Highway Robbery or The New Norm

[sjjohnny]

It's just cause it is a Bronco.

There are two types of vehicles:

• The "appliance" vehicle... your daily driver. The one you don't really care about, but it gets good MPG, the one that you use to haul your family around it, etc.
• The "pleasure" vehicle... the car you want, the one that brings you happiness, takes you places you want to go, etc.

The Bronco for most people is that pleasure vehicle, and buyers of pleasure vehicles are very "sticky". If you are a looking to buy a Ford Mustang, chances are you aren't going to settle for Dodge Challenger, or a Chevy Camaro... you want a Mustang. If you are a Jeep Wrangler fan, that's the vehicle you want, there could be another type of vehicle that does everything the Jeep Wrangler does, maybe even for a cheaper price... but you still want the Wrangler. That is what the Bronco is to many people.

The market is starting to turn... but the first buyers who are going to give up are the "appliance" buyers. Maybe yesterday they were looking at the Ford Explorer, but now with interest rates and fuel prices they're now more interested in the Ford Escape. Maybe Toyota Avalon was looking good, but now they're looking at the Camry or Corolla. Or maybe they decided they are fine with their current vehicle for a few more years.

Prices have to go up a LOT more to shake those "pleasure" buyers. They're going to try to hold as long as they can.

Good post - but not only Broncos - relatively speaking, the Maverick is getting marked up. Extreme case -- but there is a guy on the maverick forum that paid 38K for a base XL model with msrp of 21K or so.

The situation won't change anytime soon... one article predicted that it will take 3-5 years for chip manufacturers to catch up. And of course we are still in a pandemic which will continue to interrupt manufacturing and supply side logistics... new cars will continue to be in short supply. Used cars are no bargain either.

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[madfella]

The question you should be asking yourself is your dealer going to bend you over and make you grab your ankles when your built bronco arrives

If they do, I will walk away. Which like someone else said, is probably the reason they have customers turning down their ordered Broncos.

 

[Dtronic]

Trust me...I understand the finance game. Unfortunately that's my career! I just don't understand where people, in their mind, come up with the fact that they have $10K to $25k EXTRA to pay for a $50k machine already.

I see it all the time with retirees. Northerners retiring to Florida. Selling their 30 year old house with no mortgage for 750K, paying cash for a 400K home and another 150k cash for vehicles.

Their mindset two fold. One it's free equity money, two they want to buy what they want now because "who knowd what tomorrow brings".

Beginning of January, I bought a new 2022 Camaro SS with 10k in options for msrp that someone put a deposit on, ordered and walked away. Same guy changed his mind 2 months later after he found out he physically couldn't get out of a c8 corvette.

It would take another 6-7 months to get in another one ordered that way. They contacted me since they know I buy and sell vehicles, gave me a price and I sold it back to the dealer so they could sell it to him.

I don't questions what others do.

 

[DaPierogiKid]

I see it all the time with retirees. Northerners retiring to Florida. Selling their 30 year old house with no mortgage for 750K, paying cash for a 400K home and another 150k cash for vehicles.

Their mindset two fold. One it's free equity money, two they want to buy what they want now because "who knowd what tomorrow brings".

Beginning of January, I bought a new 2022 Camaro SS with 10k in options for msrp that someone put a deposit on, ordered and walked away. Same guy changed his mind 2 months later after he found out he physically couldn't get out of a c8 corvette.

It would take another 6-7 months to get in another one ordered that way. They contacted me since they know I flip vehicles, gave me a price and I sold it back to the dealer so they could sell it to him.

I don't questions what others do.

I understand and didn't mean anything negative. Just amazed. Like I said, worked in both personal and commercial finance most of my professional life. I've seen some crazy decisions being made, but never questioned it after I presented my analysis. It doesn't stop me from being curious though....

 

[Yillbs]

This is true. And it will sell. They can’t keep them on the lot for more than 24 hours. I can’t do it. I loathe negative equity and I’m not putting 25k down on a vehicle.

