Dealership in North Georgia with 10 Broncos on its lot

[Bt_ostate]

It's as much as 10k less than MSRP based on some data that leaked on my purchase order.

That's a joke, right. Cause that is ridiculous

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[bbkat]

Going way off topic here (or maybe bringing it back to where OP might have intended )

There's a dealer here in Ventura county CA with 10+ Broncos on the lot. Asked the kid how much they were marking them up. "$30k for SAS, $20k for non. But they're willing to work with you"

 

[Candy_J]

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.

I’ve been second guessing my Iconic Silver choice since my family says the same thing. Happy to see you sat that.

 

[jmhutner]

Going way off topic here (or maybe bringing it back to where OP might have intended )

There's a dealer here in Ventura county CA with 10+ Broncos on the lot. Asked the kid how much they were marking them up. "$30k for SAS, $20k for non. But they're willing to work with you"

Holy mackerel. They have 19 listed for sale. What a joke.

 

[Bt_ostate]

Going way off topic here (or maybe bringing it back to where OP might have intended )

There's a dealer here in Ventura county CA with 10+ Broncos on the lot. Asked the kid how much they were marking them up. "$30k for SAS, $20k for non. But they're willing to work with you"

Crazy, but as long as people pay it, it'll continue. The price increases on 22s and Ford's halting orders will only feed this insanity as well, I'm afraid.

 

[UtahLars]

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?

This is not a pyramid scheme.

Note that each dealer in your hypothetical would be taking real risk. He's buying a car at a premium and he has no idea whether he can recover that cost, let alone an additional premium.

Sounds like this guy, if the story is true (and they are often missing key details), is trying to corner the local market on Broncos. In theory that lets him charge what he pleases as he eliminates the competition.

In reality, such schemes almost never work. First you have to ask, why do the other dealers go along with it? Usually others who don't participate will sit back and let this guy try to sell at elevated prices, and then they come in and undercut him. If enough people come in, the entire scheme collapses and he has to sell at a loss. This is why cartels so often fail - one or more members always cheat on the scheme and it brings the roof down.

Remember when the Hunt brothers blew themselves up trying to corner the silver market some years back. This would be no different.

A related scheme is sometimes seen where the things being sold have no defined intrinsic value - say, like paintings. A dealer may try to create a string of fictitious transactions trying to establish a history of the painting being bid up. People also try to throw auctions this way, creating fake bidding activity. A mild version is where a dealer tells you that you better pay him his ADM fast because he's has even higher offers!

Be safe out there.

 

[BabyDoc1012]

What I find hilarious in all this are the people so willing to pay the ridiculous ADM, because the bronco is the latest and greatest. They love it for a while, the new wears off and realize the it doesn’t fit their need or hate it because it’s not a Denali or Platinum or full luxury cushy ride. Then try to sell it in a few years and realize they will take a 40-50k or higher hit on trade in value.

 

[Calm horse]

I was at that stealership few weeks ago...they had 2 at the time..one was an iconic silver asking around 20k adm...was told they bought from another dealer...told me they sold FE for 103k recently

 

[JohnnyBronco]

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."

Well, from 15 years of selling 4 wheeled vehicles with engines up front (tractors), the dealers do order at invoice, and because of sites like Edmunds (and here) we can all determine what dealer invoice is on any vehicle.

But standard invoice and actual invoice can differ. We would get special discounts directly on our invoice for promotions at product reveal or other order enticements.

Then, of course, are the holdbacks and discounts that are deducted when the dealer actually pays the manufacturer. This alone can be enough not only to keep the lights on but also pay sales commission. It can add up to $500-$1500 pure profit when a vehicle is sold "at dealer invoice and we'll show you the invoice"

 

[GABroncin]

Awww hey, that's my dealership!

 

[jnew71]

Awww hey, that's my dealership!

Who is sales rep over there? How have they been for you thus far?

 

[GABroncin]

Who is sales rep over there? How have they been for you thus far?

I've got a guy named Pete. He took over after the last 2 reps mysteriously vanished. He's been with them for over 20 years though, and he seems to be on top of his shit. The website shows a bunch on Broncos, but those are shared between all of their lots. I think there's only 2-4 actually on their lot, though I haven't driven by in a month or two so there could be more. I just know I looked at their site the other day and only 3 had pictures at their lot, the rest were at sister dealerships.

 

[jnew71]

I've got a guy named Pete. He took over after the last 2 reps mysteriously vanished. He's been with them for over 20 years though, and he seems to be on top of his shit. The website shows a bunch on Broncos, but those are shared between all of their lots. I think there's only 2-4 actually on their lot, though I haven't driven by in a month or two so there could be more. I just know I looked at their site the other day and only 3 had pictures at their lot, the rest were at sister dealerships.

Yeah - I have Pete as well. Good guy. They def have 7/10 they mentioned - all parked out front at the street. Did you find out what their allocation is? How many reservation with orders they have? I asked Pete and he didn't know (or want to tell) how to find that info. I left it alone as it doesn't matter, just gives me more visibility.

 

[Swabodda]

DOES ANYONE KNOW THE ADDRESSTO GRANGER FORD IN UT........THKS.

It's times like this that I remind myself how much better life would be if we had access to a website on the internet that would provide us addresses both quickly and easily. I mean, just imagine if a company like Google offered maps!

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