$77K ... No thanks

[J-orange]

I'm trying to envision the sort of person that pays this for a car...and for that kind of money they have to have been capable of making good money...and then I think....who makes that kind of money while being willing to just throw it away so willingly? Everyone that I know of that's successful got there because of their intelligence, grit and gumption. This requires a sucker. Who has money while being a sucker?

There are a lot of people who have little to none financial sense. They spend on impulse and will hock themselves to high heaven. They will roll negative equity from one car to the next. 84 month financing. Then there is a very small group of people who have a lot of money and spending a extra 5-15 grand on what they want and when they want is normal for them.

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[phil]

Sadly, someone else is going to probably pay this anyway.

Why sad? The buyer will have the car he wants, and the seller will have the revenue he wants. Win win.

This is no different from when McDonald's raises the price of a Big Mac, and "someone else is going to probably pay it anyway." Or when home prices rise, or your supermarket raises the prices of the vegetables.

Try to look on the bright side here. A free market is a beautiful and beneficial thing. You don't want to experience the alternative.

 

[BigMach-E]

I dropped 2.5k ADM, because I wanted out of my lease, and I wanted the tax credit, and the interest rate was decent. The car was exactly what I wanted, the dealership close by, and it was about timing. Sure, I could have ordered, and waited a year for delivery, but there was no guarantee that I'd get the car in time for the tax credit to not start phasing out. I don't think of myself as a "sucker", it was a calculation. It still kind of smarts to have paid any ADM, but it was also a matter of convenience.

I bought off lot, and I don't begrudge people who managed to get their car for MSRP, not do I begrudge those who paid exorbitant ADM. Everyone has their own calculation to deal with. My car is almost 1 year closer to being paid off, my state Clean Fuel Rebate cut from 1.5k to 750 bucks from when I bought to now. Considering that, and the cost of gas for the year vs electric, in my case it is a wash with getting my car at MSRP.

Dealerships are going to be dealerships, and try to maximize profit. All you can do as a consumer is not buy, and tell others to avoid certain dealerships. My dealership experiences have been unpleasant/annoying, but I can't say that they weren't forthright about terms and such.

 

[MachTee]

The stars were definitely in alignment back in early June 2021, had nothing better to do on a Sunday I decided to drive around and see if there were Mach-E on dealership lots. There were quite a few, yes even premium, although no extended range which I probably would've gone with. None of the dealers were adding ADM at the time. 4 days later I test drove it and drove it home the same day.

I'm not one to judge what others do with their money. If I had more money than time, I probably wouldn't object to paying for the instant gratification. But it's more about winning the game, so no, I'll never pay an ADM.

 

[DennisD]

Why sad? The buyer will have the car he wants, and the seller will have the revenue he wants. Win win.

This is no different from when McDonald's raises the price of a Big Mac, and "someone else is going to probably pay it anyway." Or when home prices rise, or your supermarket raises the prices of the vegetables.

Try to look on the bright side here. A free market is a beautiful and beneficial thing. You don't want to experience the alternative.

I definitely promote a "Free Market" but it does come with some imperfections if it goes unregulated.

Monopolies, poorer worker conditions, environmental degradation to name a few could possible exist with no checks. If you have some free time, take a look at 1929 and see how that worked with no checks in place.

The problem with many that are purchasing with high ADM and borrowing money is that when the economy crashes (and it will just like the housing market of 07), the "sane" purchasers always pick up the tab with those that abuse the "free market". I personally don't like this.

It is a win-win when the people who are participating in this fools errand can actually pay for it at the end of the day. It can be a lose lose if those that borrow with no equity default.

I see many foolish people chasing a rabbit down a hole in paying a high ADM when they could stop and actually see that they can purchase other cars with no or very little ADM that are nice.

Once again, I am all for a free market and if you have the cash in hand............... Go for it. ?

 

[jonkMACHE]

Tell ya what. I have a Premium, low mileage, I'll take a loss and sell it to you for only $70k. I would only do this for a friend, though, hard to take that kind of hit but I'm willing to do it for you. That'll save you $7k.

I know you are joking, but with inflation + price increases, I fully expect the 2023 MachEs to be $70k with no ADM once sales tax gets added to the sticker price. They will easily get $70k for a fully loaded premium. It's only real competition at that price range is the ModelY, and I'd take the MachE any day of the week.

