What is the total profit for a Maverick?

[agmonaco]

I just bought a new 2024 Ford Maverick Lariat I ordered. $35, 835 MSRP, plus Sales Tax, License, Registration, Doc Fees and all the other fees in addition to that. The dealer kept telling me that he only made $600 on that deal. My salesman said he only made $150 commission on that sale. The question I have is what did they really make from the sale and what does Ford kick back to them for that sale? What was their total profit? Is what they told me true? I have an extremely hard time believing them. If it was true, I seriously doubt they could keep their doors open no mater how much their service department makes. I would hope they made more off that sale.

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[Glen Baker LLC]

They may have understated the profit made. A new car sale.
You'd be surprised about the service and parts department
The Service and Parts Department is the real workhorse of dealership profits, representing both revenues and gross profit. For the Penske Automotive Group, which has operations in the United States and in the United Kingdom, service and parts represented 13 percent of annual revenues, but 44 percent of the gross profits.
American Auto makers also have
dealer holdback, is a payment from an automaker to a car dealership for selling a new vehicle. The amount is a percentage of the vehicle's invoice price or manufacturer's suggested retail price (MSRP), and is usually between 2% and 3%. The holdback is credited to the dealer annually to offset the costs of interest and insurance while the vehicle is on the lot.

 

[Hot Runr Guy]

I doubt that any of us non-Dealer members have any accurate idea, and I'm sure that Dealer personnel won't give up the numbers.

HRG

Stopped by a local dealer this morning, they STILL have $5K wax job markup stickers added to their Mavericks. Even on non-Hybrid models.

 

[Superg0]

I just bought a new 2024 Ford Maverick Lariat I ordered. $35, 835 MSRP, plus Sales Tax, License, Registration, Doc Fees and all the other fees in addition to that. The dealer kept telling me that he only made $600 on that deal. My salesman said he only made $150 commission on that sale. The question I have is what did they really make from the sale and what does Ford kick back to them for that sale? What was their total profit? Is what they told me true? I have an extremely hard time believing them. If it was true, I seriously doubt they could keep their doors open no mater how much their service department makes. I would hope they made more off that sale.

Here is the cost breakdown. Maverick doesn't have a lot of markup.

 

[Packer Bill]

Don't forget the dealer's holdback, usually 0-3 % of the sales, paid by Ford to each dealer.

 

[Derwood]

Here is the cost breakdown. Maverick doesn't have a lot of markup.
At even the 2025 price point the base XL Maverick doesn't have much room for markup. That's why Ford puts most of the goodies people really want into the Lariat trim and to a lesser extent the XLT (which I have and believe is the sweet spot for those who want some creature comforts).

 

[710-oil-614]

Don't forget the dealer's holdback, usually 0-3 % of the sales, paid by Ford to each dealer.

The cost breakdown specifically calls out the "W/Holdback".

The bottom line is that neither Ford or the dealers themselves are making a lot on the Maverick. Ford with their price increases are certainly making money but nothing like their bread and butter F-Series trucks.

An XL F-150 "work truck" has 3-4x the margin in it than a Maverick and it only goes up as you move up the trim level.

 

[RR - All the way]

So can someone explain the Granger Ford Business Model. Per these charts, they are losing money on every Maverick they sell at 3% below MSRP. In addition, the great majority of those sold never see their "money-making" service department. Sort of makes me believe not to believe everything I read..........

 

[Packer Bill]

So can someone explain the Granger Ford Business Model. Per these charts, they are losing money on every Maverick they sell at 3% below MSRP. In addition, the great majority of those sold never see their "money-making" service department. Sort of makes me believe not to believe everything I read..........

Dealer's holdback and volume drives Granger's business model.

 

[710-oil-614]

Dealer's holdback and volume drives Granger's business model.

The dealer holdback is included in those invoice numbers.

Volume bonuses, yes.

Advertising, add-ons, goodwill, etc.

