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Ford cracking down on dealer markups over MSRP?

Little Foot

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Your phone call ought to give you the answer. They could care less as it's all BS.
I’ve already been quoted $500 under MSRP for a TRD Off-Road Premium, since I’ll be a returning customer to a dealership within 30 miles of where I live. I’m thinking this may be the way to go.
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BigHoof

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I’ve already been quoted $500 under MSRP for a TRD Off-Road Premium, since I’ll be a returning customer to a dealership within 30 miles of where I live. I’m thinking this may be the way to go.
They are few and far between here. None on the lots. Must all be sold before delivery. $500 under MSRP sounds great for today's environment. We luckily got a TRD Pro Tacoma end of Dec '19 just before covid so still could deal.
 

WildernessMan

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My dealership just contacted me. They need a copy of my drivers license to send to Ford headquarters certifying I’m legit and a customer that is actually ordering a Bronco. They said Ford is cracking down on dealerships faking customer purchases to get Broncos they can sell outright with markup. So far my dealership has been good and selling everything customers have ordered at MSRP.
 

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So Ford is going to reduce a dealer's allotment based on a war story? ... as if dealers don't have purchasing contracts with Ford?... and allotments are handed out at the whims of a CEO?

CEO slinging bullsh¡t.
 

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I reserved my OBX on 10/15/21 and just noticed a $5K ADM on it last week. I contacted the dealer and they said there was nothing they could do and that most Bronco's are being sold at $10K over MSRP.

I think this is BS because when I ordered I was told to build my Bronco at ford.com and send him the URL and he will order it. There was no $5K ADM in the URL I sent him.
 

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It really means nothing. Just contacted Galpin ford as they have a few on the lot. All models are $25,000 over MSRP. So the self-proclaimed #1 ford dealer is marking up more than most.
 

LazygonInfinity

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Sorry. I'm a capitalist. Dealers own the cars and can sell them for whatever they want. Obviously this doesn't mean they can breach promises they've made to customers. But their stock is their own and they can price it however they want. If Ford doesn't like it, they can sell direct to consumers.
This is too simplistic. The problem is that dealer allocation is not a black and white thing, unscrupulous dealers can use orders as their own in lieu of allocating for customer orders, I have had Ford dealers admit this to me. So dealers are directly impeding demand for a product that they themselves had no hand in making and are then price gouging and profiteering off the work of others. That seems very un-capitalist to me. And to your latter point, I imagine Ford would very much like to sell direct to consumers if they could. Their powerful dealer network precludes that from happening, and therefore impedes Ford's ability to compete with the likes of Tesla or Rivian on this front. Again, very un-capitalist to me.
 

frankk

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Direct to consumers is exactly what Ford wants to do. Farley and others have referenced it many times. So the dealers are just pushing that into the spotlight much faster by charging ADM's and marking things up unreasonably. However this theory that the dealers own the cars, that I'm not 100% sure on. Also to be a Ford dealer means you have contractural obligations to that brand and it may be clearly stated and defined what you can and cannot do with their (Ford's) new vehicles and how they may be priced.
Ford is way too beholden to their dealers. That's why reservation holders are getting ignored while new orders are getting fulfilled. If Ford wanted to show allegiance to the direct-to-consumer model, they would have embraced dealers like Granger. Instead, they screwed them and their customers -- the most avid Bronco fans.

IMHO, Ford is a dinosaur that will be overtaken by new competitors that do not carry the weight of a giant dealer network. Even if Ford makes the best vehicles, who wants to deal with the BS of the dealers and the games they play. History shows dealers have no honor. They have adopted unscrupulous tactics that take advantage of the customer in both sales and service. It's pervasive. Yes, there are a few good eggs, but that's not the norm.

I feel for the execs at companies who have built their distribution model around intermediaries and given them excessive power. As the world disintermediates, which is inevitable, the very survival of these companies, Ford included, is on the line. There's no easy answer. I wish them much luck.
 

Cornbred

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Lol, ain’t cracking down on anything...posted this in another thread.

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SPITmadFIRE

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It really means nothing. Just contacted Galpin ford as they have a few on the lot. All models are $25,000 over MSRP. So the self-proclaimed #1 ford dealer is marking up more than most.
to be clear, I think most of us would agree that we don’t really care what dealers do with cars/trucks they have sitting on the lot — it’s only when they go back on previously negotiated pricing for customer orders that we really care about. Supply and demand dictates they can charge whatever the hell they want for ones sitting on the lot, and that’s hardly unethical.
 

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JimboSlice

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to be clear, I think most of us would agree that we don’t really care what dealers do with cars/trucks they have sitting on the lot — it’s only when they go back on previously negotiated pricing for customer orders that we really care about. Supply and demand dictates they can charge whatever the hell they want for ones sitting on the lot, and that’s hardly unethical.
I agree. My problem is that I ordered mine through a kid (adult now) that went to high school with my son. He said go to ford.com, build your Bronco and send me the URL And I will order it. Only to notice later that they tacked on a $5K ADM.
 

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So Ford is going to reduce a dealer's allotment based on a war story? ... as if dealers don't have purchasing contracts with Ford?... and allotments are handed out at the whims of a CEO?

CEO slinging bullsh¡t.
Personally know a dealer employee who ordered a Bronco for his wife, his son, and himself.
All to hand over to the dealer in exchange for 50% of the ADM they could collect.

So.... there is that.
 

Bob 07064

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Agree with this in principle. As long as dealers aren’t reneging on orders placed they can charge what they want.
would completely love to get rid of the dealer concept all together.
unfortunately dealers are screwing order holders and selling to whoever will pay the upcharges...
 

BroncoG6

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Sorry. I'm a capitalist. Dealers own the cars and can sell them for whatever they want. Obviously this doesn't mean they can breach promises they've made to customers. But their stock is their own and they can price it however they want. If Ford doesn't like it, they can sell direct to consumers.
I agree, get rid of dealers and buy online direct from ford.
 
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Swatman

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I agree, get rid of dealers and by online direct from ford.
I'm surprised more manufacturers aren't doing that. I wonder if it's related to the service/maintenance side of the business.
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