Why would dealers offer discount off MSRP?

[Redneck Garage]

For the dealers like Chapman/Long, do the high sales give them a better chance at getting Lightnings and Broncos? Are they offering lower prices on those too? Around here, one charges $10,000 over and one charges MSRP. I wonder how many Maverick sales Ford loses because not everybody thinks about driving to another dealer?

IT wouldn't give them a better chance at getting them however it WOULD allow them to get them much faster and in more volume than another dealership. For example my dealership in Franklin TN near Nashville has 250 orders for Mavericks mostly hybrids. They are getting 3 to 5 customer orders a month due to "allocations" Long MacArthur was like over 35 for the month recently ( dont quote me on the exact number but it was a huge amount more then my local dealer) . Certainly they are making money on volume at msrp. My dealer is charging MSRP on customer orders as well, I just may not see my August order until August of this year ..... had I know THAT I would have ordered from a volume dealer.

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[Chris_G]

OK - thats even more confusing. The thread was :

bombast said:
These dealers were abusing the allocation system, getting so many bulk orders from customers not in their primary area of business that they could receive more vehicles than they normally would on a weekly basis. The volume of sales offsets the small hit to profit on each vehicle.

That's great and all for people who can manage to deal with the barriers of access to a distant dealership. Not so much for people buying their trucks from small local dealers that didn't get their first Mavericks until Mid January because allocations got so borked.

Your reply was :
Won't argue with your statement. But....when local dealers treat their customers like crap, they go elsewhere.

Are you just making a random statement Not related to what bombast said ? There was a "But" in your response which indicates a rebuttal of something he said. If thats not the case, then really you could insert anything in there like - But...... the aftermarket SIBL company shouldn't had drilled holes in the gas tank or But...... Ford should offer more color choices on the Super Duty line .....

Im just trying to figure out how a statement about the allocation system made by bombast relates to customer service from local dealerships.

I didn't mean to make it so difficult, please disregard my post and move on.
Thanks!

 

[SlappaDaBass]

Anybody else wonder about this when so many dealers are charging premiums?

I think they are the smartest dealers If you want to talk about profit! All Maverick orders have now been cut off, dealers were not able to order inventory, Mavericks have turned into one of the hottest selling vehicles and the percentage of customers who don’t buy the Mavericks they order after waiting for months and months is probably greater than we realize! When there are no Mavericks at any other dealers you should be able to find them at those dealers that offered the discounts! It will be very interesting to see if those dealers add premiums when the trucks arrive.

When I canceled my eco boost order after locating a Lariat hybrid that had been turned down by someone and already shipped I keep getting notices on the one I canceled. When I asked the salesman he told me they did not cancel the order so they will have one available to sell. Smart!

I think I’m probably spending too much time reading all the threads on this forum and looking at all the accessories that everyone is buying LOL

I'm hearing ads like that on the radio here in Ohio "Oh, come to our dealership and you can get a vehicle for MSRP or under!" then go to their website and see a Maverick with a $10k ADM. It's a cheap tactic but what they actually mean is "Hey, come order a vehicle from us at MSRP! *then please also bail so we can put your vehicle our allocation on the lot with a huge markup"

 

[jtpc2021]

Whatever makes you feel like you beat the system/are a genius, I suppose.

I can’t verify, but realize if it sounds too good to be true, it usually is.
What I mean by that, is look at Long McAthur Ford. Sure, they will ship for free, but only if you finance with them. The interests rates Tim quotes in a video were definitely not Ford’s promotional 1.9%. They are offsetting it with kickbacks from higher interest loans.

So the same could happen if buying below MSRP. You might find yourself being forced to pay 5.5% rather than 1.9%, etc to help bridge the gap in purchase price from dealer’s perspective.

Just a thought.

 

[AUsomTiger]

Whatever makes you feel like you beat the system/are a genius, I suppose.

I can’t verify, but realize if it sounds too good to be true, it usually is.
What I mean by that, is look at Long McAthur Ford. Sure, they will ship for free, but only if you finance with them. The interests rates Tim quotes in a video were definitely not Ford’s promotional 1.9%. They are offsetting it with kickbacks from higher interest loans.

So the same could happen if buying below MSRP. You might find yourself being forced to pay 5.5% rather than 1.9%, etc to help bridge the gap in purchase price from dealer’s perspective.

Just a thought.

I didn't run into that with Granger. They were able to beat my credit union's rate on my Mustang and got the special finance rate from Ford on my Maverick. I'm a satisfied return customer of theirs.

 

[BobS]

Except for the ones who have to sit around waiting months longer than everyone else because they live in the boonies and their dealership, which doesn't charge markup fees, is too low volume to get (relatively) prompt deliveries.

I ordered from Chapman July 8th still not scheduled.

 

[Redneck Garage]

I ordered from Chapman July 8th still not scheduled.

I wonder if there really is any procedure for Ford to do scheduling - with a July 8th order you KNOW that there has been orders for the same exact build shipped out to someone else - sorry that sucks.

 

[Mymaverick2021]

Anybody else wonder about this when so many dealers are charging premiums?

I think they are the smartest dealers If you want to talk about profit! All Maverick orders have now been cut off, dealers were not able to order inventory, Mavericks have turned into one of the hottest selling vehicles and the percentage of customers who don’t buy the Mavericks they order after waiting for months and months is probably greater than we realize! When there are no Mavericks at any other dealers you should be able to find them at those dealers that offered the discounts! It will be very interesting to see if those dealers add premiums when the trucks arrive.

When I canceled my eco boost order after locating a Lariat hybrid that had been turned down by someone and already shipped I keep getting notices on the one I canceled. When I asked the salesman he told me they did not cancel the order so they will have one available to sell. Smart!

I think I’m probably spending too much time reading all the threads on this forum and looking at all the accessories that everyone is buying LOL

Because the more they can sell now the more allocations they can get for next year's model

 

[DryHeat]

Just guessing here, but I'd guess it happens less than 10% of the time in ACTUAL transactions?

Maybe so. But I wouldn't feel all that great if my dealer told me "Hey, you'll probably get your truck at the agreed price, but there's a 10% chance we'll charge you an extra $5,000."

 

[ValenciaOrange]

The dealer I ordered from sold me my truck at MSRP. They are a high volume dealer. They give nothing away. You pay for everything. Oh they did give me something for free. They gave me door edge clear molding and 2 bottles of Niagara water.

 

[MLowe05]

For those of you talking about Long McArthur @fordvideoguy - He acknowledges that financing kickbacks are how he can ship it to you for no cost, up to $1000. If you finance at Ford Promo rates, such as 0%, then that makes sense there would be no finance kickback.

You don't "run into" these issues with Granger and Chapman because neither of them have the "free" shipping option.

Personally, I'll take the promo rate, the 4% off invoice, and fly to PA to drive back. But don't misunderstand the offer. Tim is 100% transparent about pricing and how they do what they do.

As for my local dealer... I haven't a shit to give about them. MSRP + $699 fee. Pass.

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