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We Can Thank Pilson Auto Centers For Excessive Dealer Markups

Brochacho

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I was browsing around Broncos for sale and noticed an excessive amount of "used" Broncos and In Stock Broncos at Pilson Auto Centers. After talking to them a bit I found out that they are using their dealer system to buy all the Broncos they can find from other dealers at a $10k+ markup. Then they are listing on their site for 2-3X that much.

https://www.pilsonauto.com/inventor...ke=&model=Bronco&standardbody=&type=used&pg=1

I completely understand paying a premium for a limited inventory vehicle, but this really impacts fair market value IMO. Ford.com doesn't even allow us access to an inventory search, but a dealership can scan the system and pick off any available unit before a consumer has a chance. I feel like prices would be a whole lot more reasonable if it wasn't for dealer shinanigans like Pilson Auto Centers is pulling.
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bigtexyahoocom

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I watched Ford let its dealer network kill the Focus RS with ADM. It will choke out the GT500 - a dealer near me has had one at 30k markup for nearly 6 months. They’ll let it BADLY damage the Bronco as well. A friend of mine just ordered a Hellcat for 6% under MSRP, an actually limited vehicle. This really only happens to Ford and it’s time corporate actually does something with teeth about this. Heavy sanctions, not allowing non customer matched Broncos to be sold without Ford corporate offering them to other res holders irrespective of dealership, something. I refuse to believe they just can’t do anything.
 

Monster1926

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I watched Ford let its dealer network kill the Focus RS with ADM. It will choke out the GT500 - a dealer near me has had one at 30k markup for nearly 6 months. They’ll let it BADLY damage the Bronco as well. A friend of mine just ordered a Hellcat for 6% under MSRP, an actually limited vehicle. This really only happens to Ford and it’s time corporate actually does something with teeth about this. Heavy sanctions, not allowing non customer matched Broncos to be sold without Ford corporate offering them to other res holders irrespective of dealership, something. I refuse to believe they just can’t do anything.
It’s not just Ford. Kia tellurides, Porsche GTs, Range Rover autobiography, Chevrolet Corvettes, Pt Cruiser 🤣🤣. If it’s something desirable people will pay for it. The manufactures can’t do anything because of franchise agreements. They could threaten pulling their allocation but they’ll figure a work around. The dodge demon for example they threatened the dealers not to sell over MSRP they listened. They sold $30k tickets to order the demon at MSRP. This is nothing new and won’t go anywhere. They only thing a consumer can do is find a good dealer and have a purchase agreement at MSRP or below.
 

bigtexyahoocom

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It’s not just Ford. Kia tellurides, Porsche GTs, Range Rover autobiography, Chevrolet Corvettes, Pt Cruiser 🤣🤣. If it’s something desirable people will pay for it. The manufactures can’t do anything because of franchise agreements. They could threaten pulling their allocation but they’ll figure a work around. The dodge demon for example they threatened the dealers not to sell over MSRP they listened. They sold $30k tickets to order the demon at MSRP. This is nothing new and won’t go anywhere. They only thing a consumer can do is find a good dealer and have a purchase agreement at MSRP or below.
Glad you mentioned the Demon. Chrysler kept up with who was marking up Hellcats and actually slashed allocations for the Demon to the point where many dealers didn’t get any at all. It happens to lots of manufacturers but I promise you Ford’s network is worse than most. Ford needs to realize it’s killing their products. Also, the vette, the Demon, the Porsche GTs are all at least somewhat limited. The Bronco is going to be SUPER mass produced. It’s ridiculous. Particularly since most if not all of the cars you mentioned weren’t sold with a gimmicky “reservation” system and a joke of a “price protection” guarantee.
 

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Let the dealers do what they want. Ford is going to flood the market with Broncos as soon as they can and that will be over. Those with more money than brains will pay. If a dealer wants to pay $10K over MSRP in hopes of making more, go for it. They are going to know the taste of Bronco when they have to eat them. As soon as Ford hits full production on the Bronco the ADM's will be gone and that ADM will just be added depreciation for those that paid it. The Bronco is not a limited production or even a premium built vehicle.
 

Essmith94

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No offense to dealers (and we have some good ones represented on here), but the current dealer model is broken. I am sure there are still plenty of mom and pops strolling into a dealer to buy a truck on a Saturday, but we are rapidly approaching a full direct to consumer economy.

Across the nation huge dealers (corporations) are buying up small dealerships and driving out small dealers and price competition. Unfortunately those Corp lobbying is keeping state laws in place that inhibit the direct to consumer model.

