Unreasonable Dealer Markups

[Cobra Jet]

Maybe Farley should be concerned with overall Quality coming off the assembly lines instead of what the Franchises aren't doing... Hell, Callahan Auto had better quality than what is being output from Ford these days... (see what I did there)...

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[ice445]

perhaps some day Ford will actually do something about these continued exorbitant prices like this 2021 GT500, verses issuing idle threats

https://www.fordofportrichey.com/new-Port+Richey-2021-Ford-Mustang-Shelby+GT500-1FA6P8SJ8M5504594

asking price: $124,495
msrp: $80,615

Why would they do anything when people are lined up to pay those prices? Ford stopped caring the second the car left the factory lol

 

[Bikeman315]

Why would they do anything when people are lined up to pay those prices? Ford stopped caring the second the car left the factory lol

Fortunately for us that’s not really true. There are those in Ford corporate management that are concerned about their image. They know that dealers who are adding these huge ADM’s are hurting that image. The question is how do they with the current franchise agreements deal with it.

 

[Bikeman315]

true, but years later it will be ford they are probably screaming about not the dealer. Recognizing they made a bad choice paying adm would be personal responsibility and most folks cant seem to handle that.

Funny that the people who are paying these ADM’s aren’t complaining. Why? They can afford it. The only ones complaining are us forum folks who find the cars we really want unobtainable because of these crazy markups. And, of course, those who refuse to pay ADM’s on moral grounds.

 

[Reap]

I think it's more of the current administration trying to price us out of low MPG ICE vehicles and entice us to become tree huggers.

But yet the U.S. does not have a robust enough electrical grid to support the Ev's much less normal electrical use.

 

[Bikeman315]

But yet the U.S. does not have a robust enough electrical grid to support the Ev's much less normal electrical use.

We have plenty of threads on EV's. This one is about dealer pricing/markups. Let's try to keep it on track.

 

[Stage_3]

true, but years later it will be ford they are probably screaming about not the dealer. Recognizing they made a bad choice paying adm would be personal responsibility and most folks cant seem to handle that.

That is true.
Today's world, it's always someone else's fault. lol

 

[bigmixx]

He says it's only 10% of dealers charging over MSRP or did he mean 10% are NOT charging over MSRP. Because it feels like the latter LOL

 

[FreePenguin]

It really doesn’t help though that the last 2 years I have been able to sell everything at more than I paid and it’s used, people have been receiving so much… free assistance money related to COVID that they don’t even care.

In my area stuff you wouldn’t believe people are basically rushing to buy at over inflated prices just because they have to have it and have money to burn.

Things are all messed up right now

In a normal market where money wasn’t so readily available people was trying to be smart about buying impulse purchases. Nah. Not anymore. Don’t care the price, let’s get it.

So you can’t fault dealers for trying to profit on it. I don’t blame them.

 

[Ogopogo]

There is apparently talk at Ford about spinning off their EV business into a new subsidiary in some way, likely a separately incorporated company. That would allow them to do direct sales to the customer like Tesla and Rivian, bypassing the dealership sales force entirely. That would mean the current ICE dealership sales model for the likes of Fords, GMs and Toyotas will 'die' within 10 years.

The current sales model is so last century. Get rid of the middleman entirely for sales and operate service centers only. I am a firm advocate against ADMs and wouldn't touch a dealer who plays that game. Our local dealers do not play that game to the best of my knowledge.

 

[dmcg940]

Feeling bad for you guys. That loaded 2021 GT 401a in the picture was about $4k under sticker counting discount and rebate. Nice to know some dealers still want to deal.

 

[Strokerswild]

Funny that the people who are paying these ADM’s aren’t complaining. Why? They can afford it. The only ones complaining are us forum folks who find the cars we really want unobtainable because of these crazy markups. And, of course, those who refuse to pay ADM’s on moral grounds.

Heh, 'moral grounds'. I guess I could afford to pay a reasonable ADM on a GT500. If I wanted to, which I don't, because I'm wired that way. I'm a tightwad when it comes to cars. I learned from a pretty young age that cars are a terrible investment, thus I've yet to pay sticker on one. I would have paid sticker for the first time in my life for a '22 GT500, but gave up the pursuit in frustration because it's all ADM now. At this point, I doubt I'll ever pursue one of the top-tier Mustangs ever again because it'll be the same shit show with the dealers. Lost sale, Ford. And that should be a concern for them as a company in the business to sell cars.

 

[LSchicago]

Never paid markup, never will. I will walk instead. Only once did I pay sticker, out of 11 new vehicles.

 

[ZeroTX]

I mean.. I think ford should stay out of it. the market is dictating itself what prices people are paying. if people dont want to pay ADM, the prices are dropping. but there are people paying these prices willingly.

the dealership is in it for profit. I dont honestly see a problem. would I want to pay ADM? no. but if the guy beside me has the money to burn and says LETS DO IT.

more power to him. I will wait til prices stabilize/supply. The dealership is doing exactly what its designed for, selling cars for ford.

Arguably (and I will always argue), they would sell a lot more cars for Ford at fair and reasonable prices. Coming from buying an F150 for $10,000 under MSRP 4 years ago to this B.S. is not something easy to swallow. Record low sales seem to show I'm right.

 

[Bikeman315]

Arguably (and I will always argue), they would sell a lot more cars for Ford at fair and reasonable prices. Coming from buying an F150 for $10,000 under MSRP 4 years ago to this B.S. is not something easy to swallow. Record low sales seem to show I'm right.

Record low sales are because of low supply, not low demand. Also not every dealer is a thief. Many dealers are, can, and will sell for a reasonable price. Unfortunately in this current climate MSRP is considered reasonable. Also keep in mind that a lot of the cars that get these stupid high are also high demand cars, like the GT500, C8, Bronco, etc.

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