[ZTWsquared]

(06-12-2010, 09:17 AM)OAC_Sparky Wrote:

(06-12-2010, 01:09 AM)Jmountney1 Wrote: so what kinde of a mark up do dealers do. like what kind of savings could some one see using the x plan

X-Plan (and A-Plan) is not in direct correlation with "dealer markup". The dealers are compensated through the plan so some (in some cases most) of their margin remains intact. That's why X-Plan is non-negotiable -- the price is set by Ford. On a retail sale, the dealer uses the difference between retain and invoice as wiggle room to make the sale. The amount you save on negotiations in a retail sale comes out of the dealer's pocket. X-Plan does not; barring that the car in question can command sticker price or above.

As for how much you save, it depends on how "loaded" the car is. On a base car, the invoice vs retail price isn't inflated that much. Options have a higher percentage markup. So the more "loaded" the car is, the greater percentage you save. For example, on a base Fusion S (retail $20G) with no added options you would save $450. On a loaded Fusion Sport AWD ($38G) the plan would save you about $2200.

And just to add a bit more detail to the above ... it also depends on how much of a Dealer Admin fee the dealer normally charges ... under the x-plan they are not allowed to charge any admin fee ... so the price set by Ford of Canada is the price you pay. So that could add savings anywhere from $200 to $400 dollars and sometimes more.