What is the total profit for a Maverick?

[C J Cox]

This is real because it’s sitting in my driveway as I type.

2024 Cactus Gray XLT Hybrid, BAP pkg, XLT lux pkg, CP360 and a moonroof.

MSRP $35,080 less dealer discount $3,462, Farm Bureau coupon $500 and $210 Ford points for selling price $30,908 plus 6% sales tax, MVA fees and dealer doc fee $799.

I live 60 miles away and told the manager I initially spoke with on 10/10/2024 that I was unable to come to Gaithersburg until 10/12/2024 because my son works Mon-Fri. He asked would I come in Friday morning if he sent a car to my home. Salesman picked me up at my home promptly at 9 am Friday morning In an Explorer XLT.

Things went smoothly once I arrived at the dealership. No push back when I declined dealer installed products or Ford ESP that they sell for $2,900

I wrote a check for $34,124.86 to take it home

Maverick had dealer installed “ceramic paint protection and interior fabric protection” that was included no charge without any warrranty.

I believed that Mavericks had a very slim margin until yesterday. Back end money makes deal like this possible.

Sheehy Ford did not loose money on this deal.

They have others

Edited to add copy of purchase order with personal info redacted

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[MakinDoForNow]

I'd guess the dealers also make a tidy sum from Ford doing all the recall work.

The amount is in parentheses on the work order or receipt. Seems like one was $90 and another was $145. Shows due from owner = $0.00.

 

[First Sergeant]

The markup on a Maverick MSRP is very low. But the dealer is charging at least a dealer processing fee ($899 on my last purchase) on every vehicle, then makes money from the financing, extended warranties, then future service department visits. The Maverick keeps service departments busy with a steady stream of recalls. So yeah the salesman makes a minimum commission, but the all in profit for the dealer could be thousands

Some dealers, not Ford, will pay sales people a Spiff. Usually a weekly "bonus", depending on sales of individuals or as a team effort. I always ask (or try to find out) about holdbacks and spiffs in advance of a visit to the dealership. Sometimes difficult to find that information. If I can't find it, I ask the sales person or supervisor how they are calculating this into the MSRP, or my deal itself. Amazingly, on occasion I have had them give me an answer. Accurate? Who knows, but it does let them know that I MIGHT be on to them, or any shenanigans. I bought my Mav XLT hybrid, co-pilot, Lux package in November 2023. Got $500 off MSRP negotiating and $500 military discount. Out the door, tax and all $30,115. Not great, but I'm good with it.

 

[Derwood]

Dealers make money on trade-ins, financing and all of the extended warranty and service plans. An informed buyer that buys a new vehicle below MSRP is not very profitable for a dealer and never has been.

Why are you worried about what the dealer or Ford makes?

Agreed. Especially not a base XL Maverick. And don't forget about used cars. Dealers can really clean up on those.

 

[zen_]

Interesting information here, I was kinda curious what Granger in particular was up to because they had every other dealer I looked at in the area beat by around $2,000 for an XLT hybrid. That included the $1K finance discount with them, which was no surprises, the same rate I would have got on my own /w excellent credit. I didn't trade in a car, or go for the extended warranty, even though it seemed like a decent deal if the issuer didn't go out of business during the term.

Guess it doesn't bother me if Ford and the dealer margins are razor thin, but it's a little concerning that the price will keep going up, or Ford will still abandon this segment even if they keep selling as fast as they can be manufactured. It's a great vehicle that makes a lot of sense at time when car prices are out of control.

 

[kevinmccune]

I can surmise this,most businesses will eventually cease to exist if they cannot follow the concept of the "loss leader" you need to sell something real cheap( at cost or small margin) to bring the customers in and then you can sell most everything including services at near retail-these convenience stores know this,whenever a convenience store ups the price on their fuel they lose money,another problem is there seems to be no cost" of doing business" these days including that friggin imaginary "write up fee" the businesses I duck around here have this money grab in effect( 3.5% to pay for the people sitting in the office?) When customers were valued a business could count on loyalty until the customer passed on or moved away.

 

[Pointyears]

Agreed. Especially not a base XL Maverick. And don't forget about used cars. Dealers can really clean up on those.

Dealers make their money on trade-ins and service, not new cars.

 

[Pointyears]

The amount is in parentheses on the work order or receipt. Seems like one was $90 and another was $145. Shows due from owner = $0.00.

Huh. I drove sixty-ish miles from PA to get mine at Sheehy Gaithersburg a few weeks ago. What a coincidence.

 

[Cherokee]

“The dealer kept telling me that he only made $600 on that deal. My salesman said he only made $150 commission on that sale.”

PMSL you were lied to Op. At $600 profit per sale my dealer couldn’t keep the lights on much less make payroll.

On a $50,000 sale Ford Corporate makes about $10,000 in profit dollars. The Local dealer clears about $6,000

The salesman, $150 commission per sale is about right.
then he gets a quota percentage, say another $50-$100 then if he’s any good he gets a small salary. Say another $10,000 a year when still fairly new.
At a big dealership a good salesman makes good money.

They cannot allow John Q. Public to know this.
Fords cost to build your $35,000 Maverick was likely no more than $20,000

Sales men lie all the time, it’s the job.
Good ones are gold to Ford.

How could I know this ?
I used to sell cars,
I’ve had long term friends from high school become very successful FORD salesmen.

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