Dealers selling "used" new Mavericks

[KevCuRaoi]

I talked with a salesman from Crestview Ford here in Florida about a XLT he had listed for $41k. Red, ecoboost with no other options. He told me the dealership is “paying” $10k over MSRP at an auction for these trucks. Didn’t say what kind of auction.

"Locators" constantly harass us (and every other dealer) about buying/selling inventory to other dealers. Some dealers are paying thousands over MSRP to get desirable vehicles. $3,000-$7,000 over MSRP is the norm for Mavericks.

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[Sirk]

I love the 750% profit I made on Ford stock
But the greedy actions of dealers with their unspoken ADMs (until the last minute) and excessive Doc Fees ($995 in some cases) is really souring me on the Ford brand lately.

"I love capitalism when it benefits me, but I hate capitalism when it benefits someone else"

 

[Blkraven66]

What really grinds my gears is seeing dealers that have gamed the system, and are selling USED Mavericks with like 15 miles for 10K plus over MSRP. Seems highly likely some of these dealers had employees and/or family members order new Mavericks, then immediately sell them right back to the dealer so they could mark them up and make a substantial profit under the radar of Ford's corporate gaze. (Something to be aware of @Ford Motor Company, not that I expect anything is really going to change in the near future.)

Crestview Ford in Florida is doing that very thing right now with both a Maverick XLT ($11.6K markup), a Mustang Mach-e GT ($16.5k markup), a Bronco Wildtrack ($17k markup), and a F-250 Lariat ($25.4k markup). All have less than 100 miles on the odometer according to the website listing, in most cases, less than 20 miles, yet they are listed as USED.

As so many real customers are waiting on their orders to be built by Ford, it is utter BS that dealers are getting away with these actions that are taking production capacity away from paying customers that have been patiently waiting for many months, in some cases more than a year.

I love my Maverick. I love the Mustang Mach-e. I love the 750% profit I made on Ford stock back during the recession. I love that Ford did not accept bailout money during that time. But the greedy actions of dealers with their unspoken ADMs (until the last minute) and excessive Doc Fees ($995 in some cases) is really souring me on the Ford brand lately. Luckily though there is no other brand with a lineup that can compare to the Maverick AND Mach-e.

Neilson Ford in Wantage NJ is where I bought my XL Maverick. No dealer markups at all !!! Fabulous experience !

 

[Suzukiridr14]

Dealers will pay what they have to, in order to get inventory. They can't stay in business with nothing to sell. They will pay you 5K over MSRP, and mark it up 10K. As long as there are people willing to go the extra 10K for a Maverick, this will go on. Sooner or later the bubble will burst! In years to come, we will talk about the time we could have sold out Mavericks for 20% more then we paid for them.

 

[displayer78]

What really grinds my gears is seeing dealers that have gamed the system, and are selling USED Mavericks with like 15 miles for 10K plus over MSRP. Seems highly likely some of these dealers had employees and/or family members order new Mavericks, then immediately sell them right back to the dealer so they could mark them up and make a substantial profit under the radar of Ford's corporate gaze. (Something to be aware of @Ford Motor Company, not that I expect anything is really going to change in the near future.)

Crestview Ford in Florida is doing that very thing right now with both a Maverick XLT ($11.6K markup), a Mustang Mach-e GT ($16.5k markup), a Bronco Wildtrack ($17k markup), and a F-250 Lariat ($25.4k markup). All have less than 100 miles on the odometer according to the website listing, in most cases, less than 20 miles, yet they are listed as USED.

As so many real customers are waiting on their orders to be built by Ford, it is utter BS that dealers are getting away with these actions that are taking production capacity away from paying customers that have been patiently waiting for many months, in some cases more than a year.

I love my Maverick. I love the Mustang Mach-e. I love the 750% profit I made on Ford stock back during the recession. I love that Ford did not accept bailout money during that time. But the greedy actions of dealers with their unspoken ADMs (until the last minute) and excessive Doc Fees ($995 in some cases) is really souring me on the Ford brand lately. Luckily though there is no other brand with a lineup that can compare to the Maverick AND Mach-e.

This is going to bite these dealerships in the future when supply exceeds demand. People will remember dealerships that took advantage of them and the ones that took care of them. When I bought my Maverick the dealership didn't exploit me, but in the contrary gave me the best deal out of the door.

 

[tonyinsd]

I sold my 1st Maverick with 10,300 miles to a dealer for about $4k over MSRP because my original order was finally built. Their mark up was $8k over MSRP. The truck sold in about 10 days.

Not sure why some want to believe the dealers are being shady or had some scheme to acquire used Mavericks. I am certain every owner that sold their Mavericks to dealers made a profit, just like the dealer are doing.

