Ford Bronco is #8 Most Price Marked Up Vehicle (Over MSRP)

[DustyBronco]

Are you joking? It’s on the list.

Not joking Just blind.

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[DogHauler]

Try harder Ford, we can be #1

 

[Boxer4]

So an analysis of dealer stock ADM pricing. Nothing to do with actual sales price or retail order pricing.

 

[We_Love_Tacos]

Now do First Editions….

 

[bigedizzle]

You’re absolutely right. Profits are there but at MSRP it is definitely not what the average person thinks it is. Supply and demand was way out of whack pre-Covid. Way more inventory than people interested in buying, but the factories continued to over produce. The rebates and dealer cash to buy down invoice costs were in place to persuade franchised stores to buy/accept more inventory when they already had way too much in stock at the time. Those factory incentives were the source of those large discounts that customers were accustomed to seeing.

Now with supply and demand on the opposite end of the spectrum the factory support money is pretty much nonexistent industry wide. So at MSRP the consumer is paying the natural margin as it was supposed to be. At this point in time if you find a store only selling for MSRP it truly is a standard transparent retail transaction.

Even with used cars where we see recent model year vehicles that are priced as much or more than the new MSRP, the profit margins are typically very modest. That’s because everyone in the industry is overpaying for trade ins because most customers know that they have a valuable commodity. Buying cars at the auctions is a total ripoff for the dealers too because the dealers overpay and outbid each other just to secure inventory to have something to sell at all.

Crazy times indeed. That said I hate new car market adjustments. Thousands over sticker price is just greedy. Myself and the other managers at our dealership agreed that the average customer will remember which stores were trying to take advantage of it being a sellers market and price gouge.

Once inventory is generally obtainable again (my guess is 2 years minimum) customers will end up avoiding the greedy stores in the future. Ridiculous market adjustments are a great way to burn your future book of business.

Very good post. We have adms on vehicles that were not ordered by the customer, I do not think it is right and it is harder to sell vehicles marked up over msrp. The used car market is really the determining factor. Trades are the way dealers make money on used vehicles. Buying from the auction is terrible especially if carmax or enterprise is buying in that lane. Supply and demand is a and will always be the determining factor for vehicle pricing. This is true in every facet of life. superbowl tickets, concert tickets, the newest anything will always be marked in price due to demand. I know that people even complained when an f-150 was 15k off msrp they wanted more. It is human nature to maximize everything you do including negotiating. We do not get paid any extra for selling over msrp but people think we do. I always try my best to get my customer the most for their trade in to offset pricing. Anyhow, not all dealerships are scum, just some scum run dealerships.

 

[CMillBronco]

Very good post. We have adms on vehicles that were not ordered by the customer, I do not think it is right and it is harder to sell vehicles marked up over msrp. The used car market is really the determining factor. Trades are the way dealers make money on used vehicles. Buying from the auction is terrible especially if carmax or enterprise is buying in that lane. Supply and demand is a and will always be the determining factor for vehicle pricing. This is true in every facet of life. superbowl tickets, concert tickets, the newest anything will always be marked in price due to demand. I know that people even complained when an f-150 was 15k off msrp they wanted more. It is human nature to maximize everything you do including negotiating. We do not get paid any extra for selling over msrp but people think we do. I always try my best to get my customer the most for their trade in to offset pricing. Anyhow, not all dealerships are scum, just some scum run dealerships.

Lots of dealers point of view but not much buyer, I can say after 30 years of buying cars that the bad far out ways the good at dealerships. I have had to negotiate every deal I have ever done as the ridiculous 1st offer sheet was just that RIDICULOUS. I get the whole "Never leave money on the table" and " We're a business not a charity" stuff but my experience is the dealer comes in swinging with that 1st offer.

I just bought a 22' Tacoma that I had to order and wait 2 months for from a dealer that I had a very good relationship with and I still paid full MSRP and the trade offer '1st sheet' had our trade value $6k below our Carmax offer. It took me 2 weeks of negotiating to get a fair offer for our trade, this is the experience I have had on every car deal I have ever done at over 15 different dealerships. I'm not sure how anybody could say the customer is at fault for the toxic sales experience but then again I only see it from a buyer standpoint.

