Ridiculous markup!!

[DaveMave]

If you are thirsty, you'll pay more for water.

If water is scarce, you'll pay more for water.

If water is scarce AND you are thirsty, you'll cut off your left nut for a pint of water.

- Ancient Chinese Proverb

Those not paying ADM are not very thirsty for Maverick, Confucius say.

Never become so thirsty that you drink from every cup presented to you.
That's how you get poisoned.

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[GPSMan]

The proof is in the pudding.

NADA is more or less the governing body that speaks on behalf of all the dealerships in NA. Pre-pandemic, between 2015 and 2019 the average dealer profit hovered between 1-2.2%. Post-pandemic, dealership profits were through the roof, with the average dealership by '21 pushing over $3 million net profit annually, up 65%.

Thanks for tracking down the specifics that support what I was saying earlier.

1 to 2.2% net profit on sales should illustrate the real money is from the add-ons and service.

You say profits now with ADM's are "up 65%". Ok. Fine. Totally reasonable.

2.2% up 65% is now 3.6%.

Show me other businesses that can survive with such thin mark-ups.

Again, thanks for the help.

 

[JASmith]

Show me other businesses that can survive with such thin mark-ups.

Uhm, that's not the markups, that's gross profit. It took Amazon 14 years to make even $1 of gross profit.

That means after all the expenses, the average dealership is turning a profit of $3.5 million per year for being nothing more than an unnecessary middle-man, that in the modern information age could easily by eliminated. Since there are supposedly close to 17K dealers in the US, that means around $60 billion in pure profit in North America, never mind the overhead costs involved with that dealer that could be saved.

With direct manufacturer to consumer sales, you could potentially save thousands of dollars on your vehicle sale without all the hassle involved with dealing with car salesman and floor managers trying to push addendums and useless third party warranties if not flat out ADMs.

No hassle, no haggle, invoice pricing (or lower), straight from Ford.

 

[GPSMan]

Uhm, that's not the markups, that's gross profit. It took Amazon 14 years to make even $1 of gross profit.

That means after all the expenses, the average dealership is turning a profit of $3.5 million per year for being nothing more than an unnecessary middle-man, that in the modern information age could easily by eliminated. Since there are supposedly close to 17K dealers in the US, that means around $60 billion in pure profit in North America, never mind the overhead costs involved with that dealer that could be saved.

With direct manufacturer to consumer sales, you could potentially save thousands of dollars on your vehicle sale without all the hassle involved with dealing with car salesman and floor managers trying to push addendums and useless third party warranties if not flat out ADMs.

No hassle, no haggle, invoice pricing (or lower), straight from Ford.

Not so fast.
Not so easy grasshopper.

The VAST majority of consumers want to test drive before they buy. They like to see the colors before they buy. Many like to side by side compare before they buy.

Dealers will be a part of the process for a long time.

Movie Theaters don't make squat from the movies, and dealers don't make much from the initial sale.

I've seen Free Movie with purchase of large popcorn. Free razor with purchase of six blades. Free phone with 2year service agreement.

The real money is in the extras.
The real money is in the consumables.

 

[Azmig88]

Uhm, that's not the markups, that's gross profit. It took Amazon 14 years to make even $1 of gross profit.

That means after all the expenses, the average dealership is turning a profit of $3.5 million per year for being nothing more than an unnecessary middle-man, that in the modern information age could easily by eliminated. Since there are supposedly close to 17K dealers in the US, that means around $60 billion in pure profit in North America, never mind the overhead costs involved with that dealer that could be saved.

With direct manufacturer to consumer sales, you could potentially save thousands of dollars on your vehicle sale without all the hassle involved with dealing with car salesman and floor managers trying to push addendums and useless third party warranties if not flat out ADMs.

No hassle, no haggle, invoice pricing (or lower), straight from Ford.

Wow! Sounds simple.
YOU should risk several million dollars, put up a building and maintain it, furnish it, get signage, spend more money on advertising, hire managerial, sales, service, office staff, get all the necessary licensing, auto and parts inventory and do the same thing.

Why not? You too-could do nothing and make wheelbarrows full of cash. With your brilliance it should be a cakewalk. Then I could be the envious one.

 

[redskins5]

Uhm, that's not the markups, that's gross profit. It took Amazon 14 years to make even $1 of gross profit.

That means after all the expenses, the average dealership is turning a profit of $3.5 million per year for being nothing more than an unnecessary middle-man, that in the modern information age could easily by eliminated. Since there are supposedly close to 17K dealers in the US, that means around $60 billion in pure profit in North America, never mind the overhead costs involved with that dealer that could be saved.

With direct manufacturer to consumer sales, you could potentially save thousands of dollars on your vehicle sale without all the hassle involved with dealing with car salesman and floor managers trying to push addendums and useless third party warranties if not flat out ADMs.

No hassle, no haggle, invoice pricing (or lower), straight from Ford.

Remeber part of a dealers reported profit is from othe rthings besides car sales. I.E maintenace and service, part sales etc. So a dealer with 3.5 million is not just from car sales.

 

[Markii56]

Maybe I don't. But I understand what's ethical and what's not.

