Ordered 2022 Lightning - My Experience

[greenne]

‘The Fed law is MSRP (Base + Options) incl. Destination Charge but Not ADM.

Where did you see this? I've seen documentation to the contrary...

" Destination fees must be itemized and clearly listed on the “Monroney” label, or window sticker of each new vehicle. The United States government requires it. That’s because destination fees get based on direct costs. These costs are above and beyond the overhead companies must incur in bringing a product to market.

However, freight is not included in the MSRP, or manufacturer’s suggested retail price of the vehicle. However, tax, registration and a detailed list of all the standard and manufacturer-installed options and their retail prices must also be clearly listed on window stickers."

What are Destination Charges? | Kelley Blue Book (kbb.com)


"
What’s not included in MSRP?
The MSRP can give you an idea of what the dealer would like to charge you for a vehicle. But there are other pricing terms to know as you begin negotiations with a dealership.

• Invoice price is the price the car manufacturer charges the seller for the vehicle. This cost usually includes any destination and delivery charges for the vehicle.
• Destination charge is how much the dealer spent transporting a vehicle from the manufacturer. This is also known as the freight charge.
• Registration fees are what you’ll be charged to own a car in a particular place. This varies from state to state.

MSRP: Understanding Manufacturer’s Suggested Retail Price | Credit Karma

Not being argumentative..but can't find documentation from the IRS, which is who REALLY matters...

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[adoublee]

Where did you see this? I've seen documentation to the contrary...

" Destination fees must be itemized and clearly listed on the “Monroney” label, or window sticker of each new vehicle. The United States government requires it. That’s because destination fees get based on direct costs. These costs are above and beyond the overhead companies must incur in bringing a product to market.

However, freight is not included in the MSRP, or manufacturer’s suggested retail price of the vehicle. However, tax, registration and a detailed list of all the standard and manufacturer-installed options and their retail prices must also be clearly listed on window stickers."

What are Destination Charges? | Kelley Blue Book (kbb.com)


"
What’s not included in MSRP?
The MSRP can give you an idea of what the dealer would like to charge you for a vehicle. But there are other pricing terms to know as you begin negotiations with a dealership.

• Invoice price is the price the car manufacturer charges the seller for the vehicle. This cost usually includes any destination and delivery charges for the vehicle.
• Destination charge is how much the dealer spent transporting a vehicle from the manufacturer. This is also known as the freight charge.
• Registration fees are what you’ll be charged to own a car in a particular place. This varies from state to state.

MSRP: Understanding Manufacturer’s Suggested Retail Price | Credit Karma

Not being argumentative..but can't find documentation from the IRS, which is who REALLY matters...

Cash for Clunkers might be our best example of federal caps? It looks like it did not include options or destination charge in it's cap. Disclaimer: I am not an accountant, do not take advice from me.

IRS Offers Guidance On “Cash for Clunkers” | Taxgirl

 

[Sdctcher]

Where did you see this? I've seen documentation to the contrary...

" Destination fees must be itemized and clearly listed on the “Monroney” label, or window sticker of each new vehicle. The United States government requires it. That’s because destination fees get based on direct costs. These costs are above and beyond the overhead companies must incur in bringing a product to market.

However, freight is not included in the MSRP, or manufacturer’s suggested retail price of the vehicle. However, tax, registration and a detailed list of all the standard and manufacturer-installed options and their retail prices must also be clearly listed on window stickers."

What are Destination Charges? | Kelley Blue Book (kbb.com)


"
What’s not included in MSRP?
The MSRP can give you an idea of what the dealer would like to charge you for a vehicle. But there are other pricing terms to know as you begin negotiations with a dealership.

• Invoice price is the price the car manufacturer charges the seller for the vehicle. This cost usually includes any destination and delivery charges for the vehicle.
• Destination charge is how much the dealer spent transporting a vehicle from the manufacturer. This is also known as the freight charge.
• Registration fees are what you’ll be charged to own a car in a particular place. This varies from state to state.

MSRP: Understanding Manufacturer’s Suggested Retail Price | Credit Karma

Not being argumentative..but can't find documentation from the IRS, which is who REALLY matters...

This is a screen shot from my B & S. I believe the definition for the tax credit is for Total MSRP, which included Destination Charges.

 

[Sdctcher]

Cash for Clunkers might be our best example of federal caps? It looks like it did not include options or destination charge in it's cap. Disclaimer: I am not an accountant, do not take advice from me.

IRS Offers Guidance On “Cash for Clunkers” | Taxgirl

After some research I understand you may be right. So for IRS purposes... The MSRP of my Build would be only Base MSRP ($67,474) + Options ($10,865) = $78,238. Now I am under the $80,000 limit (and can add some more options!). The $1,695 would still be paid but not subject to tax credit limit (if any).
Thanks for the Info.

