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Dealer Markups Are Getting Some Press

RoLyMa27

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CORRECTION: My earlier post stated Grapevine Ford sold a customers Bronco out from under them after marking it up 10k. That was incorrect! The dealer that did that is GRAND PRAIRIE FORD NOT GRAPEVINE FORD!
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BlueBronco

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There has been many reports of owners picking up their vehicles from Grapevine Ford at MSRP. I know the director there and charging 10K ADM on a new Bronco doesn't align with their principles.
I too called into question on whether or not he was talking about GP Ford and not Grapevine and await the update. However, ADM's are very much in line with Grapevine Ford "principles." When the Sports first started hitting the lots, I went there to look at their Cactus Gray demo unit to get a good look at the color. They had 3 Mustang Shelby's on the showroom floor (I don't know if they were 350 or 500's) but each had an ADM of $50k (I know, pics or didn't happen but I didn't think to whip out the phone and take any). Yes, limited edition vehicles are a completely different situation, I get it, but...

the fact that they currently have Sports listed on their website with a $5000 ADM completely invalidates your argument (oh, and their Mustangs). Principles indeed.

edit. Looks like it was confirmed that the dealership in question was GP and not Grapevine Ford. However, it does not change the fact that Grapevine has a track record of charging ADM's on vehicles.
 

Drex

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Do you have a certain amount of time to claim your reserved Bronco before the dealer can sell it? If I've made contact with my dealer once my reserved Bronco arrives and they don't give it to me at the stated price I'm not going to release it for sale. Isn't it technically my Bronco since it's reserved in my name? They can't change names on the reservations so how can they sell it without you releasing your reservation?
from a layman's point of view;

the reservation was with Ford, once it was converted into an order, it is with the dealer. You got to order a Bronco, the reservation terms were fulfilled. Ford is out of the loop.

So now you are looking at a dealer ordered vehicle, any contract you believe you have with them can be breached by either party. If they add on $5000 at the end, or you had agreed to pay $5000 ADM before and suddenly tell them you will only pay MSRP, there is no criminal enforcement mechanism for them to make you pay the higher amount any more than they can be held to the lower amount.

The redress is to sue (or arbitrate, depending on the contract language and local laws). You must prove damages. What damages do you have when you cannot buy something at a price you worked out? Perhaps time and transportation costs to the dealer? It is not a unique item that there won't be millions of acceptable substitute vehicles that will perform the same basic function. The cost to file suit will undoubtedly be more than you might reasonably expect to recover (if you win and if they pay).

Civil contract breaches happen all the time, almost none of them are worth suing over as the cost outweighs the potential recovery.

To answer your question precisely though, the dealer can sell it the instant they have possession of it. They can also have everything set up months in advance, just need to have acceptance and turn it over to complete the sale (very generalized). There is no right of first refusal in the paperwork I got from my dealer and I suspect not in anyone's

Picking a dealer who won't do those things is the solution. Even with past performance, you don't know for sure they won't screw you at the end, but it will help with the anxiety.
 

ColeTrain84

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Im so lucky my dealer is a small town dealership and survives off repeat customers and their customer service record and not volume. He agreed to just about any documentation I wanted on agreed price, fees etc to put my mind at ease about ordering after I brought up the horror stories I've been seeing making me unsure. He said his business model is repeat Ford buyers and expanding his customer base. Im a GM guy that is selling both my 500hp 2002 Camaro Z28 and 2016 GMC Canyon to get a Bronco Badlands (saspack). My wife is gonna be in the market for a brand new explorer soon. He wants me long term. And if I'm treated well he may very well get me long term.
 

XCR440

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Not going to defend or prosecute the ADM's, but thought I'd through this out there for thought, there's a third party keeping the ADMs going, they're called locators. They call dealers and try to buy they're new inventory to sell to another new dealer. In the past it was more of a if you'll give me something good, I'll take your old units that aren't selling (Transit/Ecosport, etc) and package them together. Now nothing is bad inventory so they've just started paying more. Right now with the shortage, I'm selling at MSRP (for on the lot units) which is below market nationally, but what my market will bear. That said, its hard to sell a F250 at MSRP when I can dealer trade it for $4000 more.

Granted the Bronco is different being your order and I agree deal should be what it was at the order, but I thought people would be interested in the numbers on regular inventory that a dealer can get just to dealer trade things.

Below is a clip from an email I got from one this week, and remember the "buyer" is another dealer so they'll have to sell it above this (plus freight, plus the locators fee ($500-1000 per unit):


I have a buyer on:

F-150's @ $2000 over MSRP
Expeditions @ $2000 over MSRP
Mustangs @ $1000 over MSRP
Mach E's @ $2000 over MSRP
Explorers @ $3000 over MSRP
Ecosports @ MSRP
Super Duties (4x4) @$4000 over MSRP
F-250 and F-350 Tremors @ $4000 over MSRP
GT 500 base on the ground @ $5000 over MSRP
GT 500 Golden Ticket on the ground @ $11,000 over MSRP
Bronco Sports @ $3500 over MSRP
Broncos @ $10,000 over MSRP
Escapes @ $1500 over MSRP
Edges @ $1000 over MSRP

I can take one or two units or MAKE ME A LOAD

What can you move today?