I worked in the car business 20+ years, and never saw anything like what's going on now. Yes, it absolutely sucks from a consumer point of view. All we can hope for is that, when this nonsense finally comes to an end and the dealers are hurting for business, we get to say, "paybacks are hell."

 

[JBryant]

I was late to the Maverick "want" list. I ordered mine in October of '21. I ordered an XLT, 2.0 with keyless entry door pad and cruise control. It came in in April of '22. Now after 1 year of service it has 7,000 miles and is averaging 30.2 mpg for the entire year. It has had several blasts to 108 mph [I hate governors]. One short trip of 15 plus miles at this sustained speed.
It has been absolutely trouble free for as long as it has been here. It sits beside a 1999 Ranger with the 3.0 and 5 speed manual that I bought new and for 24 years has averaged 27 mpg. It too has had Many bursts to 100 mph [yep...damn governor] and has had $600 total spent on it in 24 years. It needed a new clutch [totally my fault for letting the fluid run out].
One truck cost me $13,000 New OTD and the other cost me $26,000 New OTD. This 23 years and Many vehicles apart. My other two current vehicles are a 2012 Boss 302 Mustang [15,800 miles] and a 2023 Extreme Recon Willys Jeep [1,050 miles]. I drive all 4 weekly [NOT weakly], the Boss has No governor.
I am currently 75 years old and thanks to Ford and Jeep I am truly enjoying my Golden Years. I hope All that want a Maverick, get a Maverick. I obviously won't live long enough to see if this Maverick will last as long as the old Ranger but I'm gonna give it all I got!!!!

Hang in there. I am 76 and enjoying the crap out of my two Mavericks. It is just my wife and I and yes, we have multiple vehicles as well - 2 Mavericks Hybrid 2023, Kia Niro hybrid, Honda CRV-EX L and VW EOS hardtop convertible. We just jump in one and go and all of them get driven weekly. Your day will get here and you will get many good years out of the Maverick.

Got a friend who passed away a few years ago at 101. She got mad as a hornet because they would not renew her DL at age 100. Good years are ahead.

 

[paneubert]

Free razor with purchase of six blades.

No need to purchase six to get one free!

See: https://www.mavericktruckclub.com/forum/threads/found-this-surprise-under-my-seat.31442/

 

[GPSMan]

 

[RatherBeDrivingaManual]

2 - 3 years from now I have a feeling we'll all look back on now & realize we all overpaid for our Mavericks at MSRP when they're on the lots & discounted like the bronco sport is now.

 

[GPSMan]

Some people think their time is worthless.

Willing to wait 450 days to save a few bucks is foolish and counter-productive for many people.

My time is worth something.
My enjoyment is worth something.
Yours should be too.

Millions of people pay
1000% markup on fountain drinks
5000% markup on popcorn,
$15 for a 1.5 to 2 hour movie,
Repetitively, because they like it.


Some people enjoy driving their Mavericks repetitively, perhaps daily, for most of year 2022 and all of 2023 and don't want to wait until hell knows when.

Waiting sucks.
Driving one 450 or 600 days sooner, doesn't. Paying a little over MSRP, is worth it for many people.

 

[Flomounier1]

In my opinion, the dealerships with shady sales tactics and insane markups are the ones you will get the best deal at. They are the most desperate and have to resort to those tactics. Only super high volume dealerships will have a 1 price honest Carmax-like business model.

You just have to play their game and show that you're seriously interested and let the salesman sit you down inside and bring out his back end manager to talk with you.

Showing up in person gets you a lot further than making an offer or asking for pricing online. The easiest way to deal with a salesperson who throws an insane number at you is just play dumb and act like you had no idea about the car shortage and the market and let them know you placed a $500 deposit at a competing dealership who promised to sell the same car at MSRP when one comes in and tell them you were just curious if they could beat their price.

Obviously, you can't really do that with a Maverick because there truly is a low supply of them and they won't believe you. But it will work at other dealerships.

Or, another trick I've learned when shopping around for a car during the pandemic, is don't even ask about pricing on the car you want, just put a deposit on it (as long as it's a refundable deposit), and then call the dealership about 2 weeks later and say, "Hey, I put a deposit on ______ , and just wanted to know what my out the door pricing would be because I just walked into ________ (a competing dealership selling a similarly priced competing car), and they are willing to sell me the competing car for $500 under MSRP and told me that your dealership charges a markup." Better yet, don't call your dealership, walk in and ask for a sales manager to refund your deposit, when they ask you why you are cancelling your deposit, then hit em with that. Just be prepared to have a cover story when they start asking you questions to see if you are bull sh1tting or not. Then, they have 2 choices they have to make quickly, give you a good deal, or refund your deposit and let you walk.

 

[Azmig88]

Wow! You sound like the kind of filthy rich person that would pay 50-75¢ more for a respected bottle of Heinz Ketchup, when you know you can fight bumper to bumper traffic for 10 mins, and buy a watered down brand like Aunt Sally’s Chain Link Fence and Catsup Company for 50-75¢ less.
Must be nice to be rolling in ca$h!!!

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