Is the market saturated??

Disclaimer: Links on this page pointing to Amazon, eBay and other sites may include affiliate code. If you click them and make a purchase, we may earn a small commission.

Littlefx4

FRF Addict
Joined
Feb 11, 2017
Posts
3,000
Reaction score
2,724
Location
Texas
You obviously have no clue how any of this works, so I'm going to inform you.

Step 1: Ford produces a vehicle for x cost (x is a variable because it can change with supply - like our current situation)

Step 2: Ford wants to make y margin, so they create an invoice price of x + x*y and an MSRP price of z (just a reminder that this is a SUGGESTED price)

Step 3: A Ford dealership buys the vehicle at invoice and puts the vehicle on their lot for sticker = z

Step 4: That dealer can sell the vehicle for whatever price they think it will go for and falls within the margin (y) they are looking for to make a profit. z + z*y = price out the door

Currently, price out the door is above MSRP because there is demand and no supply (aka: dealerships have the power). Sure, Ford says they are trying to crack down on dealership ADM, but that's where manpower comes in. A rule/regulation can only be enforced with... guess what? Manpower.
Does the dealer have power over your man purse too? I’ve read on several occasions, in various threads here no less, that -and I paraphrase- “we have the power to sway ADM…by not ponying up.” So who really holds the power? Not looking for a p i s s i n g contest, just asking a question. A lot of supply/demand professors here so no lecture needed. I’ve read y’all’s case study already! Take that North TX dealer, Grapevine, for example that has several on the lot each with a sizable ADM (as reported by a member here). Would you cave to their ADM or hold out till they come off that ADM…granted the trucks are not moving. Who would blink first, you or the dealer? Sure as hell won’t be me. They can get some other fill in the blank with your fav adjective!
 

LennyMoe

Active Member
Joined
Jun 21, 2021
Posts
74
Reaction score
96
Location
AZ
Does the dealer have power over your man purse too? I’ve read on several occasions, in various threads here no less, that -and I paraphrase- “we have the power to sway ADM…by not ponying up.” So who really holds the power? Not looking for a p i s s i n g contest, just asking a question. A lot of supply/demand professors here so no lecture needed. I’ve read y’all’s case study already! Take that North TX dealer, Grapevine, for example that has several on the lot each with a sizable ADM (as reported by a member here). Would you cave to their ADM or hold out till they come off that ADM…granted the trucks are not moving. Who would blink first, you or the dealer? Sure as hell won’t be me. They can get some other fill in the blank with your fav adjective!
Look, FRF makes up what percentage of all Raptor owners? 10%? 20%? I have no idea. But there's no chance that the "we have the power to sway ADM by not paying" idea is realistic. For one, a lot of people will say they're down for that, and then justify paying $5k-10k ADM because "it's still better than paying $15-20k." Secondly, there are a too many people outside this forum willing to pay ADM.

Look, I paid MSRP, and not a penny over - I can't prove it, but you can choose to believe me or not. I'm still here to tell you that dealers have the power - if they're willing to turn down full MSRP offers, they have it. Sorry to say. You can puff your chest out and say, "I would never pay over MSRP, " and I fully support it, but they still have the truck on their lot.
 

CoronaRaptor

FRF Addict
Joined
Dec 17, 2012
Posts
28,961
Reaction score
31,190
Location
CANADA
A lot of supply/demand professors here so no lecture needed. I’ve read y’all’s case study already!

Who would blink first, you or the dealer? Sure as hell won’t be me. They can get some other fill in the blank with your fav adjective!
Bro, consider yourself a supply/demand expert now like the rest of us, ha ha
 

Fat_Kid

Full Access Member
Joined
Sep 19, 2021
Posts
256
Reaction score
323
Location
Houston
Moving to Texas doesn't make you a Texan.
I'm assuming that's something to be proud of? I wouldn't know. Guess I'm just not a "real Texan". I gotta get me some Got-dame Sh*t kickers and a belt buckle I guess. HOOOOOWEEEE boy!
 
Top