Disgusted by Price Increases

[GulfCoastBronco]

I’ve still been looking at Ford website build tool and have officially become disgusted by the constant price increases. Bronco has had a price increase 2 months in a row and other vehicles are also showing price increases. Pair that with “addendum” and straight mark ups, and interest rates and I am at a loss at who can afford these.
I am grateful to have mine at the price and interest, but I am still upset with new prices and how it will prevent future owners.
All I can hope for is people stop buying the crazy increased prices and eventually Ford and others have surplus inventory and are forced to drop prices.

 

[Mark S.]

Supply chain issues still reverberate, and car makers are scrambling to increase revenue after a disastrous drop in sales during the pandemic. Most are scrambling to stay profitable while also finding money to invest in EV tech, something that's becoming all but mandatory to stay relevant in today's market.

Meanwhile, millions of car sales did not occur during the pandemic, and that's created a massive shortage in the market. This situation is proof that supply and demand still works. Further gumming things up is that many manufacturers have actually DECREASED production of lower trims and models that don't generate as much profit, and INCREASED production in higher end trims and models. For most manufacturers, cheaper models/trims are often subsidized by profit from higher-end models/trims, but supply chain shortages mean manufacturers have to pick one or the other--they don't have enough parts to make both. The result is the average new vehicle transaction is more than $10k higher today than before the start of the pandemic.

It's a perfect storm of events that's created a disastrous new-car market for buyers.

 

[GulfCoastBronco]

Well said @Mark S. I see similar price changes in my own company and am just as disgusted. I have seen manufacturers not producing base models on certain models as well.
I think the best way you put it was “perfect storm”. Even though I understand the process, I am still disgusted by it

 

[Escape2Bronco]

Most companies are not going to absorb increases in costs. They will be passed on to their customers.

I know it is popular thinking that this shouldn’t happen, but it’s not reality. Having increasing costs and not increasing prices is not sustainable.

I will say that this second round of price increases on the full size is more of a means to try and limit options and trims that are still constrained. Since the order banks don’t open for another week or so (allegedly), people at least are going into it informed.

 

[Glamdring70]

I thought my Sport was a tad overpriced at $40k when I bought it in 2021. The main reason I went ahead and did a deal was because I knew the market was tanking. I absolutely would not buy it again today with the extra $7,500 cost, (MSRP over $47k- for less equipment!) and financing at 4-6% instead of 0% for about another $7,500. That's $15k in two years! I don't blame anyone that doesn't opt into that insanity and it sucks for people that don't have a choice.

To compare, my previous vehicle was a loaded 2006 Chevy truck for 25k. I financed about 13 at 5% which worked out to something like $1,400 in interest.

 

[Idahobro]

IT'S CALLED INFLATION.

Good gravy, there is something like $6 trillion extra dollars floating around since the beginning of covid. I swear, do they not teach basic economics anymore? At some point we'll be like Zimbabwe and a newspaper will cost a $100,000.

Only a few true hedges. The easy one is real estate. Buy on the dips and buy often.

 

[Jmuns]

IT'S CALLED INFLATION.

Good gravy, there is something like $6 trillion extra dollars floating around since the beginning of covid. I swear, do they not teach basic economics anymore? At some point we'll be like Zimbabwe and a newspaper will cost a $100,000.

Only a few true hedges. The easy one is real estate. Buy on the dips and buy often.

I don't think anyone is saying it's not related to inflation, but we can still complain about it. Unless you are paying cash a lot of people can't afford the same house/car they could have a year or two ago with rates and prices rising as fast as they are.

 

[Tigger]

I just had an experience opposite of this thread. My neighbor was over for a beer. He liked my Sport and I left him drive it (but I held the beer ). He could not believe it was such a low price, so he went and got one … well kind of. There was a new 2022 Bronco Outer Banks on the lot for $47k, so he got that instead.
But my point is, yes, prices are going up a lot but I still think the Bronco Sport is the vehicle to buy.

 

[69cuda340s]

All the parts vendors charge Ford more and Ford has to pay workers more or they won't show up. Then all shipping cost up. So Ford passes those cost to consumer. And consumers have been paying it. Crazy insane out of control inflation.

 

[Mark S.]

