometimes but at least Ford fessed up and they're making it right ... and they're not waiting 10 years to do it. I grew up loving the Chevy Camaro (owned 3 of them) but I wouldn't own one if it were free these days. GM won't see a dime of my money. I'm off to do some research to see if now's a good entry point for Ford's stock.

 

I'm clueless about employee pricing but I'll take a wild stab and say that it's equivalent to the invoice price minus the holdback rate. That may be plausible, given it means the dealership doesn't lose anything (actually they'd still make a little). Under that model for a 2014 HyTi, the shareholder Friends & Family price would be $200 over invoice, or $491 better than Partner Pricing ($30,777):

 

Ford holdback = 953.25 (3% MSRP - dest)
HyTi invoice 30,074
- 953 (holdback - dest)
= 29,121 emp price
x .04 (shareholder rate)
= 1,164.84
+ 29,121 emp price
= 30,285.84 (shareholder price)

 

If that's true, it's a much better deal than Partner Pricing and, given Ford's trend for stock appreciation, well worth the investment.

Edited by bcrisp

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If you are looking to find out what X plan pricing is, here is a link

 

https://www.fordpartner.com/partnerweb/home.do

 

NDUNV

 

Acdii,

 

This is interesting and THANK YOU for posting it.

 

I looked up this Partner Pricing and used Edmunds to determine Invoice price. Their MSRP was spot-on with Ford's price list. In this theorhetical example, I used the 2014 HyTi with no options. MRSP = $32,600. Invoice = $30,074. Partner Price = $30,777, which comes to $703 over invoice. When I buy a car in this price range, my price target is Invoice + $500. Of course I don't always get that, as there's many variables that work toward what a dealership is willing to let it go for. So that Partner Pricing would be great for someone wanting a very efficient sale price determination (it's predetermined), or for one that wants to forego all the back-n-forth with a salesman, which takes time, effort, emotional pain with a good injection of poker face. I'm really curious what the employee price rate is so that I can determine if shareholder pricing (employee rate + 4%, per the letter Murphy posted) is a better deal.

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As to employee pricing (A & Z plans) if you take about 10% off the sticker price it comes out right most of the time. Having bought 12 or more cars like this over the years the 10% rule has really come close every time.

 

Thanks for posting that, hermans. 12 iterations makes you a master at this :) Let's see how that works out:

 

$32,600 (MSRP) - 3,260 (10%) = $29,340 (employee price). That's just $219 more than my unejumahkated guess.

 

29,340 (emp pricing; $734 under Invoice - sweet)

x .04 (shareholder rate)

= 1,173.60

+ 29,340

= 30,513.60 (shareholder sale price) -or- $439.60 over Invoice (30,074) -or- $263.40 under Partner Pricing (30,777). Mileage may vary :)

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