A recent experiment involved contacting 104 Ford dealerships to buy the same truck, revealing significant disparities in pricing and dealer responsiveness. Out of the dealerships contacted, only 39 provided pricing, with a staggering $17,000 difference between the lowest and highest quotes. The discussion highlights the challenges consumers face in obtaining transparent pricing and the tactics dealerships use to encourage in-person visits. The episode also touches on the broader implications for the automotive industry as sales are expected to decline in 2026, emphasizing the importance of informed car buying.
Today on CarEdge Live, Ray and Zach discuss the latest learnings from their Ford experiment. Tune in to learn more! Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com
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"...'s so exciting. Thanks for tuning in for some Car Edge Live. We tried to buy the same truck from 104 dea..."
The Ford Edge is a medium-sized SUV that's great for families because it has a lot of space inside and comes with many tech features. It's known for being comfortable to drive and has some powerful engine options. People talk about it because it offers good value for what you get.
The Ford Edge is a midsize SUV that offers a spacious interior and a range of technology features, making it a popular choice for families and commuters. It has been praised for its comfortable ride and strong performance, particularly with its available turbocharged engines. Discussions around the Edge often focus on its practicality and value in the competitive SUV market.
"January 5th is a very important day in the car market because that is when new car incentives for December actually end this year."
New car incentives are discounts or special offers that help you save money when buying a new car. They can include cash back or lower monthly payments, making it cheaper to buy a car.
New car incentives are promotions offered by manufacturers or dealerships to encourage the purchase of new vehicles. These can include cash rebates, low-interest financing, or special lease offers, which can significantly reduce the overall cost of buying a new car.
"...for the same MSRP vehicle. So Deb, set the stage here for us."
MSRP is the price that the car maker suggests the dealership should sell the car for. It's a guideline for how much you might expect to pay for a new vehicle.
MSRP stands for Manufacturer's Suggested Retail Price, which is the price that the manufacturer recommends that the dealer sell the vehicle for. It serves as a starting point for negotiations between the buyer and the dealer.
"...like an out the door price, a total breakdown"
The out the door price is the total amount you pay to buy a car, including the price of the car, taxes, and any extra fees. It's what you actually spend to take the car home.
The out the door price (OTD) includes the total cost of purchasing a vehicle, encompassing the vehicle price, taxes, registration fees, and any additional dealer fees. It's the final amount a buyer pays to drive the car off the lot.
"...you're in the market for, I don't know, a Honda Civic. If you reach out to 10 Honda dealerships for a Honda Civic..."
The Honda Civic is a small car that many people buy because it's dependable and gets good gas mileage. It's been around for a long time and comes in different styles.
The Honda Civic is a compact car known for its reliability, fuel efficiency, and practicality. It has been a popular choice among consumers for decades, available in various trims and configurations.
"...some of the difference can be made up in sales tax rates because some states have a higher sales tax rate. Then others in some areas..."
Sales tax is an extra charge you pay when you buy something, like a car. Different places have different rates, so it can change how much you pay in total.
Sales tax is a tax imposed by the government on the sale of goods and services, including vehicles. The rate can vary significantly depending on the state or locality where the purchase is made.
"...Title and registration fees can vary by state."
Title and registration fees are the costs you pay to officially register your car and get the paperwork that proves you own it. These fees can be different depending on where you live.
Title and registration fees are costs associated with legally registering a vehicle and obtaining its title. These fees can vary by state and are necessary for the car to be legally driven on public roads.
"...you spoke about it, dad, just a moment here. We'll talk about it fees in just a second here...."
Dealer fees are extra costs that car dealerships might charge when you buy a car. They can include things like paperwork fees and other charges that aren't part of the car's price.
Dealer fees are additional charges that a dealership may add to the price of a vehicle. These can include documentation fees, preparation fees, and other costs that are not included in the vehicle's price or MSRP.
"...the manufacturer suggested retail price for that truck that we were looking for is just that."
MSRP is the price that the car maker suggests dealers charge for a new car. It helps buyers know what to expect, but dealers can set their own prices, which might be higher or lower.