 

[todd92]

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?

 

[Canadian Guy]

I don't know exact dollar amounts or margins, but I do know a scary story told to me my cousin who worked at a Ford dealership back in the 90's. I can't speak for the system today, I know times have have changed since the 90's, but I can't imagine things have changed to the benefit of the consumer lol.
When you lease a vehicle for 2 years, the manufacturer had made their money back on the vehicle plus some profit. When the vehicle has been returned and put on the Used Lot, that price is 100% profit for the dealership.

I have 2 personal thoughts to add to this...

1) Keep that in mind when you want to buy a pair Oakley Sunglasses or a Yeti cooler. If you think their only making $10 off each pair of glasses and each cooler, think again.

2) Watch an episode of Shark Tank.....all the sharks on there start drooling when an entrepreneur makes something for $1 and is selling it for $50.

 

[scottp01]

So can someone explain the Granger Ford Business Model. Per these charts, they are losing money on every Maverick they sell at 3% below MSRP. In addition, the great majority of those sold never see their "money-making" service department. Sort of makes me believe not to believe everything I read..........

For the first two model years (22,23), the demand for Mavericks was greater than what Ford could produce. Dealers got allocated trucks based on a complex algorithm but one of the factors was how many orders they had outstanding. Some dealers like Granger ran promotions like this to pump up their order numbers. Those that canceled their orders would end up as dealer stock and were sold at a markup (typically $5k for an ecoboost, up to $10k for a hybrid).

Dealers like Granger didn't make money on the orders delivered, they made money on canceled orders they sold with a markup.

 

[2lbgill]

I just bought a new 2024 Ford Maverick Lariat I ordered. $35, 835 MSRP, plus Sales Tax, License, Registration, Doc Fees and all the other fees in addition to that. The dealer kept telling me that he only made $600 on that deal. My salesman said he only made $150 commission on that sale. The question I have is what did they really make from the sale and what does Ford kick back to them for that sale? What was their total profit? Is what they told me true? I have an extremely hard time believing them. If it was true, I seriously doubt they could keep their doors open no mater how much their service department makes. I would hope they made more off that sale.

Many Years back I was privileged to inside info on final discounts, 40% on accessories, 25-35 % on vehicles depending low price or high price type. I doubt this has changed over the years. Automotive News used to list them also then. Dealers get larger discounts based on volume of sales at years end..

 

[realshelby]

When you lease a vehicle for 2 years, the manufacturer had made their money back on the vehicle plus some profit. When the vehicle has been returned and put on the Used Lot, that price is 100% profit for the dealership.

You can lease through other sources besides Ford Credit ( yes, they handle the lease programs too).
Whomever gives the lease contract OWNS the vehicle. NOT the retail customer!!! NOT Ford Motor Company. Ford Credit is a different division of Ford.

Dealers do NOT own or have any particular rights to the leased vehicles once they are driven away by the customer.

With a Ford Credit lease the Dealer MAY be able to buy it back when/if returned to that dealer for Acquisition. But usually that amount is well above market value. So, while the Dealer may have it on their lot, it cannot be sold by the Dealer. Ford Credit sends an inspector to go over the car, then the Lease contract is settled ( don't think those bald tires won't be noticed and charged against your lease contract!). From there it is picked up and shipped, typically, to one of the large Wholesale auctions. Dealers buy from there, and usually pay less than Ford or other Lease Agents ask directly for them.

The manufacturer gets its money/profit in total when the Lease Agent buys the car. From there the manufacturer is OUT of the equation.

The Dealerships that sell these auctioned vehicles ( that may be a used car dealer 500 miles away, does not have to be a new car dealer) pay ACV or actual cash value for them. This amount is what sets the standard for used car values. What they bring at auction.....which is what the actual value in a given moment is. Just like a "new" car, they have to cover the cost of buying the car, transporting it to the Dealer, and inspection/repair/make ready for sale costs. So....FAR from 100% profit!

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