More Evidence of FoMoCo Tightening the Screws on Dealerships.

[Escape2Bronco]

We shall see. I doubt they will really do much screw tightening. They haven’t walked the talk yet. Being a 6G reservation I follow the G6 forum and just this week a customer ordered full size Bronco was sold out from under him despite warnings from Ford this wouldn’t be tolerated. He had his e-mails from Ford showing his ‘22 built and in transit. Dealer told him he needed to update his order to a ‘23. Turns out they got a better offer since his was at MSRP. Ford told him there was not much they could do now that it changed hands.

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[69cuda340s]

We shall see. I doubt they will really do much screw tightening. They haven’t walked the talk yet. Being a 6G reservation I follow the G6 forum and just this week a customer ordered full size Bronco was sold out from under him despite warnings from Ford this wouldn’t be tolerated. He had his e-mails from Ford showing his ‘22 built and in transit. Dealer told him he needed to update his order to a ‘23. Turns out they got a better offer since his was at MSRP. Ford told him there was not much they could do now that it changed hands.

Yes no shortage of those stories. Then plenty of reports on this forum where dealers balk deny try to get out of price protection so they can pocket more profits. Low supply high demand greedy dealers. Dealers know they can do what ever they feel like doing with little to no consequences. But we been hearing Ford CEO yapping about cranking down on dealers for over a year now right? Until the supply can meet demands greedy dealers have the upper hand....

 

[Escape2Bronco]

Yes no shortage of those stories. Then plenty of reports on this forum where dealers balk deny try to get out of price protection so they can pocket more profits. Low supply high demand greedy dealers. Dealers know they can do what ever they feel like doing with little to no consequences. But we been hearing Ford CEO yapping about cranking down on dealers for over a year now right? Until the supply can meet demands greedy dealers have the upper hand....

This is why Granger Motors is so well respected on the Forums. Zach is doing a great job as GM there and has earned my business by not doing any monkey business!

 

[Mark S.]

...just this week a customer ordered full size Bronco was sold out from under him despite warnings from Ford...

But we been hearing Ford CEO yapping about cranking down on dealers for over a year now right?

It seems Ford doesn't have the leverage it wants to have. I'll be very interested to see what happens when Ford's electric car division is fully up and running. I wonder if it will go to a direct-to-consumer model like Tesla as it has been threatening.

 

[AmazingSieve]

We shall see. I doubt they will really do much screw tightening. They haven’t walked the talk yet. Being a 6G reservation I follow the G6 forum and just this week a customer ordered full size Bronco was sold out from under him despite warnings from Ford this wouldn’t be tolerated. He had his e-mails from Ford showing his ‘22 built and in transit. Dealer told him he needed to update his order to a ‘23. Turns out they got a better offer since his was at MSRP. Ford told him there was not much they could do now that it changed hands.

On Fords YouTube channel, Velocity, they said dealerships who’ve been found to be abusing markups won’t receive EV allocations.

So in the short term there’s nothing they can do really to reign in unscrupulous dealerships.

It seems like the dealerships are too strong legally and people keep buying marked ip cars, I wonder if they know the markup goes straight to the dealer and isn’t a valuation of the car. As we all know anything above MSRP goes straight to the dealerships owners Bahamas fund.

If people were honest, the true problem is peoples willingness to buy above sticker. If people refuse to pay them then they’ll be gone but we all know everyone wants what they want and they want it now and that’s not likely to change.

 

[69cuda340s]

On Fords YouTube channel, Velocity, they said dealerships who’ve been found to be abusing markups won’t receive EV allocations.

So in the short term there’s nothing they can do really to reign in unscrupulous dealerships.

It seems like the dealerships are too strong legally and people keep buying marked ip cars, I wonder if they know the markup goes straight to the dealer and isn’t a valuation of the car. As we all know anything above MSRP goes straight to the dealerships owners Bahamas fund.

If people were honest, the true problem is peoples willingness to buy above sticker. If people refuse to pay them then they’ll be gone but we all know everyone wants what they want and they want it now and that’s not likely to change.

