The “Real Deal” regarding Plan Discounts

If your like me, you may have wondered how good of a deal is the plan discount? Well let me tell you, it doesn’t get any better. The A/Z plan privledge as explained below is typically thousand(s) below factory invoice. Well what’s invoice? Invoice is what we actually pay Ford for the vehicle(s). In reality, the strongest negotiator on a non-plan discount couldn’t even come close to the savings you will get with the A/Z plan. It truly is a benefit of being a Ford/UAW employee.

The X plan also provides significant savings often equal to or below the factory invoice. This allows youq

Pricing Formula

• The AXZD-Plan price is the amount shown on the line labeled appropriately near the bottom of the factory invoice. The New Vehicle Purchase Program price includes advertising, finance costs, transportation, and Company Administration Fee.
• X-Plan is a pre-determined price based on dealer invoice or A-Plan price depending on brand. The X-Plan price is noted on the dealer invoice.

Who is eligible for Ford A Plan, Ford Z Plan?

An eligible Ford employee (A-Plan) or retiree/surviving spouse (Z-Plan) may generate up to four (4) PINs per calendar year to be used toward the purchase/lease of a new vehicle for them or their eligible family members as noted below (see PIN Generation for details):

• All active full-time hourly employees & regular salaried employees, beginning with date of hire.
• All hourly retirees receiving a normal, early (regular or special) or disability retirement benefit, as long as any medical benefits are being received.
• Salaried retirees who retired under the General Retirement Plan, including salaried employees who terminate between the ages of 50-55 and who are eligible to receive certain deferred retirement benefits, are eligible while they are receiving benefits.
• Surviving spouses of employees who died while actively employed and surviving spouses of retirees who retired under the General Retirement Plan, or who are receiving benefits under the Ford-UAW Retirement Plan.
  All U.S. Temporary Part-Time employees (TPTs) are eligible for A-Plan in the U.S.
  Employees on an approved leave of absence, for the duration of the leave or until expiration of any medical benefits.
• Employees on layoff, for the first 12 months of the layoff.
• Employees taking a separation package, complete details on their AXZ-Plan privileges are included in their separation packet.
• All regular part-time hourly and salaried employees who are eligible to receive medical benefits.
• Deferred Vested Retirees while they are receiving a Ford pension check.
• Members of the immediate family of the above. “Immediate family” means the following relatives of the employee or retiree:

• Spouse
• Parents
• Spouse’s Parents
• Grandparents
• Spouse’s grandparents
• Sons and daughters (including in-laws and step-children)
• Grandchildren
• Brothers and sisters (including in-laws, half and step)
• Same-sex domestic partners of eligible active employees*
• Immediate family members of eligible same-sex domestic partners*

• Employees of approved subsidiary companies and approved affiliated companies as eligibility is defined at the time of approval.
• When both the employee/retiree and his/her spouse are deceased, the surviving family members are no longer eligible.

Who is eligible for Ford X plan?

An eligible Ford employee or retiree may sponsor up to four (4) PINs per calendar year to be used towards the purchase/lease of a new vehicle for a friend or neighbor as noted below (see PIN Generation for details):

• Selected individuals sponsored by a Ford Motor Company employee or retiree such as an extended family member, friend or neighbor.
• Sponsors must know the individuals they are sponsoring.

How do taxes work for A/X/Z Plan Purchases?

Taxes in Illinois, Indiana and many surrounding states
In most states the consumer pays tax on the purchase or lease of the vehicle before rebates.  Much like when shopping at a grocery store, your rebates or coupons will be deducted at the end of the transaction.   After the tax is calculated the rebates then are taken off, giving you a final cash price or amount financed.  The plan discounts are no exception. The states of Illinois, Indiana, Wisconsin, and many others deduct the plan incentives AFTER all taxes are calculated.  Please look at the below example:

John buys a 2010 Ford Taurus with a $1500 dollar rebate AND he’s eligible for A-Plan. He has saved up $1000 to use as a down payment and has no trade in. Here’s how the transaction would work (I use even numbers for example purposes):

MSRP of 2010 Ford Taurus SE-	$27,500
A-Plan price of Taurus SE-	$25,500
A-Plan discount-	$1,000	(the monetary benefit. It is typically close to the invoice price minus the A-Plan price)
Rebate of:	$1,500

So, If someone asks John what he paid for the Taurus what would he say?
A-Plan price of $25,500 minus $1500 dollar rebate = $24,000 + taxes and fees

What would his “out-the-door” number be? Also called total amount financed?

A-Plan Price	$25,500
add in a-plan discount (this is how the tax is calculated)	$1,000
add in doc fee (Illinois dealers can charge $75 or $154.37 for non-plan buyers)	$75
This is the taxable amount-	$26,575
Taxes at roughly 8%  (If you live in Indiana they will be lower)	$2,124
Doc fee  (this fee was calculated for taxes but wasn’t added in yet)	$75
New Plates	$99
Title	$95
Total amount before A-plan discount, rebates & down payment-	$28,968

 

You may look at the example and ask yourself “what kind of benefit is that?”  Please read on…

Here’s the fun part:

Taking the total from above of :	$28,968
Subtract Plan Discount-	$1000
Subtract rebates of-	$1500
Subtract down payment of-	$1000
TOTAL AMOUNT FINANCE, OR DUE IS-	$25,468

Now all you have to do is plug that into a payment calculator and “wholla”, you have yourself a payment. The only variable left is the rate.

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Why X-Plan Is Great

Ford X-Plan saves you both time and money when purchasing or leasing an eligible Ford, Lincoln or Mercury vehicle.

• Enjoy Shared Savings! Your X-Plan price is established before you visit the dealership soyou don’t have to negotiate.
• Exceptionally Simple! Your X-Plan price is clearly marked on the vehicle invoice. Just ask your dealer for a copy of the invoice to confirm X-Plan pricing.
• Great Value! X-Plan pricing is available with most other publicly offered programs.¹

1 See selling dealer for details

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How Do I Participate?

• Ask your Ford employee/retiree sponsor to generate a PIN and email invitation for you (you’ll need to provide your name, home address and email address)
• Once you have a PIN, visit a participating dealer and identify yourself as an X-Plan Friends and Neighbors participant
• Select an eligible vehicle
• Complete the purchase or lease agreement and arrange for delivery

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Other “Need To Knows”

• New prior model year vehicles may be purchased or leased at Plan pricing from dealer stock only up to the date of “final pay” – see selling dealer for details
• Used vehicles are ineligible
• Dealer demonstration units are available at new vehicle X-Plan pricing
• Trade-in allowances must be negotiated with the dealer
• Lease financing may be obtained at the customer’s discretion from any source