4 ms·

Should do it for all models. The new Ford Bronco is in high demand with low supply. Some dealerships are adding anywhere up to 40k on top of the MSRP as a “mark

Should do it for all models. The new Ford Bronco is in high demand with low supply. Some dealerships are adding anywhere up to 40k on top of the MSRP as a “market adjustment”.

clircle 5y ago
Why not charge the market rate to remove the shortage ?
- StillBored 5y ago
  Well in the manufactures case they aren't making any of the extra margin, they would be better off knowing there is increased demand and making more of that particular model.
  - TylerE 5y ago
    There is little incentive for them to do so. It takes a lot of money and time to spin up a new production line, and you don't really effect total sales that much... as someone willing to spend an extra $50k for a C8 Corvette or a Bronco will also happily pay sticker and wait 12-18 months.
- mywittyname 5y ago
  They get sued. This happened with the SRT Viper. Dodge overestimated prices in the first year of new model production, so they dropped MSRP by like 15k the next year. Owners sued successfully to get $15k back. Now these $80k cars are selling for ~$150-250k. People who purchase Vipers made out like bandits.
StillBored 5y ago
Yah, I just about died when I saw the $40k dealer markup on the ford raptor a couple years ago. It was a hard NO on my side at that point. I guess post cov19 with all the shortages there is an economic argument for it, but in the past you would think ford/etc would be more than happy to eat chevy/toyota/etc's market share if their dealers weren't playing games with the retail values of these cars, because in may locations the same company owns a whole bunch of dealerships for different companies. Buddy of mine, ~15 years ago, bought a couple cars by spamming the sales department via email what he was looking for in a 1000 mile radius then playing them against each other. I tried it to a lesser extend a few year after that though and they basically weren't playing ball. There is a reason a lot of auto communities call them the "stealership" and then post their $1200 radiator replacement quotes.

Should do it for all models. The new Ford Bronco is in high demand with low supply. Some dealerships are adding anywhere up to 40k on top of the MSRP as a “market adjustment”.

clircle 5y ago

Why not charge the market rate to remove the shortage ?

StillBored 5y ago
Well in the manufactures case they aren't making any of the extra margin, they would be better off knowing there is increased demand and making more of that particular model.
- TylerE 5y ago
  There is little incentive for them to do so. It takes a lot of money and time to spin up a new production line, and you don't really effect total sales that much... as someone willing to spend an extra $50k for a C8 Corvette or a Bronco will also happily pay sticker and wait 12-18 months.
mywittyname 5y ago
They get sued. This happened with the SRT Viper. Dodge overestimated prices in the first year of new model production, so they dropped MSRP by like 15k the next year. Owners sued successfully to get $15k back. Now these $80k cars are selling for ~$150-250k. People who purchase Vipers made out like bandits.

StillBored 5y ago

Yah, I just about died when I saw the $40k dealer markup on the ford raptor a couple years ago. It was a hard NO on my side at that point. I guess post cov19 with all the shortages there is an economic argument for it, but in the past you would think ford/etc would be more than happy to eat chevy/toyota/etc's market share if their dealers weren't playing games with the retail values of these cars, because in may locations the same company owns a whole bunch of dealerships for different companies. Buddy of mine, ~15 years ago, bought a couple cars by spamming the sales department via email what he was looking for in a 1000 mile radius then playing them against each other. I tried it to a lesser extend a few year after that though and they basically weren't playing ball. There is a reason a lot of auto communities call them the "stealership" and then post their $1200 radiator replacement quotes.