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If you are trading in a vehicle as part of a purchase, that will also impact your effective price. And to help avert any hard feelings or misconceptions regarding your trade-in’s worth, Ford.US.com is prepared to offer you the recognized dealer Black Book value. You can even get an idea of that value by clicking here to connect to the Kelley Blue Book web site. Enter accurate and honest information there, and then reduce the Kelley Blue Book value by 12%. This will be close to the dealer Black Book value. Kelley’s values are skewed slightly toward retail levels.
The cold truth is that Ford.US.com serves its customers best by selling new Ford cars and trucks at WHOLESALE invoice – or less – and we operate on a very thin margin. Therefore, we simply cannot offer our customers a RETAIL price on their trade-in car or truck. In fact, we can only offer the recognized Black Book value, adjusted for actual condition of the vehicle.
The truth about “book value” is that there is more than one book. The widely known Kelley Bluebook is mostly geared toward the consumer market and often gives the highest individual values for a vehicle. The NADA Guide, is often referred to by banks and finance companies and is skewed more toward a “loan amount” price. The Black Book is a subscription-only resource for auto dealers, and provides a generally accurate week-to-week price that’s more in line with the amount you can expect to be offered at a dealership trade-in. More often than not, this is a lower price than those listed in Kelley or NADA.
Why do we subscribe to the lowest-price resource? Simply because it’s more accurate for the business world we work in. Here’s why:
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The real value of your trade-in depends on more than its general physical condition. For example, a V8 SUV in “excellent” condition will be worth less than its book value if gasoline suddenly jumps to $3 a gallon, making the vehicle difficult to resell. The Black Book, published weekly, generally allows for these variables
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Almost all trade-in vehicles will require some degree of work or mechanical repair to bring them up to salable condition. The Black Book price allows for this investment.
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If a vehicle’s condition makes it uneconomical to recondition for sale, money must still be spent to send the vehicle to auction where another dealer may want it. The Black Book price allows for this cost.
For all these reasons, and more, a car dealer’s appraisal of your trade-in vehicle will usually be well below what you might expect. In general, you can get a good idea of your vehicle’s trade value if you go to Kelley Blue Book at www.kbb.com , and follow the “trade in value” path. Be brutally honest with yourself about the vehicle’s condition, and enter the required information. The valuation you’ll be given will be about 12% above Black Book price.
Keep in mind that Kelley Blue Book has established these standards for vehicle condition. The Black Book and NADA standards are virtually the same.
"Excellent" condition -- means that the vehicle looks new, is in excellent mechanical condition and needs no reconditioning. This vehicle has never had any paint or body work and is free of rust. The vehicle has a clean title history and will pass a smog and safety inspection. The engine compartment is clean, with no fluid leaks and is free of any wear or visible defects. The vehicle also has complete and verifiable service records. Less than 5% of all used vehicles fall into this category.
"Good" condition -- means that the vehicle is free of any major defects. This vehicle has a clean title history, the paint, body and interior have only minor (if any) blemishes, and there are no major mechanical problems. There should be little or no rust on this vehicle. The tires match and have substantial tread wear left. A "good" vehicle will need some reconditioning to be sold at retail. Most consumer owned vehicles fall into this category.
"Fair" condition -- means that the vehicle has some mechanical or cosmetic defects and needs servicing but is still in reasonable running condition. This vehicle has a clean title history, the paint, body and/or interior need work performed by a professional. The tires may need to be replaced. There may be some repairable rust damage.
"Poor" condition -- means that the vehicle has severe mechanical and/or cosmetic defects and is in poor running condition. The vehicle may have problems that cannot be readily fixed such as a damaged frame or a rusted-through body. A vehicle with a branded title (salvage, flood, etc.) or unsubstantiated mileage is considered "poor." A vehicle in poor condition may require an independent appraisal to determine its value.
However, the final trade-in value of your vehicle must be determined ahead of time by a participating Ford.US.com dealer. Simply let us know that you’d like an appraisal and we’ll arrange a convenient time and location to have it done.
After the appraisal, you will NOT be quoted a price by the dealership appraiser. We will contact him later, get his quote, and relay it back to you. If you accept the value, then your trade-in can be turned in at the participating dealership where your new Ford.US.com vehicle is delivered. This DOES NOT necessarily have to be the same dealership that did the appraisal.
If you do not agree with your trade-in’s valuation, then we can suggest a number of ways that you can sell your vehicle yourself – often for more money than you would have realized through direct trade-in.
Taxes
As with any new vehicle purchase, you must pay the appropriate state sales tax upon delivery of any vehicle from Ford.US.com. This will be based on the sales tax rate in the state in which you live. Even if you cross over into another state to take delivery of your new Ford, you will still be liable for sales tax in the state in which you reside. Of course, this tax will be computed for you, and be paid by us as part of the easy Ford.US.com delivery process. However, you should keep in mind that state laws require us to compute the sales tax amount on the original purchase price of the vehicle, BEFORE that price is reduced through any rebates or incentives.
Financing
We handle vehicle financing as a no-profit courtesy to you. And since we’re a REAL Ford dealer, and proud to be selling Fords, all customer financing requests are sent through Ford Credit first. But if we believe you can get a better rate or better terms through another lender, then we will ask permission to submit your application to an alternative source. In every case, these will be nationally-known and respected companies. And chances are good that one of them will offer you very attractive financing.
No Financing Mark-ups!
IN ADDITION, it is important to remember that Ford.US.com does NOT “mark up” any financing contract. In other words, we do not profit from your decision to finance through Ford.US.com lenders. This can save you thousand$ of dollar$ on your vehicle purchase!
Why? Because more than 50% of all financing that’s arranged through a typical dealership is marked up by a few percentage points to “reward” the dealer for capturing your finance contract. But it is YOU who actually pay him this reward because the mark-up money is factored into your monthly payments over the life of the loan. This does NOT happen at Ford.US.com.
Let us repeat: Ford.US.com does NOT mark up ANY financing. The interest rate you get is the interest rate that our lender would charge you directly… just as if Ford.US.com was not involved at all. We simply arrange financing as a service to our valued customers.
DISCLAIMER: All advertised prices exclude tax, title, delivery, and registration fees. Ford.US.com makes no representations, expressed or implied, to any actual or prospective purchaser or owner of this vehicle as to the existence, ownership, accuracy, description or condition of the listed vehicle's equipment, accessories, price or any warranties. If you notice any discrepancies, please notify Ford.US.com prior to purchasing the vehicle. While we try to maintain the most current inventory information, we cannot guarantee the vehicles will be available for sale. |
