Market Adjustment on Custom Factory Orders

[Deleted member 10850298]

I have a question, everyone! With all the mark-ups on vehicles going on all across the country at dealerships, can dealerships place a "market adjustment" on a custom factory ordered Bronco Sport? This is something that I'm trying to find out before I take the next step in the purchase process. These mark-ups are a really ridiculous scam, if you ask me! Anyways, thanks to whoever can give me, and everyone else on this forum who's been thinking about this exact question, an answer! Have a great day to everyone who reads this post!

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[P-NUT]

I have a question, everyone! With all the mark-ups on vehicles going on all across the country at dealerships, can dealerships place a "market adjustment" on a custom factory ordered Bronco Sport? This is something that I'm trying to find out before I take the next step in the purchase process. These mark-ups are a really ridiculous scam, if you ask me! Anyways, thanks to whoever can give me, and everyone else on this forum who's been thinking about this exact question, an answer! Have a great day to everyone who reads this post!

When I placed my order I signed a purchase agreement document that had the msrp price +document fees listed as the selling price. I was told by the GM that my total price was locked in no matter what the market does. I would also be eligible any applicable incentives at delivery. I added the Cost later 110.

 

[Escape2Bronco]

Your price should be locked in. Rebates are additional. Depends on what was available when you ordered and what is available at delivery. There was a price increase between the time I ordered and the time I picked up. My original price was honored which was 6% under invoice.

 

[69cuda340s]

You will need to have dealer provide a Purchase Agreement when order is placed to insure price is locked it.

 

[Deleted member 10850298]

Thank you very much, people! I really appreciate the responses!

 

[Mark S.]

These mark-ups are a really ridiculous scam, if you ask me!

I'm going to voice what will in all likelihood be an unpopular opinion on this subject. I agree there should be no market adjustment on custom-ordered vehicles; the price is agreed upon when you place the order, and that's what you should pay. Vehicles ordered for dealer stock, however, should sell at whatever the market will bear.

Free markets are at the foundation of our society. Many use phrases like "ripping people off" to describe the situation, but as long as no one is holding a gun to the heads of buyers there's no theft occurring. Further, the lack of new vehicles to sell put a severe financial crunch on car dealers and sales staff, prompting layoffs. Outfits used to moving fifty vehicles a month are now lucky to sell five or ten. That's a lot of lost commissions. The market adjustment in price for popular vehicles is what's keeping some dealerships in the game, and it's the difference between a job and getting laid off for a lot of car sales personnel.

I personally would not pay above MSRP for a vehicle, but I don't think I'm smart enough to make that decision for someone else. People make purchase decisions for all kinds of reasons, and I only know what my own are.

 

[thekingprawn]

The problem is that Ford does not sell directly to vehicle owners. Ford's customers are the dealers. The dealer orders the vehicle. The dealer purchases the vehicle and then sells it to the ultimate customer. In normal times the power imbalance in the transaction is a lot less...you or I have the ability to just go buy the vehicle from some other dealer. In today's climate however, the dealership has all the power. We're left with only the threat of reputational damage to leverage the dealership into an agreeable outcome.

My dealership has been square with me in the past, and they have a good reputation in the community. I still have nightmares that they'll try to pull something when the (MY!) BS comes in. I'll gladly pay them MSRP because things are hard all over, and it's a fair price for what I'm getting.

 

[Mark S.]

In today's climate however, the dealership has all the power.

Not all, just more. You still get to decide if you're willing to pay their asking price.

 

[thekingprawn]

Not all, just more. You still get to decide if you're willing to pay their asking price.

For me, yes, I'm going in with a buffer of twice the dealership's standard starting markup. For someone who is being priced out of the vehicle they ordered it's not much of a choice.

 

[Mark S.]

For me, yes, I'm going in with a buffer of twice the dealership's standard starting markup. For someone who is being priced out of the vehicle they ordered it's not much of a choice.

I agree marking up an agreed on price is sleazy. Is that happening on custom orders with a signed agreement?

 

[thekingprawn]

I agree marking up an agreed on price is sleazy. Is that happening on custom orders with a signed agreement?

It can happen. I don't even know that a signed sales agreement is legally binding because no entity exists over which an enforceable contract is made. Until there's a VIN there's no vehicle. Also, a lot of people don't know to get a sales agreement signed. They believe (not unreasonably) that they are ordering a vehicle, not that a dealer is ordering it on their behalf, and that when it comes in it is theirs to buy. I think Ford could exercise some leverage over dealerships in this by conditioning participation in the COVP to selling at or below MSRP. Dealers could still input retail orders, they would just come from their allocation and not receive priority scheduling, but then they could just charge whatever they want to anyone willing to place an order with them under those conditions.

 

[SportWest]

My signed order form includes actual numbers, and not "MSRP," which of course can change over time. Rebates at the time of order are also included. I think if my dealership intended any shenanigans down the road, they would have wanted to structure the order more in their favor.

I also placed a small but nonrefundable deposit. Taken together, I believe this agreement -- also signed by the GM -- gives me reasonable footing to fight back should the dealer attempt anything. I've found that being a hard target is often enough, they only want easy marks.

This forum was very helpful at outlining what should and should not be included in these retail orders to protect me. E.g., signatures of all parties, including the manager.

 

[gcbroncosport]

Have to agree, what something is worth is simply what someone is willing to pay for it. With supply shortages (and high style that makes it in demand )... Anyway, in the MA area all dealers nearby were "market adjusting" in stock BS which is why ended up buying in NH where one dealer was still selling in stock BS at MSRP (this apparently gives them a larger allotment from Ford)... Of course, in stock was very rare but managed to snag one when a custom order customer backed out of their BS OB when it arrived! Not only that, but this dealer doesn't charge doc fees, allowing one to run your own registration (which I did). This saved $495 to $595 vs MA dealers. For custom orders this dealer was also MSRP plus whatever rebates in effect for custom orders at time of order and delivery. Still, had wished Granger Ford was nearby enough! Their customer order offer for the BS is hands down the best out there!

 

[Mark S.]

It can happen.

I understand it CAN happen; I'm wondering if it HAS happened. I've read stories about people without an actual signed agreement getting yanked around, but has anyone who's gone through the order process and gotten an agreement in writing been screwed like this? That's something I haven't read about (yet).

 

[thekingprawn]

I understand it CAN happen; I'm wondering if it HAS happened. I've read stories about people without an actual signed agreement getting yanked around, but has anyone who's gone through the order process and gotten an agreement in writing been screwed like this? That's something I haven't read about (yet).

I haven't seen it here. Maybe in the full size bronco forums?

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