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My local dealers attitude towards MSRP and below dealers

Garemlin

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So on a whim I decided to stop by my local small town Ford dealer yesterday to see where they were at with Bronco orders and allocations. I have bought from them in the past but it has been a while. Talked to the sales manager. Sales guy I have dealt with in the past was out to lunch.

First question was how many unfilled orders do you have??
Answer: He wasn't sure but went to his desk and pulled out a stack and made it seem like it was a lot. He counted 29. I guess for a small dealer in a town of 11k that's a lot.

Second question was what are your allocations for the year??
Answer: I have no idea.

Final question. The big one. Are you selling for MSRP on customer orders??
Answer: (With a chuckle) No we are selling all Broncos for $5000 over MSRP.

This is where the fun started. I said I currently have an order and I am paying $2500 under MSRP. He didn't believe me and proceeded to drag another sales guy into the conversation. Telling him what I am paying. He said no way and started on the "dealers are getting $30k over on Broncos. I said yeah but there are several dealers across the country selling for MSRP and below as well. They started on "they're not making any money then. What is the benefit of them selling for that cheap??" I said I hardly think they aren't making any money or they wouldn't be doing it. Sales guy said if he worked at a dealer that was selling Broncos for at or below MSRP he would quit. LOL I told them flat out not all dealers are greedy and want to be opportunists. They need to remember, that in a few years these will be on dealer lots with rebates and incentives. These are not limited production vehicles. And if they do forget it, the customers that they tried to take advantage of will remember how they were treated in the future.

Gotta love that small town mentality. It happens all the time around here. Try to walk into a local dealer and buy a Wrangler or a Gladiator for anything below sticker and they will tell you straight to your face there is no buying one at a discount unless there are factory incentives.

I really don't understand why dealers that don't discount find it completely unfathomable that some dealers do. And insist that those dealers are losing money on every sale.
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Gamecock

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So on a whim I decided to stop by my local small town Ford dealer yesterday to see where they were at with Bronco orders and allocations. I have bought from them in the past but it has been a while. Talked to the sales manager. Sales guy I have dealt with in the past was out to lunch.

First question was how many unfilled orders do you have??
Answer: He wasn't sure but went to his desk and pulled out a stack and made it seem like it was a lot. He counted 29. I guess for a small dealer in a town of 11k that's a lot.

Second question was what are your allocations for the year??
Answer: I have no idea.

Final question. The big one. Are you selling for MSRP on customer orders??
Answer: (With a chuckle) No we are selling all Broncos for $5000 over MSRP.

This is where the fun started. I said I currently have an order and I am paying $2500. He didn't believe me and proceeded to drag another sales guy into the conversation. Telling him what I am paying. He said no way and started on the "dealers are getting $30k over on Broncos. I said yeah but there are several dealers across the country selling for MSRP and below as well. They started on "they're not making any money then. What is the benefit of them selling for that cheap??" I said I hardly think they aren't making any money or they wouldn't be doing it. Sales guy said if he worked at a dealer that was selling Broncos for at or below MSRP he would quit. LOL I told them flat out not all dealers are greedy and want to be opportunists. They need to remember, that in a few years these will be on dealer lots with rebates and incentives. These are not limited production vehicles. And if they do forget it, the customers that they tried to take advantage of will remember how they were treated in the future.

Gotta love that small town mentality. It happens all the time around here. Try to walk into a local dealer and buy a Wrangler or a Gladiator for anything below sticker and they will tell you straight to your face there is no buying one at a discount unless there are factory incentives.

I really don't understand why dealers that don't discount find it completely unfathomable that some dealers do. And insist that those dealers are losing money on every sale.
He’s just short sighted. I promise you that the dealer that I got mine from for 3% below invoice will make WAY more off Bronco this year and next than that podunk dealer. Way more.
 

greatlakes

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My local dealer described it well: "This market is a window, and will not last forever. But when it's over, customers will remember which dealers treated them fairly."

They are selling bronco orders at MSRP.
 

Stampede.Offroad

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They only get away with this **** because the dealership system gives them a monopoly.

