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Ford cracking down on dealer markups over MSRP?

bagsBronco22

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I reserved my OBX on 10/15/21 and just noticed a $5K ADM on it last week. I contacted the dealer and they said there was nothing they could do and that most Bronco's are being sold at $10K over MSRP.

I think this is BS because when I ordered I was told to build my Bronco at ford.com and send him the URL and he will order it. There was no $5K ADM in the URL I sent him.
I went thru a dealer that my brother-in-law had used for his last 4 vehicles. They told me to complete the build online & bring in the details. He entered the order right there and i signed an order with only a 1K increase over the amount generated by the website. My order is now built and awaiting shipment. The revised window sticker price is $350 over the amount on the order. We will see how this all shakes out when it finally arrives and i go to do pick-up, but i expect the dealer to honor the agreement and not charge me more then the final window sticker
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ElJeffe

ElJeffe

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I'm surprised more manufacturers aren't doing that. I wonder if it's related to the service/maintenance side of the business.
It's related to they fact that they have multi-year, binding agreements with dealerships that limit what Ford can do in terms of selling direct to consumers.

I believe this is a major motivator for the "Ford Blue" versus "Ford Model E" entities going forward. Indicators suggest that Ford Model E will treat itself as a new company, with a more modern sales- and service-approach. This will hopefully include direct sales to customers, and simpler service centers that are appropriate for electric vehicles.

Of course that means we'd have to wait for an EV Bronco to take advance of that. In the meantime, it'll be the old dealership/ADM fiasco under Ford Blue.
 

omi205

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Agree with this in principle. As long as dealers aren’t reneging on orders placed they can charge what they want.
would completely love to get rid of the dealer concept all together.
I agree. Cut the dealers out entirely and do it like tesla, direct to consumer. No added crap. Everyone pays the exact same like they do at tesla. No confusion.
 

Fly

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I agree. Cut the dealers out entirely and do it like tesla, direct to consumer. No added crap. Everyone pays the exact same like they do at tesla. No confusion.
The dealership lobby groups are very strong and it will be difficult to change the status quo. You’re essentially putting dealers out of business
 

omi205

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The dealership lobby groups are very strong and it will be difficult to change the status quo. You’re essentially putting dealers out of business
Perfect. They are useless and cause headaches. When is the last time a dealership did something good for you? Idk about you but they are simply a middle man who taxes you extra for simply being a middle man. F that. They can find other jobs. They can continue to repair. But manufacturers should be allowed to sell direct. It would solve many problems.
 

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Fly

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Perfect. They are useless and cause headaches. When is the last time a dealership did something good for you? Idk about you but they are simply a middle man who taxes you extra for simply being a middle man. F that. They can find other jobs. They can continue to repair. But manufacturers should be allowed to sell direct. It would solve many problems.
I agree 100% but how do you remove an entrenched and politically strong group? I genuinely have no clue. It is in the dealers best interest and self preservation to fight tooth and nail against the change.
 

omi205

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I agree 100% but how do you remove an entrenched and politically strong group? I genuinely have no clue. It is in the dealers best interest and self preservation to fight tooth and nail against the change.
I agree on that point also. At the same time. If Tesla is only 15 years old and has already “figured” it out. Then Ford shouldnt have that hard of a time switching. They will need to build some service cneters like Tesla is doing, but that is probably the best thing they could do to control quality. Right now every dealership is a different experience (it sucks). Ford has a golden opportunity right now to shake it up and reposition themselves for success. That includes cutting out bad dealers who are destroying the Ford name.
 

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The dealership lobby groups are very strong and it will be difficult to change the status quo. You’re essentially putting dealers out of business
Not putting dealerships out of business, just changing their business model. They will still receive and prep the vehicle. They can still take your used vehicle in on trade. They can still have a limited dealer stock.

Dealerships do not make their money in a new vehicle sales. They make their true money on trades, resale and vehicle maintenance.
 
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I went thru a dealer that my brother-in-law had used for his last 4 vehicles. They told me to complete the build online & bring in the details. He entered the order right there and i signed an order with only a 1K increase over the amount generated by the website. My order is now built and awaiting shipment. The revised window sticker price is $350 over the amount on the order. We will see how this all shakes out when it finally arrives and i go to do pick-up, but i expect the dealer to honor the agreement and not charge me more then the final window sticker
I would not give up your Bronco over $350, or $1350.
 

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You go to the Ford dealership and who's giant 20 ft logo is on the sign? Ford Motor Company. So, it's certainly in Big Ford's best interest that the dealerships don't run customers away from the "Brand" due to a bad dealership experience.

So, yeah, the cars belong to the dealership, they can do what they want. But the dealer represents the brand, and if they are tarnishing the brand, then Ford is well within their rights to terminate the dealership agreement.

Kick 3 or 4 dealers to the curb. The rest will fall in line.
 
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RFMan

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As distasteful for most of us as most markups have been, (yeah, I do understand capitalism) I for one will simply not shop in the future at these delearships that have taken attempted to take advantage. The messing with the MSRP and bait and switch tactics may have garnered short term gains, but I have a long memory....
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