The Manufacturer Suggested Retail Price (MSRP) is the price that the manufacturer recommends a dealer sell a vehicle for. It serves as a guideline for pricing but can vary based on dealership pricing strategies and market conditions.
"All right, Dad, fees and add-on. So let's start with fees here. So these are the fees that are added"
Add-ons are extra features or services you can choose to include when buying a car, like a better sound system or extra protection for the paint. They can make the car more expensive.
Add-ons refer to optional features or services that can be added to a vehicle purchase, such as extended warranties, paint protection, or upgraded sound systems. These can increase the overall cost of the vehicle.
"registration fee, non-tax fee, title fee, tire fee, plate fee, total fee, total license and fee, state taxes and fee."
A title fee is the cost you pay to get a document that shows you own your car. You usually pay this when you buy or sell a car.
A title fee is a charge associated with the process of obtaining a vehicle title, which is a legal document proving ownership of the vehicle. This fee is usually paid when a vehicle is bought, sold, or transferred.
"total fee, total license and fee, state taxes and fee."
State taxes are fees that you pay to your state government when you buy or own a car. These can be different depending on where you live.
State taxes on vehicles are fees imposed by state governments on the purchase or ownership of a vehicle. These taxes can include sales tax, property tax, or other fees that vary by state.
"...the actual cost for the dealership might be $50, but the electronic filing fee, they charge the customers $499."
An electronic filing fee is a charge that some car dealerships add for handling paperwork online, like registering your new car. It can be much higher than what it actually costs the dealership.
An electronic filing fee is a charge that some dealerships impose for processing paperwork electronically, such as vehicle registration or title transfers. This fee can vary widely and may not reflect the actual cost incurred by the dealership.
"Now, state fees shouldn't necessarily be negotiable, but some dealerships are known to mark up the state fees."
State fees are costs set by the government for things like registering your car or transferring its title. You usually can't negotiate these fees because they are required by law.
State fees are charges imposed by the government for vehicle registration, title transfer, and other official processes. These fees are typically standardized and not negotiable, as they are mandated by state law.
"...the fees that are associated with the taxing and titling and registering your vehicle. And print that out so that you can share that..."
Titling is getting a document that shows you own your car. It's important for buying or selling cars and is needed by the state to keep track of who owns what vehicle.
Titling refers to the process of obtaining a legal document that proves ownership of a vehicle. This document is essential for buying, selling, or transferring a vehicle and is usually required by the state.
"I mean, look at the advantage package. Did I want something with an additional $4,000 on it?"
The advantage package is a group of extra features you can get with a car. It usually makes the car nicer or adds more technology, but it costs more money.
The advantage package typically refers to a bundle of additional features or services offered with a vehicle purchase, which may include enhancements like upgraded interior materials, technology, or warranty extensions.
"of how the franchise dealership network works,
where it is to the dealership's advantage"
A franchise dealership network is a group of car dealerships that sell cars from a particular brand. They follow rules set by the brand, which can sometimes make it harder for customers to get the best deals.
A franchise dealership network consists of independently owned dealerships that sell vehicles from a specific manufacturer. These dealerships operate under the manufacturer's brand and guidelines, often leading to practices that prioritize the dealership's profits over customer satisfaction.
Fake discounts are tricks that car dealerships use to make it look like you're getting a better deal than you really are. They might raise the price first and then offer a discount, so you end up paying more.
Fake discounts refer to misleading pricing strategies used by dealerships to make it seem like a vehicle is being sold at a lower price than it actually is. This can involve inflating the original price and then offering a discount that is not genuine, ultimately leading to higher final costs for the customer.
"...bait and switch it and upsell the hell out of you."
Bait and switch is when a store advertises something at a low price to get you in, but then tries to sell you something else that costs more. It's considered dishonest and is illegal in many places.
Bait and switch is a deceptive marketing tactic where a seller advertises a product at a low price to attract customers, but then tries to sell them a different, often more expensive product once they are in the store. This practice is illegal in many jurisdictions.
"...an, you look at Ford, they're doing away with the escape and so there's one of their least expensive vehic..."
