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The Truth on Dealer Mark Up… right from the General Manager

Mavhead

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Haha, thats DIRTY. I mean to be fair, i would sell mine too if someone offered me 10K over what I paid.
This will be not only the first time I bought a brand new vehicle, but also the first time I've taken out a loan for a vehicle. I want to get that loan paid off as fast as possible.🙂. Simply business.

The funny thing is, I ordered the exact same build on both of them, except for two different colors. So I really have no idea what color I'm going to end up keeping.
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Oddzball

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This will be not only the first time I bought a brand new vehicle, but also the first time I've taken out a loan for a vehicle. I want to get that loan paid off as fast as possible.🙂. Simply business.

The funny thing is, I ordered the exact same build on both of them, except for two different colors. So I really have no idea what color I'm going to end up keeping.
Yeah I bought mine in cash. I did finance like 8k of it because it does help your credit, but I can technically already pay it off. I almost NEVER take out loans for anything if I can avoid it. Except my house because who can afford $300k cash on hand?
 

Oddzball

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A couple of my local dealers call them 'mannequins'. The Ford dealer in my town has two Bronco mannequins that have been there for about 6 months and have a $20k markup on them and I've been told they DON'T want to sell them because it costs them more in lost sales when people can't test drive one to order.
I mean high markup Demo units are a thing in dealerships. Its not uncommon or even shady really. They WANT a car to Demo to sell orders. So they mark it up high so they dont have to sell it.
 

Mavhead

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Yeah I bought mine in cash. I did finance like 8k of it because it does help your credit, but I can technically already pay it off. I almost NEVER take out loans for anything if I can avoid it. Except my house because who can afford $300k cash on hand?
Nice. I'm living it up in my 70k house in the stix.... Finally paid off at age 40. Not too worried about my credit, it's been in the 800's for years. Congratulations on your new maverick. I'm still waiting on a build date for either of my trucks.
 

999

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Car salesmen will rarely if ever see a big commission on super high demand, ADMed cars or trucks. The dealer will tweak the pay plan to make sure of that.

They will get something like an extra $100 or something. It's called a flat commission, as in "in-stock Mavericks or Broncos pay $200 flat commission".
 

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Mainer500

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After my Maverick delivery being delayed yet another time… from the original 12/20 date to 1/26…

I finally found a Maverick near work that was being delivered this morning and it wasn’t spoken for…

So I was going to buy it on the spot, before it was even unloaded from the carrier….

Well until the salesman said their dealership policy doesn’t remove any of their market driven mark up price…

So I got up and walked out.

Only to have the General Manager call back…. Guess what he said?

“they mark it up so that no one will buy it because they need it for customers to look at!”

What’s up with this modern day car shopping? I need a vehicle because my car finally died and the Mrs. car was totaled in an accident…

Only to have the dealer not want my $30,000 because he needs to have a vehicle for people to look at… SMH

Oh and they also had a couple Mustangs there with a $20,000 add on too.

3BCE4126-6D11-4410-A394-D2F4F532E0E3.jpeg
When we picked up my Wife’s Maverick (12/23) I chatted with one of the owners (a Brother in Arms too, a former Marine I've known for years, a great kid) and he was saying that they were getting just a handful of Mavericks in to sell and that he said that he was also getting one or two that they can't sell for either 3 months or 6 months (sorry senior citizen here, it was one or the other) so that the dealers have something potential buyers can actually drive. So possibly that dealership was, (I can't believe I'm saying this) telling you the truth;)
 

Oddzball

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Car salesmen will rarely if ever see a big commission on super high demand, ADMed cars or trucks. The dealer will tweak the pay plan to make sure of that.

They will get something like an extra $100 or something. It's called a flat commission, as in "in-stock Mavericks or Broncos pay $200 flat commission".
Most dealerships I know dont even get commission anymore. They are all Salary. Like you said, they might get a bonus for the "amount" of cars they sell but that ADM basically just goes in franchise owners pocket or reinvestment back into the dealership.

Dealerships, generally dont make much money off new cars to begin with.
 
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TWO things are causing the mark ups...


1, Supply vs. Demand

2. The supply and demand factor was letting people buy vehicles and turn around and sell them for $10k more then what they just paid. So dealers are just cutting that out and making the money above MSRP.

