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My local dealers attitude towards MSRP and below dealers

Carolina Jim

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Here's the question you have to ask yourself: "in general, is the US population getting smarter or dumber?"

I keep seeing articles that half the US households cannot handle an unexpected $400 expense. So I'm thinking 'dumb & getting dumber by the minute'. The auto dealer model is a perfect fit for 90% of the market they serve.
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Stampede.Offroad

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Exactly how is this a monopoly? ...
One source of goods in a market = monopoly. The dealerships define what their market is in a franchise like system, and it is backed by state law -- it is also akin to a professional licensing board that presumes the elite tradespeople would be the best ones to determine who is qualified to participate in their trade. Unlike medical licensing or other professionals though, the dealership system is set up to empower the dealerships and protect them from the manufacturers, not to protect the consumer.

If you got Ford to deliver you some Bronco's, you would not be allowed by law to sell them as new. No matter how sleazy the local dealer was, or what price they sold their goods at, you would not be allowed to compete with them -- and in many cases Ford wouldn't get any say in the matter either, or so many hurdles are in place to cripple their attempt that they just don't bother.
 

Bob 07064

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Most dealers aren’t assholes. So this problem you are talking about isn’t rampant. Also with a direct to consumer sale there would never be incentives or buying below msrp which a lot on this forum like doing. Like I said before you are trading one set of issues for another. Not to mention Tesla doesn’t have a coast to coast service network that dealers provide. Look at all the places you can’t buy or service a Tesla and btw no one but Tesla can work on it.
The biggest reason Tesla isn't nation wide boils down to population. In middle America you have a shit ton of open space, not much population. As more car manufacturers come on line with ev's that'll change. Hyundai just announced they are no longer investing in internal combustion engines. Going all ev. And so are others. Toyota is investing in hydrogen. It's only a matter of time before its more widely excepted.
 

Bike007b

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You are right there. Negative is shared with 9 to 1 vs. good service.
 

Efthreeoh

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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.
LOL. No this is incorrect.
 
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Balthezor

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I work at a dealer in GA and we do orders at MSRP, but $2500 under? Theres barely $2500 of markup in the trimmed out Broncos, thats wild.
I got mine for invoice, which was about $2500 below sticker. Dealer was pretty happy with my business. Sales manager changed my order 300 times with my constant change of mind with no complaints and within a few hours of an email. I never called or even met him. Also, I didn't put a deposit down since Ford refunded me that $100.
 

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I work at a dealer in GA and we do orders at MSRP, but $2500 under? Theres barely $2500 of markup in the trimmed out Broncos, thats wild.
I'm getting mine $3,100 under MSRP, so clearly there is room.
 

Heffe66413

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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.
There are several reasons a dealer may choose to sell at MSRP. 1. A happy customer 2. Buyers more likely to look to the dealer for accessories if available 3 service work in the future and 4. Future sales. On top of all of that is a great reputation.
 

Rubicon 2 Badlands

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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.
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AP_2004

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Ford almost got it right with the whole reservation thing. The issue comes when they assigned you to a dealer to place the actual order. If they can run it like Tesla and still maintain the repair facilities as just that then it could work. That is of course you believe the bullshit story that dealers make no money on vehicles except for service and repair work.... ;)
Yes. Maybe for this reservation process, the dealership should’ve just been the pickup location for your Bronco. Paperwork already complete with Ford, dealership verifies your info and hands you the keys. All these Ford emails say “your Bronco” but some dealerships are acting like it’s their Bronco when it wouldn’t be there if not for the customer placing an order for for it.
 

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Many cars are selling for over msrp currently. Not just broncos !
 

Bob 07064

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Yes. Maybe for this reservation process, the dealership should’ve just been the pickup location for your Bronco. Paperwork already complete with Ford, dealership verifies your info and hands you the keys. All these Ford emails say “your Bronco” but some dealerships are acting like it’s their Bronco when it wouldn’t be there if not for the customer placing an order for for it.
It actually is theirs. When I gets delivered the dealer gets "charged" for it. Then the dealer sells it to you.
I agree that we should have been able to do it all thru the Ford site and just go to the dealer, sign some documents and drive away.
 

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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.
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mdk77

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There are several reasons a dealer may choose to sell at MSRP. 1. A happy customer 2. Buyers more likely to look to the dealer for accessories if available 3 service work in the future and 4. Future sales. On top of all of that is a great reputation.
Yes. I already have some post-delivery accessories lined up with my dealer. I think knowing that they give me a fair deal will mean I go to them and only them for accessories and services. And they are right - I will !
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