- Oct 12, 2011
I don't know details, but when I placed the order I asked the salesman how Ford makes them "whole" when they do an A-Plan deal. He said he gets compensated the same as an employee, "but it's not so great for the dealership." I suspect they just get less profit. You would think Ford/Lincoln pays them the difference from what they sell it for to what MSRP is, but my uneducated guess is that it's basically a "neutral" transaction for the dealer where they sell it to me at invoice and lower margin AZ plan deals are just part of being an authorized dealer.
Hi 5DH. LOLOLOL...Take what that salesperson stated with a very large grain of salt. It is misleading at best, probably in a silly attempt to get people to feel sorry for poor old him/her and the Dealership. They couldn't gouge you, while they ask outrageous prices from their retail customers. Woah is me...
Without going into a long story...It is more complicated than the questionable (at best) explanation the salesperson gave you. It involves "spiff checks" from Lincoln/Ford and other compensation to the Dealership. And Dealers make a tidy profit for a simple, no-negotiations AXZD-Plan sale. It is quick and clean and profitable for them.
Before the pandemic induced shortages, Dealerships loved AXZD-Plan sales. It was a quick, clean sale with a known profit. The only reason they are limiting AXZD-Plan sales now is due to the fact that vehicles are in short supply. And since supply is low and demand is high, they can hold a gun to customers heads, charging MSRP and above. This would have been impossible before the pandemic and vehicle shortages.
AXZD-Plan sales are voluntary for Dealerships. And Dealerships make plenty of profit on AXZD-Plan sales, or they would not do them at all. But if they can gouge a customer for MSRP and above, of course that is what some would rather do.