My local dealers attitude towards MSRP and below dealers

[CJSimmons]

I work at a dealer in GA and we do orders at MSRP, but $2500 under? Theres barely $2500 of markup in the trimmed out Broncos, thats wild.

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[Edumakated]

Exactly what I have been saying since this ADM crap started. Not only will customers remember who treated them fairly. The ones who were taken advantage of, or dealer tried to take advantage of them will not only remember it. They will likely be more vocal about that.

People with negative opinions or experiences are always more vocal than those with positive feedback.

Maybe, maybe not.

Unfortunately, it also goes both ways. Many customers only care about lowest price and will gladly screw over a local dealer to save a few pennies too.

Don't get me wrong, not defending scumbag dealers, but customers can be just as guilty.

I work in a business (mortgages) where clients are constantly talking about how much service, etc is important but then those same people will push their grandmother down a flight of stairs to save $50. I can't tell you how many times I've taken calls at night, weekends, gone well above any reasonable expectation only to not have all that extra goodwill supposedly valued by a client to be dropped because they got a slightly better quote.

The reality is people talk a good game but usually do something different when it comes to their own wallets. I know I make an effort to patronize local businesses in my community even when they are priced a little higher because I know there are long term benefits of having strong local businesses.

People also have short memories. Many getting screwed over will gladly bend right over again once a new hot vehicle comes out in the future because at the end of the day, they want their car. Otherwise, none of these places could stay in business so long. This type of behavior is nothing new.

 

[ColeTrain84]

i'm so glad i have an honest local small dealer. I'm in a town of 1300 people and the owner has specifically said they can't survive off pissing off customers and their survival is determined by repeat customers and quality service not quantity. My sales guy has been great and made sure my mind was at ease with all the horror stories i've read about. So far they only had 9 orders for Bronco's and several have been picked up and given build dates and mine is higher up his list but it's highly spec'd out and so there's a chance mine takes a little longer

 

[Bronco cat]

With Tesla its not "dealers" setting the price. You order thru Tesla, they deliver your car and then that's it. If pricing fluctuates at that point, it comes from the factory. All their service is done at your home or where you choose. The fluctuation in pricing comes from the secondary market where there are brokers who deal in all things Tesla....

Most dealers aren’t assholes. So this problem you are talking about isn’t rampant. Also with a direct to consumer sale there would never be incentives or buying below msrp which a lot on this forum like doing. Like I said before you are trading one set of issues for another. Not to mention Tesla doesn’t have a coast to coast service network that dealers provide. Look at all the places you can’t buy or service a Tesla and btw no one but Tesla can work on it.

 

[Tdifonzo]

Seems like a smart guy.

500 Broncos x $1000 = $500k
29 Bronco x $3500 = $101.5k

 

[BassMaster]

So on a whim I decided to stop by my local small town Ford dealer yesterday to see where they were at with Bronco orders and allocations. I have bought from them in the past but it has been a while. Talked to the sales manager. Sales guy I have dealt with in the past was out to lunch.

First question was how many unfilled orders do you have??
Answer: He wasn't sure but went to his desk and pulled out a stack and made it seem like it was a lot. He counted 29. I guess for a small dealer in a town of 11k that's a lot.

Second question was what are your allocations for the year??
Answer: I have no idea.

Final question. The big one. Are you selling for MSRP on customer orders??
Answer: (With a chuckle) No we are selling all Broncos for $5000 over MSRP.

This is where the fun started. I said I currently have an order and I am paying $2500 under MSRP. He didn't believe me and proceeded to drag another sales guy into the conversation. Telling him what I am paying. He said no way and started on the "dealers are getting $30k over on Broncos. I said yeah but there are several dealers across the country selling for MSRP and below as well. They started on "they're not making any money then. What is the benefit of them selling for that cheap??" I said I hardly think they aren't making any money or they wouldn't be doing it. Sales guy said if he worked at a dealer that was selling Broncos for at or below MSRP he would quit. LOL I told them flat out not all dealers are greedy and want to be opportunists. They need to remember, that in a few years these will be on dealer lots with rebates and incentives. These are not limited production vehicles. And if they do forget it, the customers that they tried to take advantage of will remember how they were treated in the future.

Gotta love that small town mentality. It happens all the time around here. Try to walk into a local dealer and buy a Wrangler or a Gladiator for anything below sticker and they will tell you straight to your face there is no buying one at a discount unless there are factory incentives.

I really don't understand why dealers that don't discount find it completely unfathomable that some dealers do. And insist that those dealers are losing money on every sale.

