2023 Ford Prices: MSRP, Invoice Price, Actual Dealer Cost, and Holdback
Ford Prices: How to Get the Best Deal on a New Ford
Knowing the Ford invoice price is crucial when buying a new Ford vehicle. It is the price that the dealer pays the manufacturer for the car, which can be different from the MSRP displayed on the window sticker and the actual new car cost of the dealer.
If you’re planning to buy a new Ford and want to learn about the dealer invoice pricing or how much you can save by buying below the MSRP, this article will provide all the information you need to make an informed purchase.
Ford Price Tip: In today’s market, finding a new Ford at a reasonable price can be difficult. Many car buyers end up paying more than the suggested retail price. However, there are still ways to get a great deal on a new Ford by using online shopping services that allow you to compare prices.
What are Ford’s Invoice Prices and MSRP?
When purchasing a new Ford, it’s essential to understand the MSRP (Manufacturer’s Suggested Retail Price) and the factory invoice price. The MSRP is the price the manufacturer recommends based on factors such as model, color, options, and trim package. This price is displayed on the vehicle’s sticker when it first hits the market.
The factory invoice price, however, is the amount the dealer pays the manufacturer for the vehicle before any discounts or incentives are applied. This price includes any factory-added options. Dealers purchase their inventory at wholesale prices from the manufacturer, with the invoice price representing the amount paid for each vehicle.
It’s worth noting that the invoice price differs from the dealer’s new car cost, including shipping and storage costs and fees. Understanding these costs is essential during negotiations and determining a fair profit new car offer to the dealership.
While not everyone can purchase a new car at or below the invoice price, knowing these figures can help you make reasonable offers during negotiations.
Real-Time Bargain Hunting: Turn to Edmunds for instant access to the latest and greatest local deals, saving you time, money, and stress.
How to Find the Ford Invoice Price
When you search for a Ford online, knowing the essential factors that can help you find a reasonable price is advantageous.
Knowing the Ford invoice price and MSRP can give you more negotiating power with the dealer, but finding this information can be challenging since dealers don’t always disclose the prices they pay for the cars they buy.
RydeShopper and Edmunds are two of the best car-buying tools available online. By entering basic information into these tools, they will provide you with an itemized list of the current MSRP and invoice for the selected make, model, and trim, making it easier to negotiate a fair price for your new Ford.
The Difference Between Ford Invoice Price and Dealer Cost
The Ford factory invoice prices incorporate concealed profit margins, such as dealer holdback and manufacturer-to-dealer discounts.
However, the dealer’s actual cost for a new vehicle, which can be substantially lower than the invoice price, is the amount paid by the dealer to the manufacturer.
How Much is Ford Dealer Holdback?
The dealer holdback is an additional cost element added to the factory invoice price of a new Ford vehicle, typically amounting to 2-3% of the MSRP. It’s important to note that the dealer holdback is not a discount or rebate but rather an extra sum of money that some Ford dealerships may agree to.
The Ford dealer holdback is 3% of the total MSRP
The dealer holdback amount can be calculated by multiplying the total MSRP of a Ford vehicle by 3%. This results in the total amount available as a holdback. The manufacturer usually pays this amount to the dealer every three months for each vehicle sold.
However, it’s important to note that holdback may not always be negotiable, and some Ford dealerships may not be willing to disclose the exact dollar amount.
How to Calculate Actual Dealer Cost on a Ford
How to Figure the Dealer Cost of a New Ford :
Ford Factory Invoice Price
– Dealer Holdback¹
– Customer Rebate²
– Dealer Incentive²
+ Destination Fee
= Actual Dealer Cost
¹Ford dealer holdback is 3% of the total MSRP.
²If is applicable.
How to Find the Best Lowest Local Ford Price
Use the Ford invoice price as leverage when negotiating the best deal for your purchase. You may even receive a more significant discount on the sticker price.
You can save even more money on your purchase by negotiating a price lower than the Ford dealer invoice price.
Start your search for the best local price for your new Ford with RydeShopper below.
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