Financing with "Market Adjustment"

[kpregan34]

Just had a thought this morning after I saw a dealership advertisement pop up on Facebook for a Maverick. There's a dealer about 100 miles north of me with an EB Lariat advertised at $44K after the $10K "market adjustment". How in the world could one finance a vehicle that's $10k over it's MSRP? Will lenders allow for that mark up these days in what they'll lend? Does one have to come up with $10k+ in down payment to get it to a normal world value to get a loan?

Seems like a perfect topic for people to chime in on!


PS - I can't imagine starting off so far upside down on a loan!

Sponsored

 

[Chris_G]

Just had a thought this morning after I saw a dealership advertisement pop up on Facebook for a Maverick. There's a dealer about 100 miles north of me with an EB Lariat advertised at $44K after the $10K "market adjustment". How in the world could one finance a vehicle that's $10k over it's MSRP? Will lenders allow for that mark up these days in what they'll lend? Does one have to come up with $10k+ in down payment to get it to a normal world value to get a loan?

Seems like a perfect topic for people to chime in on!


PS - I can't imagine starting off so far upside down on a loan!

More cash down or upside down.

 

[CLH917]

Would be interesting to hear from those suckers who have paid 10k over sticker. However, I’m sure no one will openly admit that.

I would imagine they’re bridging that gap with cash or their trade in?

 

[Jezmund_Berserker]

More cash down or upside down.

Perhaps Ford would, but I don't know of any other lender that would let you finance a new car at $10k above MSRP. Not at any rate.

 

[atomguy245]

If you have the credit and income, you can finance more than 100% of the value of the vehicle. People who roll negative equity from their trade in onto their new vehicle do it all the time. Is it smart? Heck no, but people do it every day

 

[Maverick2023]

If you have the credit and income, you can finance more than 100% of the value of the vehicle. People who roll negative equity from their trade in onto their new vehicle do it all the time. Is it smart? Heck no, but people do it every day

I hate to say this but at the end of the day this is a Ford. Why pour so much $$ into it? For me I can't justify putting anything over 25 grand out the door into this car but hey, it's your money.

 

[Tking]

This is third hand info but... One of my local dealers sold an EB for more than 10k over msrp. I heard they took a trade in that was worth 10k.

 

[justiz00]

.

 

[TSAINTS1115]

Gonna be a big shock for the $10k -up buyer if they total their Mav and at best with replacement insurance they'll get is MSRP.

 

[MakinDoForNow]

Perhaps Ford would, but I don't know of any other lender that would let you finance a new car at $10k above MSRP. Not at any rate.

I think I saw somewhere that Ford finance would loan up to 110% of (MSRP ??). Review Ford finance in build my22.

 

[OB1e]

Gonna chime in since I do this for a living. Dealerships know what they can get away with. If Ford financing can do up to 130% msrp, then they will sell up to that point or force you to do a down payment If you really want it. On a sales point, run nada guide before hitting the dealership. Tell the dealer why am I paying 40k for a 30k truck and if they are looking to make a sale or sit on it for awhile.

 

[kpregan34]

One more point on this that's been irritating me - couple weeks ago durning Tim's weekly YouTube session, he said they'd been selling cars below invoice for years to the tune of $10k under. So now they're charging (at his dealership) $5k - $7.5k over invoice for Mavericks. So a $10k improvement in profit isn't enough.. got gouge a bit more. I understand free market and all, but people do have long memories on this stuff. I've certainly discovered nearby dealerships I will not patronize in the future..

 

[LIL’ Buddy]

One more point on this that's been irritating me - couple weeks ago durning Tim's weekly YouTube session, he said they'd been selling cars below invoice for years to the tune of $10k under. So now they're charging (at his dealership) $5k - $7.5k over invoice for Mavericks. So a $10k improvement in profit isn't enough.. got gouge a bit more. I understand free market and all, but people do have long memories on this stuff. I've certainly discovered nearby dealerships I will not patronize in the future..

Yes agreed… this is sad and stupid! I too when buying the Maverick had dealers around charging MSRP, and then some, charging $10k market adjustment pricing!!!??? What, yeah , go F%^* yourself crappy dealer!! I also have never paid MSRP in my life for a vehicle either, I usually even ask for the 3% hold back fee… lol ok ok not that mean!! But this is a hot truck, pandemic marker place issues, and etc… so I did pay factory MSRP (Sticker $31,415) for my MAV… I didn’t even question it or bring it up…. Cause I knew they could easily sell it for $10k more… if no one buys them due to mark up… but I do like living in make believe some days it helps!! Either way… folks if you can get away from it don’t ever pay these mark ups or adjustments find dealer(s) who don’t do this!

 

[Barry M]

Just had a thought this morning after I saw a dealership advertisement pop up on Facebook for a Maverick. There's a dealer about 100 miles north of me with an EB Lariat advertised at $44K after the $10K "market adjustment". How in the world could one finance a vehicle that's $10k over it's MSRP? Will lenders allow for that mark up these days in what they'll lend? Does one have to come up with $10k+ in down payment to get it to a normal world value to get a loan?

Seems like a perfect topic for people to chime in on!


PS - I can't imagine starting off so far upside down on a loan!

Shouldn't the state attorney's office check in to this?
Isn't this called price gouging and isn't that illegal?

 

[2022EOW]

People are stupid to pay those markups. Just throwing their money away to some fat cat dealer. Sorry, but I have better things to spend my money on.

Sponsored