Thought Ford was helping with dealers Markup

[Hdang1980]

The title of this post can be interpreted as Ford is helping with dealer markups, thus making it somewhat a true statement. A weak memo to warn the dealers was all bark and no bite. Until Ford publishes the names of dealerships who have gotten their allocations canceled, it's all just lip service.

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[Ohio44890]

Sharpnack Ford in Willard, Ohio has at least 3 Mavericks. They had them marked up $10,000….now only marked up $7,000 and still setting in the lot

 

[OleFordGuy]

If you think that is bad, how about $145K ($50K ADM) for a F150 Lightning. Looks like the big threatening letter from Ford to the Dealers is just hot air that has no real bite. https://fordauthority.com/2022/05/insane-2022-ford-f-150-lightning-markups-have-arrived/

 

[RBElectrical]

Last weekend I was looking at Transit Connects. 2 dealers had them marked up $15K. I called a third and it was also marked up 15K. INSANE

 

[RGoose85]

Local dealer has an XLT for sale. MSRP 30K. Ask price: $40K. I said I would pay MSRP, and picked up today. Nope, every car has 10K Market Adjustment. I said I just bought a Lariat under sticker, it is possible. Nope.

So the manager calls me. Says they have to mark it up because they don't have enough inventory. Explained that I would be trading a Transit 250 in (super high commodity right now). Also explained I just purchased a Lariat under sticker and that these trucks, especially an XLT are not worth $40K. He said the best they could do is 37K and that was it. Made a comment how the buyer backed out so it's for sale. I said he probably backed out because you jacked the price up 10K on him. "ohhh no, we offered at sticker and he found one elsewhere by the time it came in". Sure. So if you were going to sell to him at sticker then you could sell to me at sticker. "it doesn't work like that".

What are the chances the buyer for this Maverick is getting hosed by a dealer trying to make another $7-10K on the truck he ordered?

Only way to stop the markup is if people stop buying .

 

[RBElectrical]

In talking to these dealers about the Transits, they offered to purchase my Maverick @ $41K. I am having a hard time saying no to that.

 

[Dun4791]

Only way to stop the markup is if people stop buying .

Only two types of people paying ADM. Rich people and impatient people. Neither will stop buying. Ford is going to do what they have been doing about it so far…nothing.

 

[RBElectrical]

Only two types of people paying ADM. Rich people and impatient people. Neither will stop buying. Ford is going to do what they have been doing about it so far…nothing.

Absolutely. I just purchased a Ram for one of my guys a couple days ago. Every dealer around me is putting ADM. With the internet you can find an out of state dealer willing to deal. Found one that had $2K discount + Chrysler was throwing in an additional $2750 and 0% financing. The dealer is near a major hub so I decided to make a long weekend out of it with the wife to fly and drive it home.

Worst case I could had flown myself and driven back. $150 plane ticket and 1 tank of fuel, maybe $150, for a $300 total cost to bring home. $300 cost to save $1500-$7000 is a no brainer.

 

[MLowe05]

The Maverick is not a rich person's toy, but I guess everyone has a preference. I cannot imagine a person being so impatient that they pay what these things are going for used. The markups on used are worse than new. Case in point - I just sold my MSRP $22,575 XL EB for $34,500 to a Chevrolet dealership in Mississippi. So they're expecting to net a profit even on that already ridiculous figure. How do people even finance this shit?

 

[Grozk72]

The concept that "rich" people (I'm not sure of what that actually means) will willingly pay higher prices is likely perception, not reality. Many of that demographic have achieved their financial independence due to being hardworking and frugal. Paying an inflated price for a economy car/truck is not consistent with that concept. The remainder of the "rich" are not the least interested in owning a Maverick (think Ford lightening, etc).

The other demographic cited-the impatient, is more likely to pay the inflated price. Also the need to have the "new" thing combined with the power of "get it while you can" fuels the frenzy.

Another and also likely contributing demographic (of those who buy the marked up vehicles) are those who actually "need" a vehicle and are forced to pay what the market is dictating. It is a monthly payment purchase and the additional cost becomes a seemingly small price amortized over 48/60/72 months.

 

[MLowe05]

Another and also likely contributing demographic (of those who buy the marked up vehicles) are those who actually "need" a vehicle and are forced to pay what the market is dictating. It is a monthly payment purchase and the additional cost becomes a seemingly small price amortized over 48/60/72 months.

I've said in another thread that a marked-up Maverick is never a "need", and I stand by that. But I do understand that there are people who need a car, and need it now. And you can find MSRP and even below MSRP deals out there on new cars, and that's always been my advice. If you need a car now, don't overpay for one.. just buy something where there is no markup.

 

[Bobinmi]

It ACTUALLY amazes me.....that BUYERS think "they" have the upper hand and tell the dealers they will pay "MSRP" for a vehicle...those days are GONE for a while...if you walk into a dealer, expect to pay OVER MSRP or you are VERY VERY lucky. Simple supply and demand. I am 60 and have bought OVER 2 dozen BRAND NEW fords and you know what...they do not give a shit...no special privilege for me...I am just another customer. So if you think because you "bought a new car or two" that you are "special"....this isn't MOMMY or DADDY...you are NOT special. Simple.

Just in the last 5 years, I have "bought New", 2017 F150, 2018 Transit Coachman freelander motor home, 2018 focus, 2018 ecosport, 2019 F150, 2021 full size bronco recd 10/28, 2022 maverick recd 12/23....also have another maverick ordered, plus a first hour F150 lightning ordered, plus a 2023 bronco 2 door ordered....and you know what....they do NOT care...no special treatment for me...when ford built "priority broncos" for each dealer....I wasn't even called for one...had to wait like every other swinging d***.

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