Just me rambling on about marked up pricing

[GyroRon]

Part of why I refuse ( at least right now ) to pay a ADM fee, is I have X plan pricing I can use. X plan saves me over $1000. It lowers the price by about $400-700 below MSRP, and limits the dealer to only $100 Doc fee which saves me a additional $500-600 ( typical DOC fee around here is 7-8 hundred dollars. )

So I can be patient and get what I ordered.... for $1000 below sticker. Or buy something that isn't exactly what I ordered and pay $5000 over MSRP, which given the lost value of X plan, means I am paying $6000 grand over what I would have paid.

Many people have just had to have it now, and have gone ahead and paid that mark up pricing. And some have even sold or traded in and so far up until now, and even still now in most cases, the value on these trucks has covered that ADM..... There are still some dealers willing to buy or take in on trade these trucks and give over MSRP for them. Carvana somehow still seems to be buying them off people for well over MSRP. So for those that had to have one now and paid over sticker, if you unloaded them after only a few months of driving, you probably did ok.

I just don't see that continuing much longer. Actually I am surprised it has lasted as long as it has. I truly believe that it is a matter of anytime, maybe in a few weeks, maybe by summer, the market will be different on these trucks. I don't feel like dealers will get over sticker on them. And I feel like people shopping for used ones will expect to pay under sticker. In other words, pricing will return to normalcy.

At that point, a Maverick trim level that would have sold new for 28 grand, that is now used with a few thousand miles will only be worth say 23 grand.... maybe 25 grand.... At that point, the guy who just had to have one now will have a truck that depreciated, 8-10 grand instead of 3-5 grand. Essentially you threw away that $5000 you paid extra to have it now.

So then it comes down to was there value in having it now for that $5000. And honestly, in today's times of impatience and have it now mentality, I would not be surprised by it being no big deal to many people. I mean, go to any theme park these days and pay $100-150 a person for a day pass, but you can also pay another $100+ per person for a " Skip the lines / Fast pass " ticket where you don't have to wait in a line to ride the rides..... And I see a ton of people paying that extra cost! Or look at how many people pay extra to order food from door dash or similar companies, because they would rather pay more money and not have to go pick up their food.

I mean the more I think about it, $5000 isn't even a ton of money for a lot of people these days.

But It is to me. I can afford to pay an extra 5 grand, but only because I typically wouldn't pay extra on stuff like this. If I lived my life not trying to be smart financially, and was of the " Skip the lines / Door Dash / no limits budget family vacation / never buy the store brand grocery shopper / have to be the first in line for the newest iPhone / $200+ for a pair of sneakers " Then I don't know how I would be able to afford a new anything to be honest.... Maybe I would be like I was 15 years ago living my life in a sea of debt ( I own everything outright these days, and pay cash for for vehicles etc... )

It is pretty clear to me, that some folks just simply wanted one of these trucks and regardless of the final sales price, they just had to have it and even with a marked up price, they were still ok with it cause it is still cheaper than a F150 or comparable Ridgeline or similar.

Maybe I am just in a better position than some. I have something else to drive that can do most of what the maverick can do, and it is nice and already had most of it's depreciation. I can drive it till the right deal presents itself or one of the mavericks I ordered is produced and not only not pay the mark up but save the $1000 or so X plan saves me.

Yeah, your milage might vary. I have seen some make some compelling arguments for going ahead and paying a marked up sales price.

Sponsored

 

[GyroRon]

And I know it would never happen.... But if everyone just said no to paying marked up pricing, those mark ups would disappear within just a few weeks... Across the board!

 

[rclee]

I agree with you. I am a real frugal person too. I guess it comes from not really having a lot from the beginning of my life. This is the first time I ever splurged on a car/truck. When I saw the base price of the Maverick and the fuel mileage, I was floored. I had my last vehicle over 16 years, so I said heck with the base model. I went upscale to the XLT LUX and only spent 28k. Now that is a deal, considering the Honda civic is the same money. Paying 5000 more than the 28K just doesn't make sense to me for this vehicle in the long run.

 

[OleFordGuy]

Wow, ok that sure was some rambling. Know your glad to get that off your chest. Off topic a little, but it seems your helping dealers sell with ADM based on your statement " one of the mavericks I ordered is produced ", that is unless your planning on buying all of them that you ordered.

 

[Maverick2023]

Part of why I refuse ( at least right now ) to pay a ADM fee, is I have X plan pricing I can use. X plan saves me over $1000. It lowers the price by about $400-700 below MSRP, and limits the dealer to only $100 Doc fee which saves me a additional $500-600 ( typical DOC fee around here is 7-8 hundred dollars. )

So I can be patient and get what I ordered.... for $1000 below sticker. Or buy something that isn't exactly what I ordered and pay $5000 over MSRP, which given the lost value of X plan, means I am paying $6000 grand over what I would have paid.

