2022 Lightning Invoice Pricing Formula

[GDN]

I've heard many say the invoice and MSRP were the same or close. I saw this today. A break down of how the dealer will earn up to 10% profit on each Lightning they sell. The article that explains it.

The key points:

• 1% of MSRP paid to dealers as a delivery allowance for every delivery
• 1% of MSRP for adhering to advertising rules like not listing Lightnings under MSRP
• 1.5% of MSRP as "floorplan assistance" (i.e. financing dealer inventory)
• 0.5% of MSRP for "Tier 2 Pass-Through" for certain marketing costs
• 0.5% of MSRP for "Tier 3 Co-Op," which refers to subsidized advertising
• 0.9% of MSRP for "FCP," which rewards sales achievement targets
• 3.1% of MSRP for compliance with Ford's EV certification requirements
• 1.5% of MSRP for an unspecified "Customer Onboarding Payment"

So they'll make plenty if they play by their rules, but that isn't that they should be sticking it to the buyer. That is a lot of money for very little to no work for many of them.

Who knows what else they might still make on the unknowns and holdbacks and kickbacks.

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[Mr. Flibble]

Hopefully this incentivizes them to just sell direct and in volume. Maybe this will help keep the demo models on the floor.

 

[FlasherZ]

Like I told my local dealership: "You didn't have to sell me on the truck, I knew what I wanted. I didn't have to take time looking through options catalogs and asking a bunch of questions, I knew what I wanted. I don't need to go through the rigamarole of the financing dance, because I'm paying cash. You're not incurring carrying or debt charges of having an unsold vehicle sitting in your lot inventory. You're basically making $5-8k profit just for washing the truck and handing me the keys after signing a few papers. How does that compare to most of your customers?"

 

[F150ROD]

Like I told my local dealership: "You didn't have to sell me on the truck, I knew what I wanted. I didn't have to take time looking through options catalogs and asking a bunch of questions, I knew what I wanted. I don't need to go through the rigamarole of the financing dance, because I'm paying cash. You're not incurring carrying or debt charges of having an unsold vehicle sitting in your lot inventory. You're basically making $5-8k profit just for washing the truck and handing me the keys after signing a few papers. How does that compare to most of your customers?"

Better yet, don’t wash the truck, leave the plastic on and leave the keys in the cup holder $8k easy

 

[Carminus]

<SNIP> You're not incurring carrying or debt charges of having an unsold vehicle sitting in your lot inventory. You're basically making $5-8k profit just for washing the truck and handing me the keys after signing a few papers. How does that compare to most of your customers?"

I don't think they would have to worry about it sitting on the lot.

 

[FlasherZ]

I don't think they would have to worry about it sitting on the lot.

Right - the point was that unlike a more traditional lot full of inventory where the dealer must struggle to convince buyers to purchase, they're basically getting a pretty sum to wash a truck and hand me keys.

(Hard to imagine right now with supply chain issues, but dealers sitting on a lot of inventory has happened in the past.)

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