People need to back ballot initiatives to get rid of this system, the politicians aren't going to introduce legislation to do it, they get campaign funds from them.
 

goatman2

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I dropped by to check on my order a few days ago. My dealer is selling orders at MSRP, like mine is, but they said cancelled orders that go on the lot are priced at 10k over. I don't have a problem with that because it really is the market at this time. While it's criminal to hold up someone with a previous order that is expecting MSRP, it is a fact that other dealers are buying Broncos at over MSRP to resell them, so to me it's reasonable to sell a Bronco that is on the lot for some amount of ADM. Used cars are worth quite a bit more than even a few months ago, WAY more than a few years ago, don't have a problem with some market price adjustment on new vehicles if the market will bear it. But, dealers and everyone else absolutely should keep their word on commitments.
 

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My local dealer described it well: "This market is a window, and will not last forever. But when it's over, customers will remember which dealers treated them fairly."

They are selling bronco orders at MSRP.
Exactly what I have been saying since this ADM crap started. Not only will customers remember who treated them fairly. The ones who were taken advantage of, or dealer tried to take advantage of them will not only remember it. They will likely be more vocal about that.

People with negative opinions or experiences are always more vocal than those with positive feedback.
 

gdgraph

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My dealer is letting you order it at MSRP, but if they have one in the lot they are market up a lot. Both of which seems fair.

The only thing that I wish Ford would change is that they offer some type of discount to those that have Z-plan (or any other employee discount) due to the many canceled orders and extremely long wait times. Once you put your order in, you get nothing, no estimated delivery date, not confirmation or anything, it can be months until you get you scheduled build date and only then can you somewhat get an idea of when it will come in.
 

Snowdogyyz

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I would have just said “and this is why I’ll NEVER buy a vehicle from you”. Then walk out.
 

goatman2

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They only get away with this **** because the dealership system gives them a monopoly.

People need to back ballot initiatives to get rid of this system, the politicians aren't going to introduce legislation to do it, they get campaign funds from them.
I'm curious what type of distribution system you propose would be better? There must be local outlets for sales and service. Are you proposing they should all be factory owned rather than (usually) locally owned? If this is what you are proposing, then how is the dealership model a monopoly? Factory ownership would be considerably more monopoly. Curious what is the reasoning behind your comment, and others who say the same thing.
 

shimmy825

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I'm curious what type of distribution system you propose would be better? There must be local outlets for sales and service. Are you proposing they should all be factory owned rather than (usually) locally owned? If this is what you are proposing, then how is the dealership model a monopoly? Factory ownership would be considerably more monopoly. Curious what is the reasoning behind your comment, and others who say the same thing.
It’s not a monopoly, it’s collusion.
 

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VictoryLights

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There are more than “several” dealers selling for MSRP. Unless things have changed in the past couple of months since I got mine.
 

LarryZiegler

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My dealer is letting you order it at MSRP, but if they have one in the lot they are market up a lot. Both of which seems fair.

The only thing that I wish Ford would change is that they offer some type of discount to those that have Z-plan (or any other employee discount) due to the many canceled orders and extremely long wait times. Once you put your order in, you get nothing, no estimated delivery date, not confirmation or anything, it can be months until you get you scheduled build date and only then can you somewhat get an idea of when it will come in.
Interesting, as when I put my order in back in Jan, I received an order confirmation email directly from Ford. It did take a few months, but I also received emails with the original proposed build date and subsequent postponements until the final email was received in Sept that the roof would be replaced in November, which occurred.
 

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I paid msrp here in Northern NY, the competition in a nearby town selling at msrp as well. One dealer. In area is charging adm.
 

bytheway

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My local dealer described it well: "This market is a window, and will not last forever. But when it's over, customers will remember which dealers treated them fairly."

They are selling bronco orders at MSRP.
I paid invoice price. The GM of the dealer said pretty much the same thing. They would rather a customer be happy and come back for a lifetime than make a sale once and never see them again.
 
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Garemlin

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There are more than “several” dealers selling for MSRP. Unless things have changed in the past couple of months since I got mine.
Your takeaway from that was to try to correct the way I stated more than a few??

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