The Ford Escape is a small SUV that many people like because it's useful for families and everyday driving. Ford is planning to stop making the Escape, which has made people curious about what other affordable options will be available. It's talked about because it offers a good mix of space and good gas mileage.
The Ford Escape is a compact SUV that has been popular for its versatility and practicality since its introduction in 2000. Recently, Ford announced plans to phase out the Escape, which has raised discussions about the future of affordable SUVs in their lineup. The Escape is often discussed for its balance of space, fuel efficiency, and technology features.
"And I think a lot of it does tie back to affordability."
Affordability means how much money people have to spend on cars. If cars are too expensive, fewer people will buy them.
Affordability in the automotive context refers to the financial ability of consumers to purchase vehicles, which can be influenced by factors like income, financing options, and vehicle pricing.
"We have the latest data on the average advertised price."
The average advertised price is how much cars are usually listed for when you see them for sale. It helps us understand if cars are getting more or less expensive.
The average advertised price is the typical price at which vehicles are listed for sale in the market. This figure helps gauge market trends and consumer expectations regarding vehicle costs.
"What was it? Chevrolet or General Motors up to $1,500 in dealer money"
Dealer money is extra cash that car manufacturers give to dealerships. It helps them sell cars at a lower price or makes it easier for the dealership to earn more money when they sell a car.
Dealer money refers to incentives or bonuses provided by manufacturers to dealerships, which can help reduce the price of a vehicle for consumers or increase the dealer's profit margin. These incentives can vary based on sales targets or inventory levels.
"...there is the dealer motivation to move as many of these units to take advantage of as much of that incentive money as they can."
Dealer motivation is what drives car dealerships to sell more cars. They often have goals and rewards from car makers that encourage them to sell as many cars as possible.
Dealer motivation refers to the incentives and goals that car dealerships have to sell vehicles. This can include financial bonuses from manufacturers, sales targets, and other rewards that encourage dealers to sell more cars.
"...there is the sales person's motivation to hit sales goals and bonuses that could be available."
Sales goals are targets that car salespeople aim for to earn bonuses. If they sell enough cars, they can get extra money or rewards.
Sales goals are targets set for salespeople to achieve within a certain timeframe. Meeting these goals often results in bonuses or other incentives, motivating sales staff to sell more vehicles.
"...interview at 3. Look forward to seeing you on the airwaves. Love you too, handsome."
The Honda Airwave is a small car that looks like a wagon, which means it has more space for carrying stuff. It's mostly sold in Japan and is known for being good on gas and reliable. People mention it because it's a practical choice for those who need a bit more room.
The Honda Airwave is a compact station wagon that was primarily sold in Japan and is known for its practicality and fuel efficiency. It features a spacious interior and is designed for families or individuals needing extra cargo space. Discussions about the Airwave often highlight its reliability and versatility as a daily driver.
"As a veteran founded Yellow Ribbon School, they offer post 9-11 GI Bill acceptance. Dedicated military support"
The Porsche 911 is a fancy sports car that has been around for a long time and is loved by many people. It's known for being really fast and fun to drive, while also being comfortable enough to use every day. People talk about it because it combines luxury with great performance.
The Porsche 911 is a high-performance sports car that has been in production since 1964, known for its distinctive design and rear-engine layout. It is significant in automotive history for its engineering excellence and has a dedicated following among car enthusiasts. The 911 is often discussed for its blend of luxury, performance, and everyday usability.
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It's noon here in Ventner City, New Jersey
and our nation's capital, Washington, DC.
And this is Car Edge Live for Monday, December 22nd
with your hosts, me, Ray, here in Ventner.
Dressed up today, cause I got a TV interview later today
and Zach hanging out in, well, a winter wonderland
somewhere, how are you today, Hanson?
Doing fantastic, happy Monday, everyone.
A couple of days away from Christmas, that's so exciting.
Thanks for tuning in for some Car Edge Live.
We tried to buy the same truck from 104 dealers
and the result shocked us.
We're gonna be talking about the latest YouTube video
we had go out on the main Car Edge channel
and a viral Twitter or X thread, I should say.
