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For those with an extra reservation... The math...

Karl_in_Chicago

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I'm a money guy with an 8/14 reservation, so what you do won't affect me in the 60th percentile.

I was wondering if you might make money on your unneeded reservation? Short answer is no, because of sales tax.

Longer answer, (math is involved) .... Lol. Let's suppose you're a decent human being, wanting to only make 10% on your build. And let's say it's around 50k. So you're just looking for five grand. Now if you are fortunate enough to find someone who wants that build or you build it to their specs, you still are going to have to make the Buy. And the sales tax is going to run you anywhere from 3 to $5,000 depending on where you are. And it's dead money. No one will pay for your sales tax since they have to pay their own. And the risk of it all working is high. And it assumes that you're not borrowing money.

Take that 50 and decently invested you can actually earn your 10% within 2 years with no risk.

Sorry.
Ford Bronco For those with an extra reservation... The math... 300px-Sharpedges_667197825_9e578daf82_o
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Montana Bronco

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I was wondering if you might make money on your unneeded reservation? Short answer is no, because of sales tax.

And the sales tax is going to run you anywhere from 3 to $5,000 depending on where you are.
I live in Montana. Zero sales tax.

I’m a money guy....
Take that 50 and decently invested you can actually earn your 10% within 2 years with no risk.
No actual “money guy” would ever make a statement like this.
 
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Headsong

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I live in Montana. Zero sales tax.



No actual “money guy” would ever make a statement like this.
Most would say more! 5-6% returns aren't real hard to get.
 

AZRap

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I think it will be better than suspected due it being so limited. Anyone getting a my21 or even my22 should be able to get a few bucks if they decide to sell. The only Broncos available will be those resold by reservation holders since those are supposed to made before dealer stock I'm guessing until late my22 or even my23 before Fords caught up. I called a few dealers to check on a C8. Average markup above msrp is 15k for orders and if you are able to find one at a dealer ready to drive off the lot better expect to quite a bit hight than that.
Broncos I guess will be 10k to 15k over msrp for my21 and a little less for my22
 

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I'm a money guy with an 8/14 reservation, so what you do won't affect me in the 60th percentile.

I was wondering if you might make money on your unneeded reservation? Short answer is no, because of sales tax.

Longer answer, (math is involved) .... Lol. Let's suppose you're a decent human being, wanting to only make 10% on your build. And let's say it's around 50k. So you're just looking for five grand. Now if you are fortunate enough to find someone who wants that build or you build it to their specs, you still are going to have to make the Buy. And the sales tax is going to run you anywhere from 3 to $5,000 depending on where you are. And it's dead money. No one will pay for your sales tax since they have to pay their own. And the risk of it all working is high. And it assumes that you're not borrowing money.

Take that 50 and decently invested you can actually earn your 10% within 2 years with no risk.

Sorry.
Your argument holds no water.

If I buy from Stephens or Granger, the discount off MSRP almost offsets the sales tax in FL. There are also 5 states that have NO sales tax. If I have a nice Badlands or Wildtrak for $50 - $55k, there will be PLENTY of people who will have NO PROBLEM paying $60 - $65 to have a Bronco immediately. For many people, it's small money. Do no underestimate how scarcity affects prices and how not being able to get something increases desire.

Let's say I only make $5k on $50, that's 10% quickly, lets's say within one month. Annualized that's 120%+ return on my money. Then I can take my $55k and invest as you say at 10% for 2 years. A lot of folks will sell their Broncos at a nice profit, especially folks who live where the money is like Miami, L.A., New York, etc.
 

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Headsong

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Your argument holds no water.

If I buy from Stephens or Granger, the discount off MSRP almost offsets the sales tax in FL. There are also 5 states that have NO sales tax. If I have a nice Badlands or Wildtrak for $50 - $55k, there will be PLENTY of people who will have NO PROBLEM paying $60 - $65 to have a Bronco immediately. For many people, it's small money. Do no underestimate how scarcity affects prices and how not being able to get something increases desire.

Let's say I only make $5k on $50, that's 10% quickly, lets's say within one month. Annualized that's 120%+ return on my money. Then I can take my $55k and invest as you say at 10% for 2 years. A lot of folks will sell their Broncos at a nice profit, especially folks who live where the money is like Miami, L.A., New York, etc.
For those where there's no sales tax, it's a whole different thing.
 

Dick_Castlesmurff

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Your argument holds no water.

If I buy from Stephens or Granger, the discount off MSRP almost offsets the sales tax in FL. There are also 5 states that have NO sales tax. If I have a nice Badlands or Wildtrak for $50 - $55k, there will be PLENTY of people who will have NO PROBLEM paying $60 - $65 to have a Bronco immediately. For many people, it's small money. Do no underestimate how scarcity affects prices and how not being able to get something increases desire.

Let's say I only make $5k on $50, that's 10% quickly, lets's say within one month. Annualized that's 120%+ return on my money. Then I can take my $55k and invest as you say at 10% for 2 years. A lot of folks will sell their Broncos at a nice profit, especially folks who live where the money is like Miami, L.A., New York, etc.
Also, someone doen't need 50k to buy a Bronco. They could put down 5K, to make 10k+. The risk is having to make payments until it sells. Not something I'm setting out to do, but if the opportunity presents itself, I'd be have to consider it.
 

pony2bronco

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I could see this whole situation being hilarious in a few ways. 1) Bronco gets delayed again and nobody sees one til Fall '21, with an improved '22 model being released, good luck selling it. 2) Ford doubles production, conversion rate lower than expected, everyone gets theirs, good luck selling.
 

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Never under estimate people’s need to have the latest vehicle....the PT cruiser sold for 10k over MSRP at auctions to dealers that planned on flipping them.
 
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Headsong

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Never under estimate people’s need to have the latest vehicle....the PT cruiser sold for 10k over MSRP at auctions to dealers that planned on flipping them.
Now that's sad!
 

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I could see this whole situation being hilarious in a few ways. 1) Bronco gets delayed again and nobody sees one til Fall '21, with an improved '22 model being released, good luck selling it. 2) Ford doubles production, conversion rate lower than expected, everyone gets theirs, good luck selling.
Your mouth to karma's ears.
 

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I hope 2!
That chip thing might get really limiting. No way Ford would allow 150 production to slow, if at all possible. Guessing that they would divert everything to keep them flowing.

For long term mitigation, maybe they will try to invest in small business locally for chip manufacturing and/or try to reengineer to reduce/combine chip functions.
 

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Wait, people have multiple reservations with intentions of flipping the Bronco? lol. I must be living in lollypop land, as this has never been a concern to me.
Just saw a guy on a FB group who said he has 3 reservations. Two in his name and one in his wife's name.
 

Compta38

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I could see this whole situation being hilarious in a few ways. 1) Bronco gets delayed again and nobody sees one til Fall '21, with an improved '22 model being released, good luck selling it. 2) Ford doubles production, conversion rate lower than expected, everyone gets theirs, good luck selling.
There is a decent possibility of #1 and a stronger one of #2 except production doubling. I'm willing to bet we see more units and allocations than what we've been presented with and Bronco won't be as scarce and some believe. Dealers on this board have predicted a conversion rate of 45% as opposed to Fords very optimistic 75%. Im a pessimist and believe Ford will hit 30-35% reservations converting to orders based on several reasons all the way from paltry $100 refundable deposits to ever increasing wait times and price hikes whittling away at the daydreamers.
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