I am not saying that there isn’t a place for retail dealers but I think the model could shift to service, aftermarket, and specialty model.

In the end, a free market economy will benefit the consumer but not if there are regulations that prohibit innovation in that free market.
 

Monster1926

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Glad you mentioned the Demon. Chrysler kept up with who was marking up Hellcats and actually slashed allocations for the Demon to the point where many dealers didn’t get any at all. It happens to lots of manufacturers but I promise you Ford’s network is worse than most. Ford needs to realize it’s killing their products. Also, the vette, the Demon, the Porsche GTs are all at least somewhat limited. The Bronco is going to be SUPER mass produced. It’s ridiculous. Particularly since most if not all of the cars you mentioned weren’t sold with a gimmicky “reservation” system and a joke of a “price protection” guarantee.
Pt loser, telluride, corvette are mass production vehicles. Also no reservation system for any of them. Pretty sure there wasn’t a res system for the demon either. There’s been 2 production years of the C8 and their still selling for 6 figures. I’m pretty sure because of franchise agreements they can’t do much to them but threaten allocation.
 

Monster1926

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No offense to dealers (and we have some good ones represented on here), but the current dealer model is broken. I am sure there are still plenty of mom and pops strolling into a dealer to buy a truck on a Saturday, but we are rapidly approaching a full direct to consumer economy.

Across the nation huge dealers (corporations) are buying up small dealerships and driving out small dealers and price competition. Unfortunately those Corp lobbying is keeping state laws in place that inhibit the direct to consumer model.

I am not saying that there isn’t a place for retail dealers but I think the model could shift to service, aftermarket, and specialty model.

In the end, a free market economy will benefit the consumer but not if there are regulations that prohibit innovation in that free market.
That’s exactly what Ford is trying to transition their business model into. If you order a F-150 they’ll give you $1000 off. They say it’s for your wait.
 

bigtexyahoocom

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Pt loser, telluride, corvette are mass production vehicles. Also no reservation system for any of them. Pretty sure there wasn’t a res system for the demon either. There’s been 2 production years of the C8 and their still selling for 6 figures. I’m pretty sure because of franchise agreements they can’t do much to them but threaten allocation.
Then don’t threaten it, follow through. Do something. Rampant ADM does more than just screw stupid buyers. It affects overall vehicle sales, because prospective buyers think no way am I paying that, they’re all out of reach, and they buy a competitor. Then the vehicle is viewed as less viable by corporate and options are either limited or it’s killed off entirely. I promise you it played a significant role in the death of the RS. If you want the Bronco to succeed, it needs to have market saturation. Rampant huge ADM hurts that
 

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Essmith94

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Then don’t threaten it, follow through. Do something. Rampant ADM does more than just screw stupid buyers. It affects overall vehicle sales, because prospective buyers think no way am I paying that, they’re all out of reach, and they buy a competitor. Then the vehicle is viewed as less viable by corporate and options are either limited or it’s killed off entirely. I promise you it played a significant role in the death of the RS. If you want the Bronco to succeed, it needs to have market saturation. Rampant huge ADM hurts that
Same thing is happening in the housing market, people paying stupid money over asking (or appraisal), it’s a frenzy. Someone at the end of this will be left holding the bag. A fool and his/her money are soon parted.
 

swooshdave

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Then don’t threaten it, follow through. Do something. Rampant ADM does more than just screw stupid buyers. It affects overall vehicle sales, because prospective buyers think no way am I paying that, they’re all out of reach, and they buy a competitor. Then the vehicle is viewed as less viable by corporate and options are either limited or it’s killed off entirely. I promise you it played a significant role in the death of the RS. If you want the Bronco to succeed, it needs to have market saturation. Rampant huge ADM hurts that
Yetno one says a thing when a consumer flips a Bronco for the same +$20k. Not a peep. Why is that?
 

mds5917

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Dealers are independent businesses- not owned or controlled by Ford. By law, Ford cannot tell them what price to sell products at. They can withhold marketing funds or other special incentives, but sometimes the market forces (idiots willing to paid 10s of thousands over list) are too great. All you can do is hope those dealers suffer longer term repercussions for their business practices, and sit back and watch people spend money foolishly. Their money, their choice.
 

Blksn955.o

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This was the #1 reason I switched to the Granger dealership/offer. I even got an email for my birthday from them. Let the light shine on the good dealers so people know they are out there and shine double bright to blind them from the shady dealerships.
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