Shortages, labor issues, federal legislation, and weather events prompt secondary markets.
Market Turmoil
Most automotive dealerships are reporting acute inventory problems. New vehicles are now sold even before delivery. In Ford's case, select models are just out of production for the year. In the wake of this supply turmoil, a secondary market has flourished. Brand new vehicles, like this no-miles 2022 Bronco Raptor, are surfacing on auction sites in droves and selling way above MSRP.
Photos courtesy of BaT.
Supply View
Sales staff in showrooms across America say that the situation is unprecedented. In a 'perfect storm' scenario, lack of production is running up against strong demand. At the root of the issue is the automotive chip shortage, a direct result of snarled supply chains and pandemic-influenced labor problems. Perplexing, is that despite demand, the overall view of the economy is pessimistic.
Struggling Sectors
While economic recovery is underway, it is a mixed bag. In mid-summer 2022, Forbes reported that the labor market was extremely tight. Most companies are experiencing labor crunches but at diametrically opposed ends of the spectrum. For companies struggling to recruit, current employees are being handed ever-increasing workloads. In other sectors, workers are now able to command higher wages.
Demand Benefit
Unsurprisingly, Forbes concluded that economic outlook is really dependent on how one is currently positioned. Yet, inescapably, rising costs and low product availability is affecting everyone—just in different ways. In a classic case of supply and demand, those able to move quickly on goods are in a position to benefit. This is no more true than with the ever-popular Ford Bronco.
Unit Norm
Ford announced a pause on Bronco production in early March 2022. Those who scooped up examples before the halt are now seeing returns. This optioned-out Raptor has just sixty-four miles on it and an MSRP of $78,285. It sold at auction in late October 2022 for $121,022—a tidy $42,737 over the list. In what seems to be a growing norm, this unit stands out.
Clear Sale
In an unusually open dialogue in the listing's comment section, the seller identified himself as a dealer. Responding to details of a possible sale, the seller wrote, “I am a dealer. I bought this personally. If the buyer wants to run it through my dealership, we can do that.” It was not made clear if the seller ran a new or used car dealership.
Terrific Features
The seller continued with their transparent disclosure. “I never planned on keeping it. Drove it straight from the dealership to my warehouse where it has been since. That being said, I almost changed my mind as it really drives well and has great features. From what everyone has said online, it is also terrific off-road.”
Flipped Bubble
Adding to chip shortages and labor issues, recent federal legislation directed at exclusive EV sales and the multitude of vehicles recently totaled in catastrophic weather events, only serve to exacerbate the situation. The current reselling bubble will eventually burst. In the meantime, this 'flipped' 2022 Raptor will not be the last vehicle to illustrate a perhaps questionable, but vibrant free-market economy.
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