Interesting read on dealer markup

[NoNameActor]

https://www.msn.com/en-us/money/com...ing-consumers-are-stuck-in-between/ar-AATLANL

Apparently Ford isn't as bad as other companies on dealer markup above MSRP, but it could hurt those that do. Sounds like dealer allocations may be impacted, including the Maverick and Lightning. Enjoy.

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[Decayed]

The following quote is pretty much what I've been saying - they have overhead expenses to meet and have to mark up when volume is low. Yeah, there's going to be gouging. but overall they dealers have to get a certain amount of revenue or it's lights out. There is only so much belt tightening you can do in a given month.

“I think that a lot of the high line luxury buyers understand that, ‘Look, your volumes are down and you historically always discount,’ ” Aiosa said. “’If we need now to pay a little bit of an upcharge for something that we want and need right now, we understand that that’s the environment that we’re in. And you have to stay in business, and we want you to stay in business because we don’t want to come back and see the lights off and not be able to service our car.’”

 

[DJF]

Supply and demand. If 80% of the vehicles bought in January were above MSRP, why would dealerships do anything different. Interesting that Ford is the least guilty of this.

 

[atomguy245]

Think of the salesmen. In normal times they would sell 15-20 cars a month, and many of those would be minimum commission deals where they make $50-100 each. Then they'd get some sort of bonuses directly from he manufacturer. But now how many sales are they getting each month, 5? Of course they are going to charge extra per car.

Where it gets shady is the extreme markups, and the last minute extortions that some dealers are doing.

 

[Maverick2023]

Why not just bail them out like we did with the auto industry and banks ? It ain’t my problem when your business is failing for whatever reason.

 

[dgnx6]

Think of the salesmen. In normal times they would sell 15-20 cars a month, and many of those would be minimum commission deals where they make $50-100 each. Then they'd get some sort of bonuses directly from he manufacturer. But now how many sales are they getting each month, 5? Of course they are going to charge extra per car.

Where it gets shady is the extreme markups, and the last minute extortions that some dealers are doing.

The sales guy I bought from said their dealership doesn’t do commission because I wanted to make sure he was there this morning when I went to pick mine up. When I got there he was showing a guy a Maverick that is buying it Monday. When I was leaving he was with a couple trading in for a f150. He said he’s still get another truck of mavericks coming next week, only one staying in mobile the rest being sold to outer staters.

If you work for a good dealership, you are selling cars like crazy even now.

 

[NoNameActor]

That's one thing about living in a college town..most businesses are still doing well. My dealer sold a black widow f150 with a 15k markup, but that was a premium vehicle to begin with. The person that bought it obviously didn't care...when you can pay cash like that, you can afford it...lol

 

[getoffmylawn]

Hello all, just joined cause I just put a deposit on a hybrid XL. Mine is a pre-order that the the buyer backed out. I paid a premium over msrp, but it was still inside of my budget. Looking forward to taking delivery.
I was looking pretty much at anything east of the Mississippi, would have had it shipped. Lucky my find was local.

 

[athertonbt]

Dealers gonna deal.

 

[Mymaverick2021]

Supply and demand. If 80% of the vehicles bought in January were above MSRP, why would dealerships do anything different. Interesting that Ford is the least guilty of this.

As MSRP Suggests Manufacturers Suggested Retail Price, And don't forget that on top of what the dealer pays for it they also get it's called dealer hold back from Ford anywhere from 1 to 2 %

 

[jbpoole]

Think of the salesmen. In normal times they would sell 15-20 cars a month, and many of those would be minimum commission deals where they make $50-100 each. Then they'd get some sort of bonuses directly from he manufacturer. But now how many sales are they getting each month, 5? Of course they are going to charge extra per car.

Where it gets shady is the extreme markups, and the last minute extortions that some dealers are doing.

Salesmen? Who needs them? This is not the 1960s. Go to a customer direct to manufacturer business model. Just go online and order exactly what you want. Keep the dealers for used vehicles sales, PDI, parts and service.

 

[jbpoole]

Salesmen? Who needs them? This is not the 1960s. Go to a customer direct to manufacturer business model. Just go online and order exactly what you want. Keep the dealers for used vehicles sales, PDI, parts and service.

My own post got me thinking. Times change. What happened to:

Elevator operators
Ice and coal men
Milk men
Telegraph operators
Telephone operators
Telegram messengers
Soda jerks
Newspaper boys

These jobs no longer exist because they are no longer needed. New car salesmen could be added to the list. We could do without sales managers and slimy F&I guys as well.

 

[atomguy245]

Salesmen? Who needs them? This is not the 1960s. Go to a customer direct to manufacturer business model. Just go online and order exactly what you want. Keep the dealers for used vehicles sales, PDI, parts and service.

Look at the nightmare that is Carvana and Vroom. And look at the issues people here are having trying to deal directly with Ford about their Mavericks. The manufacturers are not set up to talk directly to the consumers.

 

[jbpoole]

Look at the nightmare that is Carvana and Vroom. And look at the issues people here are having trying to deal directly with Ford about their Mavericks. The manufacturers are not set up to talk directly to the consumers.

You are absolutely correct. Huge changes would have to occur. The old ways of doing business didn't work for dinosaurs like Montgomery-Ward, K-Mart, Woolworth and Sears. China-mart and Amaze-zon have proven that new ideas can bring down the giants.

Ford are you listening?

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