Purchase Price Agreement

bronco11

Hey all. Just wanting to confirm that this is considered a purchase price agreement so I don’t get stuck with adm at the last minute. I have signed off on my order sheet from my dealer that has all options and msrp price listed. Is that all I need or should I ask for another specific document?

Your need an actual purchase agreement with itemized pricing provided and finalized by the dealership F&I Department. Not your salesman.

If you buy any accessories the dealer offers they can be listed on a "Due Bill" with your paperwork for record and completed after your bronco arrives.

You will likely need your Vin before signing a purchase agreement. You should receive your vin after your bronco has been built long before your bronco arrives at dealership.

If still worried about ADM you should consider processing the loan using your vin number and purchase agreement before your bronco arrives at dealership. Remember to also go ahead and insure your bronco effective the date your loan is initiated. Then prepare for your first loan payment due 45-60 days after your original loan date (the date you bought the bronco). In some cases some broncos take longer than 60 days to arrive after being built with a vin so worst case just be prepared to potentially make 1-2 payments Before your bronco is delivered to your dealership. *As soon as you have a loan on the bronco the bank owns it, not the dealer, therefore no ADM can be applied to your purchase

NT AUTOMOTIVE

Your need an actual purchase agreement with itemized pricing provided and finalized by the dealership F&I Department. Not your salesman.

If you buy any accessories the dealer offers they can be listed on a "Due Bill" with your paperwork for record and completed after your bronco arrives.

You will likely need your Vin before signing a purchase agreement. You should receive your vin after your bronco has been built long before your bronco arrives at dealership.

If still worried about ADM you should consider processing the loan using your vin number and purchase agreement before your bronco arrives at dealership. Remember to also go ahead and insure your bronco effective the date your loan is initiated. Then prepare for your first loan payment due 45-60 days after your original loan date (the date you bought the bronco). In some cases some broncos take longer than 60 days to arrive after being built with a vin so worst case just be prepared to potentially make 1-2 payments Before your bronco is delivered to your dealership. *As soon as you have a loan on the bronco the bank owns it, not the dealer, therefore no ADM can be applied to your purchase

Thank you so much. I really appreciate this.

NT AUTOMOTIVE

Your need an actual purchase agreement with itemized pricing provided and finalized by the dealership F&I Department. Not your salesman.

If you buy any accessories the dealer offers they can be listed on a "Due Bill" with your paperwork for record and completed after your bronco arrives.

You will likely need your Vin before signing a purchase agreement. You should receive your vin after your bronco has been built long before your bronco arrives at dealership.

If still worried about ADM you should consider processing the loan using your vin number and purchase agreement before your bronco arrives at dealership. Remember to also go ahead and insure your bronco effective the date your loan is initiated. Then prepare for your first loan payment due 45-60 days after your original loan date (the date you bought the bronco). In some cases some broncos take longer than 60 days to arrive after being built with a vin so worst case just be prepared to potentially make 1-2 payments Before your bronco is delivered to your dealership. *As soon as you have a loan on the bronco the bank owns it, not the dealer, therefore no ADM can be applied to your purchase

I had emailed my dealer asking for a typed up document stating the price we agreed on and his signature. We’ll see what the GM says.

The financing of the vehicle before it even gets to the dealer definitely seems like a full proof way to save yourself ADM‘s.

Is it kinda like a backhanded slap to a dealer if you’re pretty sure they’re giving you the MSRP price for your vehicle?

MarkPS

The financing of the vehicle before it even gets to the dealer definitely seems like a full proof way to save yourself ADM‘s.

Is it kinda like a backhanded slap to a dealer if you’re pretty sure they’re giving you the MSRP price for your vehicle?

Yes and I suppose its also considered staying one step ahead of the dealer by putting significant skin in the game (full amount for the vehicle via loan) to claim your vehicle pre-arrival and further protecting your assets fair market value.

Its a little nerve racking starting a loan without keys in hand. However, its totally legit to do so long as you have a vin + itemized purchase agreement with a total including tax & fees. Plus you have the peace of mind knowing you wont have to worry about ADM when it arrives bc its already your bronco nor can the dealer sell it to someone else that bid higher than you for your long awaited bronco.

