Buying (or trying to) a new car

[mrvids]

The dealership that inflated the Bronco price, now they have a 2022 Maverick with 5,000 miles on the used vehicle lot. Asking $30k for it, the sticker in the glove box showed it sold for $25K new. And they are still bumping prices above MSRP. I thought Ford frowned on that? Here is just one of them. ON LOT
New 2022
Ford F-150 Raptor®
Stock: 22DL082
VIN: 1FTFW1RGXNFB36977
Details
MSRP
$83,195
Market Adjustment
$21,805
Price
$105,000

 

[mustangjoe87]

Dealers are shooting themselves in the foot. This push for direct to consumer will only be easier when everyone that's bought a car in the last two years recalls how they were treated to market adjustments and bs dealer fees/add ons.

 

[mustangmike6996]

The dealership that inflated the Bronco price, now they have a 2022 Maverick with 5,000 miles on the used vehicle lot. Asking $30k for it, the sticker in the glove box showed it sold for $25K new. And they are still bumping prices above MSRP. I thought Ford frowned on that? Here is just one of them. ON LOT
New 2022
Ford F-150 Raptor®
Stock: 22DL082
VIN: 1FTFW1RGXNFB36977
Details
MSRP
$83,195
Market Adjustment
$21,805
Price
$105,000

Give it time. Eventually people wont have enough disposable income to panic-buy limited availability cars. I have been keeping an eye on some local lots to see if certain models are starting to sit for extended periods, which some indeed are. This helps me know when it's a good time to sell and upgrade to a newer model.

One of the problems with the SVT line is that they don't fall under A-Plan pricing guides, so dealerships can charge whatever they want with no backlash from corporate.

With all that said, as long as people are dumb enough to pay giant market adjustments, the dealerships will continue to attach the price addendums to the window stickers. Eventually, more than likely, the market adjustments are just going to be factored into the MSRP value.

 

[wickettoby1]

Can a dealership “market adjust” a vehicle you order? A buddy of mine ordered a Shelby in Oct 2021 and finally got it early Sept 2022. I believe he went to a couple of dealers to check prices but I’m not sure of the particulars but I’m quite sure there wasn’t a “market adjustment” on it.

 

[mustangmike6996]

Can a dealership “market adjust” a vehicle you order? A buddy of mine ordered a Shelby in Oct 2021 and finally got it early Sept 2022. I believe he went to a couple of dealers to check prices but I’m not sure of the particulars but I’m quite sure there wasn’t a “market adjustment” on it.

I don't know for sure, I do know many dealerships have and will probably keep doing it. I have seen a few FB posts that were publicly shaming the dealers for exactly this and a lot of the dealers walked the adjustment back. Personally, if I see dealerships with MSRP market adjustment addendums on all the new window stickers, I just write that dealership off as a place I wouldn't shop. Being a special order limited production (specialty) vehicle, those usually do have market adjustments added to them. Look at the mid-2000s GTs, MSRP of $125k or so and they were selling for about $250k-350k. If a dealership was trying to do a bait and switch market adjustment a run of the mill Mustang GT I would take my money elsewhere.

 

[WhiteHawk]

This topic came up at work in an All Peoples Meeting today (GM). Someone asked Tadge (corvette chief) if there was anything GM could do about dealer markups, and he basically said no. It's crazy.

-Geoff

 

[GTPprix]

This topic came up at work in an All Peoples Meeting today (GM). Someone asked Tadge (corvette chief) if there was anything GM could do about dealer markups, and he basically said no. It's crazy.

-Geoff

Heh I wish he had said the truth which is the markups led to a pretty massive hike in sticker price on the Z06 (and higher incremental on stingray) vs the original planned pricing lol Pretty obvious to management if dealers can pull this shit and people will pay they should get a bigger chunk too; ugh.

 

[WhiteHawk]

Heh I wish he had said the truth which is the markups led to a pretty massive hike in sticker price on the Z06 (and higher incremental on stingray) vs the original planned pricing lol Pretty obvious to management if dealers can pull this shit and people will pay they should get a bigger chunk too; ugh.

Honestly, I think they are just pricing to break even, or at best justify their existence. Corvette might be barely profitable, but it is a drop in the bucket compared to what the trucks make. Back before the great recession, one of our VP's told us that the GMT900 platform (full size pickup and SUV) was responsible for 118% of the profit - meaning it covered every other programs losses and made all the money. I can't imagine that the % has changed by that much in the last 15 years or so since then. And that was in a year that we had a decent profit too!

-Geoff

 

[mustangmike6996]

Heh I wish he had said the truth which is the markups led to a pretty massive hike in sticker price on the Z06 (and higher incremental on stingray) vs the original planned pricing lol Pretty obvious to management if dealers can pull this shit and people will pay they should get a bigger chunk too; ugh.

I think a lot of manufacturers are seeing this and wanting to cut out the middle man (the dealership) to reap the benefits of essentially controlling the market of each brand. In theory, it could move models across the country to other dealers where model ABC sells better as opposed to letting it sit on a lot long enough that they have to basically give it away. The only way to do that now is for the dealerships to buy from each other or do a dealer trade. They can also slow production and therefor limit the amount of vehicles sitting on lots which will reduce price negotiating and end-of-year incentives.

 

[GTPprix]

Honestly, I think they are just pricing to break even, or at best justify their existence. Corvette might be barely profitable, but it is a drop in the bucket compared to what the trucks make. Back before the great recession, one of our VP's told us that the GMT900 platform (full size pickup and SUV) was responsible for 118% of the profit - meaning it covered every other programs losses and made all the money. I can't imagine that the % has changed by that much in the last 15 years or so since then. And that was in a year that we had a decent profit too!

-Geoff

Yup and look at the T1 SUV sales compared to competitors; it's absolutely crazy. Back in the day 'Vette used to have a pretty healthy margin I wonder how thats fared over the years.

I think a lot of manufacturers are seeing this and wanting to cut out the middle man (the dealership) to reap the benefits of essentially controlling the market of each brand. In theory, it could move models across the country to other dealers where model ABC sells better as opposed to letting it sit on a lot long enough that they have to basically give it away. The only way to do that now is for the dealerships to buy from each other or do a dealer trade. They can also slow production and therefor limit the amount of vehicles sitting on lots which will reduce price negotiating and end-of-year incentives.

Yup and a lot of these dealers are too stupid to realize they are effectively helping slit their own throats.