Exhausted But Committed

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kiman44

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It really does honestly, after reading this I think the most likely exchange is 10-20K for a year's time with the truck... with a small but loud voice in the back of my head that is vocalizing the possibility of no truck after waiting on my current order a year from now, because technically I still don't have an allocation. It's the latter that's really pushing me towards spending real money on the ADM.
I get it, believe me. The current market is making it unlikely you will get one for 20k over. So you have to decide whether to pay more for that time or not. If you get an order in with a good dealership for next year, you can minimize the ADM, at the cost of time.
 

Spartylamb

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Am I the only one out here that is on the dealerships side in all this. These dealerships get a handful of special models per decade. If you want a special model, it comes with a special price. The car won’t depreciate and has a wow factor that will never go away. Dealerships sell to people that are willing to pay ADM’s and don’t have to hear the complaining from people that can’t afford the payments… the dealer I got mine from will be calling me when the next gen 350’s and/or 500 come out. Why? I’ll pay an adm and I pay cash. Big margin and no hair on the deal. How can you fault them for that??
 

kiman44

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Am I the only one out here that is on the dealerships side in all this. These dealerships get a handful of special models per decade. If you want a special model, it comes with a special price. The car won’t depreciate and has a wow factor that will never go away. Dealerships sell to people that are willing to pay ADM’s and don’t have to hear the complaining from people that can’t afford the payments… the dealer I got mine from will be calling me when the next gen 350’s and/or 500 come out. Why? I’ll pay an adm and I pay cash. Big margin and no hair on the deal. How can you fault them for that??
I don’t fault dealerships for taking advantage of the opportunity. I don’t think anyone is doing anything wrong. It’s the way markets work. Prices will always be set where consumers are willing to pay. As long as there are buyers like you out there, dealers will charge more, because they can. Not faulting you for it - you are willing and able to pay to get what you want when you want it. Not everyone is in that position though, and while they might be able to afford MSRP, significant ADMs may price them out of the market, which is understandably upsetting to them. Everyone has a limit on how much they will pay for a specific product. If the market went absolutely off the rails and this truck was 500k with ADM would you still buy it? 1M? I happen to be one of those people that won’t pay over MSRP for a vehicle (anymore). That has so far never been an obstacle for a vehicle I have wanted. I either find a dealer willing to give me what I want for msrp right away, or just go on a waiting list to purchase at a dealer that doesn’t mark up future orders, and wait a year or more.
 

Jayrod

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A lower markup such as 30K could be flipped without much trouble for double. The dealers in some regard have less inventory than they usually have, per Covid. Some is about survival some is greed/market.

If you want it, buy it. I don’t think the R market is going to change. There is just not enough of them.
 
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I’m not sure why the dealers are chastised for marking up the sale? If someone (ie a secondary dealer or someone just interested in flipping for a profit) gets an R for MSRP, they in turn will take advantage of the market and do just that, flip it. Then they make the money, not the dealer.

Take a look at cars and bids.com, and you will see just that. 2023 and 2024 Porsche GT3’s, Shelby GT500’s, Audi RS6’s, Hummer EV, etc with 200 miles on them being sold private party for a huge markup.

Im not a dealer or in sales at all for that matter, but just someone who understands economics.
 
OP
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Agree - all else held equal, the private market will always dictate whether a premium is warranted. Also, not chastising dealers for marking up a sale necessarily, rather, chastising dealers for marking up a sale 50-90%. Big difference between 10-20k and 50-90k?

My issue is that the dealership is the gateway between the manufacturer and the consumer. They can (and clearly do) use information asymmetry between it and its Customers to an advantage. Essentially what is supposed to be a trusted party is ensuring there is hysteria and insane mark-ups in the market place by setting a ridiculously high pricing-floor straight out of the gates.

Good example: Walmart/Target/Amazon weren't charging $1k+ for the PlayStation 5 even though they were going for this much on the secondary market.

It is possible to understand economics and take issue at the same time.
 

drtibrd

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I have a bigger problem with Ford not creating a reservation system for previous Raptor owners giving them first dibs. Also can’t fathom why Ford lets dealers sell out of their territory. A local shop by me has a 350 with a trailer waiting in the parking lot almost every time a new rap comes off the car carrier to run it down to AZ…. Cray
 

bigft678

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It is only a matter of time until dealerships are antiquated. The Telsa model will become the dominant one the market will use over time. No dealership necessary. Order online, delivery at your door. The current environment with the R just further adds to this happening. Ford suing dealerships over the years also adds to this. Dealers are going to have to completely change everything, and basically become a branded service center in order to survive.
 
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