Dealer penalty?

[Mrpenn46]

Oh yeah I wouldn't expect that from Granger or anyone else who's been super engaged or knowledgeable here or elsewhere. But for the other's... IDK.

I'm just trying to assess my risk as well as an intellectual curiosity. If I have my res at a dealer I don't like at MSRP but I know is going to be fair and truthful when it comes to pricing, vs an unknown dealer who says I can save 1k...

If I had any real assurance that they wouldn't play games with numbers at delivery, awesome! I can save myself a thousand bucks. But without it, there's a risk

Sorry for all this btw. I don't want to come of negative at all. Nature of my profession, it's close to red teaming for any techies here. Figure out how something works, look to exploit it, report findings so someone doesn't get exploited.

It's hard to turn off though. I never realized that until my wife and I were touring hospitals to figure out where to deliver my first born. They were explaining how the security system works so no baby is accidentally swapped or stolen from the hospital... And in my head the gears were spinning on how to pull off a baby heist. I had to actively tell my brain to shut up because Lord knows it was the last thing my wife wanted to hear from me ?

There is a risk in everything, but at time of ordering you and the dealer sign a document with an agreed upon price. This is a legal contract. If the dealer changes anything you can walk or pursue recourse to try and either get them to honor the contract or seek compensation for the broken agreement.

This contract alone doesn't stop a dealer from playing games and trying to get you to walk but as Granger and others have stated FoMoCo has stated there will be penalties for too many orders being delivered to somebody other than the ordering individual. My guess, because nobody has leaked the penalties as far as I know, is they probably include allocation reductions on Bronco and other vehicles. Possibly increases in the interest rate a dealership gets charged for vehicles on the lot. Possibly even changes to holdback percentages. All of these are points that could cause a dealership lots of financial pain in the future. Those are my best guesses there could be loads of other places that FoMoCo could bring pain to dealerships that don't honor contracts.

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[noahr]

I've long been wondering what the penalty was for selling an order to someone else.

I've heard it's severe but no idea what it is.

I doubt many would take an order from Alice and sell it to Bob directly. But what's to stop a dealer doing a price gouge at delivery via ADM or some other made up fees? Or intentionally massively under pricing trade in? And price Alice out of completing the transaction? Dealer could just sheepishly be like "Alice didn't want it" and now it's their 's to sell?

For a while, a bronco sold on a dealer floor would be able to command a huge premium I'd assume. You'd have a furious would be customer, but a happy new bronco owner plus a fat stack for the dealer.

Edit: what recourse would Alice have? Could flame the dealer in reviews obviously but that is the equivalent of doing nothing

Anyone have specifics on what ford is threatening so this doesn't happen?

well they havent told us this specifically but said consequences will be severe. If we sell our demo models without going through the 7 months we can never do FCTP again, and will lose a month of both bronco and bronco sport allocation

 

[Judge Rufus]

I will operate in good faith and trust the process.

I feel like I can trust my salesperson, Torre.

 

[Judge Rufus]

The auto manufacturer / dealer model is going to continue to evolve over the next few years. Dealers need to ensure that they don't get completely disrupted as that model changes. Pissing off your manufacturer relationship is not the way to survive those changes.

 

[chownd]

well they havent told us this specifically but said consequences will be severe. If we sell our demo models without going through the 7 months we can never do FCTP again, and will lose a month of both bronco and bronco sport allocation

Really appreciated, thanks

 

[Kos]

Biggest way to protect yourself from them underpricing your trade in is to go to Carmax or a similar dealership who will give you a quote on your trade in. It'll be low, but not obscene. I've done that with every vehicle as a backstop to protect myself when negotiating with a dealership on trade-in. Never had to use it.

I will caution you though, that in some states, you can't count your trade in as a tax deduction against the new vehicle purchase unless it is part of the same transaction as your vehicle purchase.

 

[noahr]

Really appreciated, thanks

no worries

 

[Silver-Bolt]

You will have a written purchase order from the dealer stating exactly what your price will be. If you don't shame on you and good luck because they are going to bend you over. Regarding a trade, they can't give you a price until you are ready to turn in the trade. Your trade will go down in value every few weeks when the new price books (KBB, NADA, etc) come out. Negotiate the price of your Bronco up front without factoring in any trades. Get the Bronco price nailed down at the time of order. As your delivery gets near start working with them on your trade value. Best bet is to sell your trade on your own.

 

[noahr]

You will have a written purchase order from the dealer stating exactly what your price will be. If you don't shame on you and good luck because they are going to bend you over. Regarding a trade, they can't give you a price until you are ready to turn in the trade. Your trade will go down in value every few weeks when the new price books (KBB, NADA, etc) come out. Negotiate the price of your Bronco up front without factoring in any trades. Get the Bronco price nailed down at the time of order. As your delivery gets near start working with them on your trade value. Best bet is to sell your trade on your own.

not if you want to take advantage of the tax benefits you get for trading in a car

 

[Silver-Bolt]

not if you want to take advantage of the tax benefits you get for trading in a car

I don't own a business and Oregon has no sales tax. No benefit here.

 

[Judge Rufus]

It's easy to calculate the potential sales tax benefit of trading a car in vs. selling it yourself. Subject to your state allowing you to reduce the sales tax applied to your new car by the value of your trade-in.

You take your location's sales tax rate X the trade in value the dealer will give you.

Sales tax rate of (4.5%) X the value your dealer gives you on your trade-in ($15,000) = $675

If you believe that you can sell the trade-in yourself for more than $15,675, then you shouldn't trade it in, but sell it yourself.

In @Silver-Bolt 's situation. (0%) sales tax X ($15,000) trade in value = $0 tax benefit. So if he thinks he can sell it for more than $15,000, he should sell it himself.

 

[Lowcountry Bronco]

Biggest way to protect yourself from them underpricing your trade in is to go to Carmax or a similar dealership who will give you a quote on your trade in. It'll be low, but not obscene. I've done that with every vehicle as a backstop to protect myself when negotiating with a dealership on trade-in. Never had to use it.

I will caution you though, that in some states, you can't count your trade in as a tax deduction against the new vehicle purchase unless it is part of the same transaction as your vehicle purchase.

I got a great deal thru Carvana on my 2 year old GTI that I sold them a couple weeks after I made my reservation, it was that good! I was blessed enough to have an extra car and have been banking the payments for a better down payment. Not sure how many are in the same boat but if you could make it thru on your spouse's car or similar I highly recommend them.

 

[jrustyasl]

Nope, switched dealers today. Called Ford Marketing Department and made the switch ASAP!! Bye bye Torre, getting a real two door bronco....(one door on each side) lol!

 

[rtaylor]

But what's to stop a dealer doing a price gouge at delivery via ADM or some other made up fees?

This happened to me at a GMC dealer. Ordered a new model truck and when it arrived they refused to honor the contract price (invoice+500). They were hoping that I would refuse so they could sell at a huge markup (first truck in the state) and they told me so.

I ended up paying their extortion, because I did want the vehicle. I wrote to GM and complained (no response).

It turns out the dealer went out of business about 6 months later. They were in financial trouble and did not care about their reputation or GM or getting sued.

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