We're gonna be talking about that today
as well as that the industry's expectations
for slowing sales in 2026.
Before all that, a friendly reminder folks, caredge.com.
If my dad and I and our incredible team can help you,
we would love the opportunity.
We are two weeks away from January 5th.
January 5th is a very important day in the car market
because that is when new car incentives for December
actually end this year.
So if you're in the market to buy a new car,
you got two weeks.
This is the two weeks with the most leverage
you've had all year long.
We've got our promotion running.
Our car buying service is $150 off.
Our Car Edge Pro toolkit is 15% off
and the fine folks over at fair are offering $150 off.
The vehicle service contract extended warranty as well.
So we've got all sorts of promotions running.
We're trying to finish our year strong
and we wanna help as many people as possible.
Go for it Deb.
I have nothing to add.
It's a strong figure.
I saw the lips were getting pursed but I guess not.
Here we go folks, we're gonna talk about it.
So we published a video pops.
It went out I think on Saturday, right?
I do believe, yes.
And it's the second year in a row where we've done this.
We've contacted 104 dealerships.
We're gonna run through the messages here
that I posted online but we contacted 104 dealerships
for the same MSRP vehicle.
So Deb, set the stage here for us.
What did we do and why did we do this last year?
Why did we do it again this year
and then we'll run through the data here
in just a second but why do we do this?
Because we wanna see just how responsive dealers are
when you send an email requesting certain information
like an out the door price, a total breakdown
of all the fees and everything
on a particular vehicle that they have in stock.
And well, the number of dealers that actually get back
to you, I guess you could safely say it's shocking
and it's shocking for all the wrong reasons
and not for any of the right reasons.
So last year we contacted 100 dealerships
and very few actually got back to us
and very few gave us pricing.
This year actually that significantly more dealerships
got back to us.
So what we do here, then we're gonna do it again
probably next month for a different manufacturer.
So let us know what other vehicles
you wanna see us do this for.
As we pick a vehicle, we pick the same MSRP
so same trim within a few hundred bucks.
We reach out as the same exact buyer
and we contact obviously different dealerships
and Deb ultimately this year of the 100 dealers
that we contacted, 39 of them sent us pricing.
21 did not respond whatsoever and 50% of those
that did get back to us never gave us pricing
because they said we either had to come in
or we had to get that information over the phone,
not in writing.
So that's kind of first thing here, Deb.
You reach out to 100, 21 will not get back to you,
39 will actually give you pricing
and half of those that do get back to you
say, hey, when can you come into the dealership?
The surprise to me is that 39 responded with a price.
It's not surprising that 21 ignored us altogether.
I think that is a more common thread for dealerships
than dealerships would like to admit.
And I'm sure they'll all say, well,
it's the busiest time of the year.
It just fell through the cracks of it.
Normally we're right on top of this stuff
but it's a bad sign that A,
the dealers don't get back to you
and B, more than anything,
they won't even provide you with the information
that you ask for because, well, you have to come in.
I mean, you just have to come in.
Now the tactic to get the best deal,
it takes a lot of work, so I want to be clear here,
but the tactic to get the best deal on a new car
is you contact multiple dealerships
and you get multiple out-the-door price quotes
and you shop them against one another.
It's no secret, it's pretty straightforward.
What this immediately indicates, Dad,
is that let's say you're in the market
for, I don't know, a Honda Civic.
If you reach out to 10 Honda dealerships for a Honda Civic,
you should anticipate only getting 3.9 prices back,
so four prices back out of the 10.
That's what this starts to indicate.
It's like, we did it at a scale of 100
and we did it nationwide,
but in your backyard, in your area,
to get the best deal, again, the tactic
is pretty straightforward.
Contact multiple dealerships
with the same exact vehicle,
get out-the-door price quotes
because we all know the out-the-door price
is very different than what you see advertised online.
And there you go.
Now, you've got your best price and your worst price
and you can work them down,
but you're gonna have to do a lot of outreach.
If you only reach out to two dealerships,
there's a pretty good chance you get no pricing back.
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