Many people have just had to have it now, and have gone ahead and paid that mark up pricing. And some have even sold or traded in and so far up until now, and even still now in most cases, the value on these trucks has covered that ADM..... There are still some dealers willing to buy or take in on trade these trucks and give over MSRP for them. Carvana somehow still seems to be buying them off people for well over MSRP. So for those that had to have one now and paid over sticker, if you unloaded them after only a few months of driving, you probably did ok.

I just don't see that continuing much longer. Actually I am surprised it has lasted as long as it has. I truly believe that it is a matter of anytime, maybe in a few weeks, maybe by summer, the market will be different on these trucks. I don't feel like dealers will get over sticker on them. And I feel like people shopping for used ones will expect to pay under sticker. In other words, pricing will return to normalcy.

At that point, a Maverick trim level that would have sold new for 28 grand, that is now used with a few thousand miles will only be worth say 23 grand.... maybe 25 grand.... At that point, the guy who just had to have one now will have a truck that depreciated, 8-10 grand instead of 3-5 grand. Essentially you threw away that $5000 you paid extra to have it now.

So then it comes down to was there value in having it now for that $5000. And honestly, in today's times of impatience and have it now mentality, I would not be surprised by it being no big deal to many people. I mean, go to any theme park these days and pay $100-150 a person for a day pass, but you can also pay another $100+ per person for a " Skip the lines / Fast pass " ticket where you don't have to wait in a line to ride the rides..... And I see a ton of people paying that extra cost! Or look at how many people pay extra to order food from door dash or similar companies, because they would rather pay more money and not have to go pick up their food.

I mean the more I think about it, $5000 isn't even a ton of money for a lot of people these days.

But It is to me. I can afford to pay an extra 5 grand, but only because I typically wouldn't pay extra on stuff like this. If I lived my life not trying to be smart financially, and was of the " Skip the lines / Door Dash / no limits budget family vacation / never buy the store brand grocery shopper / have to be the first in line for the newest iPhone / $200+ for a pair of sneakers " Then I don't know how I would be able to afford a new anything to be honest.... Maybe I would be like I was 15 years ago living my life in a sea of debt ( I own everything outright these days, and pay cash for for vehicles etc... )

It is pretty clear to me, that some folks just simply wanted one of these trucks and regardless of the final sales price, they just had to have it and even with a marked up price, they were still ok with it cause it is still cheaper than a F150 or comparable Ridgeline or similar.

Maybe I am just in a better position than some. I have something else to drive that can do most of what the maverick can do, and it is nice and already had most of it's depreciation. I can drive it till the right deal presents itself or one of the mavericks I ordered is produced and not only not pay the mark up but save the $1000 or so X plan saves me.

Yeah, your milage might vary. I have seen some make some compelling arguments for going ahead and paying a marked up sales price.

I feel the same way when it comes to buying a home nowadays. People are selling them way above my asking price and what i'm willing to pay and that's egregious!!!!

 

[Flight Test]

Part of why I refuse ( at least right now ) to pay a ADM fee, is I have X plan pricing I can use. X plan saves me over $1000. It lowers the price by about $400-700 below MSRP, and limits the dealer to only $100 Doc fee which saves me a additional $500-600 ( typical DOC fee around here is 7-8 hundred dollars. )

So I can be patient and get what I ordered.... for $1000 below sticker. Or buy something that isn't exactly what I ordered and pay $5000 over MSRP, which given the lost value of X plan, means I am paying $6000 grand over what I would have paid.

Many people have just had to have it now, and have gone ahead and paid that mark up pricing. And some have even sold or traded in and so far up until now, and even still now in most cases, the value on these trucks has covered that ADM..... There are still some dealers willing to buy or take in on trade these trucks and give over MSRP for them. Carvana somehow still seems to be buying them off people for well over MSRP. So for those that had to have one now and paid over sticker, if you unloaded them after only a few months of driving, you probably did ok.

I just don't see that continuing much longer. Actually I am surprised it has lasted as long as it has. I truly believe that it is a matter of anytime, maybe in a few weeks, maybe by summer, the market will be different on these trucks. I don't feel like dealers will get over sticker on them. And I feel like people shopping for used ones will expect to pay under sticker. In other words, pricing will return to normalcy.

At that point, a Maverick trim level that would have sold new for 28 grand, that is now used with a few thousand miles will only be worth say 23 grand.... maybe 25 grand.... At that point, the guy who just had to have one now will have a truck that depreciated, 8-10 grand instead of 3-5 grand. Essentially you threw away that $5000 you paid extra to have it now.

