Maverick shortage is over?

[Robert C]

This is a dealer in Kent, Wa with almost 40 new and used Maverick in stock!! This is a reputable dealer and will not add markup on personal order. Dealer stock I’ve seen an ADM from them between 5k to 10k during the shortage.

These are not really for sale.
They list customers orders when they come in and display them on the lot. Try to buy one.
But at least they are getting those in.

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[710-oil-614]

dealers pay whats called a holdback to Ford every month for inventory that hasn’t sold, at least that’s what I have been told...

That is not how it works.

The "holdback" is money Ford withholds from a dealer until a vehicle sells. It is generally a percentage of the total cost of the vehicle and it is actually paid by Ford to the dealer when a vehicle sells. I believe Ford's holdback is roughly 3%, think of it as a hidden profit or bonus for the dealer.

What happens is the longer the vehicle sits - the more financing eats into that holdback total so there is incentive for the dealer to sell a vehicle quickly to avoid negating the holdback profit with accrued finance charges.

They could turn 100 customers down at MSRP but if the 101st customer pays a $3,500 ADM then it benefitted the dealership to let the vehicle sit for 120 days until it sold.

(Most) Dealerships are not dumb - they've done the math and they know how long they can afford to hold onto a vehicle.

If a dealer's hold back on the Maverick is 3% they are looking at anywhere from a $750-1,200 bonus for selling the vehicle.

75-120 days on the lot at MSRP would break even for them. Any ADM is where they'll see a profit. Right now it is still more profitable to let them sit and charge an ADM, because eventually someone pays it.

 

[Jman79]

My wife's Odyssey just turned 75k miles - needs new tires, tranny flush, and brakes flushed at minimum. I've been looking at AWD Hybrid Siennas however we'd be looking around $30k to make the trade ($25k trade if we're lucky, $50-55k vehicle) and having to finance at a high interest rate makes the switch a tough one to make even with double the gas miles.

Don't to tranny flush on a Honda. Just drain and fill with Honda fluid every 30K or so. It's about as simple as an oil change. Use the Honda fluid or research your alternative well. Honda trannies are finicky if you don't treat them right, a dream if you do.

An Odyssey with $75k is "like new" in today's market . You've got spark plugs and timing belt coming at roughly 100k, but all still worth it as you could sail to 200k miles easy after that!

 

[710-oil-614]

Don't to tranny flush on a Honda. Just drain and fill with Honda fluid every 30K or so. It's about as simple as an oil change. Use the Honda fluid or research your alternative well. Honda trannies are finicky if you don't treat them right, a dream if you do.

An Odyssey with $75k is "like new" in today's market . You've got spark plugs and timing belt coming at roughly 100k, but all still worth it as you could sail to 200k miles easy after that!

Letting the dealership do the flush/fluid swap on the trans. It was recommended at 60k but we....missed it.

Van has been great minus the power sliding doors that have been replaced three times (5 total doors)....well rather all the mechanisms inside.

We live right near the Honda Marysville Assembly Plant - and the best Honda dealer in the nation - Honda Marysville.

It's one vehicle (minus oil changes and brakes) that I don't mind letting them do the work.

 

[ejgroth2620]

This is a dealer in Kent, Wa with almost 40 new and used Maverick in stock!! This is a reputable dealer and will not add markup on personal order. Dealer stock I’ve seen an ADM from them between 5k to 10k during the shortage.

To all future vehicle buyers:

Regardless of what you plan to buy, please do a little research and give your business to a dealership that did not price gouge during times of short supply. The decent dealers deserve our business, not those who exploited economic problems to squeeze every last dime from struggling consumers.

 

[Jman79]

Letting the dealership do the flush/fluid swap on the trans. It was recommended at 60k but we....missed it.

Van has been great minus the power sliding doors that have been replaced three times (5 total doors)....well rather all the mechanisms inside.