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The difference with the Bronco is we picked the dealer to order our Broncos from. This isn't the normal way of doing dealer allocation so for them to turn around at the last minute and change the price on someone is borderline criminal. Obviously if we knew the dealer was going to change the price on us upon delivery we would have picked another dealer. Most dealers are honoring the agreed upon pricing be it in writing or not but unfortunately a few of these dealers who are not are making all the noise.
 

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CORRECTION: My earlier post stated Grapevine Ford sold a customers Bronco out from under them after marking it up 10k. That was incorrect! The dealer that did that is GRAND PRAIRIE FORD NOT GRAPEVINE FORD!
pretty sure it wasn't the first bit of libel on the internet, nor the last. Kudos for 'fessing up and nearly apologizing.
 

brittany3400

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That is the Pipsburgh guy that had the video that was taken down
Did you see his newest video? They settled on $5K over MSRP and he said he will continue to be a customer there. The whole story was wild. Although with as bad as I want one, I would probably over-pay at this point too lol
 

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Frankly for as strong-willed most of us Bronco orderers are, I am surprised at how many say "I'll walk if they try that to me." That is a VERY weak response that will not do a thing to stop dealers from doing this. They WANT you to walk! They get more money that way. It's a strong-arm tactic, a bluff, that if you pay, or walk, you lost and they win.

Dealerships historically try moves like this. Generations have talked about the "undercoating" or "extra overcharge fee" that gets slipped in at the end. The point is, in today's social media age, that should NOT EVER be allowed. What do you do? You fight it. You call the sales manager, inventory manager into the meeting. You explain you had an agreement, Ford knows you ordered the Bronco and that you will buy the Bronco - for exactly what the original agreement was. You tell them you will otherwise call the owner of the dealership, the local news, the national news, the Better Business Bureau, and Ford Bronco leadership. Then you will make a concerted campaign exposing the dealership all over social media, and will make it your life's goal to ruin their reputation. If that doesn't convince them, next say you are calling your lawyer for breach of contract.

People - don't roll over when a salesman tries to add a sudden profit after a prior agreement. That is fraudulent, criminal, and dishonorable. FIGHT it.
Prepare by inputting the news alert hot line of the local 6 PM tv news program into your phone and standing in the middle of the dealership be prepared to press Call. Catch the dealership owner off guard with a news crew showing up and things will happen
 

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I have a question about dealers just selling someone's order. Did these people actually have a deposit on the Bronco? When I changed my reservation to an order, I had to put down $1K for the order. I don't have a problem with my dealer but if you have a deposit down can a dealer just sell it from under you?
 

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I have a question about dealers just selling someone's order. Did these people actually have a deposit on the Bronco? When I changed my reservation to an order, I had to put down $1K for the order. I don't have a problem with my dealer but if you have a deposit down can a dealer just sell it from under you?
Do you have a written purchase agreement with agreed to pricing?
 

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Do you have a written purchase agreement with agreed to pricing?
Yes, but even if someone didn't have those things, how could a dealer sell a car that you ordered and have given them a deposit to hold the vehicle? I mean, I guess a dealer can do anything they want but I would imagine there are some legal ramifications for them doing that.
 

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Did you see his newest video? They settled on $5K over MSRP and he said he will continue to be a customer there. The whole story was wild. Although with as bad as I want one, I would probably over-pay at this point too lol
Not sure I would "settle" for even $5k over. I have price protection at MSRP guaranteed by Ford in enough emails and news items that I have yet to worry, even though by giving up a modular painted roof 2023 model to get a 2021 by MSRP has also dropped by at least $3000 (roof + roof accessories no longer allowed)

I will not worry about potential ADM until my unit arrives. It will be their first retail of a Bronco as the one they do have is mannequin
 

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I too called into question on whether or not he was talking about GP Ford and not Grapevine and await the update. However, ADM's are very much in line with Grapevine Ford "principles." When the Sports first started hitting the lots, I went there to look at their Cactus Gray demo unit to get a good look at the color. They had 3 Mustang Shelby's on the showroom floor (I don't know if they were 350 or 500's) but each had an ADM of $50k (I know, pics or didn't happen but I didn't think to whip out the phone and take any). Yes, limited edition vehicles are a completely different situation, I get it, but...

the fact that they currently have Sports listed on their website with a $5000 ADM completely invalidates your argument (oh, and their Mustangs). Principles indeed.

edit. Looks like it was confirmed that the dealership in question was GP and not Grapevine Ford. However, it does not change the fact that Grapevine has a track record of charging ADM's on vehicles.
My point was specific to the article linked on this thread and the post I was responding to. Grapevine Ford hasn't added ADM to a reservation holder's Bronco order (to the best of my knowledge). While I don't agree with adding ADM's to dealer stock units, it doesn't bother me as much as a dealer trying to mark up a reserved/ordered big Bronco.
 
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Yes, but even if someone didn't have those things, how could a dealer sell a car that you ordered and have given them a deposit to hold the vehicle? I mean, I guess a dealer can do anything they want but I would imagine there are some legal ramifications for them doing that.
Well, if you don't have a contract, you have no agreement. They can't keep your money if you ask for it back without a contract and consideration on their end....but if that $1,000 isn't part of a binding contract for the vehicle...you'd be SOL if they backed out. Your only recourse would be to get back the deposit, not force them into a deal that there was no binding agreement for. It's important to have a writing that has the elements of a legal contract. Most dealers won't screw people anyway if you have any sort of agreement....but some will, obviously.
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