ovenrat

Stealership markups :-(

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Ford Dealers Are Hitting Bronco Reservation Holders With Last Minute Markups

With owners finally starting to pick up their Broncos from dealers, some are being faced with an unfortunate situation. Dealers are springing markups on buyers at the very last minute, sometimes mere days before their vehicles are scheduled to arrive at dealers.

Rory spotted the above tweet from our pal Zerin where he pointed out that posts had started to pop up on Bronco owner Forums and Facebook groups about owners last-minute markups.

 

One Bronco owner was consistently posting to ask for help with a $5,000 markup after being assured by the dealer that that wouldn’t happen. One story stood out from the rest though.

 

My New Ford Bronco is FINALLY HERE but we have a big problem!! - YouTube

 

Posted in a YouTube video on a channel called Pipsburg Views it tells the story of a man, his wife, and the Bronco she ordered. After years of staying home with their kids, she went back to work and wanted to do something nice for herself. So she ordered a fully-loaded Bronco Outer Banks with an MSRP of $52,810 from Moon Township Ford in Coraopolis, PA. Her husband worked at the dealership for nearly 20 years, so he thought he had an in with them. Six days before the Bronco was set to arrive at the dealership, they received a call. The dealer was going to have to add on a $10,000 markup.

 

He countered with and was willing to accept a $5,000 markup. The dealer said no. Ultimately it looks as if she finally got her Bronco, and the dealer removed the markup. But the problem for other owners is still out there.

One reservation holder pointed out that reservation holders with dates from March 19th and earlier were sent emails from Ford that touched on price protection. I reached out to this individual and he sent me a copy of the email.

 

He pointed out to me that it appeared dealers were somehow adding on the markups as a separate charge. That way they technically weren’t increasing the MSRP. Other dealers seem to simply not care or be aware of the fact that this price protection exists. So I reached out to Ford for clarification on how the protection is supposed to work. And it gets kind of murky.

The price protection applies to customers with reservation made on or before March 19th on 2022 model year Broncos. But it only applies if a customer has a written purchase agreement with the dealer, something which Ford recommends, but omitted from the email and the FAQs on the Bronco site. Of course, I was informed that the final price is left up to dealers because of franchise laws which is a given. But if the final price is left up to the dealer, then is there really price protection?

Unfortunately, markups are part of every hot new vehicle release. That’s just how it is. But accepting an order and adjusting the price upward at the last minute is not normal behavior. It’s a ****** way to do business, especially when you’re dealing with people who have been waiting months or a year for their vehicle.

It’s great to have the Bronco back, but these dealers aren’t doing Ford any favors when it comes to keeping owners engaged and excited about their trucks.

 

 

 

Edited by chumfish
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Posted (edited) · Report post

I'm amazed that, with all the online retailers, dealerships still exist.  Not that some of the current online car buying companies appear to be a good substitute.  Manufacturers should control online sales and both manufacturers and buyers would benefit through increased profits and lower retail prices, respectively.  

Edited by Captain Tuttle

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23 mins ago, Captain Tuttle said:

I'm amazed that, with all the online retailers, dealerships still exist.  Not that some of the current online car buying companies appear to be a good substitute.  Manufacturers should control online sales and both manufacturers and buyers would benefit through increased profits and lower retail prices, respectively.  

Dealers exist in a lot of states because laws protect their business model. They are often required to have a physical location/showroom which complicates the online model. It’s ridiculous the charade that is buying a car. Consumers now have access to all the relevant information on models and pricing, the dealerships are mostly just in the way. 

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1 hour ago, Finneus said:

Dealers exist in a lot of states because laws protect their business model. They are often required to have a physical location/showroom which complicates the online model. It’s ridiculous the charade that is buying a car. Consumers now have access to all the relevant information on models and pricing, the dealerships are mostly just in the way. 

Considering that local dealerships falsify records, admit to insurance fraud, and otherwise lie through their teeth on an hourly basis, these laws need to be changed.  

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What a bunch of scumbags. The buyers should just cancel their sale and go buy a 4Runner instead. At least they’ll get a quality vehicle. It sounds like there are tons of problems with the Broncos hard tops. Who wants to pay extra for a new vehicle that’s going to have tons of problems. 

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8 mins ago, z-man said:

What a bunch of scumbags. The buyers should just cancel their sale and go buy a 4Runner instead. At least they’ll get a quality vehicle. It sounds like there are tons of problems with the Broncos hard tops. Who wants to pay extra for a new vehicle that’s going to have tons of problems. 

Welcome to the new normal. Toyota does the same thing.how much you are willing to pay over sticker price? 

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12 mins ago, z-man said:

The buyers should just cancel their sale 

Nothing a dealer would enjoy more considering they are selling for 100K in the after market.

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5 mins ago, Cpalms said:

Nothing a dealer would enjoy more considering they are selling for 100K in the after market.

Idiots that can’t wait for anything and that think that being the first to own some new product makes them special.  There will be plenty of more Broncos built in the coming years. 

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Posted (edited) · Report post

Z man is right. They count on us being idiots , Gotta have it first. These scumbag dealers famin and sell inventory for invoice all year, exept used cars. Then when they come out with another badly built not enginered truck or car, they act likes it the greates and you should pay xtra to have the pos. Trust me , the value on a bronco will  go down faster than the Titanic. Personaly for that stupid money , Id skip the ford and have gotten a nice 4 Runner. It will be worth 3 times the value of the bronco in 2 - 3 years. I know I spent 34 years with G.M watching over these dealers. Money was great , but the job stank.

Edited by hunter123

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Everything is now a disaster to try and buy.  Service on anything stinks,the whole supply chain is a mess.  I have had an order for a flooring job for 5 mos and no material. God help you if need an AC or refrig goes on the blink.

I don't know what it will take for this to turn around,very disturbing. Thank heaven I don't need a car.

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I was able to negotiate a pretty good deal on a 2022 Pathfinder Platinum (not my first choice, but it was big, had good tech and available)

Negotiated an out the door price of 47k. 

After negotiating the deal I mentioned all the other places Jeep, Genesis, Ford...etc were all posting 2-10000 market adjustments above sticker.

The salesman replied with "yeah, we don't do that here" 

 

There was no reference to the market adjustment on the sticker on the vehicle I was buying.

 

Well, off to the finance guy.....figured. I'd pop for the warranty and finance for 36 months.

 

Reading the contract.........buried towards the end, 

 

You agree to the 5000 market adjusted price increase......putting the price at 52k

 

I ripped up the unsighed contract....told him to go #@R@#$ himself, and made sure to let the salesman who was already dealing with a couple that he was a liar.....

I may have also knocked a dish off the desk of the finance guy.

 

Almost bought a 2022 MDX on the way home......

 

But I'm not paying market adjusted pricing...I'm sure some will..but I ain't one of em.  

 

The economy is going to tank...and In a short few months dealerships are going to be begging people to buy a car.   

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The car market is in a tough spot right now for consumers.. New inventory is almost non-existent at my ford dealer. Most of the newer model used cars we sell are sheetbox lemon-lawed cars from California that were buy backs.

 

Unfortunately there are people out there paying way over sticker for new cars and because the market is so screwed up and the supply is so short the dealers are just waiting for them to show up and passing on those who aren't willing to take it in the shorts. 

 

I don't see it getting better for a very long time, if ever with what is going on in the world today. that's  my .02.

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aren't deposits a part of a sales agreement by the Stealership and buyer ?  

 

How can dealerships not be held to a legal document and just change a before agreed to price ?

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