Maverick shortage is over?

[KrayzieMav]

Dealership near me had 18 in stock about 2-3 weeks ago still has 9 left and more in-transit. Nobody should be paying a markup anymore.

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[710-oil-614]

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.

Fair enough on the mechanics - every manufacturer is different. Essentially it is a percentage of the price of the vehicle from manufacturer to dealer and is withheld by the dealer or reimbursed to them post sale.

It is most certainly not a penalty that a dealer pays to Ford when they don't sell a vehicle.

 

[ychuck46]

While picking up our Mav hybrid this morning after express service, I noticed a used Maverick for sale on the lot. First time seeing one in that situation in our town. In the past there have only been new ones and they were all already sold.

 

[huunvubu]

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.

The 2022 Maverick Hybrid being $1,080 less that the FWD EcoBoost was the first time I saw a Hybrid being less expensive than the ICE only version. That was why I jumped on buying it.

I made the mistake in assuming that all trucks came with a hitch and my 2022 got scheduled so fast that I was not able to add it and it came with no hitch.

With Maverick Hybrids still demanding a premium in the used market I placed the same order for a 2023 but added the hitch.

I sold my 2022 Ford Maverick XLT Hybrid with 9,269 miles on it that I had for 1 3/4 years to Carvana for $31,404. That payment was $5,336 in profit over my total out-the-door cost of $26,068.

I used the Carvana payment to purchase my new 2023 Ford Maverick XLT Hybrid for the total out-the-door cost of $28,341.

In effect the result was replacing my 2022 Maverick with my 2023 Maverick and getting paid $3,063

 

[huunvubu]

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

Your 2024 base EB model price is wrong it is $24,995 not $24,495.

2024 Hybrid base price is $26,495 minus 2024 EB base price $24,995 gives the $1,500 increase for the Hybrid vs the EcoBoost.

Yes there have been other prices increases over the two previous model years but those were on both the EcoBoost and the Hybrid.

As of 11/20/2023 76% of the outstanding orders of the Maverick are Hybrids vs 24% EcoBoosts.
Ford can only build them at a 55% rate.

So demand for the Hybrid is still strong.

 

[Connect]

Your 2024 base EB model price is wrong it is $24,995 not $24,495.

2024 Hybrid base price is $26,495 minus 2024 EB base price $24,995 gives the $1,500 increase for the Hybrid vs the EcoBoost.

Yes there have been other prices increases over the two previous model years but those were on both the EcoBoost and the Hybrid.

As of 11/20/2023 76% of the outstanding orders of the Maverick are Hybrids vs 24% EcoBoosts.
Ford can only build them at a 55% rate.

So demand for the Hybrid is still strong.

Sorry for the typo, you are correct 24,995. Still doesn't change the fact that $5K difference from 2022 to 2024 for the 'same truck' will slow it down for sure. In my area (250 mile radius as I was recently looking)there are a lot of Hybrids to be had if you want to pay a $5K+ mark up... my point being that a lot of these seem to be customer orders due to the green sticker... but am actually seeing a decent amount of blue stickers as well. What I don't understand is why so many blue sticker hybrids coming up if they have not fulfilled orders?

Why so many green though? Those people already bought one? Dealers submitting fake orders to take advantage of markups?

At 38K outstanding retail orders, that's only 3 months at the current production rate. How many of those orders will be abandoned like the many I am finding? Or again are they fake orders submitted by dealers? I don't know how it works and if there is some kind of check.

Anyway, if demand stays high then that is good for me since I am hoping Toyota will have an equivalent in a couple of years and would likely make the trade.

 

[BEC]

I should go up the road and drop in on Bowen Scarff and see what’s actually there. They took a bunch of orders while the order banks were open for 2023s and when they wouldn’t take mine I went a little south and ordered from Way Scarrf in Auburn. We got our Lariat hybrid about three weeks ago. $500 below MSRP.

