Who has the leverage in all this: Buyer or Dealer?

[BroncOBX]

In thinking about negotiations with dealerships I am curious to know in a situation like we have here with a popular new release with a lot of interest...who has the upper hand dealer or buyer? Dealer that has the product that is in demand but they know there have a buyer class that can use the 'net to shop around and pit dealer against dealer, or a buyer who can use internet research and forums like this to shop around but the dealer knows there is a strong desire by the desire to get the product right now? Just thinking out loud...

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[BlueBronco]

With the Bronco and a one on one transaction, unfortunately I think it is the dealer. Looks at the numbers of reservations that are tallied here, we are but a small minority compared to the 160k+ that Ford has. Fortunately, many of us have realized there is strength in numbers and thus the many group buys that have popped up.

 

[elfshadow]

In this case, I would say the dealer has the leverage. I mean, choose the right dealer so you can get the X-plan and stuff, but beyond that, if you try to play hardball, there's probably a dozen people or more at your local dealer ready to buy anything that hits the showroom floor from any reservations that fell through.

 

[KosmicKid]

Depends: if you have a reservation I would think you have the upper hand as long as you know where your dealer stands on X Plan & ADM & 'required' dealer add ons because you can always switch (prior to 31 Oct)
Not to say they won't try to pull a fast one once it comes in but you need to do your due diligence prior.
On the other hand, if just come in off the street and want one then the dealer has the upper hand cause your choice to take one from the lot (if there is one) or wait an extended time and the dealer can charge anything he wants: take it or leave it. Someone at some will want it at that price..

 

[perfectburrito]

In this case, I would say the dealer has the leverage. I mean, choose the right dealer so you can get the X-plan and stuff, but beyond that, if you try to play hardball, there's probably a dozen people or more at your local dealer ready to buy anything that hits the showroom floor from any reservations that fell through.

Unfortunately I think you're correct and these order-refusal units will see HUGE markups that will be happily paid. It's a reason I think dealerships can afford to stretch a little to secure more orders.

 

[elmystico]

The dealers are salivating, waiting to jump on anyone who balks in the financing room at the very end when the vehicle is delivered to their lots. Buyers can't just sit back and wait until then, thinking they will just negotiate as if the dealer needs their money right then and there. If a buyer doesn't bring X-Plan or have the benefit of being part of a group buy with a pre-negotiated price, they are at the mercy of their chosen dealer.

 

[Bronc-O]

If you really have to buy a Bronco, the dealer probably does. If you don't like the terms and don't buy, you do. If that happens to me, I still have 3 other vehicles on my list.

 

[Sighlense]

take it or leave it. Someone at some will want it at that price..

This is what the dealer said when i questioned their 16k markup on the GT350 i wanted. I turned around and left the lot without saying another word.

 

[elfshadow]

The dealers are salivating, waiting to jump on anyone who balks in the financing room at the very end when the vehicle is delivered to their lots. Buyers can't just sit back and wait until then, thinking they will just negotiate as if the dealer needs their money right then and there. If a buyer doesn't bring X-Plan or have the benefit of being part of a group buy with a pre-negotiated price, they are at the mercy of their chosen dealer.

Yeah - I plan on going the X-Plan route and probably have at least one credit union type financing option in the back pocket.

Normally, I feel pretty good going in to buy a car as I have no problem walking off a car lot if I don't think I'm getting a good deal, as there are plenty of others. With this one, they'll just turn around and sell it to someone else without a reservation at a premium.

 

[Bronc-O]

Unfortunately I think you're correct and these order-refusal units will see HUGE markups that will be happily paid. It's a reason I think dealerships can afford to stretch a little to secure more orders.

Dealers will likely have a list of "call me if something hits the lot" customers that will snap those right up.

 

[Haulin455]

This is why I advised people to make two reservations weeks ago. When December rolls by and you are getting ready to place your order then you have 2 dealers fighting for your business instead of locking yourself into one dealer.

 

[LSU Jonno]

In thinking about negotiations with dealerships I am curious to know in a situation like we have here with a popular new release with a lot of interest...who has the upper hand dealer or buyer? Dealer that has the product that is in demand but they know there have a buyer class that can use the 'net to shop around and pit dealer against dealer, or a buyer who can use internet research and forums like this to shop around but the dealer knows there is a strong desire by the desire to get the product right now? Just thinking out loud...

The dealer has all the leverage. You pick your dealer by Oct 31st. You order your bronco in December, and you are already locked in to your dealer.

You are locked in with a dealer trying to by a car that is in huge demand, and if you walk away it may be months before you have an opportunity to buy again.

That's why you want X-plan. You aren't going to get a "deal" on a vehicle that you pre-order and customize. You want "rip-off protection".

 

[elfshadow]

That's why you want X-plan. You aren't going to get a "deal" on a vehicle that you pre-order and customize. You want "rip-off protection".

Love it! "rip-off protection"! That's about how I feel!

 

[Mke_80]

I don't think there will be one bronco ordered over msrp for forum members. I think that anyone with enough time to search the web and find this forum will be able to get a fair price for the Bronco . Thank to all of you!

Now everyone is looking for Dealer and Dealer should take adavantage of this. Promote and look for new customers.

The leverage will shift from Dealer to customer when everything is locked after October.not the opposite!

Let me explain ...

We already know there is too much reservation for 2021 alone, so the early reservation are gold for dealers now. Trust me dealer want to make number in 2021 not 2023 especially after the covid stuff.
But once it's lock the dealer will have to sell a 2023 bronco in 2021. At what price?


Now Imagine a dealer that got 500 reservation , everyone wanted to go there because he was giving the best price, x-plan or else . Now imagine that same dealer not asking for any deposit or finance info before the delivery. Imagine that same dealer getting 10-20% finance refusal, walk outs, no show and so on.

That means 50 to 100 made to order bronco to sell. They will sell , but I don't think the price will be over msrp.

Then, just wait for Jeep in June 2021 0% finance . minus 5k or more they can have incentive to the max. And imagine the V8 ready for next summer. ( even if everything would have been decided back in December) client have no risk until delivery. They can change there mind and go pick up a V8 wrangler for the price of a ecoboost 2.3 . If the Ford bronco brand is not a must buy.

So now the dealer as the leverage because they get a list of potential buyers. After orders in December the Customer will have the bronco he wants without any risk, all the risk will be for the dealer.

The number of reservation is the protection, 10k reservation would not have made the same impact as 200k reservation. they can't over msrp price 200k bronco . It wont work. Just ask jeep about the gladiator.

 

[toystwo]

The dealer has all the leverage. You pick your dealer by Oct 31st. You order your bronco in December, and you are already locked in to your dealer.

Anyone can get a dealer to agree in writing to X amount above or below invoice before Oct 31 (also stipulate no additional add-on‘s and set the doc fee). If they won’t do that, you approach another dealer. You will eventually find one that will agree to fair terms.

X-Plan is fine, but it’s not the only way to ensure you pay a fair price at delivery.

The customer has the leverage with this pre-order system.

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