I just had an experience opposite of this thread. My neighbor was over for a beer. He liked my Sport and I left him drive it (but I held the beer ). He could not believe it was such a low price, so he went and got one … well kind of. There was a new 2022 Bronco Outer Banks on the lot for $47k, so he got that instead.
But my point is, yes, prices are going up a lot but I still think the Bronco Sport is the vehicle to buy.

It's all relative. There are too few low-price models available right now, so buyers are stuck with what's available. Ford made the decision to stop making low-cost sedans and econoboxes a few years back, so its "low-price" models are the Bronco Sport and Escape. Here's a smattering of the Bronco Sport's competition:

Dodge Hornet: $32K - $47K
Chevy Blazer: $35K - $46K
Jeep Compass: $32K - $41K
Toyota RAV4: $29K - $39K
Honda CR-V: $30K - $40K
Kia Sportage: $27K - $$38K
Subaru Forester: $27K - $37K

Given its capabilities compared to the above, I think Ford's pricing on the Bronco Sport is in line with what's happening with the industry in general.

 

[Escape2Bronco]

It also helps to find a good dealer. Hard to believe that just over a year ago I got my ‘22 Badlands for a bit over 32k. I’m getting my 2 door HE from the same dealer and with Fords price protection from 21 - 23 and Grangers 2k under invoice, it will be just over 41k for a 49k vehicle today.

 

[Idahobro]

I don't think anyone is saying it's not related to inflation, but we can still complain about it. Unless you are paying cash a lot of people can't afford the same house/car they could have a year or two ago with rates and prices rising as fast as they are.

Yes, it is totally crazy to see unfold. I read a quote the other day from a real estate guy I follow, perhaps you've heard of him? His name is Grant Cardone. He said, "single digit millionaires are the new middle class."

Let that sink in. The reality is that it's true. I have new neighbors up and own our street that paid $1.6-$2.4mm for their house in 2021 and 2022, most of them cash buyers. there is so much money in peoples hands right now that banks don't know what to do with it all. Dumb ass SVB decided to invest it in long term securities, seemingly, the only people on the planet that didn't think we were coming into inflationary times.

So, wait until the banks start foreclosing on houses like back in 2008. then pick something up. Start small and grow. If you have a buddy or a family member you trust, start and LLC and partner together to help afford it. It's going to be hard pacing inflation any other way IMHO. If you think a Bronco Sport is expensive, wait till you go buy some eggs.

 

[Jmuns]

Yes, it is totally crazy to see unfold. I read a quote the other day from a real estate guy I follow, perhaps you've heard of him? His name is Grant Cardone. He said, "single digit millionaires are the new middle class."

Let that sink in. The reality is that it's true. I have new neighbors up and own our street that paid $1.6-$2.4mm for their house in 2021 and 2022, most of them cash buyers. there is so much money in peoples hands right now that banks don't know what to do with it all. Dumb ass SVB decided to invest it in long term securities, seemingly, the only people on the planet that didn't think we were coming into inflationary times.

So, wait until the banks start foreclosing on houses like back in 2008. then pick something up. Start small and grow. If you have a buddy or a family member you trust, start and LLC and partner together to help afford it. It's going to be hard pacing inflation any other way IMHO. If you think a Bronco Sport is expensive, wait till you go buy some eggs.

Definitely a good game plan. Houses in my neighborhood have doubled or more since 2019 and we have a lot of new neighbors, not all cash buyers either. Houses are still selling for completely inflated prices in Florida and the banks keep giving money to people. I could never afford my house if I bought it today as compared to 2019. My buddy bought a house last year for wayyyyy more than it's worth with a rate around 6% at the time. He's probably under water already.

 

[69cuda340s]

All makes models huge price hikes across the board no rebates and no discounts and your lucky if you pay MSRP. But at least there are some vehicles on the lots now. Maybe not what you want but at least if you get in a bind and need something dealers have some in stock units.

 

[Jmuns]

All makes models huge price hikes across the board no rebates and no discounts and your lucky if you pay MSRP. But at least there are some vehicles on the lots now. Maybe not what you want but at least if you get in a bind and need something dealers have some in stock units.

Yea if you hunt you can find MSRP if you are willing to travel. Depending on what car you are ordering, with all the price increases, paying ADM could save you money in the long run. Especially on the big Bronco considering you haven't been able to order one in a year and have just been sitting on the sidelines watching the price go up with no price protection because you haven't been able to order.