Market Adjustment on Custom Factory Orders

Spike

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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!
They can and some do ... it happened to me. I had a Preview Order form that listed the order number with the MSRP for all the options and the total vehicle cost.

Palm Coast Dealer Stole My Badlands | 2021+ Ford Bronco Sport Forum - Broncosportforum.com
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Escape2Bronco

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I haven't seen it here. Maybe in the full size bronco forums?
The full size is a different ballgame. The issue there is people (me included) reserved before pricing was even available. People assumed that they were getting them for MSRP. Even when the reservation was converted to an order, it could be done with no or little paperwork. This led to people believing they had a signed and sealed agreement. I reserved and ordered through Granger but not all dealers are as open and transparent as Granger is.
 

ShoutsofTruth

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I contacted 8 dealers in my area and this is where they came in roughly for a custom BB:

$2000 over MSRP
$300 over
at MSRP
at MSRP
at MSRP
$300 under
$300 under
$500 under

I ordered from one of the $300 under guys because I trusted them the most.
 
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thekingprawn

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My idea to fix this is to condition participation in COVP with its incremental allocation and priority scheduling to selling no higher than MSRP. Dealers could still gouge people, but they'd have to do it out of their stock allocations.
 

Warpious

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My idea to fix this is to condition participation in COVP with its incremental allocation and priority scheduling to selling no higher than MSRP. Dealers could still gouge people, but they'd have to do it out of their stock allocations.
It will vary dealer to dealer. My experience was great! Placed order, didn't have to place any deposit or anything. Kept me up to date on the process the whole time, no games at closing etc. There are several others on here with similar experiences at other dealers....there are also the slimey horror stories of old on here as well and in my area as well lots of dealers are charging $5k over MSRP. I'd say if you have the option talk to multiple places and go with the one that feels right. Granger Ford on here seems to be a reliable option as well if it's feasible for you. I'll be getting my ESP through them later this week.

Edit: sorry Prawn meant this as a general reply
 


rootdoc

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It all depends on the dealership's business model policies. MSRP is acronym for Manufacturer's Suggested Retail Price. The dealership doesn't have to abide by this price amount. Some do, some don't. It all boils down to what the individual buyer wants to accept as best purchase price. I searched dealerships within a 200 mi. radius to see what they had coming in and what price they were setting. I could have gotten my BS BB from a different dealership in January but at 2-4K more than the one I ordered in December. I opted to wait for my original order from the first dealership, sold at MSRP, state sales tax and minimal document fees.
 

Petroph

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Are these market adjustments still a thing? I was under the impression that this was supposed to be stopped? I had a friend who just recently got an outer banks for over 43k at a pretty big dealership an hour away from me, and I feel that he seriously got cheated.
 

thekingprawn

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Are these market adjustments still a thing? I was under the impression that this was supposed to be stopped? I had a friend who just recently got an outer banks for over 43k at a pretty big dealership an hour away from me, and I feel that he seriously got cheated.
Still very much a thing for dealer stock. Most of us don't have any heartache with dealers selling their stock for what people are willing to pay. Our problem is when they place a retail order for a customer then jack up the price when the vehicle arrives and it's time to complete the sale. My dealership has a standard markup of $2k on stock BS. They do MSRP for retail orders.
 
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Are these market adjustments still a thing? I was under the impression that this was supposed to be stopped? I had a friend who just recently got an outer banks for over 43k at a pretty big dealership an hour away from me, and I feel that he seriously got cheated.
Are these market adjustments still a thing? I was under the impression that this was supposed to be stopped? I had a friend who just recently got an outer banks for over 43k at a pretty big dealership an hour away from me, and I feel that he seriously got cheated.
He did!
 
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What I'm trying to find out is, if the dealership(s) are allowed to put a "Market Adjustment," aka, markup, on a custom factory ordered BS, or any custom ordered vehicle, for that matter? The answer to this question is what I'm looking for! And again, I would like to thank everyone for all of your responses to this topic! Have a GREAT day, everyone!
 


Elegance

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What I'm trying to find out is, if the dealership(s) are allowed to put a "Market Adjustment," aka, markup, on a custom factory ordered BS, or any custom ordered vehicle, for that matter? The answer to this question is what I'm looking for! And again, I would like to thank everyone for all of your responses to this topic! Have a GREAT day, everyone!
Short answer: Yes, they are 100% allowed.
Longer answer: It's their vehicle until you sign for it. If there was a legally binding contract clearly stating and locking in the price signed by the sales manager the day you ordered, you have a bit more of a case against it. There's a lot of trust involved with this process. I will always be adamant that if I didn't absolutely have to order through a dealer, I'd never go through one again. Adding a middleman between the consumer and the manufacturer almost always adds a headache for the consumer rather than making the process more fair/reputable. Dealerships are good for test drives and a service department, and that's where my admiration ends.
 

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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.

Ford Bronco Sport Market Adjustment on Custom Factory Orders Screenshot_20220331-052137_Messages
Of course they locked you in.
$40,000 For a Loaded Sport !
I did not know they went for that much.
If you backed out they’d have to sell it on the lot and be hard pressed to get $38,000 I would think because at that level a buyer would want to customize just like you did.
 

kyle_conrad

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Of course they locked you in.
$40,000 For a Loaded Sport !
I did not know they went for that much.
If you backed out they’d have to sell it on the lot and be hard pressed to get $38,000 I would think because at that level a buyer would want to customize just like you did.
they would immediately be able to sell that for 45k+, it would be gone within three days
 

Elegance

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$40,000 For a Loaded Sport !
I did not know they went for that much.
40k is MSRP for a Badlands with Premium and Towing packages alone, nevermind all the other fun additions. You get what you pay for.
they would immediately be able to sell that for 45k+, it would be gone within three days
Kyle is 100% correct on that. My local dealer sold an Outer Banks someone backed out of at 43k, nevermind a Badlands.
 

thekingprawn

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Kyle is 100% correct on that. My local dealer sold an Outer Banks someone backed out of at 43k, nevermind a Badlands.
And this is the temptation for dealers when a contract isn't signed prior to the vehicle even existing. (I'm dubious on how binding a contract can be for imaginary property, but that's a different discussion.) A declined retail order is bank for them. There is a lot of incentive to cause the declination and only the threat of reputational harm weighing against it. The whole concept is a nightmare for consumers. I'm generally not one of those "there oughta be a law" kind of people, but this in an area where the power imbalance is great, the potential for harm is very high, and the incentive structure is skewed completely away from honesty. Ford has real power over dealerships, but I don't know that they exercise it effectively. They have already sold their product regardless of what dealers do.
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