Dealer markup - what would you do?

[eleven24]

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.

The fact that I'm even willing to pay MSRP at a dealership is foreign to me. I'm used to going in armed with dealer invoice numbers and the expectation of how much below MSRP to expect.

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[Auto Motive]

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.

Call dealers in your area to get one to sell per msrp and transfer this one to them since you ordered this on line. Don't cancel since dea ler keeps car to reselll

 

[ryi0205]

If they don’t agree to msrp, just walk and take your two ordered business cars with you along with a car you were planning to purchase for your son. Let them feel some pain from their behavior. If they then say they would honor msrp for you, if it were me, I’d still walk because I would be pissed and not feeling good about what should be a feel good transaction for my new Mach-e.

 

[eleven24]

If they don’t agree to msrp, just walk and take your two ordered business cars with you along with a car you were planning to purchase for your son. Let them feel some pain from their behavior. If they then say they would honor msrp for you, if it were me, I’d still walk because I would be pissed and not feeling good about what should be a feel good transaction for my new Mach-e.

Exactly what I plan to do. I'm sure the sales guy in charge of corporate sales will not appreciate losing a customer they've had for 12 years over games they decided to play.

Only problem is I ordered the E350 Transits in January of 2022... and I need them yesterday.

 

[Jeffvisor]

Given the change in interest rates and the cooling off of the hot Car market nobody should be paying a dealer markup over list today that window I feel closed in January. With Tesla marking down the Model Y that is putting pressure on Mach-e pricing. These dealers are really hurting the Ford and Mach-e brand by trying to charge that much over the list and then at time of closing likely will try to charge for all their dealer addons such as security etching, extended warranties, clear coating etc .

 

[Hammered]

Find a used low-mileage GTPE w/ ford gold certified warranty. Longer warranty (takes out to 10yrs) while bumper to bumper goes to 4yr/48 + rental car coverage.

Do make sure to have financing situated ahead of time given today's rates.

 

[jay1122]

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....

Ah, you did not buy it at peak. That is good to hear. You could ask your son if he wants the model Y. What are you planning for your son? I am just curious. Another Ford? Every time you trade in you lose 3-5K due to dealer profit margin. I generally avoid trade in cars frequently.

 

[AKgrampy]

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.

Understood. My wife just retired from our local dealer and I am slightly apprehensive for the next car we purchase; although, from what I have seen they are fairly good to deal with. Of course we always purchased on the D plan so slightly under MSRP. Worst case for us (me) is she had a demo for the last 15 years so we were able to drive a lot of new cars!

 

[yngwenli]

Have you tried looking for MME at dealer lots within a 100 mile range or so? I'm surprised anyone even needs to order in this current market now. I see almost 20 at a single local dealership and I assume every option/color can be had. If you had some price protection, yeah, you probably should wait for your order, but that's not your case.

No reason to get in a long stressful order/wait situation when you simply don't have to. You can search these forums and find the legit dealers in your area that just wants to sell cars and call/show up, pay what you want and have your car already at MSRP or less maybe. There is also the March tax credit changes if you qualify which is worth $3.75k or $7.5k before changes.

I don't think with where the economy is/world is right now, we're not going back to no cars to buy for 2023 at least.

 

[eleven24]

Have you tried looking for MME at dealer lots within a 100 mile range or so? I'm surprised anyone even needs to order in this current market now. I see almost 20 at a single local dealership and I assume every option/color can be had. If you had some price protection, yeah, you probably should wait for your order, but that's not your case.

No reason to get in a long stressful order/wait situation when you simply don't have to. You can search these forums and find the legit dealers in your area that just wants to sell cars and call/show up, pay what you want and have your car already at MSRP or less maybe. There is also the March tax credit changes if you qualify which is worth $3.75k or $7.5k before changes.

I don't think with where the economy is/world is right now, we're not going back to no cars to buy for 2023 at least.

I have a 100 mile search saved as a bookmark that I check every day. The only one that popped up was in northern NJ, which is the NYC market. They had a $10k markup on it. Clearly things are different in CA than they are here in PA. In the month since I've ordered my car I have only seen two on the road - and I'm actively looking for them while driving.

Teslas, on the other hand? They're everywhere.

 

[4sallypat]

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.

By middle of the year, predictions are that used car values will come up but do expect parts shortages for your build.

Hate to be the bearer of bad news, but my MME order from April 22 is still in Mexico - fully built and transported 5 miles away in a holding lot for 2 months.

Why am I still waiting instead of picking up a dealer's lot MME ?

• PCO ('22 pricing)
• Lower interest rates at time of order (4.49%)
• $2000 Options incentive
• Full tax credit before IRS rules on battery credit in March...

Hopeful it will arrive before the IRS rules on the battery credit.
If not, I may walk since the credit may become zero or half...

 

[Steph]

The only number that matters is the trade difference, appreciating you get to it from your expectation for new price (sounds like MSRP for you) less your trade price (TBD). Get some quotes and decide what difference you can be happy with. If they charge you $17k over list on new and give you $17k more on the trade the difference is the same.

