Why dealers charge over MSRP for Raptors…

Squatch Bronc

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JohnGalt

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MSRP, is the "Manufacturer's Suggested Retail Price." A dealer can sell any vehicle for whatever the traffic will bear.

Every vehicle a dealer sells has three prices:

1. The MSRP, on the window
2. The price a customer is willing to pay
3. The price the dealer will accept.

Which price do you think will ultimately prevail?
2 of course! Thus the marginal price for a Bronco Raptor today is about 50k over MSRP for cash and carry (actually I think this will be cash and wait like the rest of us) FOB Casper, WY
 

Squatch Bronc

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2 of course! Thus the marginal price for a Bronco Raptor today is about 50k over MSRP for cash and carry (actually I think this will be cash and wait like the rest of us) FOB Casper, WY
The correct answer is always 3. No vehicle is sold till the dealer agrees to sell it.
 
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JohnGalt

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Sure, but it takes two to tango.

Under the assumption that the dealer wants to actually run an ongoing business they‘re going to accept what a customer will pay. Otherwise they’re not a dealer they’re a car collector.

what interests me more from this whole ADM thing is why Ford doesn’t raise their MSRP on the Raptors and other limited production vehicles. Why let the dealer or resellers take a slice? If they raised the MSRP by $5k on the 5000 (guess) Braptors and 25000 Raptors they’d make an extra $150 million a year, still sell all those trucks and customers would be delighted that they “didn’t have to pay over MSRP”.
 

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Razorbak86

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MSRP, is the "Manufacturer's Suggested Retail Price." A dealer can sell any vehicle for whatever the traffic will bear.

Every vehicle a dealer sells has three prices:

1. The MSRP, on the window
2. The price a customer is willing to pay
3. The price the dealer will accept.

Which price do you think will ultimately prevail?
The correct answer is always 3. No vehicle is sold till the dealer agrees to sell it.
The correct answer is always...

4. The transaction price.

The rest are just reference information (#1) or preliminary negotiating positions (#2, #3). When #2 and #3 finally converge, the transaction closes, documenting #4.
 

Squatch Bronc

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The correct answer is always...

4. The transaction price.

The rest are just reference information (#1) or preliminary negotiating positions (#2, #3). When #2 and #3 finally converge, the transaction closes, documenting #4.
That makes no sense!

There is no such description on a sales contract called, "The transaction price."

It's called "Sale price." That is number 3, and it's determined by what the dealer agrees to sell it for.

tax, lic., and every fee and charge after the sale price, is also out of the control of the buyer.

Try to tell the Ford dealer you are not going to pay what he is asking for a new Bronco, and see what happens. There are people standing behind you who will pay what the dealer demands. You will drive home in your old truck.

That's just the way it is. I realize this younger entitled generation thinks they can do whatever they want, but it won't work right now if you want to buy a new Bronco.

We all pay what the dealer will accept.
 

Coloradonatives

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Sure, but it takes two to tango.

Under the assumption that the dealer wants to actually run an ongoing business they‘re going to accept what a customer will pay. Otherwise they’re not a dealer they’re a car collector.

what interests me more from this whole ADM thing is why Ford doesn’t raise their MSRP on the Raptors and other limited production vehicles. Why let the dealer or resellers take a slice? If they raised the MSRP by $5k on the 5000 (guess) Braptors and 25000 Raptors they’d make an extra $150 million a year, still sell all those trucks and customers would be delighted that they “didn’t have to pay over MSRP”.
That is absolutely a ridiculous statement.
 

gryphon1231

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mcinfantry

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Sure, but it takes two to tango.

Under the assumption that the dealer wants to actually run an ongoing business they‘re going to accept what a customer will pay. Otherwise they’re not a dealer they’re a car collector.

what interests me more from this whole ADM thing is why Ford doesn’t raise their MSRP on the Raptors and other limited production vehicles. Why let the dealer or resellers take a slice? If they raised the MSRP by $5k on the 5000 (guess) Braptors and 25000 Raptors they’d make an extra $150 million a year, still sell all those trucks and customers would be delighted that they “didn’t have to pay over MSRP”.
I agree
Ford should raise the prices
Can you imagine the whining!
 

shoelessjoe

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Sure, but it takes two to tango.

Under the assumption that the dealer wants to actually run an ongoing business they‘re going to accept what a customer will pay. Otherwise they’re not a dealer they’re a car collector.

what interests me more from this whole ADM thing is why Ford doesn’t raise their MSRP on the Raptors and other limited production vehicles. Why let the dealer or resellers take a slice? If they raised the MSRP by $5k on the 5000 (guess) Braptors and 25000 Raptors they’d make an extra $150 million a year, still sell all those trucks and customers would be delighted that they “didn’t have to pay over MSRP”.
Ford raises the price that dealerships have to pay then the dealerships will just charge the customers whatever Ford raised their prices. As long as Ford has no control over ADM it will continue as long as people keep paying over sticker.
 

Ground_zero298

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Ford raises the price that dealerships have to pay then the dealerships will just charge the customers whatever Ford raised their prices. As long as Ford has no control over ADM it will continue as long as people keep paying over sticker.
It’s easy to keep paying over the sticker when the banks are approving loans for those prices too.
 

shoelessjoe

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It’s easy to keep paying over the sticker when the banks are approving loans for those prices too.
I highly doubt banks would give someone a loan 25K over sticker unless they have a huge down payment. unless they force them to buy gap insurance and pay a huge premium.
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