Interesting dealer "used" listing strategy

[Beckybee]

I located a dealer with a few "used" mavericks on their lot. They are listed as used, but the dealer says they are actually new. They said if they list them on their website as new, then Ford won't send them any more.

Wouldn't Ford know that they weren't actually sold? Or are the sales people buying them and flipping them? How else could they be doing this?

What are the possible downsides of these shenanigans? I assume the clock has already started on the warranty. Anything else we should worry about? And yeah, their markup is fully transparent.

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[IdahoDirtFarmer]

I'm assuming it's the same stuff my dealer is doing. They put orders in under all their employees names. I'll bet the dealer is basically paying for them under that person's name so they technically made a new sale upping their allocations, putting it on the lot as a technically used vehicle even though it never left the lot.

 

[Ponchsox]

You mean dealerships manipulate the system? Nooooooo.

 

[Chris_G]

You mean dealerships manipulate the system? Nooooooo.

Nothing to see here, keep it moving

 

[JBryant]

Some dealers are smart enough to bilk the system. I just left the dealer where my wife's Maverick Lariat Hybrid is set to be built on 6/12 and was talking with the owner. He said he could get a lot more allocations, but not willing to play these games, nor would he be willing to charge over MSRP for a vehicle. That is the difference in an honest dealer and a dealer.

 

[mav_kev]

I'm assuming it's the same stuff my dealer is doing. They put orders in under all their employees names. I'll bet the dealer is basically paying for them under that person's name so they technically made a new sale upping their allocations, putting it on the lot as a technically used vehicle even though it never left the lot.

That's my guess too - warranty register the trucks so their off the books with Ford, thus allowing more allocations for 'new' Mavericks. While you're at it, title them to the people they were ordered under, so it doesn't look like any funny business, and then sell them as 'used'.

[BORAT] niiiiiccceeee [/BORAT]

 

[1929]

I located a dealer with a few "used" mavericks on their lot. They are listed as used, but the dealer says they are actually new. They said if they list them on their website as new, then Ford won't send them any more.

Wouldn't Ford know that they weren't actually sold? Or are the sales people buying them and flipping them? How else could they be doing this?

What are the possible downsides of these shenanigans? I assume the clock has already started on the warranty. Anything else we should worry about? And yeah, their markup is fully transparent.

I don't know the finer details so someone more knowledgeable will need to fill in the details. New car dealer I worked at took ownership of new vehicles and put them in courtesy fleet for period of time. They were sold as used and I was told they had to be sold as used. Demo vehicles with similar mileage were sold as new vehicles. I suspect the situation differs depending on use and if vehicle is titled or not titled by the dealer. Some of the factors of the inventory management included age of the vehicles, floorplan costs, manufacturer programs, allocations. Manager said at times the dealer could make more money by taking ownership and collecting incentives then selling the vehicle as used.

 

[UberGadgetFreak]

That's my guess too - warranty register the trucks so their off the books with Ford, thus allowing more allocations for 'new' Mavericks. While you're at it, title them to the people they were ordered under, so it doesn't look like any funny business, and then sell them as 'used'.

[BORAT] niiiiiccceeee [/BORAT]

Recently I saw a story on TV where two dealerships owned by the same parent were 'selling' vehicles to employees of the opposing dealership who would 'trade in' those vehicles at their own dealerships, then those dealerships would do an 'equal trade' to swap them back. And all of that in one day. This triggers a title being issued and off the books, the vehicles don't actually move, and since everything here is now electronically filed so it would bypass any risk of actually paying property taxes as the state waits until end-of-day to determine ownership. If you buy and sell same day, you end up with net-zero new titles when they reconcile, so no property taxes or assets on record. All DMV would see is in the end is that it's now a previously titled vehicle waiting for resale. At least here, NCDOJ/DMV knows about it and is looking into it. I shouldn't say say where this statement comes from, but... In NC, dealerships who have a significant increase in same-day retitling recently might find themselves getting audited.

 

[Greg_in_GA]

What are the possible downsides of these shenanigans?

It might vary by state but if you buy it as used then the state Lemon Laws may not apply.

It is also conceivable that a used Maverick was bought back from a customer who was going to try to return it under the Lemon Law.

 

[Beckybee]

It might vary by state but if you buy it as used then the state Lemon Laws may not apply.

It is also conceivable that a used Maverick was bought back from a customer who was going to try to return it under the Lemon Law.

Oh, yikes, I'll look into the Lemon Law ramifications! Thanks!

They reportedly have less than 20 miles, so it's unlikely there was a real customer.

 

[Fibrepunk]

I located a dealer with a few "used" mavericks on their lot. They are listed as used, but the dealer says they are actually new. They said if they list them on their website as new, then Ford won't send them any more.

Wouldn't Ford know that they weren't actually sold? Or are the sales people buying them and flipping them? How else could they be doing this?

What are the possible downsides of these shenanigans? I assume the clock has already started on the warranty. Anything else we should worry about? And yeah, their markup is fully transparent.

Listed as used for Mavericks around 500 miles:
1) Dealers don't have to show the sticker price.
2) Dealers don't have to report to Ford the price they sold the truck for.
3) Dealers probably sold them to friends/relatives/employees then buy them back to list them as used.
4) These listings normally have around 500 miles on each of the trucks.

Link for ref. from a used car dealer: Youtube - Car Questions Answered

 

[Captain Blackheart]

It might vary by state but if you buy it as used then the state Lemon Laws may not apply.

It is also conceivable that a used Maverick was bought back from a customer who was going to try to return it under the Lemon Law.

A vehicle buyback under Lemon Law requires the title to reflect that. At least in CA.

 

[Greg_in_GA]

A vehicle buyback under Lemon Law requires the title to reflect that. At least in CA.

A concern is that prior to a formal lemon law buyback Ford or the dealership might do a preemptive buyback that is not technically under the lemon law. That is just speculation but I am see how that might happen especially when a used Maverick can be sold for above the new MSRP.

 

[Captain Blackheart]

A concern is that prior to a formal lemon law buyback Ford or the dealership might do a preemptive buyback that is not technically under the lemon law. That is just speculation but I am see how that might happen especially when a used Maverick can be sold for above the new MSRP.

Valid point, especially when we're talking about less-than-scrupulous dealers.

 

[Nw_adventure]

I still have a 2021 Bronco on my Ford.Com vehicle dashboard page since my dealer took my not rolled over reservation to order and used it to grab them two Broncos-

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