Big vs. Small Dealerships

[RJW]

It sounds like some members here buy cars a lot more frequently than I have. In your opinion, do you tend to get better deals at larger dealerships or smaller ones? I plan on going to my local dealership to get a price on special-ordering a Mustang, but I want to go to at least one other one to get a price and make sure that my hometown dealership isn't overpricing. I'm wondering if I should bother with the little dealership in the next town over, or if I would be better off going further to a big dealership. Maybe there isn't a consistent pattern at all between large and small, but I'm interested in your opinions.

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[Sofa King]

I "auditioned" two dealerships; one local small-town dealer and the other (also small-town) about an hour away, but they are a high-volume Mustang dealer and a much larger dealership than the local one. I talked to the big dealer about ordering one in July '23, so nothing on the lots yet, they were vague on allocations and tried to sell me every Mustang on the lot... several Mach 1s, one was a '22 model with 50 miles on it that they had sat on so long because of ADMs but it was now marked down... this didn't paint a good picture...
I went ahead and built up my car on the configurator and emailed it to the two dealers. The local one responded very quickly (several hours) and were eager to get the order started. The farther away/larger dealer got back to me in less than 24 hours but said that they could not see my build... ford configurator was down... so I sent the build to them in pdf. but got no reply. I replied to both a couple days later with questions on allocations and order wait times as well as any markup (didn't foresee any as I was getting Ecoboost). The local dealer responded within hours again, the larger dealer didn't respond until at least two days later and were again vague on allocations. I made up my mind... three guesses...

 

[robvas]

My neighbor is the new car manager at one of the Ford dealers in my town. The highest volume dealers have the potential to sell you a car at the lowest price. But that doesn't mean that they will.

 

[BuckeyeBOSS]

I haven't found a difference based entirely on size. I've had mostly terrible experiences with most dealers and just keep track of the good ones I've worked with and look to them first for my next purchase.

 

[Ninjak]

I have not had an issue with size, I believe it is the relationship you develop. I have dealt with one dealership mostly in Miami. I have dealt with a few others, but I will say my main dealership treats me really well.

 

[ausomtiger]

I live in AL an have ordered 3 Ford's from Granger Ford in Granger IA and bought another off the lot. None of the local dealers have been close to their prices nor his $180 doc fee. I save enough on doc fee alone to fly up and pick up my cars. 2 Mustangs, a Maverick and a Bronco Sport since 2021.

 

[MAT1955]

@RJW there are three 'UGE things you get at a big dealership: 1. If buying new they alwaya have a better allocation from Ford - which is critical when trying to order a new Mustang. 2. They have always have more price flexibility (unless a small dealer is in trouble financially) 3. Big dealerships always have more specifically trained technicians - particularly in the electronics field. ******but as a friend who owned a big dealership told me guys who get all their oil changes, tires and accessories somewhere else and then come to us with a problem they can get in line (not actually what he said). So, IMO, by my experience (3 mustang purchases in 6 years) ..... if buying a a Mustang do your pricing homework, go to a big dealer and establish a relationship with them.

 

[LouG]

Our last three cars were from a franchise holder/distributor that started selling the Cupra/SEAT brand . They were great, but became a little less great as they got more popular and well known.
The sales team were always excellent, but service side started to try some of their typical dodges on us.

 

[Q6543]

I dislike the idea of the haggle dealer system.

the cars should be priced based on a set margin minus, discount/rebates etc.

there shouldn’t be multi thousand dollar differences from 1 dealer to another.
A.I. software should have this leveled in no time.
Stupid system for the last 100 years.

 

[Neggytive]

Join Mustang Club of America for $35, wait 90 days and get an X plan number

You can order the car in advance, and it is easy to figure out what the car will cost, as long as you have an X plan number at the time you pick up the car you are all set, providing the dealer participates in the program.

Not all do.

This is also assuming there is no really hot deals being offered.

One of the things X plan does is severely limit the DOC fee you can be screwed over for

So make your best deal OTD bottom line including all fees buying retail or buying X plan

 

[MAT1955]

@RJW ..... while I have not "haggled" for my Mustangs the prices can vary dramatically. I bought a 2024 Mustang Premium GT Convertible. My sister had seen it on a car lot about a 5 hour drive from my house. The dealer offered a $2000.00 Ford non stackable discount AND discounted the options (about $7,000.00). Why? I found out the deraler had received the car in September 2023 and I bought it (a convertible) in march 2024 (snowing). They just wanted to move it off their plan. When I wanted to order a new 2026 Premium convertible GT (to get a few extra options - like AVE) I went to the Ford build site and entered everything I wanted. Ford showed a price. The dealer I chose honored that and offered a $1,000.00 discount. I knew that was the best I was going to get on a new order. Lots of dealers have even added to Ford's MSRP when the supply at dealerships gets low. So, there is NO fixed pricing rule. I have always found that big dealerships offer better prices.

 

[AZ_Ryan]

I dislike the idea of the haggle dealer system.

the cars should be priced based on a set margin minus, discount/rebates etc.

there shouldn’t be multi thousand dollar differences from 1 dealer to another.
A.I. software should have this leveled in no time.
Stupid system for the last 100 years.

