Ford Bronco is #8 Most Price Marked Up Vehicle (Over MSRP)

[Bronco cat]

But Jim Farley said... /s

Ford Punishing Dealers Caught Price-Gouging
Ford CEO Jim Farley knows who they are, and they will feel Ford’s wrath in their future vehicle allocation.

Roughly 10 percent of dealers have reportedly taken advantage of increasingly long wait times for popular Ford models by trying to charge above MSRP and "gouge" customers. Ford CEO Jim Farley knows who they are, and they will feel Ford's wrath in their future vehicle allocation deals with the automaker, which was made clear on Thursday's fourth-quarter 2021 earnings call.

https://www.motortrend.com/news/ford-f-150-lightning-ev-dealership-price-gouging/

I’m going to get flamed here but when it’s a buyers market and people are buying below msrp there is no crying and individuals seem to forget that dealers are here to make a profit as well. I don’t agree in gouging people but there is a definite supply vs demand issue going on here

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[Bronco cat]

nah somethings wrong with that list. you an get wranglers for under msrp from almost every dealer, all 8 around me are listed w/o ADM

Where do you live?

 

[Bronco cat]

I'm kinda shocked people are willing to pay over MSRP for a jeep.

People are paying over msrp for almost everything.

 

[c-dubb]

My only guess on wrangler being #1 is the 392 and maybe the 4xe.

 

[Rayder]

Some of the markups I've seen are not real markups. They list a markup just so they can bring it down to MSRP and make you feel like you're getting a great deal. I inquired about a 4runner limited that was listed for 10k over, and they immediately offered it at MSRP if I was willing to come in that day. Other vehicles have legitimate markups on them and dealers won't budge, so just looking at listings isn't a great way to determine actual markups.

 

[monsterfd]

Where do you live?

in soCal. there are even dealers open about selling for under MSRP here, posting dedicated threads about it on jeep forums. if anyone is paying over msrp for a jeep, they arent trying

https://www.jlwranglerforums.com/fo...I2wUtJ1X3D9liVMEJNvbOKkT0DRa-EJdol4Hj0r1J80Rc

heres a couple links with window stickers
https://www.claremontcdjr.com/searc...del=~Wrangler Unlimited,Wrangler JK Unlimited

https://www.mossbroscjdrsanbernardi...Wrangler-7de0adf70a0e09a91b4e6e9a41abad30.htm

 

[monsterfd]

My only guess on wrangler being #1 is the 392 and maybe the 4xe.

not even the 4xe, check my post above

 

[Johnny Bronco CO]

iSeeCars has analyzed 1.2 million vehicle listings from February to March and listed which vehicles currently have the highest dealer price markups.

The Ford Bronco came in at #8 on the list at 20.8% above MSRP. On average, new cars are listed for 9.9% above MSRP.

who would be paying over msrp right now for a wrangler?

 

[Destroyer]

Surely nobody is paying 22-27% over MSRP for a JL, JLU, or JT right? Especially when there's tons of dealers scattered across the country where you can get any of the above for 5-6% under invoice, place an order today, and have it in your driveway in 60-90 days. People must be real impatient

 

[deejay08]

Interesting, the Bronco number looks low compared to what I have been seeing on the lots.

how does this really work though? Maybe the adm only counts for sold vehicles instead of initial asking price?

 

[Landin536]

Would be more interesting to see an analysis of overall dealer revenue from vehicle sales. With such low inventory, dealers might still be sucking wind, even with ADM

You’re absolutely right. Profits are there but at MSRP it is definitely not what the average person thinks it is. Supply and demand was way out of whack pre-Covid. Way more inventory than people interested in buying, but the factories continued to over produce. The rebates and dealer cash to buy down invoice costs were in place to persuade franchised stores to buy/accept more inventory when they already had way too much in stock at the time. Those factory incentives were the source of those large discounts that customers were accustomed to seeing.

Now with supply and demand on the opposite end of the spectrum the factory support money is pretty much nonexistent industry wide. So at MSRP the consumer is paying the natural margin as it was supposed to be. At this point in time if you find a store only selling for MSRP it truly is a standard transparent retail transaction.

Even with used cars where we see recent model year vehicles that are priced as much or more than the new MSRP, the profit margins are typically very modest. That’s because everyone in the industry is overpaying for trade ins because most customers know that they have a valuable commodity. Buying cars at the auctions is a total ripoff for the dealers too because the dealers overpay and outbid each other just to secure inventory to have something to sell at all.

Crazy times indeed. That said I hate new car market adjustments. Thousands over sticker price is just greedy. Myself and the other managers at our dealership agreed that the average customer will remember which stores were trying to take advantage of it being a sellers market and price gouge.

Once inventory is generally obtainable again (my guess is 2 years minimum) customers will end up avoiding the greedy stores in the future. Ridiculous market adjustments are a great way to burn your future book of business.

 

[@BadBlueBronco]

Their data sucks

 

[MayhemMike]

The question is are these numbers based on 2022 models or do they include 2021 models? Local dealer is selling MY 21 Mustang GT’s at under MSRP.

 

[Heath Aggen]

Jeep wranglers are not being marked up at all in our market in East Texas, even for the 4xe. But Broncos on average are 10k and the highest at 30k. As an earlier poster stated, take out the reservations and only count the retail units and Bronco would take this for the win.

 

[KPLOBX]

Interesting, the Bronco number looks low compared to what I have been seeing on the lots.

You average a bunch of MSRP orders against the dealer lot ripoffs and it looks like a lower number.

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