Ford CEO Farley Says Dealers Who Gouge Could Get Fewer Vehicles

[WKUSMC]

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

Dealers in Southern Ca been doing this for years. Old news

 

[caleb]

This was happening in the 2017-2018 era as well or at least alleged to have happened. I don’t think anyone has ever actually posted tangible proof of it other than ‘the dealer said’. So it could be true. Or it could be internet rumor.

Yeah, see my post above, 2018 and was told by the dealer AND saw the previous dealer's window stickers still on. I think the market is too hot for all dealers now for this to be happening still though. The internet and easy shipping has made any dealer an easy option.

 

[melvimbe]

Yeah, see my post above, 2018 and was told by the dealer AND saw the previous dealer's window stickers still on. I think the market is too hot for all dealers now for this to be happening still though. The internet and easy shipping has made any dealer an easy option.

I don't think we're quite there yet. I mean, a lot of use are willing to do some research, understand the market, and willing to deal with dealers far away for a better deal than the local guy. But others are not, and would rather trust the dealer when they $20k ADM is the best you can get right now.

There are also people who need to sit in the specific vehicle before they buy it, and have no patience to wait. There are only going to buy off the local lot.

 

[caleb]

I don't think we're quite there yet. I mean, a lot of use are willing to do some research, understand the market, and willing to deal with dealers far away for a better deal than the local guy. But others are not, and would rather trust the dealer when they $20k ADM is the best you can get right now.

There are also people who need to sit in the specific vehicle before they buy it, and have no patience to wait. There are only going to buy off the local lot.

100% agree. Though my point was simply that I think there are enough people that ARE willing to buy sight unseen and having not sat in the vehicle for a fair price that I would find it highly unlikely many dealers are selling their inventory to other dealers unless they themselves are getting above MSRP from other dealers (who are then marking up even more).

 

[Vader]

Not many free enterprise proponents on here...

Bottom line if consumers would all stop wanting something so bad they agree to pay for ADM or finance through a dealer for 7 years all of these issues would not exist.

Yes, I know nobody on here did ether of these things.

 

[mfpf4r]

"About 10% of dealers charging above MSRP"

HA!

I've called over 55 dealerships across multiple states. So far only 1 has been at MSRP, 1 other at 1k over. Then 2 @5k... so 2 out of 55+ dealerships I've personally spoken with were OVER MSRP by at least 5k...

California - all 25 had 10k-30k ADM. (1 found to have 5k markup but no allocations yet)
Oregon - all 3 had ADM 10-20k
Arizona - 4 had ADM 10k-20k - 1 at MSRP but who knows how long that line is.. (Sampson)
Nevada - all 5 had ADM 10k-20k
Wisconsin - 4 had ADM ranging 5k-20k - Found one at 1k ADM
Minnesota - 4 had ADM 10-15k
Michigan - 2 had ADM 5k-15k
Idaho - 2 had ADM 10k-15k
Utah - 4 had ADM 10k-20k
Colorado - 3 had ADM 10k-20k


Its the nature of the beast..Like everyone else has said, dealerhsips are going to get it as long as people are willing to pay. I probably wont find a new 22 for no markup, but I'm okay with that. Congrats to everyone who has found their deals!

 

[johnbud]

There is a cause and effect. Ford customers will remember how the the dealers forgot about the customers and focused on themselves. Customers dont forget about getting hosed.

Customer obsession should be Fords priority, Ford needs to publically make examples of greedy dealers. Until this happens its just marketing spin.

 

[johnbud]

That will never happen, If dealers disappear then why would you even go there for warranty work, you'll start to see people taking their cars to Walmart for service, lol. It's bad enough already out there, still need a place to go that Ford can represent for service.

Maybe Ford should look at the business model Tesla uses. Factory stores selling MSRP and servicing vichicles. Tesla is now worth more than both Ford and GM. If only they had a Raptor competitor...

 

[melvimbe]

100% agree. Though my point was simply that I think there are enough people that ARE willing to buy sight unseen and having not sat in the vehicle for a fair price that I would find it highly unlikely many dealers are selling their inventory to other dealers unless they themselves are getting above MSRP from other dealers (who are then marking up even more).

Yea, it's an open market, but my understanding is that dealers don't just buy and sell to each other, but trade. I can see where an California dealer maybe happy to trade 2 F150 XLs for a Raptor with a dealer out in middle America. It's a win win deal for both. And of course, some dealerships just want to work local with high returns, while others would rather work on volume sales.

 

[melvimbe]

No many free enterprise proponents on here...

Bottom line if consumers would all stop wanting something so bad they agree to pay for ADM or finance through a dealer for 7 years all of these issues would not exist.

Yes, I know nobody on here did ether of these things.

Part of the problem with that is that a slightly used Raptor can sell for above MSRP right now. Your theory would work only if everyone also agreed not to sell their used Raps above MSRP as well. This is obviously rare for vehicles, but happens all the time when supply doesn't meet demand and a manufacturer locks in MSRP. Scalpers make a killing.

But even then what your suggesting is really fighting against the free market. It doesn't work because there is always someone willing to pay more. Except when there isn't and the price drops to MSRP or below.