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Old 06-18-2011, 02:18 PM   #1
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Dealer cost and mark up.

I took a 2012 SE standard out for a test drive yesterday from Denny Andrews Ford, Edmonton, AB, and was very happy with it. Then it came time to talk money. The salesman I drove with seemed more honest than most but I guess you never really know.

He tells me that some people think that a small car is marked up perhaps $8000, and that's just wrong. Such a number may be more applicable to a diesel super duty. He says the mark up on Focus and Fiesta is about $500 or not much more. This discussion comes along with the Ford employee pricing that is currently going on in Canada and the Focus discount amounts to about $2200 off. The salesman told me they really won't haggle at this time either given the profit margin. He also said honestly the price is not going to get better than this and if it were him he would be buying it during employee pricing.

This sounds all fine and well but raises one issue with my girlfriend and I. Some weeks back I was in discussion with a salesman from Sherwood Ford in Sherwood Park, AB. This was my first time speaking with a salesman with the focus and he said at that time there was a $3500 Canada wide discount ending that Saturday. The Ford Canada website showed no such discount on a 2012 but it did for the 2011. I'm sure he confused the deal between the 2 cars and even asked him after the day passed if he was absolutely sure. He says he was and that discount will come again.

Which leave the burning questions to be helped with.
Does anyone know the approximate dealer mark up above their cost on these cars? Specifically on an SE sedan with no options to be more specific?
If there are any Canadians or Canadian dealers lurking around, was there actually a $3500 discount about 4-6 weeks ago?

All Help is appreciated.


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Old 06-18-2011, 05:49 PM   #2
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I work in the motorcycle industry, and can tell you. I am AMAZED how small the profit is on new units...compared to almost anything else its ridiculous. You basically sell the bikes so you get to sell parts and work on them...BUT, sometimes there are special deals and dealer kickbacks if you grab them while they are active...but I can't be of any help in your location....But GOOD LUCK on getting a new ride!
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Old 06-18-2011, 07:46 PM   #3
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You can price one out at www.edmunds.com ... they have cost info ...

Here's what a loaded Titanium looks like, priced out for a zip code in MA:




And a base-model "S" has about $865 mark-up from invoice, plus dealer holdback which is usually about 1-2% of cost or MSRP ...

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Old 06-19-2011, 03:56 AM   #4
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Thank you for the replies and that Edmunds link. That is quite an insight to what the dealers actually profit. I'm not sure how many units an average size dealer sells in a day but its almost a wonder how some of them stay in business.
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Old 06-19-2011, 09:07 AM   #5
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Yup ^^^ You sure can't keep the doors open just selling cars....or bikes
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Old 06-19-2011, 12:32 PM   #6
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A dealership without a good / busy service department doesn't stay around for long ... many times when the Svc Dept saves a dealership ...
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