 

[adoublee]

After some research I understand you may be right. So for IRS purposes... The MSRP of my Build would be only Base MSRP ($67,474) + Options ($10,865) = $78,238. Now I am under the $80,000 limit (and can add some more options!). The $1,695 would still be paid but not subject to tax credit limit (if any).
Thanks for the Info.

No problem, but did your research verify that options even have to be included (and what is an option anyway)? Seems like cash for clunkers just went off base model price but I dug no deeper than the linked opinion from 2009.

 

[Sdctcher]

No problem, but did your research verify that options even have to be included (and what is an option anyway)? Seems like cash for clunkers just went off base model price but I dug no deeper than the linked opinion from 2009.

https://cars.usnews.com/cars-trucks/what-is-msrp-car

What Does MSRP Include?

The MSRP of a new vehicle doesn't really tell you much beyond what the car, truck, or SUV's builder thinks the dealership should charge, and what you should pay. It includes the base price of the vehicle, plus the cost of any options and option packages. Sometimes it will reflect option package discounts, which are price reductions if you buy options as a group, rather than a la carte.

A car's base price is its price without options. Sometimes you'll see it listed as the price of the lowest trim level available, while in other cases you'll see a base price for each trim level before any additional options are added.

You’ll find the MSRP displayed on the vehicle’s window sticker. Called the “Monroney” sticker, after a U.S. Senator who sponsored consumer legislation mandating its use on new cars by automakers and dealerships, the window sticker tells you about more than just the vehicle price. You can find out more in our story on things you can learn from a car’s Monroney Sticker.

What Doesn’t MSRP Include?

A car's sticker price does not include many other costs you'll have to pay if you want the car. First, the sticker price doesn't include the vehicle's destination charge. That's a cost an automaker charges the dealer to ship the car from the factory to the new car lot. While many elements of a car-buying transaction are negotiable, the freight charge typically isn’t.

Any factory-installed equipment will be included in the sticker price, but any dealer-installed options will not be shown on the Monroney sticker as part of the MSRP.

The MSRP also does not include taxes, fees, and registration costs. They differ by the state you live in, and you should include them in your math when you’re figuring the total take-home price of the vehicle. Like the destination charge, shoppers can’t haggle over these mandated fees.

Many dealerships charge other fees, such as fees for preparing the sales documents (often called doc, or documentation fees), advertising fees, and dealer prep. Those dealer fees are also not part of the MSRP, but most can be negotiated. Add-ons you’ll be offered during the buying process, such as extended warranty, VIN etching, paint protection, and others are not included in the MSRP.

 

[Sdctcher]

Thursday, January 6, 2022

Drove to dealer for 9:00 am appointment.

Placed order for 2022 Lariat F150L (Base + 511A + Max Tow) $80,034 (incl. Des. Chg.)

Received Countersigned Purchase Order from Finance Mgr. Guaranteeing No Additional Charges at delivery.

IRS MSRP = $80,034 - $1,695 = $78,339

Order Bank not yet open and I have not yet received an invite from Ford.

Finance Mgr. spoke with Regional Sales Rep who also checked my Ford Reservation which states 1st Wave. He believes order bank will open only when West Coast Dealers open at 9:00 am PST.

Dealer will email me confirmation of Order Acceptance by Ford whenever it happens now or two weeks from now. He promised to keep trying upload order all day long.

Actually, heavy snow is falling here so he has no customers, only donuts and coffee.

 

[Bill from King Ranch]

Congratulations!

 

[wheelz2000]

Congrats on being able to order already. Just curious on the 1695 discount. What does that account for?

 

[Sdctcher]

Congrats on being able to order already. Just curious on the 1695 discount. What does that account for?

‘Sorry for typo - not discount - is destination charges

 

[wheelz2000]

Ok....gotcha!! That makes sense. Thought you may have caught a deal. ?

 

[bmwhitetx]

‘Sorry for typo - not discount - is destination charges

I may be remembering the wrong person but did you say earlier you were paying a small ADM? If so, did they put that amount in writing also or did it get dropped?

 

[Sdctcher]

I may be remembering the wrong person but did you say earlier you were paying a small ADM? If so, did they put that amount in writing also or did it get dropped?

I did pay $3,000 ADM. They are small dealer who bought out assets of my old dealer when they went under last month. I felt it reasonable and still better than 6% inflation if I bought a year from now. I have it in writing.

NOTE TO LURKERS: Please do not start the stupid hate Mail again!

 

[SmokingtheMeats]

I did pay $3,000 ADM. They are small dealer who bought out assets of my old dealer when they went under last month. I felt it reasonable and still better than 6% inflation if I bought a year from now. I have it in writing.

NOTE TO LURKERS: Please do not start the stupid hate Mail again!

Yikes. ADM is a def no from me. I’d rather wait a year

 

[F150ROD]

I did pay $3,000 ADM. They are small dealer who bought out assets of my old dealer when they went under last month. I felt it reasonable and still better than 6% inflation if I bought a year from now. I have it in writing.

NOTE TO LURKERS: Please do not start the stupid hate Mail again!

Congratulations! Keep us updated.

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