Largest Current Dealer Mark-Ups Seen?
my old dealer is begging me to order it even if I don't want it, it's his only allocation. He wants me to order it and not take possession so they can mark it up through the roof. Probably in the ballpark park of 40K. I have until the end of the month place the order.
I asked if I did that, what do I get in return.... The phone call got quiet, says we'll will work something out.
my old dealer is begging me to order it even if I don't want it, it's his only allocation. He wants me to order it and not take possession so they can mark it up through the roof. Probably in the ballpark park of 40K. I have until the end of the month place the order.
I asked if I did that, what do I get in return.... The phone call got quiet, says we'll will work something out.
…oh, don’t forget my 10% cut for the idea…lol.
I've had thoughts about doing that.
My original reservation was for the first Bronco, I just couldn't wrap my head around it. I had four small Broncos growing up.
This was maybe 2 months ago.
https://www.motortrend.com/news/ford...price-gouging/
All these mark up stories make my A plan purchase seem so easy.
my old dealer is begging me to order it even if I don't want it, it's his only allocation. He wants me to order it and not take possession so they can mark it up through the roof. Probably in the ballpark park of 40K. I have until the end of the month place the order.
I asked if I did that, what do I get in return.... The phone call got quiet, says we'll will work something out.
Ford Trucks for Ford Truck Enthusiasts
Pretend you own a dealership that employs 100 people and you need to make five million dollars to cover your overhead.
You used to sell 1000 cars per year to cover your expenses.
Now Ford says they can only supply you with 450 cars this year. What do you do? Your choices are to lay off half of your staff, or increase profit per unit (which people WILL pay) to maintain status quo.
This same thing happens in other markets when supply dries up. The firearm world goes through this every time a gun control heavy president is elected or the next national scare comes and people flock to buy guns. Shop owners have to increase prices on what they DO have to keep the lights on. It's not like they are all of a sudden buying vacation homes in the Caribbean. When supply returns prices normalize, happens every time.
Now, that's not to say some of these prices aren't a bit much, but if you're going to get ONE Bronco for your entire dealership for the year, are you going to sell it at MSRP?
Pretend you own a dealership that employs 100 people and you need to make five million dollars to cover your overhead.
You used to sell 1000 cars per year to cover your expenses.
Now Ford says they can only supply you with 450 cars this year. What do you do? Your choices are to lay off half of your staff, or increase profit per unit (which people WILL pay) to maintain status quo.
This same thing happens in other markets when supply dries up. The firearm world goes through this every time a gun control heavy president is elected or the next national scare comes and people flock to buy guns. Shop owners have to increase prices on what they DO have to keep the lights on. It's not like they are all of a sudden buying vacation homes in the Caribbean. When supply returns prices normalize, happens every time.
Now, that's not to say some of these prices aren't a bit much, but if you're going to get ONE Bronco for your entire dealership for the year, are you going to sell it at MSRP?
Yes, a business has to make money to stay open, but there are many other ways to do it other than price gouging. And yeah, laying off salesmen that are a dime-a-dozen would be the first move. No need for 20 salesmen on the payroll when there are only 40 vehicles on the lot. Sure, someone will pay the price, but what you will do is alienate your main base (the locals). You mention the gun industry, and it's a great example. Thousands of gun owners boycott businesses that price gouge during uncertain times (CTD is the first one that comes to mind...$100 GI mags, $700 drum mags, $900/case of ammo), and ones that do not politically align with the industry they are in (Leatherman tool, that is anti-gun, supports ATF & gun buy-backs. Not to mention the legal battle they had for stamping "Made in USA" on their multi-tools when some components are made overseas). I could go on, but this isn't the place for it.
Losing a few vehicle sales from my friends and I sure ain't gonna make the dealer go under, but we feel much better NOT supporting a business that employs practices we don't agree with.
My advice to individuals that don't ABSOLUTELY need a new Super Duty now should wait rather than pay 10k to 15k over sticker. Most paying 10 to 15k over MSRP will likely regret that decision in about 1 to 2 years.
Wholesale used vehicle prices of big engine trucks / SUVs are already starting to show negative price movement...typically prices trend up in the spring. The fact that Truck / SUV wholesale prices are starting to trend down right now says a lot. Retail hasn't seen it yet, but it's coming.
Gas prices, interest rates, inflation, "recession?" will all help push prices back down to earth.
Pretend you own a dealership that employs 100 people and you need to make five million dollars to cover your overhead.
You used to sell 1000 cars per year to cover your expenses.
Now Ford says they can only supply you with 450 cars this year. What do you do? Your choices are to lay off half of your staff, or increase profit per unit (which people WILL pay) to maintain status quo.
This same thing happens in other markets when supply dries up. The firearm world goes through this every time a gun control heavy president is elected or the next national scare comes and people flock to buy guns. Shop owners have to increase prices on what they DO have to keep the lights on. It's not like they are all of a sudden buying vacation homes in the Caribbean. When supply returns prices normalize, happens every time.
Now, that's not to say some of these prices aren't a bit much, but if you're going to get ONE Bronco for your entire dealership for the year, are you going to sell it at MSRP?
Dealerships are adding crazy markups and driving people to custom orders at MSRP or slightly above. So not only are they taking advantage of people who cannot wait for a new build and need a vehicle NOW, they created a huge pipeline of new orders while accepting deposits for each. The dealerships are making sales, getting a TON more for vehicles on the lot from those who are stupid or desperate enough to pay the markup, and they are getting considerable amounts more for custom orders at MSRP or slightly above because buyers have no other options whereas in a normal market, buyers are looking for that invoice/holdback price.
So what's that? +30% on lot vehicles and +6-8% on custom orders?
Then you have the even shadier dealerships who will walk a customer through a custom order, then peg them with markups at the point of delivery without being upfront in pricing or locking in pricing - which then puts customers in a position to value their wasted time waiting for their cars; they either pay and the dealer makes a ton of extra money or they don't pay and walk, in which case the dealer puts it on the lot for +30% markup to make even more from the desperate.
So please forgive me if I don't share a shred of sympathy for these scummy dealerships and their practices. Poor them, they deserve to go under.
Granger is selling a TON of Super Duty's right now, still above their holdback; still making money on each deal; not only surviving this, but thriving in it. All while creating life-long relationships with their customers because in extremely hard times, they actively chose NOT to take advantage of the situation to the detriment of their customers. Good on them!
These dealerships are ruining it for their customers and in turn themselves. The dealers in my area may not have many vehicles on their lots at any given time but they must be making enough money to NOT sell below MSRP.
Gladly drive the 1000 miles home each time.
Them taking care of me will equate to me taking care of them by my repeat business in the future.












