Unreasonable Dealer Markups

[Finally21]

https://www.thedrive.com/news/44172/ford-boss-puts-the-kibosh-on-unreasonable-dealer-markups

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[Atlas1]

I guess Farley's message hasn't made it out to Washington state yet. My local dealers have adm's of

$20k bronco
$10k mach 1
$10 mach E
$7k bronco sport
$5k explorer
$30k gt500

the explorer is more of a recent development but anything like the shelby, bronco, or mach 1 has been like this since day 1 of their availability. The entire run of gt350 production was like this for every dealer within driving distance of me. I'm thankful for Granger Ford in iowa because otherwise i would not have my mustang had i been forced to buy in state.

 

[FreePenguin]

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.

 

[Atlas1]

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.

they are selling cars for ford yes, but they also serve as ambassadors of the brand. they are the face of the brand that customers interact with not just at the time of sale but ongoing service as well. a company like ford wants the buying/owning experience to be good so that customers will repeat. they do not want someone having a poor experience, going to a different brand and never coming back. plus, it doesn't look great to see all of their hottest new products held down to the dealer lot by spider webs. they want the inventory moved and out on the street as advertising.

 

[FreePenguin]

The guy next to me with a bigger pocket is the better audience. If I can’t buy the adm then I look at a cheaper car. That guy with loaded wallet really should be priority.

it sucks, but if they weren’t selling, adm’s wouldn’t be a thing. I’m not excusing them. But … if I was a dealership, I’d do the same. Market the car for what people are paying: willing to pay.

 

[Deleted member 35644]

This says it all, and should serve as a reminder that these dealerships are doing themselves and Ford no favors in the long run. This gouging will be remembered, and some folks won't even touch another Ford again because of it. Others will just bypass the specific dealership, but either way it hurts the brand.

"...towing the line for the long-term health of the brand."

 

[Atlas1]

The guy next to me with a bigger pocket is the better audience. If I can’t buy the adm then I look at a cheaper car. That guy with loaded wallet really should be priority.

ford is not ferrari. if they want to market their cars to those with the biggest pockets thats fine but they have a few steps to take before they are at level. ford needs sales volume and a wide customer base, including those that can't/won't pay over msrp for new vehicles.

it sucks, but if they weren’t selling, adm’s wouldn’t be a thing. I’m not excusing them. But … if I was a dealership, I’d do the same. Market the car for what people are paying: willing to pay.

locally they are not selling. it is telling that during this buying frenzy when all of the local lots are bare, the ford dealer stands out as having new car inventory. sure they move the f150's and escape's but the bronco's sit collecting dust. i do not have access to the contract between ford and their dealers but i imagine there are stipulations in there regarding behavior that reflects on the brand. having this high demand new vehicle sitting unsold with a 25% markup is not good for the brand. and for some reason the guys with big pockets haven't stopped by to drive it off the lot. i can buy new gm and toyota vehicles as well as german locally without adm. would ford like me to try out those brands? considering the great ownership experience i've had with my audi i will say ford should be extremely happy that audi does not make a 2 door rwd coupe with a v8 and clutch pedal.
i'm for the free market and if dealers want to behave this way thats their choice. but they do not operate in a vacuum. they are not completely independent of the ford motor company and if ford wants to step in to protect their brand i'm all for that as well.

 

[oneheadlite]

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.

...never bought a Harley, have you??

I've bought 8 from the same dealer in 7 years.
Each one was MSRP because that is the price and you can't make them cut price.

I asked for a pair of lights that cost $200.00, you'd think I had asked the sales
manager for a date with his ugly wife or his first born.
Carried on like it was costing him money personally.
He probably made $35,000 + off MSRP from me on the 8 bikes. Not to mention
what money he made off the bikes I traded in.

Best thing about www.seedealercost.com is you can see
what money they make over actual cost.

...my last Harley...................(I guess)

 

[Nawsad123]

I guess Farley's message hasn't made it out to Washington state yet. My local dealers have adm's of

$20k bronco
$10k mach 1
$10 mach E
$7k bronco sport
$5k explorer
$30k gt500

the explorer is more of a recent development but anything like the shelby, bronco, or mach 1 has been like this since day 1 of their availability. The entire run of gt350 production was like this for every dealer within driving distance of me. I'm thankful for Granger Ford in iowa because otherwise i would not have my mustang had i been forced to buy in state.

Ford of kirkland slapping those 30k markups on the gt500s n gt350s like nothing. Saw them last month

 

[Stage_3]

Funny this is posted,.....I was just looking at new 2021 GT500's for sale in the area. Hard pass for me dawg. LOL I'm not paying 10-15K more than what the manufacturer of said car says the car is worth. (I would probably pay 3k-5k ADM for a GT500 that was exactly how I wanted.) I can use that money for mods or whatever. But, there are people that have the cake to pay for one with the ADM. Good for them, let them buy. If I had the cake, I would as well.
One of the places nearby had both a GT500 and a 2021 Mach 1. The Mach 1 was almost 30K ADM. LOL

 

[theruleslawyer]

The issue with adm is when prices come back to earth there are going to be a lot of folks badly upside down and screaming about how ford screwed them and how bad the resale value is. If they lose their shirt they won’t be back for another.

 

[Mechanicus5.0]

Was talking to that Kirkland Dealer like a month ago. They had three GT500's sitting there. 30k ADM each. I had cash in hand to buy a MSRP car. They offered to lower it down to ONLY a 15k ADM, I was like no thanks. Instead went out and purchased a Nissan GTR. So now I race my 2019 GT at the track and Daily drive the GTR. Washington state sucks for ADM. Was even looking at some new C8's, they to were way up on ADM's for a base model haha! again, no thanks.

 

[Stage_3]

The issue with adm is when prices come back to earth there are going to be a lot of folks badly upside down and screaming about how ford screwed them and how bad the resale value is. If they lose their shirt they won’t be back for another.

Well, that's just it.
It's not that Ford screwed them over. Ford didn't put that ADM on, the dealership did.

And, I have a feeling that prices are going to be coming back down to earth once these oil prices keep on climbing like they are presently. Getting close to 100 bucks a barrel.

 

[Skye]

If I was running Ford or a dealership, I'd go the no ADM route. I'm playing the long game. I need to make a profit to stay in business, but brand and customer loyalty has value, value which will support me in good times and bad.

Granger Ford is a good example. Who doesn't love those guys?

 

[FreePenguin]

Well, that's just it.
It's not that Ford screwed them over. Ford didn't put that ADM on, the dealership did.

And, I have a feeling that prices are going to be coming back down to earth once these oil prices keep on climbing like they are presently. Getting close to 100 bucks a barrel.

yep.. I miss the mustang but im not missing premium prices/lesser gas mileage. I think this is a ploy, hear me out. I think this is done on purpose to increase gas prices to make people start looking at energy/electric vehicles.

I know they wont admit it, but they aren't doing a whole lot to let gas come back down, brb lets shut down basically all drilling and see what happens.

Alaska could be PUMPING hard, let em pump, texas too

/tinfoilhat.

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