Ordering strategy to guarantee you pay MSRP with no ADM - would this work?

[wvmtneer]

I frickin LOVE to negotiate buying cars. It's just a game.

What’s your strategy for a 2021 Bronco?

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[Russ1Bronco]

I'll throw my 2 cents in on this one..when I get called in to place my order..I will have everything in black and white...I'm dealing with the same dealership L bought my 15 Edge from....I'll be dealing with an A/Z plan buy....I'll have my interest rate(with an 822) credit score...also my trade in number from KBB...and if I don't feel good about the deal I'll walk...not going to cry over the Bronco...I have my dream car already...

 

[gryphon1231]

Correct me if I'm wrong, but after reading a lot I think there might be a strategy that would guarantee you will pay MSRP or less. This hinges on the fact that the Bronco reservations are not dealer allocations. That means if you don't order, the dealer does not get the vehicle on their lot to sell.

I've read reports of dealers saying they'll allow people to order without putting any deposit down, but this is a trick to allow them to negotiate the price with you later - once the vehicle is already on their lot. At this point they have you over a barrel. If you don't pay whatever price they want to charge you won't get the vehicle and they can sell it to someone else.

The trick here is to make sure they don't get a vehicle to sell if they don't agree to MSRP, and it looks like this:

1. When the time comes to place your order, politely inform your dealer that you expect to pay MSRP
2. Make them write up a bill of sale for MSRP and offer to put some money down ($500 - $1000) as a deposit. This is crucial - having a price in writing and putting money down creates a contract.
3. If the dealer refuses to do this, go to step 1
4. Place your order with Ford only after you have an agreement on price in writing
5. Once your vehicle is on the lot, the dealer has to sell it at the agreed-upon price or it's fraud

Again, the ordering process hinges on you. If you don't actually order, that's one less vehicle the dealer can actually sell (because again it's not an allocation). Sure they'd rather charge you an extra $10k, but if you don't order they will get $0. Force the dealer into the decision between making the modest profit on MSRP or zero and see which one they agree to.

I haven't tried this yet (and probably won't need to because I have a good dealer) but I think this could help people who are worried about being charged ADM. Would this actually work?

I wouldn't recommend signing a sales contract for a vehicle that you won't be taking delivery of for between 6 and 18 months.

 

[Efthreeoh]

To each his own, I don’t like playing games

I like the challenge. Challenge is why people play games. Keeps life interesting.

 

[Efthreeoh]

What’s your strategy for a 2021 Bronco?

Well, I think this is a tough situation. My initial thought is to get the advanced transfer case for free as a start. I haven't yet looked at the numbers that close as they seem to be fluctuating somewhat at the moment. I don't expect a big win on this one.

 

[Efthreeoh]

I wouldn't recommend signing a sales contract for a vehicle that you won't be taking delivery of for between 6 and 18 months.

Care to elaborate?

 

[Jeffwomack]

I'll throw my 2 cents in on this one..when I get called in to place my order..I will have everything in black and white...I'm dealing with the same dealership L bought my 15 Edge from....I'll be dealing with an A/Z plan buy....I'll have my interest rate(with an 822) credit score...also my trade in number from KBB...and if I don't feel good about the deal I'll walk...not going to cry over the Bronco...I have my dream car already...

I am D- plan. Out selling price is fixed. That’s a huge advantage. Here is some advice on your trade. Go to Carmax and call Carava as well as other dealerships. Ask to get a quote on them buying yours. Then you have a back up plan if your dealer tries to get the trade cheap. Sales tax credits factor In depending on your state. You can always sell it outright but that is a pain in the ass and you have to deal with some crazy people.

 

[Judge Rufus]

If you don't already have your pricing worked out with your selected dealer, then I expect that you will be paying MSRP at a minimum, and probably higher than that.

I continue to be amazed at the number of people that are just either too lazy or too scared to talk to their dealers about pricing. Shit some people who are too scared, must also be too lazy, because, even if you don't like negotiating the price of your vehicle, there are a number of publicized deals here on 6G, that you can piggy back on and still save money.

And those complaining that their dealers haven't contacted them about pricing yet, shame on you. It's not the dealer's job to do it for you.

Best of luck to those who haven't done anything yet.

 

[gryphon1231]

Care to elaborate?

A lot can change in 6 to 18 months. 1) there's the obvious, the dealership goes out of business and you're out your deposit (or at least have to line up behind everyone else the dealership owes money to and hope you can get some of it back, by going to court) 2) If you sign a contract the contract will almost certainly have penalties and fees for canceling the contract above and beyond loosing just your deposit. This is where dealerships are going to get a lot of people (mainly because people don't read contracts before signing them) and make a ton of money in the process and it's all perfectly legal.

 

[Efthreeoh]

A lot can change in 6 to 18 months. 1) there's the obvious, the dealership goes out of business and you're out your deposit (or at least have to line up behind everyone else the dealership owes money to and hope you can get some of it back, by going to court) 2) If you sign a contract the contract will almost certainly have penalties and fees for canceling the contract above and beyond loosing just your deposit. This is where dealerships are going to get a lot of people (mainly because people don't read contracts before signing them) and make a ton of money in the process and it's all perfectly legal.