Just play it cool, be nice, be thourough and follow through with your plan no matter what curveballs the dealership might throw your way.

NT AUTOMOTIVE

Yes and I suppose its also considered staying one step ahead of the dealer by putting significant skin in the game (full amount for the vehicle via loan) to claim your vehicle pre-arrival and further protecting your assets fair market value.

Its a little nerve racking starting a loan without keys in hand. However, its totally legit to do so long as you have a vin + itemized purchase agreement with a total including tax & fees. Plus you have the peace of mind knowing you wont have to worry about ADM when it arrives bc its already your bronco nor can the dealer sell it to someone else that bid higher than you for your long awaited bronco.

Just play it cool, be nice, be thourough and follow through with your plan no matter what curveballs the dealership might throw your way.

I will more than likely be doing this.

I had a signed Purchase Agreement with Best Ford in New Hampshire, and they still changed price. After an hour of bickering, I called Ford Marketing Department from the showroom and got the original price.
Then they rewrote the paperwork and doubled their Dealer Fee!
I think you have to expect to put up a fight.

FrankenRodz

I had a signed Purchase Agreement with Best Ford in New Hampshire, and they still changed price. After an hour of bickering, I called Ford Marketing Department from the showroom and got the original price.
Then they rewrote the paperwork and doubled their Dealer Fee!
I think you have to expect to put up a fight.

That's why in addition to a signed itemized purchase agreement its reasonable in today's market to also consider proceeding with a loan to buy your bronco before it arrives at the dealership. Once loan docs etc. are finalized the numbers can't change. And dont let dealer say its not possible to establish a loan before it arrives, it is, so long as you have the 17 digit VIN.

NT AUTOMOTIVE

That's why in addition to a signed itemized purchase agreement its reasonable in today's market to also consider proceeding with a loan to buy your bronco before it arrives at the dealership. Once loan docs etc. are finalized the numbers can't change. And dont let dealer say its not possible to establish a loan before it arrives, it is, so long as you have the 17 digit VIN.

Although keep in mind that loan approvals only last 1-3 months. So if your delivery takes forever the approval for the loan may expire as well. The only exception to this is promotional rates through Ford Credit, but they haven’t been offering competitive rates in a very long time due to low inventory levels on dealer lots.

Either way, any purchase agreement you sign should list literally everything except for the title/registration fee and sales taxes—those are the only two pieces that are not controlled by the dealer (it’s controlled by your state government). Everything else should be listed… dealer documentation fees, selling price of the Bronco, any add-ons you purchase, etc. etc.

RagnarKon

Although keep in mind that loan approvals only last 1-3 months. So if your delivery takes forever the approval for the loan may expire as well. The only exception to this is promotional rates through Ford Credit, but they haven’t been offering competitive rates in a very long time due to low inventory levels on dealer lots.

Either way, any purchase agreement you sign should list literally everything except for the title/registration fee and sales taxes—those are the only two pieces that are not controlled by the dealer (it’s controlled by your state government). Everything else should be listed… dealer documentation fees, selling price of the Bronco, any add-ons you purchase, etc. etc.

Yes on loan approval but Im not talking about approvals or pre-approvals. Im talking about securing and finalizing actual funding from a lender before your bronco arrives by simply using your VIN + purchase agreement. This includes all fees and taxes.

The dealer plugs their fees, not ADM but Doc fees etc. into the ITEMIZED purchase agreement along with any extras you might want like a cargo liner. Then the last thing they, the dealer, does is plug in the sales tax percentage due based on where you reside whether buying local or out of state to further determine the OUT THE DOOR price lock stock and barrel. Many people forget to factor sales tax when buying a car which these days ranges between $2-6K in tax alone depending on sale price + tax rate in your area.

If buying out of state the dealer should also cut you a check out of your loan monies so you can pay your local sales tax at DMV when registering the vehicle yourself vs dealer paying your sales tax using your loan monies if buying local. Yes the state determines the sales tax percentage but the dealer controls when and where to apply the tax based on the above breakdown, not the state.

