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Largest Current Dealer Mark-Ups Seen?

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Old Mar 24, 2022 | 07:18 PM
  #16  
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I'm one of the few who can order a 22 Bronco Raptor, just bought a 150 Raptor anyways..

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.
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Old Mar 24, 2022 | 07:45 PM
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Originally Posted by 1olddogtwo
I'm one of the few who can order a 22 Bronco Raptor, just bought a 150 Raptor anyways..

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.
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Buy it, take delivery, and immediately put it up for sale for $30k over sticker. There’s some fun money for ya…


…oh, don’t forget my 10% cut for the idea…lol.
 
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Old Mar 24, 2022 | 07:53 PM
  #18  
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Originally Posted by ATC Crazy
Buy it, take delivery, and immediately put it up for sale for $30k over sticker. There’s some fun money for ya…


…oh, don’t forget my 10% cut for the idea…lol.
Only 10%..... You give me the cash to buy it and I'll take the ten....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.


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Old Mar 24, 2022 | 08:59 PM
  #19  
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I just picked up my F250, Carbonized Gray, 7.3, XLT premium, EL, FX4, up fitter. Took four months, but worth it. Funny though, the dealer didn’t like my sharing the “internal” document regarding price protection on the $1,295 December increase. I also used a $3,500 PCO. The sales guy acted like I was stealing his pocket book, I told him to chill, the factory was paying the $4,800 and he was still getting MSRP.
 
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Old Mar 25, 2022 | 02:53 AM
  #20  
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Originally Posted by TX Chris
When my ordered '22 F350 was sitting at the dealer waiting on me to pick it up, the dealership had multiple offers to buy my truck (it was listed on their website for sale). Fortunately they didn't sell it out from under me - I paid invoice and they received multiple offers around $10k to $15k over sticker.

This was maybe 2 months ago.
That's why I didn't waste any time picking mine up a little over a month ago. I'm sure they could have received way over MSRP especially since my 350 had the 5th Wheel Prep and Spray-In bedliner.
 
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Old Mar 25, 2022 | 05:37 AM
  #21  
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Originally Posted by nico963
I know Ford is not happy with these dealers doing the markups.

https://www.motortrend.com/news/ford...price-gouging/
I hope it is more than lip service to make Ford look good. I say name & shame the gougers and praise the dealers selling low.
 
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Old Mar 25, 2022 | 05:49 AM
  #22  
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Originally Posted by 1olddogtwo

I asked if I did that, what do I get in return.... The phone call got quiet, says we'll will work something out.
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F them dealers, id tell them id order it and leave it for 5k cash.

All these mark up stories make my A plan purchase seem so easy.
 
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Old Mar 25, 2022 | 06:45 AM
  #23  
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Originally Posted by 1olddogtwo
I'm one of the few who can order a 22 Bronco Raptor, just bought a 150 Raptor anyways..

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.
​​​
​​​
I'd have one reply for that dealer. I'd want at least 10% in cash of his gouging markup. Give him a little bite of what he's doing to the next buyer. "We'll work something out" would be a no go for me.
 
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Old Mar 25, 2022 | 08:30 AM
  #24  
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Originally Posted by ATC Crazy
I know what dealers I will never do business with...
I see this sentiment a lot and I think it is misguided.

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?
 
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Old Mar 25, 2022 | 10:51 AM
  #25  
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Originally Posted by TFin04
I see this sentiment a lot and I think it is misguided.

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?
As misguided as you think it may be, there are thousands of dealers around the country NOT charging a markup, and many even offering vehicles at invoice or below, and still honoring X-plan. So tell me, are they just asking to go out of business?

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.
 
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Old Mar 25, 2022 | 11:30 AM
  #26  
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10K over at Corwin Ford in Reno.
GMC dealer across the street-No Mark up
 
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Old Mar 25, 2022 | 12:46 PM
  #27  
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Prices will begin to normalize soon.
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.
 
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Old Mar 25, 2022 | 01:14 PM
  #28  
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Originally Posted by TFin04
I see this sentiment a lot and I think it is misguided.

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?
This isn't what is happening though.

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!
 
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Old Mar 25, 2022 | 01:27 PM
  #29  
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Originally Posted by Hexidecimal
This isn't what is happening though....
This ^^^

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.
 
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Old Mar 25, 2022 | 01:39 PM
  #30  
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Originally Posted by Hexidecimal
......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!
I'm ordered though Granger. I'll order my next Ford and recommend my family & friends do the same due to their pricing / purchase experience.
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.
 
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