Dealership Markups

[flip]

You brought it up like it was a good thing, when you already know yourself that policy is utter BS. Ford cemented its BS status by watering down that joke of a policy even further a few weeks ago, and then Ford tried to spin it in the media like they’re the great protector for consumers. Uttter BS.

Just stop mentioning the BS program like it’s something good when you already know it’s BS. Is that too much to ask? Seems slimy to point to a policy that you know is BS in an effort to assuage consumer concerns.

I'm sorry you are offended/triggered by mentioning this. They brought this up in dealer meetings before the first bronco was ever produced because they new the reservation model they were using would be open to this kinda stuff. If you have a better solution to help stop it, please share. It doesn't help me any if dealers around us are doing this crap either. Sell more, reserve more, order more=earn more allocation.

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[UNBROKN]

MSRP -Manufacturers Suggested Retail Price
Since its only suggested, dealerships can add any markup they want.

So Ford created another loophole to help dealerships rip of potential customers with crazy markups. Like I keep reading as long as people keep paying these crazy markups this problem is not going away. Thanks for the update !!!

I spoke to my good friend that owns the dealership I ordered through. He is going to be MSRP no matter what some other dealers are doing. he told the same will hold for 2022 and beyond.
He told me that Ford HATES when dealers mark them up that much because that is money on the table that Ford does not get. These are discussions they have had with their Rep and others at Ford.
Ford WILL go up in 2022 on the MSRP but will offer incentives to reservation holders to get the price back down where it should be for "price protection". This is discussed in another thread that came out today.
These dealer crazy price mark ups will only be on there for another year or so. As soon as Ford gets "dealer stock" units rolling off the line, crazy markups will likely go away. Those people that are dumb enough to pay that much money will have a Bronco that is worth lots less than what they paid for it. If they plan to keep it forever, then good for them. I would never pay more than MSRP. If I had ordered mine at a dealer and they changed my price, I would walk away and reorder from someone else. Hard enough for me to pay MSRP.
So many people are paying less at Granger and other dealers. I am sticking with my dealer at MSRP because I like to keep my money local whenever possible. It is a long trip from Granger... I would probably be a 2023 at Granger based on their number of reservations and my reservation date of 07/30/2021. I get mine first week of December as it stands right now.

 

[Blue's B6G]

If you have a better solution to help stop it, please share.

Since I actually want the program to work, I wouldn’t water it down. Instead, I’d say that every single Bronco either gets sold to the person whom reserved it or that Bronco sits until the dealer procures an affidavit from the reservationist, notarized, and approved by someone at Ford who can’t be touched or contacted by slimy dealers.

 

[flip]

Since I actually want the program to work, I wouldn’t water it down. Instead, I’d say that every single Bronco either gets sold to the person whom reserved it or that Bronco sits until the dealer procures an affidavit from the reservationist, notarized, and approved by someone at Ford who can’t be touched or contacted by slimy dealers.

1000000000% agree with this. It would also start curbing the market adjustment problem that seems to be a big cause of "abandoned" vehicles. See, we're on the same page here.

 

[Swallace]

Since I actually want the program to work, I wouldn’t water it down. Instead, I’d say that every single Bronco either gets sold to the person whom reserved it or that Bronco sits until the dealer procures an affidavit from the reservationist, notarized, and approved by someone at Ford who can’t be touched or contacted by slimy dealers.

I wish someone from ford read your idea, and implemented it !!!

 

[WyoBronc]

First, there are only 3ish people who know who reserved the vehicle, they are Ford, the dealer and the person that made the reservation. Unless you are one of those 3, there isn't enough to know if it was abandoned, being held for the person that ordered it or if the dealer ordered under someone else with the intent to retail it.

Ford gives a delivery window for when a vehicle will be delivered, lately you have a better chance winning PowerBall. The carrier will contact the dealer 24 hours from when delivery will happen. Some may or may not get the email from Ford so it's up to the dealer to call after it's been pre delivered or the customer checking in on a regular basis. If it got a VIN, someone got an email. If the dealer did play the system, he'll have to deal with the name match problem with Ford. Nothing you need to, can do or should do.

Agreed. Not enough information to determine if anything shady is going on. However, if I understand the name match policy accurately it’s a joke. The fact that 40 of 100 reservations holders can be priced out of their order with excessive ADMs and sell their Bronco to the highest bidder is not a policy that deters shenanigans …..it turns a blind eye to unethical practices. And number 41 out of 100 gets a warning. Ouch.

 

[flip]

Agreed. Not enough information to determine if anything shady is going on. However, if I understand the name match policy accurately it’s a joke. The fact that 40 of 100 reservations holders can be priced out of their order with excessive ADMs and sell their Bronco to the highest bidder is not a policy that deters shenanigans …..it turns a blind eye to unethical practices. And number 41 out of 100 gets a warning. Ouch.