So then it comes down to was there value in having it now for that $5000. And honestly, in today's times of impatience and have it now mentality, I would not be surprised by it being no big deal to many people. I mean, go to any theme park these days and pay $100-150 a person for a day pass, but you can also pay another $100+ per person for a " Skip the lines / Fast pass " ticket where you don't have to wait in a line to ride the rides..... And I see a ton of people paying that extra cost! Or look at how many people pay extra to order food from door dash or similar companies, because they would rather pay more money and not have to go pick up their food.

I mean the more I think about it, $5000 isn't even a ton of money for a lot of people these days.

But It is to me. I can afford to pay an extra 5 grand, but only because I typically wouldn't pay extra on stuff like this. If I lived my life not trying to be smart financially, and was of the " Skip the lines / Door Dash / no limits budget family vacation / never buy the store brand grocery shopper / have to be the first in line for the newest iPhone / $200+ for a pair of sneakers " Then I don't know how I would be able to afford a new anything to be honest.... Maybe I would be like I was 15 years ago living my life in a sea of debt ( I own everything outright these days, and pay cash for for vehicles etc... )

It is pretty clear to me, that some folks just simply wanted one of these trucks and regardless of the final sales price, they just had to have it and even with a marked up price, they were still ok with it cause it is still cheaper than a F150 or comparable Ridgeline or similar.

Maybe I am just in a better position than some. I have something else to drive that can do most of what the maverick can do, and it is nice and already had most of it's depreciation. I can drive it till the right deal presents itself or one of the mavericks I ordered is produced and not only not pay the mark up but save the $1000 or so X plan saves me.

Yeah, your milage might vary. I have seen some make some compelling arguments for going ahead and paying a marked up sales price.

Well said and I agree with you. I'm in a similar situation, was in debt in my younger years, but learned a hard lesson never to be beholden to someone else ever again. Have not paid sticker price since my first new car. I realize everyone is different and they freely made a choice to pay whatever they paid to get what they want. We are in a hurry-up, want-it-now culture. I'm fortunate my dealer accepts X-Plan. No knocks against anyone.

 

[710-oil-614]

Supply and demand. Currently demand outweighs supply on most new vehicles and brands and definitely on the Maverick.

I don't see the scenario like you - where ADM could disappear in a matter of weeks and likely by summer.

A glut of vehicles will not be flooding dealership lots anytime soon. There is no incentive for manufacturers to rush to make that happen, and it will only occur naturally if a recession occurs where manufacturers continue to produce vehicles that are not being purchased.

Expect ADM on non-retail order Mavericks and overvalued used Maverick prices for at least the remainder of 2023.

We're also talking about the Maverick - one of the most affordable vehicles for sale today. Many folks looking at Mavericks are cross shopping more expensive vehicles so they are willing to stomach an ADM to get the vehicle they really wanted and it isn't likely "costing" them much more because the alternate vehicle being considered was equally or more expensive than the ADM'd Maverick they bought.

 

[Clarkdonbran]

I will always pay extra to not wait at an amusement park!

 

[GyroRon]

Wow, ok that sure was some rambling. Know your glad to get that off your chest. Off topic a little, but it seems your helping dealers sell with ADM based on your statement " one of the mavericks I ordered is produced ", that is unless your planning on buying all of them that you ordered.

Yeah I ordered a XLT with the minimum stuff I'd be satisfied with, then a Lariat. I want the lariat, but also order the XLT with the mindset that with constraints I might not ever get the lariat.

I am all for capitalism. Notice I am not slamming the dealers or private sellers for asking more than MSRP! My plan has been to sit back and wait and see what happens... If by some miracle both models get selected to be built, I will have to evaluate the market at that time and see whats what. Maybe I buy both and sell whichever one I like less. Or in the case that the lariat is picked for production and the XLT is still in the cue, I cancel the XLT.

I ordered a new F250 a year ago, and placed a duplicate order at a different dealer ( to help with allocation issues ) and I guess the sun and stars aligned and both got picked for production. I bought the first one that came in and then bought the second one when it came in and sold it to someone else who needed a truck for what I had into it.... saving him from having to pay 10 grand over which was the going rate a year ago for a new Super Duty.

 

[GyroRon]

Supply and demand. Currently demand outweighs supply on most new vehicles and brands and definitely on the Maverick.

I don't see the scenario like you - where ADM could disappear in a matter of weeks and likely by summer.

A glut of vehicles will not be flooding dealership lots anytime soon. There is no incentive for manufacturers to rush to make that happen, and it will only occur naturally if a recession occurs where manufacturers continue to produce vehicles that are not being purchased.

