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Many vehicles currently over MSRP

Blitzjb

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CR Ford Authority article

2022 Ford Maverick Selling For Significantly Over MSRP Amid Chip Crisis

The semiconductor chip shortage and various other supply chain issues have made life difficult for automakers for the bulk of 2021, forcing massive production cuts that have led to dwindling inventory on dealer lots. In spite of this, consumers are still seeking out new vehicles and paying MSRP or more than MSRP to bring one home, which hasnā€™t helped matters one bit. When we take into account the fact that dealer-imposed markups are routinely applied to new and desirable products, that means a number of 2022 Ford Maverick pickups are going for a premium these days, according to Consumer Reports.

The 2022 Ford Maverick landed on CRā€˜s ā€œworst deals on new carsā€ list, which consists of the 10 new vehicles that are currently selling for the highest premium over sticker price. The Maverick tied for third-place with the Chevrolet Trailblazer, Hyundai Accent, Hyundai Venue, Kia Carnival, Kia K5, Kia Rio, and Kia Seltos, all of which are selling, on average, for 18 percent over MSRP. The Kia Sorrento and Kia Telluride currently top the list, as both are selling for 19 percent over MSRP.

These significant markups being applied to the Maverick diminish one of the compact pickupā€™s greatest selling points.- its shocking low MSRP. This is amplified by the fact that the sub-$20k hybrid model has been delayed until January, leaving the higher-priced 2.0L EcoBoost I-4-powered models as the only choice at the moment. As Ford Authority reported earlier this month, early Maverick buyers are also opting for better-equipped examples, driving the average transaction price up to $29,705 last month.

A quick search backs up these claims, as we were able to find a number of 2022 Ford Mavericks selling for significantly more than MSRP. That includes this all-wheel drive model listed for $8,000 over its sticker price, and this one thatā€™s listed for $3,000 over sticker. But the absolute worst offender we came across was this First Edition Maverick, which is listed at $51,260 ā€“ a whopping $14,600 over its MSRP of $36,660.
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Gamecock

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I donā€™t see how credit unions or banks will finance these cars that are 10-30k over MSRP. You would have to pay the difference in cash before financing.
What are you basing that on? Banks and CUs have financed ADMs in the past.
 

BroncoAZ

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I buy mostly GM trucks for my employer, about 30 per year. I previously worked in the dealer space as a consultant for 14 years. My fleet deals havenā€™t changed, but it takes a long time (4-6 months) to get trucks. I had to go off brand and get a Toyota and a Ford recently. Many of the Toyota stores were looking for $10K over sticker, and then when I found one at MSRP they tried to add an extra 2.5% onto my pre established financing to pack another $4K of profit into the deal. I ended up finding a Highlander for $1750 under MSRP but did pay a .5% rate markup ($750 to me if we take the loan to term). The Ford is a Raptor I was looking to order. Most dealerships were $10-25K over sticker. I found a dealer a little farther away who ordered one for sticker.

In a supply and demand economy I canā€™t blame the dealerships for marking things up to make a profit and keep the doors open. That doesnā€™t mean I like it, but they do have expenses and mouths to feed. The lots are bare with no cars to sell, most incoming units are sold before they hit the ground. If the dealership would usually sell 250 new and 250 used cars a month making an average net profit of $3K per and now sell a combined 30, they need to squeeze every bit of profit out of each unit to pay their bills. $40K on a RAV4 is retarded, but $5-10K over on a popular vehicle isnā€™t that terrible considering the inflation we are seeing in everything else. I donā€™t want to pay ADM on my Bronco, nobody does. Mine just got built and the dealership confirmed no ADM on any ordered vehicle when I stopped in a couple weeks ago. I had a signed Dora on my first order, but didnā€™t get an updated one when I changed trim.
 

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timstrong20

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What are you basing that on? Banks and CUs have financed ADMs in the past.
Not sure what bank you go through but in the past my credit union would run a check on the price of the car before finance of the vehicle. Pretty common from what I have seen.
 