It's bs and it's dirty either way. But it's the current market. It is pricing many people out of buying now too.
Yep... I've put off even ordering now, thinking I'll wait for a certified pre-owned from an XL Hybrid buyer who gets remorse and wants an XLT 2.0 instead. However, waiting a year may also mean finding an option in a new entry from whatever smarter brands create, quickly, a model to compete. Toyota for example could put out a renewed SR5 (original small truck) though that could cost them a lot of Tacoma sales. Maybe a mini Ram? ... I'm just disillusioned with Ford, even though everything they are doing is understandable, reasonable within our greedier-by-the-day culture. 😫
 

chopjohnson

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After my Maverick delivery being delayed yet another time… from the original 12/20 date to 1/26…

I finally found a Maverick near work that was being delivered this morning and it wasn’t spoken for…

So I was going to buy it on the spot, before it was even unloaded from the carrier….

Well until the salesman said their dealership policy doesn’t remove any of their market driven mark up price…

So I got up and walked out.

Only to have the General Manager call back…. Guess what he said?

“they mark it up so that no one will buy it because they need it for customers to look at!”

What’s up with this modern day car shopping? I need a vehicle because my car finally died and the Mrs. car was totaled in an accident…

Only to have the dealer not want my $30,000 because he needs to have a vehicle for people to look at… SMH

Oh and they also had a couple Mustangs there with a $20,000 add on too.

3BCE4126-6D11-4410-A394-D2F4F532E0E3.jpeg
I live in Massachusetts, luckily my dealer honored the MSRP when my Maverick was delivered. Just looking around to see what other dealers were selling Mavericks for and found one dealer that is at least $10K high on the MSRPs of the Mavericks they have. I understand supply and demand but orders should be honored.
 

kfw63

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When we picked up my Wife’s Maverick (12/23) I chatted with one of the owners (a Brother in Arms too, a former Marine I've known for years, a great kid) and he was saying that they were getting just a handful of Mavericks in to sell and that he said that he was also getting one or two that they can't sell for either 3 months or 6 months (sorry senior citizen here, it was one or the other) so that the dealers have something potential buyers can actually drive. So possibly that dealership was, (I can't believe I'm saying this) telling you the truth;)
If they are not able to sell then simply say that and don’t mark it up and pretend you would sell it for the right price. I was working with a dealer and the salesperson told me first thing when I called I was welcome to come drive it but is not for sale as it is for demo/test drives only.
 
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Gray Beard

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Just heard from a local dealer that all of their in stock hybrids will have a $5k markup. Not sure if that’s negotiable or not, it definitely a bummer.
 

MLowe05

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Take a look around at some of the threads in this forum and you'll see yet another reason they mark them up. People continue to pay it, no matter how stupid it is to do so. I want a Maverick, too, and that's why I ordered one. But $1 over MSRP and I'd buy something - anything - else I could get without a markup. I'm just not that loyal to any brand and not that desperate for any make/model.
 

mrbill

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One of the salesman said similar to me. He was saying oh someone paid 80k for that bronco in the lobby but we cant release to him until february because they have to have one on the floor.

I still walked out. Like fuck all that.
its really getting nuts ! our ford dealer has one bronco on display,so you can see it you can order one, but our toyota dealer has 4 broncos and they only want $30,000 over sticker on them, they also had 2 ram TRX at $40,000 over sticker, and they are gone, but dont know what they ended up going for , they even had 2 Cadillac escalades , even though our caddy dealer has NONE. more than I can pay, I NEVER even paid sticker im 66 , but we ordered the maverick hybrid xlt for my wife at msrp plus $500 for hybrid, they said I could order the eco at msrp,I figured $500 ill go for it, they usually have NO dealer fee I pid none before from them last was my 2019 f150 stx ,no dealer fee and got $9,000 off sticker end of year sale march 2020.thats when they had 50 f150 2019 left and 100 2020's today they have 4 new f150's
 

jbpoole

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Most dealerships I know dont even get commission anymore. They are all Salary. Like you said, they might get a bonus for the "amount" of cars they sell but that ADM basically just goes in franchise owners pocket or reinvestment back into the dealership.

Dealerships, generally dont make much money off new cars to begin with.
Never heard of a salaried car salesman.

It's my understanding that dealers make far more money on used vehicles, parts and service.
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