Right until supply can meet demand dealers will keep ripping buyers off. Short supply dealers know someone will pay up for the high demand popular vehicles. Get supply up and/or get demand down problem goes away.

 

[Escape2Bronco]

On Fords YouTube channel, Velocity, they said dealerships who’ve been found to be abusing markups won’t receive EV allocations.

So in the short term there’s nothing they can do really to reign in unscrupulous dealerships.

It seems like the dealerships are too strong legally and people keep buying marked ip cars, I wonder if they know the markup goes straight to the dealer and isn’t a valuation of the car. As we all know anything above MSRP goes straight to the dealerships owners Bahamas fund.

If people were honest, the true problem is peoples willingness to buy above sticker. If people refuse to pay them then they’ll be gone but we all know everyone wants what they want and they want it now and that’s not likely to change.

Anything above invoice goes straight in their pockets plus there is a holdback beyond that so even at invoice, they are making money.

I have no issue with dealers making money. That’s what they are in business for. But, if I ordered a vehicle and we agreed on a price, just because someone else is willing to pay more doesn’t mean they should get the car I ordered. That’s just plain wrong.

 

[AmazingSieve]

Anything above invoice goes straight in their pockets plus there is a holdback beyond that so even at invoice, they are making money.

I have no issue with dealers making money. That’s what they are in business for. But, if I ordered a vehicle and we agreed on a price, just because someone else is willing to pay more doesn’t mean they should get the car I ordered. That’s just plain wrong.

I agree, they're treating people's orders like fleet allocations and thats not ethical. If they want more cars, try to get them in more usual processes instead getting people to place orders through the dealership which the customer believes has reserved that car for them, when in fact the dealerships intention all along was to pull the rug out and resell it at a marked up price.

 

[Jrl]

I agree, they're treating people's orders like fleet allocations and thats not ethical. If they want more cars, try to get them in more usual processes instead getting people to place orders through the dealership which the customer believes has reserved that car for them, when in fact the dealerships intention all along was to pull the rug out and resell it at a marked up price.

At MSRP there is app 3800 to4500 profit . They are doing just fine .

 

[Mark S.]

It seems like the dealerships are too strong legally and people keep buying marked ip cars, I wonder if they know the markup goes straight to the dealer and isn’t a valuation of the car. As we all know anything above MSRP goes straight to the dealerships owners Bahamas fund.

I understand to a certain extent why dealers are doing this. They don't have nearly the volume of cars to sell that they normally do, so they're trying to make up for the lost sales volume by marking up the cars they have to sell. I'm not saying I agree with it, I'm saying it's understandable. But you're right about one thing: If people would stop paying these ridiculous prices then dealers wouldn't keep marking them up.

 

[sajohnson]

Even as one of the last people to defend car dealers (I've had numerous bad experiences) I must say that as long as there is nothing in their franchise agreement precluding selling for over MSRP, then the dealers are like any other seller. If anyone on this forum were selling their BS, they would naturally want to get market price -- or better.

That's all the dealers are doing. They know that they can get $X for any given vehicle. Why should they sell for less? They are in business to maximize profit. If they sell a car for under market value, they are in effect giving money away. In fact, with many vehicles selling for thousands of dollars over MSRP, there's a good chance that people would buy cars from dealers for MSRP and then flip them -- pocketing the difference.

That said, if a customer orders a vehicle for a set price, then the dealer should honor that. If the dealer uses custom orders as a way to boost their inventory and sells vehicles out from under customers, that is clearly wrong, and in a perfect world they would lose their franchise and have to sell oranges on the side of the road.

 

[69cuda340s]

Yeah dealers act like a bunch of bozos but actually they have a lot of tools to glean insights on market value. They know how many similar models are in stock in the area, how much have ppl been paying over ect ect. So if data shows its likely they can get over MSRP they are going to try to grab that cash. This new vehicle shortage situation does not bode well for the consumer.

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