Ford cracking down on dealer markups over MSRP?

[JohnnyBronco]

I guess not all dealers give a crap what Ford says, there is a dealership in Henderson NV that has a 4 door FE at 105k two 2 doors FE at 99k and a 2 door WT at 95k and 3 or 4 other 4 doors at 75k dont know how they got so many FEs or broncos for there lot .

They "bought" the FEs on the dealer to dealer market highlighted in another thread. It is a shame that the dealers themselves were allowed to order the FE versions before anyone else. The minute the reservation system went live all FEs were spoken for

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[Swatman]

Uh, no, the dealer does not own the car you buy new or it would be a used car title you get. No dealer in the world can afford to buy outright their inventory. It is all floorplanned and is still owned by Ford until first registration. It is Ford's Bronco until first purchase, which is not the dealer. So Ford has every right to enforce the price Ford put on the vehicle.

Nope. The dealer takes a Certificate of Origin, which transfers ownership from the manufacturer to the dealer. Transfer from the dealer to the consumer is typically done through a Certificate of Title. Floorplan financing is just that--financing. The dealer still owns the car--the manufacturer (or, more typically, its financing subsidiary) has a security interest in it. The manufacturer doesn't own the car any more than the bank owns your house.

 

[30snack]

Uh, no, the dealer does not own the car you buy new or it would be a used car title you get. No dealer in the world can afford to buy outright their inventory. It is all floorplanned and is still owned by Ford until first registration. It is Ford's Bronco until first purchase, which is not the dealer. So Ford has every right to enforce the price Ford put on the vehicle.

Not really sure that is how it works.

 

[_finack]

Ford is going to crack down just like they did with Bronco reservations: not at all. In fact, they will wholly acquiesce to dealer demands just like they did with the Bronco by reducing the amount of Broncos sold matching the original reservation holder.

This is all PR BS. Completely hollow words.

 

[williamoneal]

I've read what Farley and others tied to @Ford have to say on this subject.

The reality for me personally, in my particular opinion is as follows:

1.) Until Ford fills all 2021 Reservations THAT WERE SERIOUS ENOUGH TO BE FOLLOWED BY AN ACTUAL ORDER (aka a demonstration that a Customer was serious enough to buy your product without ever seeing one in person); AND
2.) Farley or @Ford get serious about enforcing NO MARKUPS BEYOND MSRP UNTIL ORDER FULFILLMENT CATCHES UP; AND
3.) Farley or @Ford get serious about not allowing Dealerships to play the "Bronco Dealer to Dealer Shell Game";

the reservation holders can feel at ease and sleep well knowing that they are truly being taken advantage of and screwed by Farley and @Ford(s) decision to place Capitalism and Profits over the priority of the Reservation and Order that you took time to place in making your commitment to the Bronco.

In other words, they can make more money making Broncos that were not initially Ordered by individuals, than by filling the ones that were ordered by individuals.

The only Bronco that should be sold on the lots in my opinion are the Broncos that are delivered to fulfill an initial Reservation made, where the purchaser backed out of the transaction. Fill our orders first @Ford! A 2023 fill on a 2020 Reservation demonstrates who you really are from my perspective.

 

[JohnnyBronco]

Nope. The dealer takes a Certificate of Origin, which transfers ownership from the manufacturer to the dealer. Transfer from the dealer to the consumer is typically done through a Certificate of Title. Floorplan financing is just that--financing. The dealer still owns the car--the manufacturer (or, more typically, its financing subsidiary) has a security interest in it. The manufacturer doesn't own the car any more than the bank owns your house.

The MSO/MCO as far as I know does not transfer anything from manufacturer to dealer but is required in certain states but not all in order to get first title.

There is no federal requirement for a Certificate of Origin

And for purposes of eliminating or reducing ADM it would be better for all consumers if Ford retained ownership. Think in terms of the Tesla system, which car dealers oppose, where vehicle is transferred directly from Tesla to customer, no I termediate ownership by dealers

 

[Toccoa]

This article is specific to electric vehicles but let's all hope that they apply the same pressure to Bronco sales:

Ford CEO Farley cracking down hard on $3.6 billion dealer markups
Won't send dealers cars if they charge too much

https://www.foxbusiness.com/lifestyle/ford-cracking-down-3-6-billion-dealer-markups

They need to be very clear and very quick to enforce this.

 

[drew707]

I lucked out and was able to get mine below MSRP but I did have to go to a small town dealer to make sure I got what I wanted

 

[Swatman]

The MSO/MCO as far as I know does not transfer anything from manufacturer to dealer but is required in certain states but not all in order to get first title.