It's not really negative equity if that's the value of the vehicle. Insurance companies are paying these prices out, private parties are getting damn near this now too. It's the current market. Assuming one day in the future it may drop in value is with any sale, but as of right now, buying 15-10k OVER MSRP is not going to net you negative equity, not when people are getting 60k+ for trade-ins on them.

 

[Datoad]

I’m getting impatient waiting for my Wildtrak so in April I bought a Big Bend Sport. The dealer knows I’m still waiting so my salesman sends me a message every time they have an order fall through. Two times I’ve almost done it (both times it was +10k over MSRP) but didn’t. Yesterday he sent me a picture of an Outer Banks in Gray and the sticker. Check out the attached pictures. $51k MSRP asking $75k…with no room for negotiation. So my question is this, is this the new norm…should I just break down and buy? I still probably won’t but I want to know what the general consensus is.

I was a day two reservation and my dealer agreed to MSRP. I have never checked but I would expect the ones they sell now have ADM. My loaded Badlands Sasquatch was $68,000 and I thought that was high.
Supply and demand will control the market as always, house’s, boat’s, RV’s, food, gasoline…..

 

[BroncoNS22]

These are rough times. These dealers can sense our desperation a mile away. If you already have a daily driver and this is just a toy to get dirty on the weekends, there is no way I’d pay $24k over MSRP.
Investing that $24k could help put the kids through college eventually, or help cover medical expenses in retirement, or help pay off the house early. Just a thought. That’s my thought process when I see a sick eruption green Bronco with a manual transmission… and a massive mark up.

 

[mrjking2000]

if you have $24,000 to light on fire and watch it vanish immediately go for it. if you don't want to reward cowardly behavior by the dealership, don't lol... i refuse to pay one penny over MSRP, in fact this will be the first vehicle i've ever paid MSRP for. I usually beat them up pretty good and get it a few hundred over dealer invoice. but i think those days are done.

 

[Zero_chance]

I’m getting impatient waiting for my Wildtrak so in April I bought a Big Bend Sport. The dealer knows I’m still waiting so my salesman sends me a message every time they have an order fall through. Two times I’ve almost done it (both times it was +10k over MSRP) but didn’t. Yesterday he sent me a picture of an Outer Banks in Gray and the sticker. Check out the attached pictures. $51k MSRP asking $75k…with no room for negotiation. So my question is this, is this the new norm…should I just break down and buy? I still probably won’t but I want to know what the general consensus is.

Not advisable to pay more for something you don’t want just one to get something close. All new models start out like this, it’s just been severely extended due to various outside circumstances. This is not the new normal.

 

[vzqhsg]

WALK AWAY!!! Wait for your truck. If we stop buying at absurd prices that can't sell them. I still don't understand why you would pay $10K or more over the value for something that will drop in price, quickly.

If this becomes the new norm dealers will close like doors. I still think that the goal is to have the mfgs. take over control of the industry. They control it, the feds control them. As a previous thread stated once the market tanks, more, an rates go up, Ford will have all kind of time to catch up on their orders.

 

[Lifeliberty]

No bronco is worth $75k.

That's more than my house, not kidding

 

[Big L 65]

People gotta stop pay these ridiculous mark ups. the repo man is gonna be busy in the next year or two I feel . People gonna be so upside down on these car notes . Then just then I’ll swoop in and buy at the discount rate

 

[EveryDayBronco]

My question, is what in the world are these people doing to have that kind of money?

It's easy money, they didn't work for it.

Us working folk can't pay those markups!

 

[Roger123]

I'd absolutely go for it, "Installation Set-up" is only $199, that's a STEAL!!

 

[Saw4Fire]

The people who pay that are people for whom the premium is pocket change, either that or they are being foolish. I would never do it. I have a signed contract with my dealer for MSRP. Yes, I'm waiting, but they are not playing these games.

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