Thanks for the reply. I agree there are such risks as you mentioned, but there is also the risk of the dealership adjusting the price above MSRP (i.e. ADM) if you don't lock in the price at time of order, or selling your ordered Bronco out from under you.

I said earlier in this post I was really interested to learn what the contract terms will be, and this is what I meant. I'm interested in seeing if Ford Corporate has any standard language that will be in the sales agreement.

Based on what I interpret the Ford language says regarding the $100 deposit, it looks like the deposit turns into a security deposit for the dealership to hold one's order once he has ordered the vehicle. Refund of the $100 post order is at the dealer's discretion according to FoMoCo's reservation Q&A. At worst, what we have at risk is $100 if the dealer requires no additional order security.

I think it is well worth risking $100 at this point to lock in the price. If the sales price is still subject to FoMoCo final pricing, say if your order drifts to MY '22 and there is a commensurate price increase, then that language needs to be in the order terms and conditions.

My advice is take someone with you to the order even who does like to read contracts and is impartial to the outcome of the transaction.

 

[chipstar]

This thread makes no sense. There are at least 10 below MSRP deals on this site, publicly available (although some may have closed by now) where all of those tricks and tactics are pointless. Granger if you're midwest, Stephens if you're further East, Leonardtown on the east coast. I think there's one in NJ, one in Texas, one in Colorado, etc. And y'all in here begging for a MSRP sales contract. So confused.

 

[Gamecock]

This thread makes no sense. There are at least 10 below MSRP deals on this site, publicly available (although some may have closed by now) where all of those tricks and tactics are pointless. Granger if you're midwest, Stephens if you're further East, Leonardtown on the east coast. I think there's one in NJ, one in Texas, one in Colorado, etc. And y'all in here begging for a MSRP sales contract. So confused.

Yeah, it’s kind of crazy...if you pay more than MSRP, then you’re simply a dupe. If you pay MSRP, then okay, you spent zero effort trying to get a good deal but will pay what most people pay...paying MSRP isn’t some high goal that needs to be negotiated, it’s a worst case that anyone can get very easily. It doesn’t take a strategy.

 

[Efthreeoh]

This thread makes no sense. There are at least 10 below MSRP deals on this site, publicly available (although some may have closed by now) where all of those tricks and tactics are pointless. Granger if you're midwest, Stephens if you're further East, Leonardtown on the east coast. I think there's one in NJ, one in Texas, one in Colorado, etc. And y'all in here begging for a MSRP sales contract. So confused.

While all that may be true, there is a cost to it. While I don't know Ford's invoice nor the dealer's numbers (no one ever does) saving some number off MSRP should be easily accomplished. As far as the deals you speak of, until someone signs a sales contract that locks in the price with no if ands or buts, then I'll consider them legit.

I much rather work with my local dealer and build a personal relationship for future support if there are first-year build issues (I don't anticipate any - but...) or future pricing on bolt-on accessories. I could go with Stephens Ford or Leonardtown as they are a day's round trip from me, but that's travel time which eats at least a Saturday or a vacation day at work and involving other people to drive out with me to get the new Bronco home. I traveled to Baltimore from Central VA to buy my H3T and it was still a PIA. Time and travel are money. A hotel stay and flight cost would eat up most of any potential savings Grainger may provide. Add to a 3-day trip back from Iowa; driving through Iowa alone is tough; I've done it several times. Having the new Bronco shipped, nope, eats away any price savings. I'll take my chances with my local dealer.

My 2 cents.

 

[Gamecock]

While all that may be true, there is a cost to it. While I don't know Ford's invoice nor the dealer's numbers (no one ever does) saving some number off MSRP should be easily accomplished. As far as the deals you speak of, until someone signs a sales contract that locks in the price with no if ands or buts, then I'll consider them legit.

I much rather work with my local dealer and build a personal relationship for future support if there are first-year build issues (I don't anticipate any - but...) or future pricing on bolt-on accessories. I could go with Stephens Ford or Leonardtown as they are a day's round trip from me, but that's travel time which eats at least a Saturday or a vacation day at work and involving other people to drive out with me to get the new Bronco home. I traveled to Baltimore from Central VA to buy my H3T and it was still a PIA. Time and travel are money. A hotel stay and flight cost would eat up most of any potential savings Grainger may provide. Add to a 3-day trip back from Iowa; driving through Iowa alone is tough; I've done it several times. Having the new Bronco shipped, nope, eats away any price savings. I'll take my chances with my local dealer.

My 2 cents.

There is a Central VA dealer offering around invoice (Madison). By the way, not sure what you meant by “no one ever does” as far as knowing invoice and “dealer’s numbers”. You will know exact invoice numbers and the dealer holdback number before purchase if you want to. Those are easily obtainable.

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