Proof That Paying a Dealer Markup for a Ford Bronco Was/Is a Terrible Idea
Dealer markups have been part of the vehicle buying experience for the last couple years. It is time to stop paying it.
The last few years have been rough on car buyers across the board. Available models were scarce, and prices shot up accordingly. The law of supply and demand has been working against the average buyer. Then Ford comes along and releases the highly anticipated Bronco. And Ford knew that meant dealers were getting ready to gouge buyers by tacking on additional dealer markups (ADM). They tried to prevent it, but it was inevitable. In fact, in July 2021 we published an article that called out the highest ADMs on the 2021 Ford Bronco in the country. For buyers in 2021 it was a bad idea to pay those jacked up prices. And now in 2023 it is an even worse idea. And now armed with the benefit of hindsight and data we can show you exactly why it is such a bad idea.
The average Bugatti buyer has roughly 30 cars in their household. They also own yachts, planes, and multiple homes. If you fit in this demographic, good for you. You can ignore the advice here because money spent on a new Bronco means nothing to you. But the average Bronco owner is not the average Bugatti owner. For a Bronco owner throwing away tens of thousands of dollars is a big deal. Sure, you love the new Bronco and can’t wait to get one. But is it worth flushing money down the drain? Nope.
2021 Dealer Markups
At the top of our list in the 2021 article was a Bronco Badlands listed for sale at Andy Mohr Ford in Plainfield Indiana. The dealer markup on that Bronco was an astounding $44,803. That brought the sale price to $97,498. At this moment that same dealer has a new 2023 Bronco Badlands listed for sale for $56,110. So if someone actually paid that ridiculous asking price back in 2021 they would have spent over $41,000 in ADM to have their Bronco 19 months sooner. That is roughly $2,100 per MONTH in just ADM to enjoy the Bronco. The Bronco is great, but it isn’t that great. Is it possible the dealer is now just hiding the ADM and not being as upfront about the pricing as they were in 2021? Maybe. But there are more reasons why paying ADM is bad.
New Broncos Everywhere
Even now it is tough to order a new Bronco to your exact specifications. But that doesn’t mean the Bronco is rare. In 2022 Ford sold 117,057 of them. These are not rare limited production models that collectors will clamor for any time soon. The Bronco is cool. We love it. But let’s be real here. It is a mass-produced SUV. Paying a five-figure markup on a vehicle that will eventually depreciate just like every other normal SUV is a surefire way to waste money.
Used Broncos Everywhere
Admittedly, if you want to build a Bronco to your exact specs you are going to have to wait a while. But now that the Bronco has been out for quite some time there are a TON of them on the used market. A quick searched revealed that there are currently nearly 3,000 2021 – 2023 used Broncos for sale in America. Every color, trim, and configuration you can think of. Many of them have less than 5,000 miles on them. And many are listed at $50,000 or less. And yes it is true that some have an asking price above MSRP. But patience grasshopper. These prices are falling fast.
Falling Prices
When you search for used Broncos you will find that many of them that are priced above MSRP have been sitting for a while. Good. Let the dealer have to float the cost of these sitting on the lot. Many of these Broncos are seeing price cut after price cut. One of MANY examples I found was for a lovely Ford Bronco Wildtrak 2-door in Cyber Orange. It has just 7,405 miles on it. The Bronco has been sitting at the dealer for 55 days. Original asking price was $66,995. Now it is listed for $59,888. That is over 10 percent less in roughly two months. With more cuts likely to follow. There are an awful lot of these falling-price Broncos out there. So, if you paid $20,000 over MSRP a year ago, you are likely poised to lose your shirt on the transaction.
United We Stand Against Dealer Markups
Sticking together on this is really the only way we can bring prices down. If people fold to the pressure and pay these dealer markups then dealers are going to continue to follow that practice. But if we hold strong and exhibit some patience these markups will continue to reduce. We are already seeing it. Do yourself and all of us a favor. Refuse to pay dealer markups on the Bronco and any other vehicle you might be considering.
Images: Ford; Andy Mohr Ford
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