We live right near the Honda Marysville Assembly Plant - and the best Honda dealer in the nation - Honda Marysville.

It's one vehicle (minus oil changes and brakes) that I don't mind letting them do the work.

Good luck what ever you choose selling or keeping it. We will be an Odyssey / Maverick family when my Mav comes in. One people carrier and one stuff carrier . Seems like a good combo!

 

[710-oil-614]

Good luck what ever you choose selling or keeping it. We will be an Odyssey / Maverick family when my Mav comes in. One people carrier and one stuff carrier . Seems like a good combo!

I was angling hard to get rid of the Odyssey for my MY24 Big Bend Sasquatch when it arrives but you're onto the combo for a 2 car family (with 3 young kids)!

We like the Odyssey/Maverick set up.

And just like I will likely pass on my Bronco because I don't want to spend another $25k - we'll likely keep the Odyssey for those same reasons.

Anytime we hit a maintenance milestone I take a good look around to justify trading a vehicle in. 35mpg (and AWD) in the new Sienna is insane compared to FWD and 19.5mpg in the Odyssey.

 

[Jman79]

I was angling hard to get rid of the Odyssey for my MY24 Big Bend Sasquatch when it arrives but you're onto the combo for a 2 car family (with 3 young kids)!

We like the Odyssey/Maverick set up.

And just like I will likely pass on my Bronco because I don't want to spend another $25k - we'll likely keep the Odyssey for those same reasons.

Anytime we hit a maintenance milestone I take a good look around to justify trading a vehicle in. 35mpg (and AWD) in the new Sienna is insane compared to FWD and 19.5mpg in the Odyssey.

Yeah, the mileage always throws me for a loop. But by the time I crunch the #s (low mileage family) it's just not enough savings to pay itself down anytime soon. At least not with has in my neck of the woods.

We need more minivan drivers here in the US, to force the market segment to have better offerings. It's not the in style choice, but our minivan has been the most versatile vehicle I've owned.

 

[huunvubu]

I think the $1500 charge for the hybrid is discouraging some folks since it used to be no charge and is what most people want.

The 2022 Hybrid was actually $1,080 less than the FWD EcoBoost.

For the 2023 Hybrid it was the same price as the FWD EcoBoost.

For the 2024 Hybrid it is $1,500 more than the FWD EcoBoost.

From 2022 to 2024 models the Hybrid Maverick has gone up $2,580.

And yet Ford can still not make enough Hybrid's to satisfy the demand.

The price may discourage some but others are still wanting it hence the still not satisfying demand.

 

[Jman79]

The 2022 Hybrid was actually $1,080 less than the FWD EcoBoost.

For the 2023 Hybrid it was the same price as the FWD EcoBoost.

For the 2024 Hybrid it is $1,500 more than the FWD EcoBoost.

From 2022 to 2024 models the Hybrid Maverick has gone up $2,580.

And yet Ford can still not make enough Hybrid's to satisfy the demand.

The price may discourage some but others are still wanting it hence the still not satisfying demand.

I don't think I'm alone in this thought, but many other hybrid vehicles seem to carry a premium over their ICE counter parts.

Perhaps Ford launched the hybrid Maverick at the price point it did to make sure it was a success among the US truck crowd who traditionally may be resistant to such ideas.

MIght have been the plan all along to ratchet the price up year by year until it's were they truly want it. So long as the market accepted it. Seems like the market did.

 

[Himarxmaverick]

That is not how it works.

The "holdback" is money Ford withholds from a dealer until a vehicle sells. It is generally a percentage of the total cost of the vehicle and it is actually paid by Ford to the dealer when a vehicle sells. I believe Ford's holdback is roughly 3%, think of it as a hidden profit or bonus for the dealer.

What happens is the longer the vehicle sits - the more financing eats into that holdback total so there is incentive for the dealer to sell a vehicle quickly to avoid negating the holdback profit with accrued finance charges.