 

[BlakeD69]

A couple points:
1) These are for cars in dealers listing not actual sale prices so does not include customer orders of any of these
2) A lot of these cars do get ordered by customers and not bought off of the lot (Mercedes, Porsche, Jeep, Lexus, Corvette) which magnifies point number 1
3) Most of the rest of the list are being produced in enough volume to deliver to customers in less than than 400 days and 600 days from reservation (unlike many that have been waiting for Broncos)

 

[North7]

Lots of dealers point of view but not much buyer, I can say after 30 years of buying cars that the bad far out ways the good at dealerships. I have had to negotiate every deal I have ever done as the ridiculous 1st offer sheet was just that RIDICULOUS.

Bravo your comments are spot on. The people on here bragging they don’t pay msrp are the same people that expect retail money for there trade and bottom dollar for what they are buying. It’s that asshole mentality on both sides that makes the experience so toxic. These same people wouldn’t low ball their profit at their job but somehow think that car dealers should do things for free. I always ask for transparency when doing a car deal and believe in open communication. Fair price for my trade and a fair price based on market conditions for what I’m buying. I will say when I bought my bronco I expected to pay sticker but my dealer asked what I wanted to pay. I told him a discount would be great based on my history buying and using their services and he knocked 2k off the sticker. He made money I was happy and he had an opportunity to make another 2000k on my trade which he was able to do.

@CMillBronco my dealership experiences are identical to yours. Some people think you and I are assholes for negotiating and then they go on to brag how they got a $2K "discount" off their Bronco.

I guess if we just ask for a "discount" next time we won't be assholes.

My best dealership story, bar none:

My favorite car purchase, a Toyota Corolla, the sales person did their normal 4-square dance, then said he had to run my (fair market) offer "by the manager"; 20 minutes of timed drama later, he came back with some pitiful counteroffer, I said thank you for your time and left. Now this was in Southern California where there was a Toyota dealer every 10-20 miles. I drove down the road, they had the identical model, I had a great salesperson who understood we were simply looking for a fair deal, he gladly sold us the car. A couple of hours later, new car in the garage, the first dealer calls and said he would accept my offer, I said thank you, but sorry, I already have the same new car in my garage.

 

[Panaran]

Interesting, the Bronco number looks low compared to what I have been seeing on the lots.

I think most dealers are giving reservation holders fair dealers. We really only hear about the really shitty dealers screwing people over, but the vast majority of Bronco sales so far are reservation orders, and most of those have been around MSRP. But yeah, if we only took the on lot retail sales into account, Im sure the Bronco would be higher than #8

 

[wsdowns]

iSeeCars has analyzed 1.2 million vehicle listings from February to March and listed which vehicles currently have the highest dealer price markups.

The Ford Bronco came in at #8 on the list at 20.8% above MSRP. On average, new cars are listed for 9.9% above MSRP.

It takes 2 to tango... Y'all QUIT PAYING MARKUPS!

 

[rayhil67]

I'm kinda shocked people are willing to pay over MSRP for a jeep.

Bought my 2012 JKU, 5 years ago for 28,000 had 46k miles on it, sold it first week of Jan this year for 23k had 109k miles on it!!!! "It's a jeep thing"

 

[VVSidewinderVv]

I have no idea how the C8 Corvette isn't higher on the list. Seems every single one I can find around me is at least $120k with a 70-80k MSRP.

 

[Jaybird815]

I'm surprised Wrangler is #1, before I ordered Bronco last Oct I could get one for 6% under MSRP at the two dealerships closest to me.

Although it doesn’t mention it in this list, the Wranglers over MSRP are specifically 2 door.

 

[CMillBronco]

Although it doesn’t mention it in this list, the Wranglers over MSRP are specifically 2 door.

2 door Rubicon is what I was shopping for at 6% under MSRP, and when I say shopping it was like a 10 minute phone call so I think they would have discounted it much more if I had gone in.

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