 

[Cm12]

I can wrap my head around some amount of ADM, even if I likely wouldn’t pay it. These examples of 10k or more are what blow my mind. I tried finding a premium SR last summer while I was waiting on my order and I couldn’t get dealers to budge off 10k ADM here. Even selects had a minimum $2,500 ADM. I know some dealers have a high ADM because it’s part of their game to “negotiate” it down to something less, but that wasn’t the case in the Portland/Seattle areas when I was looking.

 

[jonkMACHE]

It's a supply & demand issue + EVs are a hot ticket item thanks to the price of gas. I got my Premium right before gas prices shot up, and after two months of driving it, I can say I got a steal at $60k. If you are paying $300 a month in gas a $10k markup suddenly doesn't seem so unreasonable. A friend of mine saw my ME and went straight to Ford order one, and he was told to expect 1.5 year wait. He will likely get a 2024 edition. The car is so scarce it's practically a collector's item.

 

[DrJay32]

Just to be clear, I can understand a modest markup in this market. But I also know it's not like dealers are losing money when they sell at MSRP, either. The question is whether the demand is real enough to justify these 10-20k markups.

 

[ARK]

It’s easy for me to talk having bought mine seemingly not too long before the car market went nuts, but my biggest issue with ADM is when dealers play games or hide the ball or try to trick people, sometimes succeeding sometimes just wasting everyone’s time.

Outside of that, none of us have a god-given right to purchase a new vehicle at a set price. Especially something like a Mach-E, not like owning a new vehicle (specifically this vehicle) is a basic human right or anything remotely along those lines.

 

[DennisD]

Just to be clear, I can understand a modest markup in this market. But I also know it's not like dealers are losing money when they sell at MSRP, either. The question is whether the demand is real enough to justify these 10-20k markups.

Unfortunately, there are many people doing "funny" math out there and convincing themselves that they are ahead by spending an extra 10K when gas prices go up compared to their counter parts.

What they don't factor in, is the sales tax along with money financed or money that could be used to invest (other than investing in a car 10k over MSRP).

Let's take the high price of gas and see what you could spend.

If gas were $6 per gallon, you could purchase 1666 gallons of gas on 10K.

If your car got 30 mpg, one could drive 50 thousand miles on that 1666 gallons of gas. If you drove the MME to 50K miles, you would still need to factor in the cost of electricity.

If your car/truck got 15 mpg, you could drive 25 k and break even.

If you waited to order an MME and purchased it at MSRP, you could EASILY wait and save more money. And that is factoring in the tax credit that you wouldn't get in 1 year. You would still be ahead by waiting and paying MSRP.

 

[mburtsvt]

Adjusted Price Including Market Adjustment, The new buzz words.

 

[Astro19]

For me this is simple.

We are on the front lines of EV purchasing still, while in an odd economic situation.

I expect there to be an extra cost at times. People are willing to pay it. But it still sucks.

Then again I lucked out. Ordered in January, got it in march and paid msrp.

 

[DennisD]

For me this is simple.

We are on the front lines of EV purchasing still, while in an odd economic situation.

I expect there to be an extra cost at times. People are willing to pay it. But it still sucks.

Then again I lucked out. Ordered in January, got it in march and paid msrp.

A little luck with a whole lotta smart sprinkled in.

Congrats!!!

 

[phil]

I definitely promote a "Free Market" but it does come with some imperfections if it goes unregulated.

Monopolies, poorer worker conditions, environmental degradation to name a few could possible exist with no checks. If you have some free time, take a look at 1929 and see how that worked with no checks in place.

The problem with many that are purchasing with high ADM and borrowing money is that when the economy crashes (and it will just like the housing market of 07), the "sane" purchasers always pick up the tab with those that abuse the "free market". I personally don't like this.

It is a win-win when the people who are participating in this fools errand can actually pay for it at the end of the day. It can be a lose lose if those that borrow with no equity default.

I see many foolish people chasing a rabbit down a hole in paying a high ADM when they could stop and actually see that they can purchase other cars with no or very little ADM that are nice.

Once again, I am all for a free market and if you have the cash in hand............... Go for it. ?

All human institutions, like all humans, come with some imperfections. Regulations almost always create more imperfections than they eliminate. Such was the case in 1929, and throughout the '30s.

Spending a bunch of money on a fancy electric car seems foolish to me, too. But if that's what makes someone happy, I say more power to them. I bought an electric Mustang myself, when I certainly could have paid less for a satisfactory car. But the Mustang made me happy, so I bought it.

Fools who spend money they can't afford is a universal problem that won't be fully solved by markets or by regulation.

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