Over the past year Bowen Scarff had the occasional Maverick on the lot with significant ADM amounts. I don’t get up that way often enough to have any idea how long it took them to sell. But I would be really surprised if they had more than a handful actually on the lot now.

 

[Llamaryudo]

I should go up the road and drop in on Bowen Scarff and see what’s actually there. They took a bunch of orders while the order banks were open for 2023s and when they wouldn’t take mine I went a little south and ordered from Way Scarrf in Auburn. We got our Lariat hybrid about three weeks ago. $500 below MSRP.

Over the past year Bowen Scarff had the occasional Maverick on the lot with significant ADM amounts. I don’t get up that way often enough to have any idea how long it took them to sell. But I would be really surprised if they had more than a handful actually on the lot now.

I'm up north so I placed an order at Kendall Ford Marysville. They will take my x-plan which Bowen Scarff would not. I'm finally scheduled for a 12/4 build this year for an Eco AWD XLT. I test drove an Area 51 Lariat from Bowen Scarff last year, they seem to have a higher allocation compare to surrounding dealerships.

 

[JZeke]

...demand for the Hybrid is still strong.

Am I seeing correctly that the big imbalance of interest is that:

• the market seems to mostly want hybrid - probably XLs - USOB vers capacity
• Tremor orders are far below capacity, while XLT Lux and Lariat Lux are trending below capacity
• whereas safety and black pack are ordered spot-on with capacity

Is that a correct way to read this? It would then seem that there's going to be a glut of nicely-specced Mavs here soon, with buyers eventually purchasing some at a discount when they were facing very long waits on less-equipped hybrids (again based on a probably flawed interpretation of this data.)

 

[Sloehand68]

I don't know what to make of it, but I do think the Maverick market is changing. I just took delivery of my XL on Black Friday from Red McCombs West in Texas. There was no attempt at "Texas Protection Package" shenanigans, but I was prepared to walk if there was. Last week, there was one Lariat vehicle on their website. This week, there are 37! Most of them are in transit, BUT mine was never listed by them, so they might actually be dealer stock. I don't know. Considering the high interest rates and the order bank still being open? The market has certainly changed!

 

[Joseaoe1]

I doubt we will see new Mavericks sitting on lots for a month any time soon. But definitely see more sold close to MSRP over the next two years and reduced wait time for orders. If 2025 announces any significant improvement then demand may again signicantly exceed annual capacity. Probably likely to see awd in the hybrid in 2025. So for those wanting awd hybrid placing a 2024 order now might be a good strategy.

Toyota is probably a few years out from a competing model that will take demand away from the Maverick. The Toyota EPU appears to be the closest but also seems to be a true electric. Unless Toyota has some special tricks like a 35k electric pickup with 400 mile range then I don't see that vehicle as competition.

There will be steady and significant demand for the Maverick until something better comes around that fills the same need. Ford got a little help from the federal reserve in cooling some demand for now.

 

[Samus]

So for those wanting awd hybrid placing a 2024 order now might be a good strategy.

If I remember correctly, Ford said there will be no rollovers from '24 to '25.

 

[MakinDoForNow]

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.

That why a dealer won't transfer a pre ordered vehicle to a different purchaser the holdback is either different or the reduction of the hold back has a different delay period.

 

[Eagle11]

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.

If there are no photos of the truck or a stock photo it means the truck is in transit.

 

[Llamaryudo]

I don't know what to make of it, but I do think the Maverick market is changing. I just took delivery of my XL on Black Friday from Red McCombs West in Texas. There was no attempt at "Texas Protection Package" shenanigans, but I was prepared to walk if there was. Last week, there was one Lariat vehicle on their website. This week, there are 37! Most of them are in transit, BUT mine was never listed by them, so they might actually be dealer stock. I don't know. Considering the high interest rates and the order bank still being open? The market has certainly changed!

If there are no photos of the truck or a stock photo it means the truck is in transit.

You have to go to their website and it will show the trucks with window stickers. Mostly XLT hybrids. I received another email from them for an XLT hybrid today available on their lot.

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