There is no federal requirement for a Certificate of Origin

And for purposes of eliminating or reducing ADM it would be better for all consumers if Ford retained ownership. Think in terms of the Tesla system, which car dealers oppose, where vehicle is transferred directly from Tesla to customer, no I termediate ownership by dealers

If Ford owned the cars, they wouldn’t need a security interest, and they could dictate prices. They don’t, so they take a security interest, and dealers are free to price vehicles as they see fit.

 

[airishfan]

I've read what Farley and others tied to @Ford have to say on this subject.

The reality for me personally, in my particular opinion is as follows:

1.) Until Ford fills all 2021 Reservations THAT WERE SERIOUS ENOUGH TO BE FOLLOWED BY AN ACTUAL ORDER (aka a demonstration that a Customer was serious enough to buy your product without ever seeing one in person); AND
2.) Farley or @Ford get serious about enforcing NO MARKUPS BEYOND MSRP UNTIL ORDER FULFILLMENT CATCHES UP; AND
3.) Farley or @Ford get serious about not allowing Dealerships to play the "Bronco Dealer to Dealer Shell Game";

the reservation holders can feel at ease and sleep well knowing that they are truly being taken advantage of and screwed by Farley and @Ford(s) decision to place Capitalism and Profits over the priority of the Reservation and Order that you took time to place in making your commitment to the Bronco.

In other words, they can make more money making Broncos that were not initially Ordered by individuals, than by filling the ones that were ordered by individuals.

The only Bronco that should be sold on the lots in my opinion are the Broncos that are delivered to fulfill an initial Reservation made, where the purchaser backed out of the transaction. Fill our orders first @Ford! A 2023 fill on a 2020 Reservation demonstrates who you really are from my perspective.

you so right ,I have a 8/23/20 reservation for a 2 door BB sas and bet I won't see it tell 2024

 

[fschael]

Uh, no, the dealer does not own the car you buy new or it would be a used car title you get. No dealer in the world can afford to buy outright their inventory. It is all floorplanned and is still owned by Ford until first registration. It is Ford's Bronco until first purchase, which is not the dealer. So Ford has every right to enforce the price Ford put on the vehicle.

That would be true if dealer doesn't need to pay for that inventory while sitting on their lot.

Under your concept, Ford is not even the owner of that car, if so, you wil be the second owner.

Ford sell at invoice those vehicles to dealers and they start paying those to Ford as soon it leaves the plant. Therefore, under this current bussiness model, Bronco are inventory owned by dealers until they sell it to the buyer. And if you use a loan to buy it, the owner is the entity where you get the credit for until you fully pay it and you get the tittle.

edit: I'm pro idea that if you did a reservation, dealer must keep the price at msrp at least if not lower. However, msrp means Manufacture SUGGESTED retail price.

 

[Slick Rick]

Ford is going to crack down just like they did with Bronco reservations: not at all. In fact, they will wholly acquiesce to dealer demands just like they did with the Bronco by reducing the amount of Broncos sold matching the original reservation holder.

This is all PR BS. Completely hollow words.

You are correct! Farley talks out of both sides of his mouth at the same time. He won't even mention the word Bronco, that is a four letter word to Ford and not a six letter. I hope Ford management reads some of this, complete crooked trash. At the end of the day they don't even care what dealers charge nor what reservationist think.

 

[FLSTFI Dave]

I posted this elsewhere....At Ford service this week and watched them unload a Bronco 2-door Wildtrak, MIC top and LUX. Gets parked up front with the other 2 'stock orders'. I stroll by it a little while later and look at the window sticker....$20,0000 ADM. So much for 2-doors and MIC tops being hard to come by for retail orders.

That pisses me off on two fronts. 2-Door wild track with lux for stock. Yet my 2-door badlands cant get built, day three reservation. That bull crap @Ford .

Ridiculous ADMs piss me off too.

 

[Little Foot]

Towne Ford of Buffalo has a $10,000 markup on their Broncos. I just called about a Big Bendvthey have and that was the first thing they told me. I mentioned about Ford cracking down on markups and he seemed to not know what I was talking about.

Will Ford actually show some teeth and start calling these dealerships? I’m about to say the heck with it and go order a 4Runner that I will have in a few months….I want to play on the trails this summer and it doesn’t look like it will be in a Bronco.

@Ford Motor Company

 

[BigHoof]

Towne Ford of Buffalo has a $10,000 markup on their Broncos. I just called about a Big Bend they have and that was the first thing they told me. I mentioned about Ford cracking down on markups and he seemed to not know what I was talking about.

Will Ford actually show some teeth and start calling these dealerships? I’m about to say the heck with it and go order a 4Runner that I will have in a few months….I want to play on the trails this summer and it doesn’t look like it will be in a Bronco.

@Ford Motor Company

Your phone call ought to give you the answer. They could care less as it's all BS.

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