The 20% change wasn't explained but one legit argument was people cancelling after a VIN was issued. If someone backs out prior to getting a build date, the order is supposed to be cancelled in WBDO. This would be the most legit and highest % of excuses, IMO.

1. Proof of Relationship (Family Members) a. Following established eligibility and process from A/Z plan transactions, e.g. child or grandparent who lives in a different state

2. Proof of Address/Shared Household a. Following established eligibility and process from C&I, e.g. non-family residing in same residence

3. Proof of Business Relationship, Proof of Business Address a. Following established eligibility and process from C&I, e.g. owner wants to purchase Bronco in companies name or use reservation for co-owner of business

4. Customer Declines Delivery: a. Wait was too long from order to delivery b. Customer cannot get approved for financing c. Customer concerns over quality d. Vehicle no longer serves their needs

5. Customer is non-responsive to the Dealer a. Proof from the Customer’s Reservation Email is required to show no-response received b. Customer written acknowledgement of delivery (from email tied to reservation), etc

1, 3 and 5 are pretty self explanatory and legitimate, 4b is where the rub comes in. If you jack price and don't have a cash customer, no doubt financing could be a problem. Ford has the customer email and address so they could contact customers if they want. I hope they do and customers that get up charged out of their order are able to give them that feedback.

 

[WyoBronc]

The 20% change wasn't explained but one legit argument was people cancelling after a VIN was issued. If someone backs out prior to getting a build date, the order is supposed to be cancelled in WBDO. This would be the most legit and highest % of excuses, IMO.

1. Proof of Relationship (Family Members) a. Following established eligibility and process from A/Z plan transactions, e.g. child or grandparent who lives in a different state

2. Proof of Address/Shared Household a. Following established eligibility and process from C&I, e.g. non-family residing in same residence

3. Proof of Business Relationship, Proof of Business Address a. Following established eligibility and process from C&I, e.g. owner wants to purchase Bronco in companies name or use reservation for co-owner of business

4. Customer Declines Delivery: a. Wait was too long from order to delivery b. Customer cannot get approved for financing c. Customer concerns over quality d. Vehicle no longer serves their needs

5. Customer is non-responsive to the Dealer a. Proof from the Customer’s Reservation Email is required to show no-response received b. Customer written acknowledgement of delivery (from email tied to reservation), etc

1, 3 and 5 are pretty self explanatory and legitimate, 4b is where the rub comes in. If you jack price and don't have a cash customer, no doubt financing could be a problem. Ford has the customer email and address so they could contact customers if they want. I hope they do and customers that get up charged out of their order are able to give them that feedback.

Concur. There might be a 6…..where the dealer fabricates a customer in order to receive the bronco and sell it with an ADM (the issue Ford put out a memo/admonishment to dealers a couple weeks ago) Regarding 4b., feedback from forum members that have been priced out of their order, primarily absent a signed/agreed to price it appears Ford has no interest in wading into those situations, which indirectly condones those tactics.

 

[flip]

Concur. There might be a 6…..where the dealer fabricates a customer in order to receive the bronco and sell it with an ADM (the issue Ford put out a memo/admonishment to dealers a couple weeks ago) Regarding 4b., feedback from forum members that have been priced out of their order, primarily absent a signed/agreed to price it appears Ford has no interest in wading into those situations, which indirectly condones those tactics.

I wouldn’t say they condone as much as hamstrung by different state statutes. They already say we can’t advertise Lincoln or Mach E below a certain amount. Actual transaction price when all said and done is another thing. Ford obviously wants dealers to be profitable but doesn’t want bad press from dealers gouging. Ford makes their money when it ships and hits our books. Beside some finance and ESP business, their profit is capped so realistically dealer ADM doesn’t benefit them. Ford uses every legal means to keep dealers under their thumb. Understand, I don’t want to be told what I can and can’t sell a vehicle for by the manufacturer. This particular problem started with reservations and got incrementally worse at every step. Had they been able to crank out 60K this first batch this thread wouldn’t be happening. My biggest hope is memories are long and people don’t quickly forget who they do business with after things get back to normal. There are a dozen more ways to look at this and all can be valid but it settles at trust and relationship.

 

[bdub2you]

I thought Ford sent out letters informing dealerships that they need to stop placing fake orders or risk loosing future Bronco deliveries

Not really, the letter/policy is that they can't have multiple months in a row where more than 40% of new owner names don't match the name of the person that placed the order. So they could sell all fake orders one month, sell 60%+ legit customer order then next month, and still be in compliance. In other words the best play was for dealerships to have a lot of their employees submit fake orders to get dealer stock which given the random nature of the deliveries could easily comply with the "policy".

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