Ford CEO Farley Says Dealers Who Gouge Could Get Fewer Vehicles

[CINISI]

Don’t hold your breath. Ford loves making billions in profit while producing fewer vehicles.

Is Ford making the profit or dealerships?

Q4 2021 Miss -37.28%. Miss -1.02%

 

[smurfslayer]

Last week I was told by Auto Nation Fleet manager/internet sales manager that they do buy from out of state dealers and ship it to Cali.

And not to impugn your information here but the source is a stealership sales person. Forthright and honest are not the first 2 traits that come to mind when considering this profession. I’m also not discounting this as a rumor either because with some of the left coast pricing we’ve seen, it’s entirely plausible.

It probably is/was happening but just how prevalent it really is and what money we’re talking about is always going to be somewhat of a mystery at the consumer level.

 

[EMY92]

Please point the Ford ADM Police to Automax Ford in Killeen, TX. They are selling a used Bronco First Edition model for $30,000 over the $63,000 when you build a new one in Ford’s website. Yes, I said used, about 1500 miles I believe and $93,000 dollars?!?!! Nuts.

I contacted them when buying my first Raptor. Sales guy that called me was useless, and that is a generous appraisal.

 

[robbys3m3]

Please point the Ford ADM Police to Automax Ford in Killeen, TX. They are selling a used Bronco First Edition model for $30,000 over the $63,000 when you build a new one in Ford’s website. Yes, I said used, about 1500 miles I believe and $93,000 dollars?!?!! Nuts.

Assuming they bought it used I bet they paid over msrp...even the auction numbers are crazy. My dealer sells new at msrp but has paid over msrp on the secondary market to have competitive inventory for a while. These are crazy times.

 

[ek5686]

It was a long time ago, I think I did pay it off early, but they got almost all of the 3 yrs of interest in the first few payments. I believe that type of loan is no longer legal.

Not true. That is still the way loans are structured to this day. I’m in the banking industry and this is standard practice. This is how banks make their money on loans.

Even your residential mortgage loans are all structured this way.

 

[NJ2020]

Not true. That is still the way loans are structured to this day. I’m in the banking industry and this is standard practice. This is how banks make their money on loans.

Even your residential mortgage loans are all structured this way.

I’m in banking too, what he’s referring to is probably a negative amortization loan or possibly interest calculated on a basis other than 30/360. Standard residential mortgages are not that predatory.

 

[TomDirt]

The Raptor market has gone insane. There's a 2019 model on eBay with 12xxx miles... listed at $59K. Its got a salvage title from a major collision. I've bought a salvage titled truck before, but it was a 3 year old tundra. With 4wd, crewcab; a perfect start for a prerunner project since I was going to replace the tires, wheels, suspension, fenders, etc. , and it was $17,000. Well below the original sticker price. But $59,000 for a salvage titled 2nd Gen?

 

[TXAG]

I'll believe Ford is hurting dealers for gouging when I see it. The only thing Ford has done is hurt dealers for selling below MSRP.

 

[allllaann]

Yeah, would be nice to see them actually enforce this. Most dealers out here are adding on at least $10-1$2k ADM on the gen 3 - with some as egregiously high as $40k.

 

[caleb]

Not sure how much truth there is to this, but I read on a Raptor FB group that west coast dealers are buying trucks from out of state dealers for markup and then selling those trucks for an even higher markup. Pretty wild if true

When I bought my truck back in 2018, one of our local dealers (Utah/Salt Lake market) had a ton of Raptors on their lot so I asked how they got so many. They said they were buying them from east coast dealers because they weren't moving as fast out there and they had them marked up $15K-$25K...I went elsewhere but for other reasons. Then while looking at some of the trucks on their lot, they still had window stickers from those dealers. So at least back then, I can 100% confirm this is true.