Yes, the mark up are crazy, but buyers are still willingly paying those prices because the supply is low and the demand is high.

Some people here don't seem to understand that this is a textbook illustration of supply and demand. The supply of Mavericks is low. Demand for them exceeds supply. That means any of them not price constrained by a customer order is going to sell for way above MSRP.

There are economies (although not too many) where the government sets the price for goods and services. But you will wait for years to get a vehicle that they choose for you and it sure as hell isn't going to be a good one.

Yes, it sucks if you have to pay the mark up but then, do you REALLY need a Maverick or do you just want one? Even I, with my 32 year old Silverado, didn't NEED a Maverick. Yes, it was way past time to replace the old beast but I could have kept it going if I wanted to.

 

[710-oil-614]

To be fair, I've been in discussions with my dealership to purchase my Bronco from me since I took delivery of it with 32 miles on it.

It's got just under 1100 and they're likely to buy it back for about $56k and put it in on the showroom floor with a price tag north of $60k.

 

[Jville]

Could many be backed out of at the dealer when the go in to pick it up? Maybe getting a little better deal to move into a Ranger or F150? So they are told.

Unfortunately, according to Tim Bartz's Tuesday PM livestream, some have croaked awaiting delivery. Not exactly in those words though. Tim is much more professional in his word selection.

 

[710-oil-614]

That's ok... They are stuck with those gas guzzling Broncos now..... Lots of them not even being picked up by legit customers...

Oh now now...I'm about to sell my Bronco for $14k more than I paid for it otd.

They aren't stuck with anything.

 

[Decayed]

Dealers will pay what they have to, in order to get inventory. They can't stay in business with nothing to sell. They will pay you 5K over MSRP, and mark it up 10K. As long as there are people willing to go the extra 10K for a Maverick, this will go on. Sooner or later the bubble will burst! In years to come, we will talk about the time we could have sold out Mavericks for 20% more then we paid for them.

exactly this!

It's amazing how many people don't understand that businesses have to have product to sell or they don't stay in business.

If there is a market there is no shame in serving it. One other thing to consider is that if the dealers net $2500/vehicle and sold 100 vehicles a month, they have to double their net if their volume is halved just to break even. That means higher prices.

Selling people's custom orders is slimy, but buying vehicles at auction and selling them for what the market will bear is good business practice.

 

[Dochatley]

True, but what will stop people from paying it is availability. There is a TON of competition in the vehicular market. Tens of Thousands of dealers and the ability to buy from any of them. When production ramps up so will availability. I argue demand isn’t that high across the board, it just appears that way due to heavily decreased production.

I agree. Compared to a lot of vehicles there are not that many Maverick’s being produced due to one reason or another. And when some of the other guys start putting out their compact hybrid pickup’s it will definitely be a game changer.

 

[mr mojo risen]

So, I get a text message about an hour ago from a lady at a dealership that I spoke with before I bought my Mav. Her dealership has a pre-owned Area 51 Lariat EB AWD with 5300 miles; asking just under $45,000. Send me a PM if you want in on this deal and I’ll give you the particulars.

 

[Barracuda340]

I talked with a salesman from Crestview Ford here in Florida about a XLT he had listed for $41k. Red, ecoboost with no other options. He told me the dealership is “paying” $10k over MSRP at an auction for these trucks. Didn’t say what kind of auction.

Years ago I worked at an auto auction. They hosted Ford Motor Company dealers 2 times a month. Most of what we had was leased rental cars. Companies like Hertz and Avis would lease town cars Tauruses, Tempos etc. They had to turn them back within 2 years and under 20K on the odometers. Our job was to do damage estimates, and repair whatever was wrong with the cars. The ford dealers would buy these up and sell em as used vehicles on their lots.

Every so often we would get car carriers full of mustang GTs, mercury colony park wagons, ford pickups etc. to go to auction. This was not the normal rental fleet junk. These were "factory" cars. Stuff the ford exec's got to take home and drive for a bit. Usually in those loads of "factory" cars as we called them were at least 1 or 2 brand new cars that smelled like auto body shop inside them.

One carrier load there was a black mustang GT, and a powder blue mercury wagon. Both smelled like autobody filler. We were trained by ford to spot shoddy bodywork, and mismatched paint on the rentals. We couldent figure out where on the bodies these 2 cars were fixed. Both were new with plastic on the seats and less than 5 miles on the odometers.

This being said, those vehicles very well could be auction house specials that have been repaired. "Damaged in transit" is what they used to call it. Selling a damaged and repaired new car from a FoMoCo auction house with a severe markup is even worse than marking up one that wasnt damaged and fixed.

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