Ordered mine from a small dealer in Windsor NC for A plan. I specifically asked that question. He says he has no problem selling at plan prices because it drives future business. There are honest dealers out there.

 

[UNBROKN]

My local dealer described it well: "This market is a window, and will not last forever. But when it's over, customers will remember which dealers treated them fairly."

They are selling bronco orders at MSRP.

Basically the same thing my dealer said. He is a good friend and told me that at 3% under invoice, dealers are making almost nothing. However, they are probably selling accesories and making a decent profit on those. Sell lots at a very small margin will go much farther than selling a few at a HUGE margin. Also, huge numbers get them more in profit sharing later, as well as better incentives for the future.
Got a call from my dealer today. Finance person forgot to give me credit for the $100 deposit and she has a check waiting for me when I come by next week.

 

[IfIHMadeA2021Scout]

My local dealer described it well: "This market is a window, and will not last forever. But when it's over, customers will remember which dealers treated them fairly."

They are selling bronco orders at MSRP.

Smart dealer.

I bought my old truck from a dealer at a fair price. My 2021 Tremor then came from that same dealer this year at a fair order (X-Plan) price for the times. I ordered that truck in December 2020 and took delivery in March right before the supply chain shit show started. They promised the same on a Bronco Sport for my daughter in March and then backed out when it came in because "times changed". They wanted $2,500 ADM and other add ons we would have to pay for. We fought and ended up doing the deal at MSRP because the package she ordered and really wanted was canceled by Ford due to supply chain issues and she needed a car.

They will pay dearly for that extra $400 they got out of my daughter.

Never again will I buy from them.

I've already turned other buyers away from that dealer as well by just giving them the facts.

We got our Bronco from a different dealer we found here and will drive the 100 miles to do business with them again because they stuck to an agreed deal.

I have a very good long term memory.

 

[Coloradonatives]

I paid invoice price. The GM of the dealer said pretty much the same thing. They would rather a customer be happy and come back for a lifetime than make a sale once and never see them again.

How do you know that you paid the invoice price? Did they show it to you?

 

[Coloradonatives]

Basically the same thing my dealer said. He is a good friend and told me that at 3% under invoice, dealers are making almost nothing. However, they are probably selling accesories and making a decent profit on those. Sell lots at a very small margin will go much farther than selling a few at a HUGE margin. Also, huge numbers get them more in profit sharing later, as well as better incentives for the future.
Got a call from my dealer today. Finance person forgot to give me credit for the $100 deposit and she has a check waiting for me when I come by next week.

Confused... 3% under INVOICE is a 3% loss. Invoice is what the dealer pays Ford for the vehicle. At the end of the year, they will get rebates and allotment incentives based on total sales- and which distressed vehicles they can sell. Broncos are obviously not a distressed item.

 

[bytheway]

How do you know that you paid the invoice price? Did they show it to you?

Invoice isn’t what the dealer pays. There is a hidden holdback that gets refunded later. My dealer sells every Ford at invoice price. They would have gone out of business a long time ago if they sold at what they paid.

Invoice is the right column. Saved a couple grand off MSRP.

 

[Garemlin]

Invoice isn’t what the dealer pays. There is a hidden holdback that gets refunded later. My dealer sells every Ford at invoice price. They would have gone out of business a long time ago if they sold at what they paid.

Invoice is the right column. Saved a couple grand off MSRP.

So many people think invoice is what the dealer actually pays. Holdback, dealer incentives and volume bonuses make up for selling at or below invoice. There are dealers that have been selling at or below invoice for years. If they weren't making money they wouldn't be doing it.

 

[Bronco216g]

I ordered a 392 from Chapman in Pa for 6% under invoice

 

[Incommunicado]

Those that were offering under msrp or at invoice knew they would get many orders and from those orders, a % of cancellations they could do whatever they wanted with. Once the wheels were set in motion and 3+ dealers appeared to be hogging the orders over the flagship Ford dealers, Ford flipped the allocation model on its head and screwed many with reservations. Free market competition amongst dealers was not in the cards. Ford leadership lacks the intelligence to anticipate the ingenuity and shenanigans of their greediest dealers. And from the looks of it, reservations don’t mean squat. Embrace the chaos that is Ford.

 

[2Jeeps&PatriotX1]

Many upper-level mgmt in dealerships don't care if people come back in 3 yrs from now to buy vehicles from them. Why? Because majority of the GSMs/SMs, and many GMs won't be at their current dealership in 3 yrs anyways.

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