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We Can Thank Pilson Auto Centers For Excessive Dealer Markups

rdass623

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I mean, everyone that it negatively effects should care. This is America. We don't need to tolerate shitty business practices by middleman dealers that only exist because they're protected from legitimate competition by outdated legislation in most states. Fuck dealerships.
go get your car from carvana or vroom.... those sites are what is driving market prices higher... they are the ones who are charging the exorbitant prices on used cars driving up market prices. so a dealer who also needs to maintain a brick and mortar business is not allowed to take place in the profit taking? keep buying your internet based vehicles, and when there are no dealers left there will be no one to honor the manufacturer's warranty and let you test drive a car...
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Silver-Bolt

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Ford dealer in SoCal did this with Raptors. They were paying ADM to other dealers then adding additional ADM on their lots. Several got burned when the supply pipeline caught up.
 

_finack

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This is exactly the same as what happens all the time when some desirable new product is released. Someone buys up as much inventory as they can and sells at a huge markup on eBay. Think the NES Classic Edition.

It only works if people feed the beast. People must be feeding the beast. Basic supply and demand.
 

GoTigersGoBronco

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I can't get mad at Pilson Ford for doing exactly what I'd do. They get penalized for selling to this vehicle to a non-reservation holder, so they've got to get it while they can.
 

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I watched Ford let its dealer network kill the Focus RS with ADM.
???

The RS sold so well Ford added another model year of production.
Not to mention I'm pretty sure they exceeded allocation for '16.

My dealer sold all his allocations, but had them put in a retail order for my car anyway and Ford ended up building it. I don't think he ever mentioned that to the people he had on the '17 waitlist lol.
 

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Supply and demand. You want a fixed price on an automobile? Move to the USSR or East Germany.

MSRP is a suggested price.
 

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???

The RS sold so well Ford added another model year of production.
Not to mention I'm pretty sure they exceeded allocation for '16.

My dealer sold all his allocations, but had them put in a retail order for my car anyway and Ford ended up building it. I don't think he ever mentioned that to the people he had on the '17 waitlist lol.
The RS sold so well they killed it after 3 years and refused to bring its successor stateside? Smart businesspeople there
 

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I bought my Focus RS for $5k+ under MSRP in 2018 when there were only 1000 made. Don’t buy from dealers who add ADM, it’s that simple. There’s plenty of dealers around who will make deals. Ignore the shit dealers and buy from the good ones.
There's a lot more to it than this. You can't just buy from the good dealer once when they are willing to deal when no one else is and then go back to your old ways of dealing local when things are easy everywhere. You have to keep buying from the good ones (assuming same make).

Chapman Horsham is now my Ford/Chrysler dealer for life as long as they continue to operate the way they currently are. They earned my trust on the Bronco, and i'm sticking to em going forward and recommending them widely.
 

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I watched Ford let its dealer network kill the Focus RS with ADM. It will choke out the GT500 - a dealer near me has had one at 30k markup for nearly 6 months. They’ll let it BADLY damage the Bronco as well. A friend of mine just ordered a Hellcat for 6% under MSRP, an actually limited vehicle. This really only happens to Ford and it’s time corporate actually does something with teeth about this. Heavy sanctions, not allowing non customer matched Broncos to be sold without Ford corporate offering them to other res holders irrespective of dealership, something. I refuse to believe they just can’t do anything.
Ford is terrible at that, my wife is looking at a new vehicle since I got my bronco, and ram is actually having incentives to buy their ram 1500 which is crazy, though the dodge dealership closest to me is even worse than Ford with the mark ups. It's just the world we live in now. There are still some dealers that go for volume over mark up. Not too many anymore though
 

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go get your car from carvana or vroom.... those sites are what is driving market prices higher... they are the ones who are charging the exorbitant prices on used cars driving up market prices. so a dealer who also needs to maintain a brick and mortar business is not allowed to take place in the profit taking? keep buying your internet based vehicles, and when there are no dealers left there will be no one to honor the manufacturer's warranty and let you test drive a car...
I switched from Bronco to a Rivian R1S LE order late last year, so...mission accomplished? I'd still like get a Bronco Raptor in a couple years if/when the inevitable dealer price gouging eases up; we'll see how that goes.

BTW used car dealers serve a functional purpose by facilitating resale between non-business entities that can't or don't want to engage in the labor of marketing and closing a private sale. Used car prices aren't being affected by bad actors, just unavoidable new vehicle supply issues due to the chip shortage.

New car dealers, on the other hand, shouldn't exist anymore. While state franchise laws were intended to "protect" consumer interests against manufacturers, at this point manufacturers have shown they're perfectly capable of running direct sales operations in a more efficient, cost effective, and consumer friendly manner. At this point they're just grifting middlemen that provide little tangible benefit to consumers and generally ruin the car buying experience.
 

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guernsej

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It only affects someone negatively if they choose to take part in the dealings.
That's a false dichotomy. I can choose not to take part in the dealings while still criticizing dealerships for engaging in shitty anti-consumer practices.

I'm a huge fan of Ford and their vehicles, and I have my money where my mouth is, but one of their biggest hurdles in a market that's embracing the "Tesla effect" of straightforward consumer sales is their shitty dealer network won't stop trying to rip off customers.
 

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I can't get mad at Pilson Ford for doing exactly what I'd do. They get penalized for selling to this vehicle to a non-reservation holder, so they've got to get it while they can.
As we are now all well aware, this is going on all over, not just a couple of dealers. You can bet it's going on right here on this forum as well. Some of those screaming the loudest are probably planning to flip their Bronco as soon as it arrives. Many have possibly put themselves in a shaky financial position in anticipation of that windfall that's a long time coming.
 

Bituman

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If a dealer sells everything on his lot at a good price but then has an empty lot while others have cars to sell, what has he done to himself? The problem is the supply, not the demand. For now, there is no supply. Same with the RV industry. Eventually the supply will catch up to the demand and if it doesn't then we are all screwed anyway. It's all vehicles. Met a guy yesterday that paid $10K over for a KIA, and he was glad it wasn't $15K. If you want a good deal, you'll have to wait a while.
That last sentence pretty much sums up the current issue with buying a Bronco…well said. Simple and to the point.
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