That's why I also mentioned being prepared to make 1-2 payments before your bronco arrives in the event it takes a bit longer to arrive than normal after it has been built. Also make sure you insure it the same day the loan starts because as of that moment its your bronco and the bank owns it, not the dealer, until paid off.

Eninty

OP, does the Purchase Agreement state that you must buy the Bronco regardless if you want to or not? What happens if the vehicle arrives and you do not like it. Or perhaps you have a change in your financial position and can no longer afford to buy the Bronco? Just curious.

While waiting for OP to respond I will just say that if you have cold feet about the bronco don't sign a purchase agreement AND don't initiate the loan before bronco arrives. You have to fully commit to the vehicle to do the latter pre-arrival and trust bronco arrives the way you wanted it in good working order.

If damaged on arrival during transit that repair should be paid for by Ford to the dealer as reimbursement and dealer fix. If something doesn't work upon arrival its covered by Ford under warranty and dealer fix. If it shows up and a different color or trim than what you ordered, well haha, that is a "discussion" between you and the genius at the dealership that submitted your custom order to Ford.

If your financial situation changes out of your control (force majure) and you don't have a loan yet, you should be able to void the purchase agreement and walk. But if you paid the dealer a deposit that will likely be forfeited.

If you initiate the loan before bronco arrives but your financial situation suddenly changes then you do what anyone else does (when it arrives) and sell it ASAP. The dealer might even buy it back from you. Which should be easy in today's market--if purchased at MSRP.

Some banks or credit unions might also offer an option to sign up for loan insurance. You pay the lender extra for it each month in the event you lose your job or you pass away unexpectedly and if so..the lender or its insurance provider will payoff the loan for you or your loved ones.

If you pay over MSRP strongly suggest buying GAP or GAP+ (gauranteed asset protection) financed into your bronco loan. GAP covers the loan difference if for example your vehicle gets totalled in a crash. This way you aren't paying off the loan difference out of pocket after insurance pays the claim. Insurance will only payoff the fair market value of the vehicle--at best. So if you paid 70K for a 50K vehicle and it gets totalled driving off the lot...you will owe the bank 20K out of pocket to payoff the original loan! And dont forget the out of pocket insurance deductible due as well. Option 2 here here is bypassing GAP and simply increasing your comprehensive insurance coverage limit on the bronco to the total amount you paid for it, but just remember your monthly insurance premium will go up if you elect option 2. Honestly I would sign up for GAP and Increase my coverage limit if paying over MSRP for a bronco. Or any vehicle for that matter.

If you go that loan route, your dealer gets their MSRP sales fee correct ?

You can do all of this song and dance with the dealer and they can still find a way to sew you over. Cross your fingers and hope for the best. Good luck.

Bronco 202?

You can do all of this song and dance with the dealer and they can still find a way to sew you over. Cross your fingers and hope for the best. Good luck.

What’s the worst they can do ?

MarkPS

What’s the worst they can do ?

It’s funny I’m starting to see some dealerships selling below MSRP. It’s spotty but there out there. In just a few more months there will be a lot of cars below MSRP.

MarkPS

What’s the worst they can do ?

If you are diciplined, patient, thourough, respectful, knowledgable and firm there is very little the dealer can do apart from messing with your vehicle during pre-delivery inspection (PDI) which is rare but could happen if you're an a**hat to the dealer. But a dealer can't penalize you for simply knowing ALL of your options when buying a vehicle and cordially directing them to do same in order to complete YOUR purchase. If anything based on my experience the dealer will respect you even more for it vs being another run of the mill customer focused only on the color and/or monthly payment amount.

NT AUTOMOTIVE

While waiting for OP to respond I will just say that if you have cold feet about the bronco don't sign a purchase agreement AND don't initiate the loan before bronco arrives. You have to fully commit to the vehicle to do the latter pre-arrival and trust bronco arrives the way you wanted it in good working order.

