Ford Dealer Lots OVERFLOWING! Bronco Lot Rot

[Gregc57]

The day after I bought my Bronco I got an email from my local Jeep dealer, who I have previously done business with, offering me -10% on a decently optioned, 2-door Wrangler. Too late~ and I'm glad to have the Bronco instead, in any case. I think 'market adjustment' numbers just go down from here, at least for a while.

Sponsored

 

[HOSSMAN]

I think we have 6-8 on the lot and 5 Braptors. If I wasn't so attached to mine I would flip it for a Braptor since we have 3 black, a white and an Azure Gray one.

I haven't read all 10 pages but I am sure rates have a lot to do with it along with everyone wondering how good or bad (depending on who you are) the election is going to be.

I know from sitting in a meeting yesterday that for our "Truck Month" we are off the normal with some smoking deals on 150's which is odd.

The "covid" days are over, so there is allocation and inventory...but fuel prices and rates are steering the ship I think. Just my .02

 

[FordFamily4Fun]

$43K seems a bit steep, whereas the lowest trim Wrangler Sport at the dealer closest to me sells for $42,496.
I guess inflation plays a role in this...
The again, I am curious of the profit margin on these. My guess would be 4-10%.

Easy 10% profit IMO based on these price increases. Especially with Ford making BB hard to get due to lower margin and dumping the base. A lot of people smartly ordered base with SAS packages and really got good deals when orders first started. Now if you can get your hands on a BB, the SAS prices are up over 30%. At least 10% profit for Ford on cars they move. If they overproduce (which it seems like for higher end and now more costly trims) profits will go down having to rebate to get sales.

 

[MadMan4BamaNATL]

It also doesn't help that Ford has raised the price what? $10k? Started with a Base for under $30k, to now the Base is a Big Bend selling for $39k? Seems as though Ford is doing a great job of pricing themselves out. And what dealers order low end Big Bends? Very few out by me, they are typically Outer Banks, loaded up. For whatever reason Ford thought we'll Jeep is raising prices we should too.

Guess what Ford, people like to buy off lots, but when your typical Bronco is at or over $50k, we'll I'm guessing there are way more options for people who were on the fence of getting a Bronco. Ford didn't think the hype would wear off this quick.

Agree with you here for sure.

What we have at play are a few things, but two big ones are this. The gov't EV madness and Tesla's pandemic success created a perfect storm. To play catch up, Ford over invested in a technology that Ford customers don't want, don't care about, and likely won't for many many years.

I had a taste of an EV a few years ago just to see and in a few months I was very much in the "no thanks" camp and not likely to return until range hits over 500 miles.

EV R&D costs a fortune, so Ford EVs were at luxury prices. Not a good bet to hedge.

Second issue was to make up for that overspend on EV crap, they decided to gouge all the rest of us. Well, that's not going very well on top of crazy interest rates. Hell, even my rate is 6.4%, which is madness.

Broncos and Wranglers should be roughly $7K - $10K cheaper than they are. Rich folks want soft and luxury and that's who can afford to pay these high prices. With the Land Cruiser out now, the new Taco, the Lexus GX, and soon the new 4 Runner, Ford and Jeep have backed themselves into a corner and are in the process of getting punched out.

I'm sure they'll both adjust, but when is the right question and I bet neither really knows because when you see trouble around the corner, many try to avoid it in hopes it goes away. Well, this stuff and the problems they've caused aren't going away.

 

[cbrenthus]

BTW, I just checked Brandon Ford, which is one of the largest Ford dealers in the world, and they say they have 99 Broncos (but a Sport ain't 1 - lol couldn't resist!). Looks like about 26 are Braptors, each one is discounted $2500 up to $5900! The rest of their Broncos have varying discounts with the heaviest on Demos. However, they have $1400 in dealer fees though!

I sometimes check that dealership because I used to live in the area and I knew they were big, but one year there was a local news story about how they were competing with a Ford dealer in Socal to be #1 in volume, and the numbers were insane - I had no idea big dealers sold that amount of cars. I want to say it was somewhere in the hundreds of vehicles a day?!?!

 

[DriveAllNight]

10 pages, I didn't read through, so if I'm just repeating others - sorry.

But Ford has to realize that the people that had to have them at any price - have them, and now the prices need to reflect their worth, and they are asking way way way too much.

Ford took away some value and raised the prices - there's no bang for you buck .
Prices need to come down, which sucks for the early adopters - but it always does, and they got to have the Bronco for a couple of years first.

 

[Ride Em Bronco]

BTW, I just checked Brandon Ford, which is one of the largest Ford dealers in the world, and they say they have 99 Broncos (but a Sport ain't 1 - lol couldn't resist!). Looks like about 26 are Braptors, each one is discounted $2500 up to $5900! The rest of their Broncos have varying discounts with the heaviest on Demos. However, they have $1400 in dealer fees though!

I sometimes check that dealership because I used to live in the area and I knew they were big, but one year there was a local news story about how they were competing with a Ford dealer in Socal to be #1 in volume, and the numbers were insane - I had no idea big dealers sold that amount of cars. I want to say it was somewhere in the hundreds of vehicles a day?!?!

I live in Pittsburgh and I can not find a Brandon Ford listed here (just in Tampa). I am wondering where exactly Brandon Ford is located or if the dealership name got changed.

 

[cbrenthus]

I live in Pittsburgh and I can not find a Brandon Ford listed here (just in Tampa). I am wondering where exactly Brandon Ford is located or if the dealership name got changed.

Sorry, yes the one outside Tampa is what I meant - I used to live in the Tampa area for 25 years before moving back to PA 3 years ago

 

[EasternSierra]

Well, that's not going very well on top of crazy interest rates. Hell, even my rate is 6.4%, which is madness.

I guess you weren't around for the 1970s and 1980s when interest rates were far higher at times. I paid more on my first vehicle loan back in 1983.

The long period of very low interest rates we had from the housing crunch until recently is a historical anomaly. People shouldn't expect it to return unless the economy tanks.

 

[MadMan4BamaNATL]

I guess you weren't around for the 1970s and 1980s when interest rates were far higher at times. I paid more on my first vehicle loan back in 1983.

The long period of very low interest rates we had from the housing crunch until recently is a historical anomaly. People shouldn't expect it to return unless the economy tanks.

Nope, was in diapers then and those were not good days.

Am I spoiled? Yes, I’m an American.

 

[Gregc57]

My 1st home loan was over 13%. Remember the Jimmy Carter days?

 

[PrepVet]

My 1st home loan was over 13%. Remember the Jimmy Carter days?

Nope, I wasn't even sperm then.

 

[Surfnbike]

Here is a data point for you guys...Out of the three nearest Ford dealers they have about 35 Broncos in stock, and all of them are 2023s except 10. It's almost the end of February '24. I'd say they are not moving very fast in my area.

 

[M4Bronco]

This dealer in SoCal has 72 in stock, 22 of them Raptors. Not seeing any markdowns on their site.

https://www.kengrodyfordsandiego.co...co-outer-banks®-4x4-4-door-1fmee5dp2plc10809/

 

[ried]

Nope, I wasn't even sperm then.

Well where were you, then?

Sponsored