Thought Ford was helping with dealers Markup

[RBElectrical]

Sounds like you answered yourself on why they feel justified in demanding a markup for a unit in hand versus ones you didn't have the foresight to order.

If the dealers are marking up vehicles good on gas because people are looking to save money on high gas prices, this defeats the whole purpose of getting a Maverick. It is still cheaper driving a vehicle that is paid off that gets 14 MPG vs purchasing a new one that gets 26 mpg. I am taking advantage of the high resale prices on vans. My 2015 Transit is worth 3K more than I paid for it in 2015. We don't need the van right now so it would be stupid not to try and sell it for more than it was purchased for. We got time though. He's going to be driving the paid off Ram 1500 (19mpg) for now.

Sponsored

 

[RBElectrical]

I will be using many elements of this thread as examples in my Econ teaching. Good stuff! OP, it sounds like you care about your employees. Thank you for that.

It's very short-sighted not to take care of the employees that are vital to the operation of your company. If they feel well compensated, they will work harder to make you more money. Putting a $200K a year worker into an XL is an insult. A $5K upgraded vehicle is only $80 a month over the course of 5 years. You will surely make more than that every month if they feel appreciated because they have leather instead of cloth seats.

 

[Deleted member 14823]

Putting a $200K a year worker into an XL is an insult.

Every day I'm reminded about how we were misled in high school about college degrees vs learning a trade. What a fool I've been.

 

[HTX]

Your guys can handle it!

Custom tow package.

 

[FAN2PLAYER]

Local dealer has an XLT for sale. MSRP 30K. Ask price: $40K. I said I would pay MSRP, and picked up today. Nope, every car has 10K Market Adjustment. I said I just bought a Lariat under sticker, it is possible. Nope.

So the manager calls me. Says they have to mark it up because they don't have enough inventory. Explained that I would be trading a Transit 250 in (super high commodity right now). Also explained I just purchased a Lariat under sticker and that these trucks, especially an XLT are not worth $40K. He said the best they could do is 37K and that was it. Made a comment how the buyer backed out so it's for sale. I said he probably backed out because you jacked the price up 10K on him. "ohhh no, we offered at sticker and he found one elsewhere by the time it came in". Sure. So if you were going to sell to him at sticker then you could sell to me at sticker. "it doesn't work like that".

What are the chances the buyer for this Maverick is getting hosed by a dealer trying to make another $7-10K on the truck he ordered?

I drive by this dealership every day to and from work and see 2 of the higher priced once on the corner of the lot.

https://www.kbford.net/all-inventory/index.htm?compositeType=new&year=2022&make=Ford&model=Maverick

 

[RBElectrical]

Every day I'm reminded about how we were misled in high school about college degrees vs learning a trade. What a fool I've been.

We are seeing that now in the field. Lack of trade workers because of the huge push to go to college 15-20 years ago.

If you do it right, you have zero debt from college and after 5ish years of being an apprentice you are making full scale. You work hard and you get a vehicle and paid over scale. Everyone gets insurance 100% paid for, retirement account PLUS a pension. This is for a union tradesman, can't speak for what non union offers. It's a good career to follow. It can be hard on the body but so is sitting in an office chair all day.

 

[MLowe05]

If the dealers are marking up vehicles good on gas because people are looking to save money on high gas prices, this defeats the whole purpose of getting a Maverick. It is still cheaper driving a vehicle that is paid off that gets 14 MPG vs purchasing a new one that gets 26 mpg.

Indeed. That is what I have never understood on this forum with people paying $5,000 markups on hybrid Mavericks and then posting on here about how "lucky" they are. You basically negated probably a decade of increased efficiency in the Maverick.. "lucky" is not the word for it.

 

[Jmav2152]

We are seeing that now in the field. Lack of trade workers because of the huge push to go to college 15-20 years ago.

If you do it right, you have zero debt from college and after 5ish years of being an apprentice you are making full scale. You work hard and you get a vehicle and paid over scale. Everyone gets insurance 100% paid for, retirement account PLUS a pension. This is for a union tradesman, can't speak for what non union offers. It's a good career to follow. It can be hard on the body but so is sitting in an office chair all day.

I made decent money non union. And as someone who wanted to join the local and had 12 years experience in the navy as a electrician, dropping down to $15-16 an hour was a insult and a unliviable wage for me. I understand marine electrical is very different but union is a tough one to come into unless your super young with a less established life style. Even testing on options only brought a couple dollars more an hour.

I really enjoyed residential work. It was tough but you get to be really creative working in finished homes.

 

[Dun4791]

Ford’s actions in dealing with markups shows ford condones markups.

 

[MLowe05]

Ford’s actions in dealing with markups shows ford condones markups.

I don't think they condone them.. it's just that contractually, there is little they can do. They are renegotiating contracts apparently, with Model E and Ford Blue or whatever it is called. I know for electric vehicles, they will be required to sell them at MSRP. I'm not sure about the other side. But we may be seeing progress in the not-so-distant future.

The auto dealership lobby in this country is very powerful, unfortunately.

 

[Jmav2152]

The auto dealership lobby in this country is very powerful, unfortunately.

Its crazy how many people dont know about this.

 

[Dun4791]

I don't think they condone them.. it's just that contractually, there is little they can do. They are renegotiating contracts apparently, with Model E and Ford Blue or whatever it is called. I know for electric vehicles, they will be required to sell them at MSRP. I'm not sure about the other side. But we may be seeing progress in the not-so-distant future.

The auto dealership lobby in this country is very powerful, unfortunately.

They could do something, they chose not to. Seems simple to not send another vehicle to the offending dealerships. Yeah, that vehicle is constrained, sorry!

Ford has a lot of lawyers, they can’t hold a dealer accountable for giving corporate (a brand over the dealers for) a bad name?

Sponsored