Dealer-mark up on existing customer orders

[Warren505]

Have you seen some dealers are being told to charge premium Mark up on new full size Bronco?
Anybody have this on their Bronco Sport they have been waiting for?
https://www.roadandtrack.com/news/a37621749/bronco-customers-are-getting-screwed-by-last-minute-delivery-markups/

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[Benanza]

The real question is should they be able to do a dealer markups right now... Seems like they are price gouging during a shortage that was created by the pandemic. Seems like a fine line they're crossing considering they are just sitting and waiting for parts.

 

[Fossil]

i guess ordering a new whatever without a signed purchase order is a oops.

 

[Rgill]

Have you seen some dealers are being told to charge premium Mark up on new full size Bronco?
Anybody have this on their Bronco Sport they have been waiting for?
https://www.roadandtrack.com/news/a37621749/bronco-customers-are-getting-screwed-by-last-minute-delivery-markups/

Full size still a problem for some because they are still unicorns. Nothing on the BS other than seeing resales a little high. Markups for the BS are pretty much gone since 8 months ago as far as I can tell as we start to see them on lots. I have seen from MSRP to 2000 below MSRP on BS. Badlands will still cost you MSRP on orders. My dealer said no markup though the did throw a couple dealer required options on them to get a little more profit.

 

[Warren505]

i guess ordering a new whatever without a signed purchase order is a oops.

A $1000 deposit counts in my mind!

 

[Warren505]

Full size still a problem for some because they are still unicorns. Nothing on the BS other than seeing resales a little high. Markups for the BS are pretty much gone since 8 months ago as far as I can tell as we start to see them on lots. I have seen from MSRP to 2000 below MSRP on BS. Badlands will still cost you MSRP on orders. My dealer said no markup though the did throw a couple dealer required options on them to get a little more profit.

Last month I stopped at a different dealer that had a BL very close to what I had ordered , it had a $5000 premium/mark up the outer bank has $3000 etc above MSRP.. it was a Ford mandated dealer wide ‘up charge’ of course they did not get my dollars!
The vehicle was an early stock order that Ford decided was more important that a customer order…. I guess Ford just think of them as customers too!
this reminds me of a notice I have seen in some offices
‘Bad planning on your part does not require panic on my part’
I hope ( but doubt) this will make US manufacturers take a look at their supply chains and consider getting more control and stop being a parts assembly business. But it will require government incentives that are unlikely to happen!

 

[GizzardLizard]

The dealer I ordered my 2021 BB from has a no option OB with a $6k mark up.

My BB is one of the June builds waiting on a chip so I gave up and I'm ordering a 2022 from a different dealer. I didn't really want to buy from the aforementioned dealer anyway, especially if they're marking up units that aren't even special.

 

[IronMikeGolf]

it was a Ford mandated dealer wide ‘up charge’

How, exactly, do you know this is a statement of fact?

 

[IronMikeGolf]

Have you seen some dealers are being told to charge premium Mark up on new full size Bronco?

That is not what the article says. It says some dealers are doing their. Ford's position is, basically, the "S" in MSRP really does mean "Suggested" and that dealers are franchisees free to charge what the market will bear.

Not a lawyer, but I suspect an order alone does not constitute a contract. Is a potential buyer on the hook for payments just based on an order? I don't think so. I think you enter the area of enforceable contract when you have a bill of sale or a finance agreement.

 

[Rgill]

That is not what the article says. It says some dealers are doing their. Ford's position is, basically, the "S" in MSRP really does mean "Suggested" and that dealers are franchisees free to charge what the market will bear.

Not a lawyer, but I suspect an order alone does not constitute a contract. Is a potential buyer on the hook for payments just based on an order? I don't think so. I think you enter the area of enforceable contract when you have a bill of sale or a finance agreement.

Agree, the word is suggested.

luckily my dealer is not doing nothing in return markups. However they are still garnering $1000 in stupid add ons. I guess you could take it to court if you got markup after the initial retail order. You could rely on contractual law which shows an offer and then acceptance of the offer by the customer. You would be stuck arguing agains the language on their retail order forms that prices can change. However that can sometimes be overcome in court as other contracts have been in the past. What you could also do is sue the dealer for allowing your order and then they knowingly mark it up so you won’t buy it so they can sell it to someone else, thus using customers as dummy orders in a sense. angood class action suit against a dealer could stop it as it will cost them more to defend than what they are making.

 

[Rgill]

How, exactly, do you know this is a statement of fact?

agree. If it were mandated all dealers would be doing it. That is BS answer by the dealer Who said it.

 

[Rgill]

A $1000 deposit counts in my mind!

I think that is why they moved away from non refundable deposits To refundable. Non refundable would probably land them in court if they did a huge markup on arrival. Think of it, get non refundable one grand, markup 20 grand on arrival and keep deposit. Thus the change to refundable lines.

 

[Rgill]

If my dealer marked up my BL when it arrives they can keep it. In 2 years they will be on the lots and I would get it then. I am in no rush. I have a 2011 FJ Cruiser that we are keeping and will be getting rid of my 2017 BMW M240i which only has 29 K on the Mileage. I would just keep the 2017 longer.

 

[SSISailor]

Just talked to ATL dealer with 2 OB's on the lot. +$5,000 over MSRP. They can kiss my butt.

 

[ODucksfan17]

That is not what the article says. It says some dealers are doing their. Ford's position is, basically, the "S" in MSRP really does mean "Suggested" and that dealers are franchisees free to charge what the market will bear.

Not a lawyer, but I suspect an order alone does not constitute a contract. Is a potential buyer on the hook for payments just based on an order? I don't think so. I think you enter the area of enforceable contract when you have a bill of sale or a finance agreement.

An order doesn't mean the vehicle is yours. It's not your vehicle until you do the paperwork. Dealerships won't do bill of sale, finance agreement, etc ahead of time due to liability. I tried to do the paperwork ahead of time before a Ford I ordered arrived because I was going to be out of town for weeks. The dealership said they can't because of liability if something were to happen to the vehicle in transit.

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