Cancelled Bronco orders...

riderflyer

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Now that the Fed has raise interest rate 3/4 of a point today..I bet that many will cancel or won't be able to come up with finances when their Bronco is finally delivered. I been waiting 8 month for a base 2/door Bronco and the best car loan rates I can find were 1.9% the first of this year. Now with excellent credit, the best is close to 4%. My Bronco is the exception in low cost with most new Broncos prices, out the door, in the 50-60K range, which is stupid money and would cost borrowers $1000/mo loan payments.. If we are rolled into 2023 model year and Ford jacks up prices, many that have ordered will not be able to qualify for a loan in that range. Think the least FMC could do would be to offer low interest rates for new Bronco loans.
 

WT205

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I blame Ford for a lot of the problems with this rollout, order fulfillment, dealer allocation games and more. I don't put them on the hook for interest rates increasing.
 
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SuperMike

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I don't disagree... Ford's inability to produce -- whether it be due to supply chain or roof issues or whatever -- have cost the customers waiting on their orders SIGNIFICANTLY, as it relates to interest rates (if you're taking out a loan). I'm saving as much as I can right now to help reduce that, but it sucks.

Editing to note -- I know it's not Ford's 'fault' that interest rates have gone up, but it IS their fault in how they've handled allocations and the order they've built things, AND in how they botched the MIC roof and other issues.
 

2 Door Jim

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Now that the Fed has raise interest rate 3/4 of a point today..I bet that many will cancel or won't be able to come up with finances when their Bronco is finally delivered. I been waiting 8 month for a base 2/door Bronco and the best car loan rates I can find were 1.9% the first of this year. Now with excellent credit, the best is close to 4%. My Bronco is the exception in low cost with most new Broncos prices, out the door, in the 50-60K range, which is stupid money and would cost borrowers $1000/mo loan payments.. If we are rolled into 2023 model year and Ford jacks up prices, many that have ordered will not be able to qualify for a loan in that range. Think the least FMC could do would be to offer low interest rates for new Bronco loans.
 

riderflyer

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Not blaming FMC for the interest rate hikes...that the jackass in the WH. I'm saying many build orders will come available as this year goes on. Smart people are afraid to make a major purchase in the $60,000 range, even if they are working. People's retirement funds and stock have dumped and interest rates are only going up.
 

SethPoeski

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I can't imagine we won't see a large number of cancellations or inability to finance, since most people are skating by on credit and minimum income. This won't really effect the market or Ford's ability to deliver currently, though, so it will only really come into effect mid next year when there are far more Broncos delivered, and people unable to finance them. We could potentially see a bunch of Broncos sitting on the lot at MSRP, with some dealerships able to sell slightly below MSRP as an incentive, by the end of next year/early 2024.
 

SethPoeski

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Not blaming FMC for the interest rate hikes...that the jackass in the WH. I'm saying many build orders will come available as this year goes on. Smart people are afraid to make a major purchase in the $60,000 range, even if they are working. People's retirement funds and stock have dumped and interest rates are only going up.
.. the white house has zero to do with interest rates. The Federal Reserve is a separate entity from the government entirely and operate independently.
 

SuperMike

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.. the white house has zero to do with interest rates. The Federal Reserve is a separate entity from the government entirely and operate independently.
Right... BUT... The Federal Reserve is INCREASING interest rates in order to try and stave off recession, which one could (EASILY) argue is a threat we are facing as a direct result of current administration policy.

I'll say no more on that. I despise political conversations -- they are not for good company.
 

SethPoeski

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Right... BUT... The Federal Reserve is INCREASING interest rates in order to try and stave off recession, which one could (EASILY) argue is a threat we are facing as a direct result of current administration policy.

I'll say no more on that. I despise political conversations -- they are not for good company.
Can't argue that! Lots of mishaps with this current administration (and to me, that doesn't have much to do with the sitting president, more his admin and econ team, so no political opinions there).
 

TK1215

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Right... BUT... The Federal Reserve is INCREASING interest rates in order to try and stave off recession, which one could (EASILY) argue is a threat we are facing as a direct result of current administration policy.

I'll say no more on that. I despise political conversations -- they are not for good company.
Thank you all for self moderating.
 

NT AUTOMOTIVE

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The newest hike today will slow down sales that is for sure because that is the point of these rate hike(s).

Too much free money and too much demand as a result is the reason for rate hikes. Imagine if the "build back better" 2+ trillion spending package passed last year, we would be FUBAR. Thank you manchin for stopping that disaster!

Also, I think Ford should have Not allowed customers to change their orders mid build because that slows down progress for FMC/others on a number of levels.

