Ford 's A Brand New Car Deal Essay

978 Words Oct 1st, 2016 4 Pages
Introduction Auto manufacturers such as Ford, and their dealers know how to price their automobiles in order to guarantee themselves a profit on every automobile they sell. Most people will or already have spent hours at a dealership trying to negotiate the best price of a brand new vehicle before reaching a deal. Customers leave the dealer with their new wheels and are still running the numbers in their head and will even look at the paperwork to see how the dealer arrives at the final price. Dealers even though they are the middleman, they are the ones to benefit the most in a brand new car deal. By negotiating the dealer invoice price with the manufacturer, dealers already know their cost will not increase, nor will the rebates or incentives the manufacture provides the customer affect the dealer. Some of the different pricing options Ford and their dealerships could use is skimming, promotions, and Good-Better-Best (D 'Antonio, 2012). In the past 100 years, Ford has never, nor will they ever reveal to their stockholders, consumer or their dealers how they determine the dealers price or the Manufactures Suggested Retail Price. One might consider Ford to use the cost plus pricing, since they are not building automobiles to lose money and even with different incentives to dealers and consumers will not lose money solely due to the price. When you visit your local dealer, and begin to notice the sale price, dealer invoice price, and MSRP try to determine what price…

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