Expect ADM on non-retail order Mavericks and overvalued used Maverick prices for at least the remainder of 2023.

We're also talking about the Maverick - one of the most affordable vehicles for sale today. Many folks looking at Mavericks are cross shopping more expensive vehicles so they are willing to stomach an ADM to get the vehicle they really wanted and it isn't likely "costing" them much more because the alternate vehicle being considered was equally or more expensive than the ADM'd Maverick they bought.

I have been stung twice in my lifetime by buying vehicles that were over priced and the bottom fell out not long after I bought them....

First time was back in around 1998 when I wanted a Harley Davidson Road King and bought a nearly brand new 97 model used for MSRP of a new 98 model. Just like now with mavericks.... you could not get a new HD bike unless you ordered one and were willing to wait, so used ones were selling for new prices or more. Owned the bike about a year and decided I wasn't digging the bike nor the " lifestyle " and wanted a different type of bike. The market had fell apart on HD bikes by that point and I couldn't find a buyer to save my life, no one wanted it, the dealers didn't want to offer much for it either. Finally found someone willing to give me like 12 grand for it ( had over 20 in it ) and I felt like I was lucky to got what I got for it. ( Edit, bear in mind at that time I would have never bought a 20 thousand dollar motorcycle if I hadn't felt like it would still be worth close to what I paid for it if I decided to sell it a year or two later.... and up to that point, throughout the mid 90's, Harleys held their values better than a brick of gold, so I was confident I would not lose any money on the bike, hence why I purchased it )

Second time was only a few years later when the PT cruiser came out. My wife really wanted one and I kind of thought they were cool too ( at the time anyway! ). New ones were marked up over MSRP and used ones were selling for MSRP or more. It was almost a carbon copy of what's going on today with the Mavericks. We felt like winners when we found a dealer with a used one in stock with only like 3000 miles on it, fully loaded and priced at MSRP. Bought it and was super happy at the time. Then after driving it for a year or so the wife was over it, I was over it, and she wanted to go back to a Honda Civic. We had the hardest time selling that car, and finally found a buyer for it for like 11 grand ( we had paid 25-28 grand or so as I recall ).... We lost a ton of money on that car.


The maverick could be another HD road king or PT cruiser type of thing. Or maybe not.... IDK. But being that historically all cars depreciate, paying over MSRP just seems silly to me, seems to be setting yourself up for even more loss on depreciation.

But I do understand why some do it. I am not even 100 percent ruling out ME paying over. If my dealer called me 5 minutes from now with a turned down truck that is the color and options I want and it was a matter of having to pay over sticker, I would think real hard about it. I think the fact that there is no guarantee that the ones I have on order will even be built, and the fact that even thought I believe better deals are only weeks to months away.... there is no guarantee on that either. I just know I would feel pretty stupid if I paid 6 grand over what I should have to pay if I wait and my order is actually built, especially if prices and values drop as I expect they will.

 

[GyroRon]

I will always pay extra to not wait at an amusement park!

I totally understand that. It is even more aggravating when you don't pay extra and see so many people skipping the line your waiting in.... knowing that letting them on in front of you is delaying your wait even more so.

 

[stopgowalkon]

With many getting scheduled in February and March, if ADM doesn't disappear or greatly diminish by April / May, not sure when it would. And there will be an opening (mileage varies on how big) where EB orders will be fulfilled prior to MY2024 order banks opening, that at least should present more opportunity as well (via order banks re-open or new dealer stock). My personal take will be come May, it will not be hard to find an ADM-less new Maverick. The market is softening already.

 

[Derek's Maverick]

I totally understand that. It is even more aggravating when you don't pay extra and see so many people skipping the line your waiting in.... knowing that letting them on in front of you is delaying your wait even more so.

100% exactly right. I've been sitting in line for 16 months and people who just ordered are walking to the front. I bet I'd have a better chance of getting the truck if I just ordered.

 

[Rockingchair]

Last March my wife wanted an errand car that got better fuel milage than hers. She also mentioned that I would be ordering a Maverick in June (yea right). Anyway the dealer called her in late April saying they had a customer refusal. The price was 5K over for a heavily optioned Hybrid Lariat. Took about 2 seconds for us to say yes. I just priced a 23 Maverick equipped as ours. That 5K has shrunk to $1850 due to price increases and we have had the pleasure of driving it for 9 months instead of twiddling our thumbs waiting.
Chili Pepper Red with sunroof! Never would have ordered that color but LUV the color!

 

[Lonnie gee]

I will always pay extra to not wait at an amusement park!

And again, if everybody did that, then the park with make more money and you still be in the same long line as before

Sponsored