Its called capitalism. Unfortunately dealers are independent of the name plate they sell and can do pretty much what ever they want. Just like a contractor selling building materials. Its all based on their volume, sales, and overhead. Imagine if cell phone company's could set their own pricing for IPhones and Samsungs.

 

[Skye]

I don't see the size of the dealership as a determining factor in pricing. Buying a vehicle can be like shopping for insurance: there are a lot of variables that affect the price and experience.

I've purchased two new vehicles in the last five years. In both, I started with by trolling internet reviews and the dealer's web sites. This gave me a feel for who to avoid and what to watch out for. I passed on one dealer. Their pricing on-line and reviews showed they were old school: very opaque with respect to pricing, add-ons and doc fees. This dealer wasn't worth the hassle.

For each sale, I made initial contact with an e-mail. A salesperson would then reach out with a phone call moments later.

For one purchase, after the first phone call, we had a general haggling exchange via e-mail. Every few days, one of us would send an offer or counter-offer. When we reached an agreement, I then physically went in and placed the order.

For the second, in one call, I confirmed the Internet-listed price, there would be no add-ons and their doc fees ($0). I met the salesperson a few days later. For this purchase, it was more me putting hands-on different options or packages to ensure that's really what I wanted. We shook on a deal after putting around the lot for about an hour.

If the dealer web site mentions an Internet Sales office, reach out them directly. Internet Sales are geared towards people who know what they want and are ready to make a purchase. Commissions are often lower. The sales pace quicker. Otherwise, just send a general e-mail to sales.

The overall state of the market will have an impact. It's a buyer's market today. Discounts can be had everywhere. You currently hold the advantage. This doesn't guarantee you'll, "make a killing", but you should have leverage during any discussions.

Using my area pricing as an example, if placing an buyer-specific order for a DH/HP, I'd expect to pay no more than MSRP, no add-ons, modest doc fees. For an Eco or GT, I'd expect at least a 5% discount, no add-ons, modest doc fees. YMMV. Edit, something existing on dealer lots, I'd expect a modest to good discount on anything.

We're approaching Model Year changeover in the next few months. Given your timeline and schedule, this could also affect pricing and deals.

High volume dealers will generally have lower margins, but there are other factors to be aware of, dealer add-ons and doc fees being the two main ones. After discussing price, confirm both.

If at any point in the discussions things don't seem right or it becomes a drag, shake hands, excuse yourself and leave. Buyers have too many options today. We're no longer limited to dealers in the local area. It's just as easy to buy a vehicle almost anywhere else.

Edit,

An additional tactic which could be used with local dealers is being aware of pricing at far dealers. For example, your local dealer's offer on a new vehicle is X. But you know and can explain that another dealer, other location is offering the same spec for Y. Accounting for distance traveled, the far-end dealer's offer is better. If the local dealer at least matches far end car price+travel, they can get the sale.

^ There is the chance the local salesperson will not adjust and you will go to that far dealer. It's part of the preparation before entering any meaningful discussions, how committed you are to getting best price, factoring any hassles, your time, schedule, etc.

 

[Jimbo33]

I consider myself very fortunate. The dealer I bought from has very good service and the routine maintenance is reasonable. I always check out the dealer service online, things like yelp etc.. That is every every bit as a make or break in my decision as price. The dealer I buy from (4 cars so far) doesn't haggle. Every car is $50 over invoice. Even hot sellers where other dealers are asking full list or higher. They encourage ordering so you get it exactly the way you want it. The trade is priced separately, the price seems to Mirror Edmunds which is always higher then KBB. They tell me that offer is good for any car they sell and if I can sell it on my own before the new car comes, go ahead. They also take my personal check to pay for it and I have never heard of any other dealership that would do that. That is VanBortel ford in victor NY.

 

[MAT1955]

I'll agree with what @AZ_Ryan says about dealers and raise him. Most people have no idea how most brands of dealerships work. For example my friend used to own a big GM dealership. His father started it in the late 40's. He constantly up-graded tge facility. That said, at one point GM made him spend about 2 million to allign the "appearance" of the dealership with the new GM dealership facades, service bay appearances, customer waiting room etc. - even though the dealership and GM are completely independent corporate businesses. Here's my point you take your new Mustang GT to a Ford desaler to have a bunch of Ford aftermarket products installed - say a supercharger etc. You are covered by Ford corporate if it blows up, right? NOPE. You might be or you might not. Ford Corporate is not responsible for anything IT deems inappropriate, inadvisable or anything done by their dealers or even anything they just plain don't like. So, what should do. I wanted to install an analogue kill switch on my GT to cut electricity to the starter motor or fuel pump, for example. My GM buddy said if you want to be sure you don't void your Ford warranty call Ford Corporate HQ, speak with client services, record the date, time, discuss the request and get a Case Number approving the modification. I did just that FordCorporate Client services was awesome. I got a written case number and email approval for the specific request. The only thing they wanted was the name of the Ford dealer who was going to do the work and a written acknowledgement when the work was done. Conclusion: If you want modifications done, even with Ford parts by a Ford dealer, if it's anything even remotely exocitic - call Ford Corporate Client Services and get a pre-approval. The call took me 10 minutes. I got a call back about 30 minutes later confirming my request with a case number. I can't say enough good things about Ford Corporate Client services!

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