If damaged on arrival during transit that repair should be paid for by Ford to the dealer as reimbursement and dealer fix. If something doesn't work upon arrival its covered by Ford under warranty and dealer fix. If it shows up and a different color or trim than what you ordered, well haha, that is a "discussion" between you and the genius at the dealership that submitted your custom order to Ford.

If your financial situation changes out of your control (force majure) and you don't have a loan yet, you should be able to void the purchase agreement and walk. But if you paid the dealer a deposit that will likely be forfeited.

If you initiate the loan before bronco arrives but your financial situation suddenly changes then you do what anyone else does (when it arrives) and sell it ASAP. The dealer might even buy it back from you. Which should be easy in today's market--if purchased at MSRP.

Some banks or credit unions might also offer an option to sign up for loan insurance. You pay the lender extra for it each month in the event you lose your job or you pass away unexpectedly and if so..the lender or its insurance provider will payoff the loan for you or your loved ones.

If you pay over MSRP strongly suggest buying GAP or GAP+ (gauranteed asset protection) financed into your bronco loan. GAP covers the loan difference if for example your vehicle gets totalled in a crash. This way you aren't paying off the loan difference out of pocket after insurance pays the claim. Insurance will only payoff the fair market value of the vehicle--at best. So if you paid 70K for a 50K vehicle and it gets totalled driving off the lot...you will owe the bank 20K out of pocket to payoff the original loan! And dont forget the out of pocket insurance deductible due as well. Option 2 here here is bypassing GAP and simply increasing your comprehensive insurance coverage limit on the bronco to the total amount you paid for it, but just remember your monthly insurance premium will go up if you elect option 2. Honestly I would sign up for GAP and Increase my coverage limit if paying over MSRP for a bronco. Or any vehicle for that matter.

Okay update. Didn’t get a reply from the GM via email, salesman confirmed via text there would be no mark up. When I receive my vin I’ll be going up to the store in person demanding my itemized purchase price agreement. However, I do have a trade in. I guess I’ll need to sell it prior or if I have a smolllllllll (2-3k of negative equity lol I bought a frontier pro 4x thinking the value would hold like a moron) how do I proceed with securing the loan before hand? Do I request enough of a loan to cover the negative equity if I do have to roll it over? Ideally I won’t have to, just preparing for worst case scenario here.

bronco11

Okay update. Didn’t get a reply from the GM via email, salesman confirmed via text there would be no mark up. When I receive my vin I’ll be going up to the store in person demanding my itemized purchase price agreement. However, I do have a trade in. I guess I’ll need to sell it prior or if I have a smolllllllll (2-3k of negative equity lol I bought a frontier pro 4x thinking the value would hold like a moron) how do I proceed with securing the loan before hand? Do I request enough of a loan to cover the negative equity if I do have to roll it over? Ideally I won’t have to, just preparing for worst case scenario here.

Suggest not "demanding" an itemized purchase agreement but rather "request" one.

The GM is offline until next week. Best GM days are Tues-Thurs. Work with your salesman as much as possible. REQUEST the itemized purchase agreement be sent to you from the F&I Manager/Director. The F&I department (Finance and Insurance) is who works the numbers and processes your loan. Not the GM.

Save the "no mark up" text or email you got from your salesman in case needed later.

Trade. Sounds like you can only handle one vehicle loan at a time. If so, wait to sell your trade and wait to finance your bronco until your bronco gets close to delivery. Continue making payments on existing loan until sold. Since you have a trade you will have to thread it just right timing wise. Also suggest getting two offers from a second dealer (Nissan dealer) and carmax for your current vehicle as well.

NT AUTOMOTIVE

Suggest not "demanding" an itemized purchase agreement but rather "request" one.

The GM is offline until next week. Best GM days are Tues-Thurs. Work with your salesman as much as possible.

Save the "no mark up" text or email you got from your salesman in case needed later.

Trade. Sounds like you can only handle one vehicle loan at a time. If so, wait to sell your trade and wait to finance your bronco until your bronco gets close to delivery. Continue making payments on existing loan until sold. Since you have a trade you will have to thread it just right timing wise. Also suggest getting two offers from a second dealer (Nissan dealer) and carmax for your current vehicle as well.

Excellent advice