Obviously the pandemic didn't help and other things too but where we are today is the direct result of poor, no, a terrible lack of leadership and brain power on the part of those bafoons currently in power in DC. *Remember that in the next two elections.

It will take years for rates to lower again. Then average folks can buy a house or bronco comfortably. Until then if you want a bronco be prepared not only for ADM but a high rate to borrow.

Hang in there everyone!!
 

RagnarKon

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Yeah... unfortunately this is all interlinked.

Ford (and many other companies) can't produce product fast enough, primarily because of supply shortages. Those same supply chain issues is what is driving inflation. And the Fed's interest rate hikes are an attempt to combat that inflation by reducing demand. Of course there is a lot of other nonsense happening around this situation, but that the supply chain issues are the root of it.

Lots of causes for this issue—it wasn't caused by a single person, or single country... there is is plenty of blame to go around for sure. BUT, the good news is it'll eventually hit the automobile market and the amount of ADMs will start to come down. The bad news, obviously, is interest rates on loans will be higher.

For me personally, the delay hasn't been all bad. Sure I would have liked to have my Bronco a year ago, but the good news is I can now pay for this Bronco entirely in cash, and get to skip the car loan process altogether.
 

TK1215

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Yeah... unfortunately this is all interlinked.

Ford (and many other companies) can't produce product fast enough, primarily because of supply shortages. Those same supply chain issues is what is driving inflation. And the Fed's interest rate hikes are an attempt to combat that inflation by reducing demand. Of course there is a lot of other nonsense happening around this situation, but that the supply chain issues are the root of it.

Lots of causes for this issue—it wasn't caused by a single person, or single country... there is is plenty of blame to go around for sure. BUT, the good news is it'll eventually hit the automobile market and the amount of ADMs will start to come down. The bad news, obviously, is interest rates on loans will be higher.

For me personally, the delay hasn't been all bad. Sure I would have liked to have my Bronco a year ago, but the good news is I can now pay for this Bronco entirely in cash, and get to skip the car loan process altogether.
I am in the same boat. Now if Ford would just take my money!
 

MobScene13

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Seems like the best option right now is to indeed pay lump sum, huh? I was looking into credit unions and seeing 2-4% rates. I'm sure that will change now.
 

A51OUTERBANKS

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.. the white house has zero to do with interest rates. The Federal Reserve is a separate entity from the government entirely and operate independently.
AND I suppose you think Biden is doing a great job, direct correlation between govt spending and inflation.
 

A51OUTERBANKS

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Seems like the best option right now is to indeed pay lump sum, huh? I was looking into credit unions and seeing 2-4% rates. I'm sure that will change now.
If FMC sees a drop in purchases they will chase buyers with low interest rates. All the manufacturers will be soon, as cost of goods rising and cost borrow money rising.
 

Chaos

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Possibly, but there have been cancellations throughout this whole process. Most of the cancellations happened when people had the opportunity to convert reservations to orders. There were issues from the start with Ford noting a bunch of late availability and delays, so many customers caught up in the initial hype, you might say, cancelled their reservation and never converted orders. Cancelling an actual order is a little different, in that in 99% of the cases the dealer with the order will just refund the customer's the deposits if any and keep the order. Even with the first deliveries, there were plenty of people that walked away. Some people again were just over it, for others financial issues changed over the 11-12 month wait from reservation. I scored 2.1% for 60+ months with deferred payment for 3 months last week. In 2021/early 2022 I had expected to get 1.7-1.9. Yes, most credit unions and banks are advertising 3-4+% on fixed rates, but there are a few out there with some lower rates. I know quite a few people have been securing low initial variable interest rate loans with deferred payment starts with the idea of flipping the vehicle. No matter what the fed does, there are always people looking to make money off of loaning money. I tend to doubt this will change the % of customers taking delivery of their orders. However, after the initial rush to places new 23MY orders happens, increased interest rates are likely to have an impact on new orders and it would be expected that people will be looking at less expensive trims or just other vehicles if they really need a new vehicle.
 
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Chaos

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If FMC sees a drop in purchases they will chase buyers with low interest rates. All the manufacturers will be soon, as cost of goods rising and cost borrow money rising.
You are actually already seeing it. A number of manufacturers are offering 0% or 0.9% for well qualified applicants on certain vehicles. Car lots are filling back up.
 

SethPoeski

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AND I suppose you think Biden is doing a great job, direct correlation between govt spending and inflation.
I do not, no. Again, this is in no way a political opinion, more an observation, but there were failures all over the place with our current administration, which is a bummer. I can imagine the current economic state was a lot for anyone to inherit, I just felt more could have been done earlier to soften the blow we are about to receive.
 
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