Bonnie6G

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I buy mostly GM trucks for my employer, about 30 per year. I previously worked in the dealer space as a consultant for 14 years. My fleet deals havenā€™t changed, but it takes a long time (4-6 months) to get trucks. I had to go off brand and get a Toyota and a Ford recently. Many of the Toyota stores were looking for $10K over sticker, and then when I found one at MSRP they tried to add an extra 2.5% onto my pre established financing to pack another $4K of profit into the deal. I ended up finding a Highlander for $1750 under MSRP but did pay a .5% rate markup ($750 to me if we take the loan to term). The Ford is a Raptor I was looking to order. Most dealerships were $10-25K over sticker. I found a dealer a little farther away who ordered one for sticker.

In a supply and demand economy I canā€™t blame the dealerships for marking things up to make a profit and keep the doors open. That doesnā€™t mean I like it, but they do have expenses and mouths to feed. The lots are bare with no cars to sell, most incoming units are sold before they hit the ground. If the dealership would usually sell 250 new and 250 used cars a month making an average net profit of $3K per and now sell a combined 30, they need to squeeze every bit of profit out of each unit to pay their bills. $40K on a RAV4 is retarded, but $5-10K over on a popular vehicle isnā€™t that terrible considering the inflation we are seeing in everything else. I donā€™t want to pay ADM on my Bronco, nobody does. Mine just got built and the dealership confirmed no ADM on any ordered vehicle when I stopped in a couple weeks ago. I had a signed Dora on my first order, but didnā€™t get an updated one when I changed trim.
Appreciate the intel. Iā€™m curious, and maybe you know this - if a dealer is selling a bronco at an MSRP of $58k, what is the invoice price theyā€™re paying?
 

Little Foot

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Yeah, how about ~$100k for a Rav4!
Ford Bronco Many vehicles currently over MSRP 258104460_328239105307173_2550793402567735932_
I received this email by Star Lake Ford this morning when questioning their markups on their Broncos.
@Ford

Craziness!!!!! With dealerships like this, Why would Ford not entertain a direct sale model similar to Teslaā€¦.Give customers the choice to buy thru a dealership or buy direct.

63C9AC6E-FD94-4B51-9371-3B4797E46CA2.png
 

BroncoAZ

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Appreciate the intel. Iā€™m curious, and maybe you know this - if a dealer is selling a bronco at an MSRP of $58k, what is the invoice price theyā€™re paying?
I donā€™t have any specific insider info anymore, but on my $39K Black Diamond order MSRP to Invoice was only $1500. On the Across the board the MSRP to Invoice is getting slimmer. The Highlander I just purchased for work was $52K sticker and invoice was $49K. The dealer makes another ~2% holdback on the deal.

This is from Edmunds showing the Bronco invoice pricing.
Ford Bronco Many vehicles currently over MSRP 7865D158-24C6-4E16-B1A4-286EF43FF9E1
 

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67BroncoG1

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Even with countless emails documenting the purchase price and deal structure of my soon to be produced Bronco iā€™m still nervous that the try something when it shows up. They say they wonā€™t but you never know.
 

BroncoAZ

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I received this email by Star Lake Ford this morning when questioning their markups on their Broncos.
@Ford

Craziness!!!!! With dealerships like this, Why would Ford not entertain a direct sale model similar to Teslaā€¦.Give customers the choice to buy thru a dealership or buy direct.

Ford Bronco Many vehicles currently over MSRP 7865D158-24C6-4E16-B1A4-286EF43FF9E1
That actually seems like a pretty honest and straightforward answer. Looks like he is trying to justify $5K over MSRP, which isnā€™t unreasonable in this market. Like I said before, I donā€™t like it either, but the dealerships need to keep the lights on and mouths fed. Dealerships do make money in service and parts too, but techs are demanding more money or retiring, and they canā€™t get parts to sell due to supply chain issues. No dealership Iā€™ve talked to is doing well right now.

Itā€™s not just car dealerships running short on commodities. My local Marina is selling their allotment of 2023 outboards currently.
 

BroncoAZ

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