Dealership in North Georgia with 10 Broncos on its lot

[jnew71]

All 20k ADM. The sales manager said they bought them from other dealerships across the country at a premium. I got to see some colors I hadn't seen in person before (I'd only seen Area 51 and Cactus Gray), to include the color I'm getting (race red) - beautiful color but seeing iconic silver (my original pick before my wife said it was boring) got me thinking again.

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[Min_Ahn]

A base 2.3 is 85k at the local dealership near my area lol

Nvm, it's now $99,999 and I just realized it's got 3k miles on it..

 

[GreenLantern]

So dealerships selling to dealerships at a premium, therefore the first dealership is flipping for a profit (greater than their dealer margin) to another dealer, and then the second dealer is marking it up further?

Cool.

So a third dealer can come and convince the second dealer to flip it to them for a markup, and then the third dealer will list it at a higher markup.

Isn't this a pyramid scheme?

 

[Blackcat]

I saw a 'used' 2 Dr Base for $53k.....sales guy said they bought it at an auction. Told him I'd wait for $33K base to arrive instead.

 

[Mango&Moose]

Woodstock? If so, I asked about ordering from them a few months ago. They replied they can't even order from Ford for MSRP.

 

[GreenLantern]

Woodstock? If so, I asked about ordering from them a few months ago. They replied they can't even order from Ford for MSRP.

Hahaha. So, if a franchise/licensed dealer cannot order from Ford at MSRP, who can?

Just because ordering banks are temporarily closed doesn't mean a dealer cannot order from Ford at MSRP.

Actually, now that I think about it, they aren't wrong. Dealers cannot order from Ford at MSRP.

Dealers order from Ford at Dealer Invoice.

 

[jnew71]

Woodstock? If so, I asked about ordering from them a few months ago. They replied they can't even order from Ford for MSRP.

Correct - I hadn't been by in a while, but made a change and wanted a new summary and signatures on the purchase agreement. Last time I was there they had 1 Cactus Gray in the show room and an Area 51 outside under cover. They've been busy - the lot is full - mostly with used cars.

 

[Bt_ostate]

So dealerships selling to dealerships at a premium, therefore the first dealership is flipping for a profit (greater than their dealer margin) to another dealer, and then the second dealer is marking it up further?

Cool.

So a third dealer can come and convince the second dealer to flip it to them for a markup, and then the third dealer will list it at a higher markup.

Isn't this a pyramid scheme?

Capitalism at work.

 

[Phil]

So dealerships selling to dealerships at a premium, therefore the first dealership is flipping for a profit (greater than their dealer margin) to another dealer, and then the second dealer is marking it up further?

Cool.

So a third dealer can come and convince the second dealer to flip it to them for a markup, and then the third dealer will list it at a higher markup.

Isn't this a pyramid scheme?

no, this is not a pyramid scheme

 

[Orf]

Dealers order from Ford at Dealer Invoice.

At the end of the day, dealers don't even pay Invoice price. The "regular guy" will never know what a dealership pays. They learned their lesson back when Invoice Pricing first became common knowledge.

The invoice pricing that is publicly shared is akin to MSRP in the old days.

 

[Midlife Crisis]

So dealerships selling to dealerships at a premium, therefore the first dealership is flipping for a profit (greater than their dealer margin) to another dealer, and then the second dealer is marking it up further?

Cool.

So a third dealer can come and convince the second dealer to flip it to them for a markup, and then the third dealer will list it at a higher markup.

Isn't this a pyramid scheme?

No, This is the greater fool theory.

 

[GreenLantern]

At the end of the day, dealers don't even pay Invoice price. The "regular guy" will never know what a dealership pays. They learned their lesson back when Invoice Pricing first became common knowledge.

The invoice pricing that is publicly shared is akin to MSRP in the old days.

Indeed. That's right.

So, yeah, I suppose they can't even order from Ford at MSRP... Since they order at or below "dealer invoice."

 

[GreenLantern]

no, this is not a pyramid scheme

No, This is the greater fool theory.

Ah! You are right. Thank you.

I stand corrected.

Greater Fool Theory, indeed.

 

[Bt_ostate]

At the end of the day, dealers don't even pay Invoice price. The "regular guy" will never know what a dealership pays. They learned their lesson back when Invoice Pricing first became common knowledge.

The invoice pricing that is publicly shared is akin to MSRP in the old days.

Incorrect!!!!! They pay invoice less a 3% hold back. This 3% is to help cover having inventory on lots. Once the vehicle is built a dealer is charged the invoice amount and the interest charge begins. The longer the vehicle is on the lot the less they make because of this. That's why a dealer is happier about an invoice deal on an order than they are on a stock unit. The 3% might've been eaten up by financing charges on the vehicle by the time you buy it. On an order, they will get almost the entire 3%, as it was never on their lot costing them anything yet.

This stuff about how a dealer invoice from Ford to a dealer isn't what they pay is hooey. The 3% is paid to them quarterly and again if inventory sits the 3% isn't enough to cover the carrying costs, if things are like now quick turn they will retain more of that 3%.

 

[Orf]

Indeed. That's right.

So, yeah, I suppose they can't even order from Ford at MSRP... Since they order at or below "dealer invoice."

I'll go one further. I'll bet most sales people have no real idea what their dealership pays. That info is likely only privy to the GM and the Owner. I'm sure the sales people are told what the owner want them to be told.

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