Hi! New to the forum...and question about dealer markups

adrencg

Feb 10, 2023

Hi, I'm the current owner of a 2021 Big Bend Bronco and a Badlands Bronco Sport. I bought the Bronco from a dealer last April (with $4k markup) to hold me over while I wait for my build. I finally have a build date set for early March and I'm currently trying to get some info from my dealer about whether or not the MSRP will be honored when the car arrives, but they've been a little evasive.

Anyway, I have an order sheet signed by the sales manager with a price of $41k (with tax) listed on it. Can the dealer try to pull anything and charge a markup when it comes time to actually buy the car? If that happens, will I have any recourse other than threatening a bad Google review? Does that order sheet bind them to anything, or can they just make up any price they want?

I'm trying to get some assurances that I can sell my current Bronco now without having the new one taken away, because I refuse to pay anything over MSRP for a car I ordered and patiently waited for.

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Feb 10, 2023

Final pricing is ultimately between you and the dealer.

The order summary sheet just lists the MSRP, it doesn't really say anything in regards to the final selling price. By signing that you are just confirming the order was submitted correctly in Ford's ordering system.

Most people will lock in their final price with a buyer's order or purchase agreement that is signed by you and the dealer. That lists everything... the selling price of the vehicle, documentation fees, etc. Basically everything except sales tax and title registration fees since that is controlled by the state government and not you or the dealer. And typically you would come to an agreement and sign that before you place the order. So... if you didn't do that then its too late at this point and the most you can do is threaten them with a bad review.

2022 4dr Badlands, 2.3L Manual, Mid pkg
YouTube: youtube.com/@ragnarkon
Instagram: @ragnar.kon

Feb 11, 2023

RagnarKon
Final pricing is ultimately between you and the dealer.

The order summary sheet just lists the MSRP, it doesn't really say anything in regards to the final selling price. By signing that you are just confirming the order was submitted correctly in Ford's ordering system.

Most people will lock in their final price with a buyer's order or purchase agreement that is signed by you and the dealer. That lists everything... the selling price of the vehicle, documentation fees, etc. Basically everything except sales tax and title registration fees since that is controlled by the state government and not you or the dealer. And typically you would come to an agreement and sign that before you place the order. So... if you didn't do that then its too late at this point and the most you can do is threaten them with a bad review.

Thanks, I appreciate the input.

The market has changed, I understand that. But the wait period during which that market changed was not initiated by the buyer, so it makes no sense that the buyer needs to eat the dealers loss. But I doubt the car dealers look at it that way.

Feb 11, 2023

You have one other option. Ford is tying dealerships allocations partly to selling special ordered vehicles to the customer that ordered them. If the names don’t match it could affect that dealership’s allocations. There is a customer Verification process but I cannot remember the name, something like CVP or something with initials.

Bronco Nation 1100. Everglades, Desert Sand
Res: 7/30/20 ordered 1/22/21 reorder 10/15/21 changed to Everglades 3/9/22 schedule 8/29/22 bumped to 9/5; 9/7/22 blend, 9/9 Mods, 9/26/22 completed, 10/7 shipped, 11/3/22 delivery

Feb 11, 2023

This has been one of Ford’s moral failings in not better controlling the integrity of their dealer franchises. They’re supposedly trying to fix this with their EV lineup, but that won’t help today. I’m old enough to remember when dealers could be successfully sued for bait and switch. Guess nobody cares anymore.

FTC page: https://www.ftc.gov/enforcement/penalty-offenses/bait-switch

outthere_overland

Feb 11, 2023

adrencg
Thanks, I appreciate the input.

The market has changed, I understand that. But the wait period during which that market changed was not initiated by the buyer, so it makes no sense that the buyer needs to eat the dealers loss. But I doubt the car dealers look at it that way.

Markets are a 2-way street really. There was a huge drop in vehicles sales in response to the pandemic, automobile manufacturers responded by cutting orders, and then shortly after that there was a huge demand for vehicles and the supply chains couldn’t respond fast enough.

I personally have always signed purchase orders for retail vehicles. They ultimately protect the dealer and the buyer from price fluctuations in the market. Admittedly… in the past the purchase orders I’ve signed protected the dealer more than me. I’ve always driven manual transmission vehicles, which are the “undesirables” in the American automobile market. This Bronco was the first time a purchase order protected me more than the dealer.

2022 4dr Badlands, 2.3L Manual, Mid pkg
YouTube: youtube.com/@ragnarkon
Instagram: @ragnar.kon

Feb 11, 2023

RagnarKon
Markets are a 2-way street really. There was a huge drop in vehicles sales in response to the pandemic, automobile manufacturers responded by cutting orders, and then shortly after that there was a huge demand for vehicles and the supply chains couldn’t respond fast enough.

I personally have always signed purchase orders for retail vehicles. They ultimately protect the dealer and the buyer from price fluctuations in the market. Admittedly… in the past the purchase orders I’ve signed protected the dealer more than me. I’ve always driven manual transmission vehicles, which are the “undesirables” in the American automobile market. This Bronco was the first time a purchase order protected me more than the dealer.

That’s par for the course and the cost of doing business in my opinion; dealers frequently have to handle such fluctuations and work out wholesale or swap agreements with other dealers to move inventory. Screwing customers who have already been given an order sheet with a sticker price is a new phenomenon that I don’t think should be tolerated or justified. But that’s just my 2 cents.

Feb 12, 2023

RagnarKon
Markets are a 2-way street really. There was a huge drop in vehicles sales in response to the pandemic, automobile manufacturers responded by cutting orders, and then shortly after that there was a huge demand for vehicles and the supply chains couldn’t respond fast enough.

I personally have always signed purchase orders for retail vehicles. They ultimately protect the dealer and the buyer from price fluctuations in the market. Admittedly… in the past the purchase orders I’ve signed protected the dealer more than me. I’ve always driven manual transmission vehicles, which are the “undesirables” in the American automobile market. This Bronco was the first time a purchase order protected me more than the dealer.

Im pretty sure I have a purchase order and it is signed by the dealer. Isn't the form with the priority code, vehicle specs, prices for each addon, taxes, final price etc the purchase order?

Feb 12, 2023

adrencg
Im pretty sure I have a purchase order and it is signed by the dealer. Isn't the form with the priority code, vehicle specs, prices for each addon, taxes, final price etc the purchase order?

There is the order summary sheet… which is standardized across all dealerships since it is generated by Ford’s ordering system. It just lists each option and their MSRP, there is text along the bottom that says “this is not an invoice”.

Then there is the purchase order/agreement itself, which is very dealer-specific. There is no “Ford standard” way of doing it since Ford doesn’t get involved with the actual purchase of the vehicle. Sometimes it’s a completely different sheet, sometimes it’s an additional statement on the same sheet.

Here is example from a Town & Country Ford in Alabama:

And here is an example from my dealer:

2022 4dr Badlands, 2.3L Manual, Mid pkg
YouTube: youtube.com/@ragnarkon
Instagram: @ragnar.kon

Feb 12, 2023

That looks like the same thing I have. So I do have a signed purchase order.

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