Dealer markup - what would you do?

[eleven24]

A month ago I placed my MME GT order online & after selecting my local dealer I saw a $7k over MSRP markup added. I contacted the salesman I took the drive with and told him I would cancel the order if they could not meet the MSRP price. He said they would, and I have received a buyers order at MSRP - even though my order on ford.com reflects the $72k price.

Last weekend I test drove the GT at the same dealer & noticed they tacked $12k on as a "market adjustment". While I still have the buyers order showing $65k, I'm considering placing another order at a separate dealer that has the price at MSRP.

I do have some leverage at the first dealership though as I currently have two vehicles for my business on order with them. I'm also planning on getting my son a car when he graduates college this summer, and have already communicated that with the salesman.

Still... I have a Model Y to trade in & most certainly they'll try to make up for not adding the "market adjustment" to my MME GT on that transaction. I could try to sell that 3rd party (carmax, carvana, etc) but it could be more of a hassle.

So what would you do? Place a secondary order just in case? Or just ride it out since I have the buyers order?


Side note: buying the Tesla was so much less stressful. This reminds me why I've always loathed the car buying process.

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[hybrid2bev]

I would tell them to honor the buyers order or walk away. Simple as that.

No one should be paying over MSRP on an ordered vehicle.

If you walk, then place your order with the other dealer at MSRP and don't return to this dealer that's jacking up the price.

 

[Neil4Real]

As @hybrid2bev said, just ask them to honor it or walk.

Regarding the Tesla trade in, don't even take that into account. They will most certainly pay you way less than the other guys, even without trying to make up for no ADM on the sale of the MME. Go to CarMax, Carvana, etc. it isn't much of a hassle at all, just sitting at CarMax while they do the appraisal and sitting while they cut your check. Boring, but same process as the dealer.

 

[MachKet]

You can pick up a GT on the lot for MSRP easy so I doubt they will tack on a market adjustment

 

[jay1122]

Tesla price completely tanked with the new tax credit and price cut. You should get a quote from Carmax. My guess is around 40K trade in. MSRP for MME GT should be fairly easy to get now. Why not just keep the Model Y and give it to your kid later instead of buying another? Unless you are planning to get a low budget car for your son. And, what is wrong with the Model Y? Why do you want to trade it for a MME.

 

[machefan]

Some dealers auto add markups to all customer orders which will only show up online (Dealer Webpage & your account at Ford.com). I had this as well for my Bronco order, spoke to the dealer and was told it slows folks from calling them asking if it's available during transit before customer delivery. I already had a signed buyers sheet and dealer paperwork saying MSRP with no additional add-ons so I didn't really didn't worry much.

 

[eleven24]

Tesla price completely tanked with the new tax credit and price cut. You should get a quote from Carmax. My guess is around 40K trade in. MSRP for MME GT should be fairly easy to get now. Why not just keep the Model Y and give it to your kid later instead of buying another? Unless you are planning to get a low budget car for your son. And, what is wrong with the Model Y? Why do you want to trade it for a MME.

Tell me about it. My trade value on the Model Y was 70k 3-4 months ago. I considered giving my son the Model Y but the insurance for him would be insane. Personally, I never liked how the MY looked but bought it because of the Supercharger network & its integration with the Tesla. It was a "safer" entry into EV's for us, but now that I'm comfortable with charging, and don't have that range anxiety, I'd rather drive something other than an iPad with wheels.

 

[MachLovin]

A month ago I placed my MME GT order online & after selecting my local dealer I saw a $7k over MSRP markup added. I contacted the salesman I took the drive with and told him I would cancel the order if they could not meet the MSRP price. He said they would, and I have received a buyers order at MSRP - even though my order on ford.com reflects the $72k price.

Last weekend I test drove the GT at the same dealer & noticed they tacked $12k on as a "market adjustment". While I still have the buyers order showing $65k, I'm considering placing another order at a separate dealer that has the price at MSRP.

I do have some leverage at the first dealership though as I currently have two vehicles for my business on order with them. I'm also planning on getting my son a car when he graduates college this summer, and have already communicated that with the salesman.

Still... I have a Model Y to trade in & most certainly they'll try to make up for not adding the "market adjustment" to my MME GT on that transaction. I could try to sell that 3rd party (carmax, carvana, etc) but it could be more of a hassle.

