Ford to Dealerships: No Markups (ADM) on New Broncos

desert_rat

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Granger Ford

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Bozard Ford might be the funniest dealership name i've ever heard
Try Dick Witham Ford in Iowa... ?

Not picking on them, they are a great bunch of people and good store, but it does put a smile to my face when I see the dealer tag on the back
 

Father Time

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I noticed right now Ford has been advertising 0% financing across the entire lineup. Do you think that will include Bronco? Thanks...
 

Granger Ford

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I noticed right now Ford has been advertising 0% financing across the entire lineup. Do you think that will include Bronco? Thanks...
Not likely but if they do I am using their money for the purchase...
 

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Alot of good news in this thread. Thanks to all for doing some research for us!
 

DrPerez007

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Never pay Additional Dealer Markup (“ADM”). All it does is screw you and encourages the dealership. Once you agree to it, they have the upper hand throughout the negotiations. And you will need more than one jar of KY Jelly because after they run you through the gauntlet of “profit making” products in the Finance office you will barely be able to sit comfortably in your new Bronco. Don’t worry, the swelling will probably go down at some point.

Every “hot” model starts with ADM. Mazda Miata was a $13,000 car with a $10,000 ADM at some dealers when it first appeared in 1989. Since then, numerous other vehicles have worn the ADM tag including, among others, the Ford Raptor, Dodge Demon, Jeep Gladiator, new Corvette, even the Kia Telluride and Toyota RAV4 Hybrid. Seriously, a KIA with ADM? And the list goes on.

And very, very few of these will hold that over-MSRP value for any period of time. I assure you that within a year or two many of these vehicles will sell at average book or below at the Manheim Auto Auction. A vehicle is a commodity and it’s price is determined by supply and demand. But vehicles have almost an infinite availability if you are willing to substitute a similar vehicle or willing to wait out a high-price period. Many Jeep Gladiators got $10,000 ADM’s slapped on them when they first hit the dealer lots. Yet before the year was up, many dealers were selling them for less than MSRP, and during the COVID sales of April, FCA discounts combined with dealer discounts put some Gladiators at or over $10,000 in discounts. That means those that paid an ADM will not see a penny of it returned at sale time. [As I type this, to my right is a Jeep ad for the 2020 Gladiator that reads "Employee Pricing For All" with discounts $5,103 below MSRP. Add in dealer discounts and we're talking serious money.] Even the supposed "hot" new Jeep JL Wrangler has been discounted heavily at times by FCA (in April I bought a new '19 Jeep MOAB for the wife at over $10k off MSRP). My fairly in demand '19 Ford Ranger was close to $10k off, as well, during a "hot" Ford sale late last fall.

There is no vehicle worth paying an ADM unless you know for certain that they are only making a handful of them and it truly will become “collectible.” I don’t have enough knowledge about foreign cars to tell you what those might or might not be. But “Detroit Three” metal that would justify an ADM are far and few between. Ford will produce plenty of Broncos. If necessary, they will run round-the-clock shifts and crank them out.

Also, keep in mind, some percentage of those people that put deposits down (“reservations”) on the Bronco will cancel. Tesla had an approximate 25% cancel rate on the Tesla 3 deposits. And they were $1,000 (refundable). Ford only asked for $100, so how many people jumped into this thinking “WTH” knowing they could get their $100 back at some future date or maybe even sell their reservation? And a true production date is still uncertain for the Bronco. Even some people on this very Forum will never buy a Bronco. So demand, while expected to be high, remains uncertain.

My point is, there will be plenty of Broncos to go around. While the “First Edition” will obviously be a limited production run (although numbers were recently doubled arbitrarily by "consumer demand") and the first few months of Bronco production will certainly be “up in the air,” at some point things will quickly settle down and Broncos will be as ubiquitous as any other Ford product. And there will be discounts on them as there is on every other Ford product. In fact, I personally would not even pay MSRP for a Ford or any vehicle for that matter. If you are one of those that has to be the "first on the block" to have one, plan on paying a little more, but skip the ADM. Keep in mind, we here on the Forum are caught up in the Bronco hype; most of America is not.
 
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Marauder

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Honestly, it’s odd it’s a question. Imagine ordering something, it being delivered to the post office, and the post office adding an additional 10% because it slapped some American Flag Stickers on the box and replace the factory tape w/duct tape w/out your consent.
 

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Kind of off topic, but speaking of getting taken to the cleaners in finance, does Ford allow you to shop other dealers for the extended warranty? For example, my Toyota dealer in AZ wanted to sell me a warranty for 1,800 bucks but I worked with a dealer in MI buy the same Toyota warranty for $400. I have done this twice now. The second time my dealer ended up matching the price from the MI dealer.
 

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I noticed right now Ford has been advertising 0% financing across the entire lineup. Do you think that will include Bronco? Thanks...
Doubtful. Bronco is a high demand vehicle. Ford may do special offers to not give the business to other banks, but i can't imagine them doing 0 out the gate.
 

Hamhands

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If this economy keeps up, Ford will be begging me to take delivery. We may need to renagoiate the price in my favor when my bronco finally shows up. And Ford had better be prepared to offer me 0% financing for 72 months. Truth
 

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Kind of off topic, but speaking of getting taken to the cleaners in finance, does Ford allow you to shop other dealers for the extended warranty? For example, my Toyota dealer in AZ wanted to sell me a warranty for 1,800 bucks but I worked with a dealer in MI buy the same Toyota warranty for $400. I have done this twice now. The second time my dealer ended up matching the price from the MI dealer.
Yes, I've purchased my previous Ford warranty online at Zeigler Ford.
 

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JesseS

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The Dealer finance 'Upsale' gauntlet is one reason I either pay cash, or walk in with a check from my credit union. As B&P isn't out my final price is up in the air, but I am prepared to pay cash up to about $45K, if over that it depends on Ford as I can get 2.5 (my fico is 840) from my CU.
 

NayNay

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Just as a side note. Many states (not all) have a doc fee cap by law. Also dealers may try to add additional front end products to things on their lot, but, they can not add items to an order to force you to pay more, that too would be breaking a law. Do the homework on the dealers you buy from. This way they can't get away with anything.
 
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