Highway Robbery or The New Norm

[madfella]

I had a similar thing happen- bought an OBX Sport while waiting for my order- meanwhile the dealer tried to sell me a 4Dr Black Diamond for 20k over...
Just don't do it, enjoy the Sport (despite the bad-mouthing they are awesome little SUV's), wait for your order and enjoy fantastic trade in value when your Bronco arrives. They are worth the wait, but not worth the negative equity.

I really do like my little Sport.

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[‘21OBX]

Wrong or not - the lending institutions are financing them. Here's the Black Book screen shot on a USED '22 OBX 4 dr with Leather and 2.7 (I didn't add any other options - couldn't see what the sticker said for options in the included picture):

I don’t believe that what you have pictured is a leather v6 msrp way too low. And it says 4 cyl. My ‘21 leather 2.7 high package msrp was just north of $51k

 

[madfella]

Why are you doing business with them? To ask ADM and all that other crap from an order customer.........rip off ! The worst kind !

They weren’t always like this. And it’s getting worse.

 

[FrankyHotdogs]

I also think it's kinda ugly

That is basically my build except it’s not a Black Diamond.

 

[ctandc]

I don’t believe that what you have pictured is a leather v6 msrp way too low. And it says 4 cyl. My ‘21 leather 2.7 high package msrp was just north of $51k

It says 4cyl in that screen grab. For a used vehicle you check a box for 2.7 (it adds $725) and leather is another check box (+ $725) Here's the other part of the screen if it helps you "believe".

And if you look at the sticker in the picture that the OP attached - the MSRP before options is $42950 - if you are wondering where that MSRP value came from.

It's the base MSRP.

 

[madfella]

It says 4cyl in that screen grab. For a used vehicle you check a box for 2.7 (it adds $725) and leather is another check box (+ $725) Here's the other part of the screen if it helps you "believe".

And if you look at the sticker in the picture that the OP attached - the MSRP before options is $42950 - if you are wondering where that MSRP value came from.

It's the base MSRP.

That’s insane that they will finance that much more over MSRP. They’re creating a negative equity bubble. It’s not sustainable. What are people doing, 84 month loans?

 

[ctandc]

Wonder how much the dealer would get for that bronco if it accidentally caught on fire in the middle of the night.

A co worker bought a '21 4Dr OBX (think he had MID package not sure what else). He bought it from a family member who ordered it and paid MSRP. He didn't pay any mark up. His wife had been driving it for at least a few months before we got our '22 (in May). Not sure how many miles.

It was deemed totaled when someone rear ended it. The settlement check was $10K more than he paid for it.

 

[ctandc]

That’s insane that they will finance that much more over MSRP. They’re creating a negative equity bubble. It’s not sustainable. What are people doing, 84 month loans?

That's what I've been saying. It's a TOTALLY unique situation that I've never seen or heard of before and I know more than a few people who have been in the car business for decades (sales, GM, service and Finance people) and NO ONE I've talked to can remember anything like this.

The supply constraints (COVID lockdowns, supply chain, chip shortages etc) plus ramped up demand (regardless of shutdowns - new / used car demand was growing steadily during COVID - I'm betting people moving away from cities since they could now work from home helped this demand) has created a truly unique situation with both car sales, RV (boats, campers etc) sales and home sales as well.

It's one thing to buy a high demand and pay above sticker and use trade in equity / or cash down payment to offset that and finance it - but this is across the board.

Hard to see banks walking this back quickly as it instantly affects so many of the loans on their books.

 

[‘21OBX]

It says 4cyl in that screen grab. For a used vehicle you check a box for 2.7 (it adds $725) and leather is another check box (+ $725) Here's the other part of the screen if it helps you "believe".

And if you look at the sticker in the picture that the OP attached - the MSRP before options is $42950 - if you are wondering where that MSRP value came from.

It's the base MSRP.

Ahh the before options I can believe. That excludes the leather, v6, auto trans any package above base(mid,high,Lux)rear locker. The $50k is the actual msrp of that vehicle and makes more sense.

 

[Ground_zero298]

That’s insane that they will finance that much more over MSRP. They’re creating a negative equity bubble. It’s not sustainable. What are people doing, 84 month loans?

When I got mine I asked my bank what they thought it was worth. My sticker was 54k. They said they would approve it up to 62.5k without a down payment. Not sure who decides what these things are worth.

So 70k for a bronco off the lot is getting that down payment from you then that big ass loan.

 

[‘21OBX]

That's what I've been saying. It's a TOTALLY unique situation that I've never seen or heard of before and I know more than a few people who have been in the car business for decades (sales, GM, service and Finance people) and NO ONE I've talked to can remember anything like this.

The supply constraints (COVID lockdowns, supply chain, chip shortages etc) plus ramped up demand (regardless of shutdowns - new / used car demand was growing steadily during COVID - I'm betting people moving away from cities since they could now work from home helped this demand) has created a truly unique situation with both car sales, RV (boats, campers etc) sales and home sales as well.

It's one thing to buy a high demand and pay above sticker and use trade in equity / or cash down payment to offset that and finance it - but this is across the board.

Hard to see banks walking this back quickly as it instantly affects so many of the loans on their books.

Mine CU wouldn’t, they do $110% of value/msrp. Period I have to believe(hope) a lot that pay these prices are putting a good chunk of $$ down or at least buying the gap coverage.

 

[MayhemMike]

I for one can’t understand why anyone would pay well over sticker for a vehicle, let alone a model they didn’t order in the first place. But hey, that‘s me.

 

[widnere12]

I don't think this is permanent, but it is here for the foreseeable future. The unfortunate thing is that there are simply enough people with enough extra money to pay those prices. The same thing is happening to housing.

Most (not all) dealers are honoring MSRP on customer orders. If your dealer is honoring MSRP on your WT, just wait. You'll get it eventually and you'll kick yourself if you break down now and get a an email next month that your WT is being built.

Even worse... If you cant afford both of them, your dealer will get to pull the same BS on someone else making another 20k on your WT...

 

[ctandc]

They weren’t always like this. And it’s getting worse.

I'm NOT defending dealers that do underhanded stuff like jacking up prices on customer orders etc, but think about it from a difference perspective just for a minute.

The prices dealers pay at DEALER ONLY auctions for used cars right now is RIDICULOUS. The dealer is a business, they have to make a profit, so if they have to pay higher prices at dealer auctions to procure inventory, they have to sell for higher prices to make a profit.

Also, inventory in many parts of the country is still at weirdly low levels. So the high volume dealer (I'm friends with two different GMs at high volume dealers who regularly sold new cars at invoice or below before all this) now can't even get that inventory. So they have to sell at MSRP or higher to make the same profit margin since they are selling less vehicles than before all this.

I was talking to guy I know just the other day. He's a GM at an auto group. They sell Fords, Toyota, and a few others. He told me he's received only a handful of dealer stock orders from Ford in the last few months. They were all commercial trucks. He told me that pretty much EVERY new car / truck he receives now is a customer order. He told me about a long time customer who would come in every few years and buy a new truck (cash buyer). He never ordered one - just found one on the lot. He came in last year and was told if he wanted certain options, the best thing to do was order it. He didn't. He came back in recently and was told the same thing.

I've been listening to "..this will pass..." from different people for 2+ years now.

 

[thats_how_i_roll]

Did you guys see the dealer addendum on the right side of the sticker?!? I just saw “Lifetime Nitro Fill: $499.00”… GTFO with that BS.

agreed. would not do business with this dealership; the markup and all of the ridiculous dealer additions...what a crock.

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