So what would you do? Place a secondary order just in case? Or just ride it out since I have the buyers order?


Side note: buying the Tesla was so much less stressful. This reminds me why I've always loathed the car buying process.

I would tell them to kick rocks... 1) This dealer does not seem to be trust worthy because they cannot honor a simple, agreed upon, dealer mark-is being removed. And, i would not want to buy a car from a dealer that is not trust worthy..2) Especially right now, when inventory is soaring across the country with Mach E's, there should not be the mark-up. 3) Ford has reduced their MSRP of the Mach E due to Tesla slashing their prices... so dealership adding Mark-up adjustments at this point are just trying to re-capitalize on these price reductions... basically just being greedy because their profit margins at MSRP are already good.

 

[jay1122]

Tell me about it. My trade value on the Model Y was 70k 3-4 months ago. I considered giving my son the Model Y but the insurance for him would be insane. Personally, I never liked how the MY looked but bought it because of the Supercharger network & its integration with the Tesla. It was a "safer" entry into EV's for us, but now that I'm comfortable with charging, and don't have that range anxiety, I'd rather drive something other than an iPad with wheels.

Hmm, my guesstimate for your MY trade in value right now is around $40K+. As far as the insurance for your son. Collision coverage is only a portion of the coverage and factor. However, I think tesla premium is higher because of their high repair cost. Anyway, obtain actual quotes from insurance company for different cars is the only way to really know. I just think you will take a big financial hit trading in that Model Y now. But, maybe you are loaded and do not care about money. So, up to you.

 

[MachLovin]

Just as an example regarding the mark-up... This is the dealer i purchased my Mach E from and they only sell all of their vehicles at MSRP... No Mark-ups.. And, there's currently 38 Mach e's for sale.

 

[lurker]

Don't pay the markup, please. You can see in other threads inventory is piling up and you can buy off the lot at MSRP from other dealers. Don't start off your ownership with the rapid depreciation EVs are currently facing and then add-on to it.

 

[Scooby24]

I'm betting you can buy a lightly used GT right now for well under MSRP less tax credit.

Latest trade in offers I've seen are like 45k. So I would assume a savvy buyer could snag a used GT for around 50k right now.

 

[AKgrampy]

I suspect you are worried about nothing. They told you they will sell to you at MSRP so you should be good especially as a repeat customer. I would suggest looking up the value you would get from others for your Tesla and then see what your dealer would give you for a trade in. Then take the best offer. Although there seems to be dealers still applying the ADM my guess is it will be disappearing quickly as inventories begin to rise. (At least if what I have been reading is correct) It does appear there might be a used car bubble but for the most part their prices have been dropping significantly.

 

[eleven24]

Hmm, my guesstimate for your MY trade in value right now is around $40K+. As far as the insurance for your son. Collision coverage is only a portion of the coverage and factor. However, I think tesla premium is higher because of their high repair cost. Anyway, obtain actual quotes from insurance company for different cars is the only way to really know. I just think you will take a big financial hit trading in that Model Y now. But, maybe you are loaded and do not care about money. So, up to you.

I currently owe $32k on the Model Y. Ordered it when the base price was $49k, before it rocketed up to $66k and now back down to $55k. Cars depreciate the second one drives it off the lot with the brief exception of a year or so resulting from a global shutdown due to Covid. Considering that I sold a Ford Raptor at a profit to move into the Model Y, I can accept a trade in offer at or above what I currently owe on the MY. Then again, I'm loaded so....

 

[eleven24]

I suspect you are worried about nothing. They told you they will sell to you at MSRP so you should be good especially as a repeat customer. I would suggest looking up the value you would get from others for your Tesla and then see what your dealer would give you for a trade in. Then take the best offer. Although there seems to be dealers still applying the ADM my guess is it will be disappearing quickly as inventories begin to rise. (At least if what I have been reading is correct) It does appear there might be a used car bubble but for the most part their prices have been dropping significantly.

My best case scenario for delivery is June-July, though I'm not going to expect that. Once I get notice that my MME has gone into production I'll have a better idea of my timeline and can then research what my Tesla is worth. Until then, especially with a somewhat still volatile used car market, it's likely not worth it.

I think I still have some PTSD from 30 years of negotiating with car dealerships where I've built up a tremendous amount of distrust with.

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