They could turn 100 customers down at MSRP but if the 101st customer pays a $3,500 ADM then it benefitted the dealership to let the vehicle sit for 120 days until it sold.

(Most) Dealerships are not dumb - they've done the math and they know how long they can afford to hold onto a vehicle.

If a dealer's hold back on the Maverick is 3% they are looking at anywhere from a $750-1,200 bonus for selling the vehicle.

75-120 days on the lot at MSRP would break even for them. Any ADM is where they'll see a profit. Right now it is still more profitable to let them sit and charge an ADM, because eventually someone pays it.

Gotcha, thanks.

 

[Connect]

The 2022 Hybrid was actually $1,080 less than the FWD EcoBoost.

For the 2023 Hybrid it was the same price as the FWD EcoBoost.

For the 2024 Hybrid it is $1,500 more than the FWD EcoBoost.

From 2022 to 2024 models the Hybrid Maverick has gone up $2,580.

And yet Ford can still not make enough Hybrid's to satisfy the demand.

The price may discourage some but others are still wanting it hence the still not satisfying demand.

The fact that orders are still open for 24 seem to indicate otherwise. The $2580 is not counting the additional price increases along the way to the base price.

2022 base model could be had for $21,490 I believe (Hybrid Price)
2024 base EB model could be had for $24,495
2024 base Hybrid model could be had for $26,495
That's a $5000 difference between 22 and 24 or about 23.5% increase in 2 years for the Hybrid
I don't remember what the original adder was for the EB, but if it was originally a $1500 adder then it has gone up $2000 or about 8% increase if quick figures are correct

 

[mav_kev]

dealers pay whats called a holdback to Ford every month for inventory that hasn’t sold, at least that’s what I have been told..

That is not how it works.

The "holdback" is money Ford withholds from a dealer until a vehicle sells. It is generally a percentage of the total cost of the vehicle and it is actually paid by Ford to the dealer when a vehicle sells. I believe Ford's holdback is roughly 3%, think of it as a hidden profit or bonus for the dealer.

What happens is the longer the vehicle sits - the more financing eats into that holdback total so there is incentive for the dealer to sell a vehicle quickly to avoid negating the holdback profit with accrued finance charges.

They could turn 100 customers down at MSRP but if the 101st customer pays a $3,500 ADM then it benefitted the dealership to let the vehicle sit for 120 days until it sold.

(Most) Dealerships are not dumb - they've done the math and they know how long they can afford to hold onto a vehicle.

If a dealer's hold back on the Maverick is 3% they are looking at anywhere from a $750-1,200 bonus for selling the vehicle.

75-120 days on the lot at MSRP would break even for them. Any ADM is where they'll see a profit. Right now it is still more profitable to let them sit and charge an ADM, because eventually someone pays it.

Close, but also not exactly how it works. Holdback is not a bonus or an incentive. Holdback is a percentage of dealer invoice and is paid to the manufacturer by the dealer. Dealer invoice is generally the unit cost, plus holdback and freight. When a unit is sold, that holdback amount is essentially refunded to the dealer - it's not profit. I worked for a couple of dealerships that even the dealer principle didn't understand that holdback is just a reimbursement and not a bonus, so it's a common misconception.

Floorplan interest is another beast entirely. Most manufacturers give a certain "free flooring" period before the interest starts; 90-120 days is common. Flooring can absolutely eat into gross profit margin, especially if a dealer doesn't have cash to pay for units as the juice starts to run. As you say, too long on the floor while interest is accruing and MSRP could even be a loss.

 

[commadorebob]

FWIW, my dealer has 16 new Mavericks listed. I don't know how many are retail or how many are even on the lot as one of the VINs ends with 297XX and so I would be surprised if the paint is even dry on that one.

 

[Gray Goose]

Proposed criteria for declaring shortage over: Dealer rebates substantially replace ADM.
Likely that will never happen, but wishful thinking

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