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Will I go to a dealer in the future that had an ADM? Yes and so will you.
When the dust settles, you will have forgotten what dealer screwed it’s customers and by how much. Instead, you will realize that every dealer (minus maybe 5 in the country) will have done this. In the end, you will still buy from the dealer that gives you the best deal (real or perceived best deal).
When the dust settles, you will have forgotten what dealer screwed it’s customers and by how much. Instead, you will realize that every dealer (minus maybe 5 in the country) will have done this. In the end, you will still buy from the dealer that gives you the best deal (real or perceived best deal).
So if this whole ADM thing is over and those dealerships are now the cheapest in town you still wont shop there? I think most of the dealerships charging ADM on top are at the market rate, and when the market rate is -2 or 3k below MSRP while other dealers are still trying to get MSRP people will change their tunes real quick.
I personally dislike the whole ADM business and wish everything would be as simple as MSRP is the best price period, but Ford is partially to blame for this issue as well as the independent dealer.
Invoice pricing on most of these Broncos is leaving a margin of about $800-$900 profit between invoice and MSRP. Sure if a dealership had 30 - 40 Broncos on the lot and they know they can keep refilling their inventory at will, making small margins like that or even less if they run a sale can still be profitable in the big picture. When you are seeing the first new Bronco in 3 or 6 months and you know you cant get another one are you really willing to let it go for $800 in profit when you know the customer can turn around and sell it the same day for $10k more? No your not.
Some dealerships in my area have decided to not even sell their Broncos to customers to avoid the issues trying to sell over MSRP brings. They would rather sell them to 3rd party companies that pay 5-10k+ over MSRP for them, then turn around and resell them to auctions or other dealerships at a greater profit. That is imo a worse option. Now there are barely any Broncos in these small town areas because bigger markets have deeper pockets and they are getting all shipped there by these 3rd party agency's.
There is no easy way to navigate todays market and everyone up in arms against Dealers and against Ford should look at it from a different perspective. If the tables were turned, which they have almost always been in the past, did you stick to your beloved dealer and willingly pay 10k more for the car because you just liked that dealership? Or did you shop around for the best price and would walk on a deal for $50 and a pack of gum?
I personally dislike the whole ADM business and wish everything would be as simple as MSRP is the best price period, but Ford is partially to blame for this issue as well as the independent dealer.
Invoice pricing on most of these Broncos is leaving a margin of about $800-$900 profit between invoice and MSRP. Sure if a dealership had 30 - 40 Broncos on the lot and they know they can keep refilling their inventory at will, making small margins like that or even less if they run a sale can still be profitable in the big picture. When you are seeing the first new Bronco in 3 or 6 months and you know you cant get another one are you really willing to let it go for $800 in profit when you know the customer can turn around and sell it the same day for $10k more? No your not.
Some dealerships in my area have decided to not even sell their Broncos to customers to avoid the issues trying to sell over MSRP brings. They would rather sell them to 3rd party companies that pay 5-10k+ over MSRP for them, then turn around and resell them to auctions or other dealerships at a greater profit. That is imo a worse option. Now there are barely any Broncos in these small town areas because bigger markets have deeper pockets and they are getting all shipped there by these 3rd party agency's.
There is no easy way to navigate todays market and everyone up in arms against Dealers and against Ford should look at it from a different perspective. If the tables were turned, which they have almost always been in the past, did you stick to your beloved dealer and willingly pay 10k more for the car because you just liked that dealership? Or did you shop around for the best price and would walk on a deal for $50 and a pack of gum?
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- First Name
- Carl
- Joined
- Jun 23, 2021
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- Morgantown wv
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- ‘20 Explorer ST, ‘19 GT350, ‘21 Bronco Sport
- Your Bronco Model
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- #79
My wife’s Bronco sport. I didn’t contradict myself and saying that there is profit in selling under msrp using granger for an example is silly. The “profit” is from selling in bulk and you see how well that worked out for them. Both those dealers tried to game the system by offering super low cost because of the original allocation method and it ended up screwing customers. You obviously have no idea how many vehicles that don’t sell or sell poorly are forced on dealers by ford with no recourse. You have to eat that stuff and move on, so I have no issue with adding markup to abandoned or stock vehicles. I doubt you would walk into a dealer and demand to pay msrp if they were marking something down because it is fair to them.
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