If they don’t like your number walk. As others noted, plenty of orders (especially GT’s) on dealer lots. Shipping cars is also quite easy if you don’t need to test drive.

Also consider the value of not paying sales tax on the trade if applicable in your area. You might get a better price from an outright sale, but it should cover the additional sales tax if applicable.

 

[yngwenli]

I have a 100 mile search saved as a bookmark that I check every day. The only one that popped up was in northern NJ, which is the NYC market. They had a $10k markup on it. Clearly things are different in CA than they are here in PA. In the month since I've ordered my car I have only seen two on the road - and I'm actively looking for them while driving.

Teslas, on the other hand? They're everywhere.

I wonder if Ford should foot the bill and consider shipping all these hundreds of EVs in CA to the rest of the US then. Clearly, a lot of people backed out on their purchases (with these green stickers) and there is definitely a supply imbalance.

Perhaps increase your search radius as well. Start very wide (300+ miles) and zero it in from there since there is definitely an allocation thing going on.

I notice some dealerships actually have way less inventory around me (like 2 MME) vs. a few that I normally check (20+).

Some dealerships probably got a ton of orders due to great pricing/no hassles vs. some which had very few where not many people ordered from. Sucks the good/better dealers are now left holding the bag.

 

[Reign of Ravens]

You asked what you should do. My experience was the same as yours, so I can tell you what I did: I did order another car (but not a Mach-E) as a backup, with the guarantee that I'd get my deposit back even if I didn't take it. I ended up taking both my Mach-E and the other vehicle.

Same story, I had it in an email before I ordered that customer orders would not have ADM but cars sold on the lot would. A month or two into it I noted the stealth price increase on my car's website and asked the dealership about it. They were wishy-washy by email and would only tell me that they'd honor a price if they had agreed to one before, without telling me if the email I had constituted a price agreement (even after I forwarded it to them and basically said 'just tell me yes or no'). I went into the dealership and it was a relatively contentious interaction but I got them to say that yes, the email counted, I'd be the last customer they sold to at MSRP but it would be MSRP regardless of what markup the website said. (Predictably, they refused to give me anything in writing - as I had anticipated that, I recorded them with my 'smartwatch' to ensure that I had some sort of record of this promise. Legal in my state to record with only one party being aware of it, check legality in your own state before attempting; sounds paranoid, but as the saying goes, it isn't paranoia if they're really out to get you - and there's a reason dealerships have some of the least trust among businesses.)

Didn't want to get screwed over, so ordered a different vehicle from a different dealership as a backup. For better or for worse, that vehicle ended up beating the Mach-E to me, so I couldn't use it as a true backup. We liked it a lot anyway and took it.

When the Mach-E arrived it was relatively smooth - there was no markup. They didn't honor Ford's price protection but that's a gripe for a different scenario and doesn't apply to you.

So what I'd say is, you have the email about MSRP and that should count. If you want to write in to clarify further, or ask if they would sign a price or purchase agreement in advance, that would give you even more security. If the dealership gives you sketchy vibes or seems very noncommittal and/or resentful, as mine was, then order a second vehicle if there's a promise that you can get your deposit back even if you decline it. At that point you don't really have much to lose.

 

[eleven24]

You asked what you should do. My experience was the same as yours, so I can tell you what I did: I did order another car (but not a Mach-E) as a backup, with the guarantee that I'd get my deposit back even if I didn't take it. I ended up taking both my Mach-E and the other vehicle.

Same story, I had it in an email before I ordered that customer orders would not have ADM but cars sold on the lot would. A month or two into it I noted the stealth price increase on my car's website and asked the dealership about it. They were wishy-washy by email and would only tell me that they'd honor a price if they had agreed to one before, without telling me if the email I had constituted a price agreement (even after I forwarded it to them and basically said 'just tell me yes or no'). I went into the dealership and it was a relatively contentious interaction but I got them to say that yes, the email counted, I'd be the last customer they sold to at MSRP but it would be MSRP regardless of what markup the website said. (Predictably, they refused to give me anything in writing - as I had anticipated that, I recorded them with my 'smartwatch' to ensure that I had some sort of record of this promise. Legal in my state to record with only one party being aware of it, check legality in your own state before attempting; sounds paranoid, but as the saying goes, it isn't paranoia if they're really out to get you - and there's a reason dealerships have some of the least trust among businesses.)

Didn't want to get screwed over, so ordered a different vehicle from a different dealership as a backup. For better or for worse, that vehicle ended up beating the Mach-E to me, so I couldn't use it as a true backup. We liked it a lot anyway and took it.

When the Mach-E arrived it was relatively smooth - there was no markup. They didn't honor Ford's price protection but that's a gripe for a different scenario and doesn't apply to you.

So what I'd say is, you have the email about MSRP and that should count. If you want to write in to clarify further, or ask if they would sign a price or purchase agreement in advance, that would give you even more security. If the dealership gives you sketchy vibes or seems very noncommittal and/or resentful, as mine was, then order a second vehicle if there's a promise that you can get your deposit back even if you decline it. At that point you don't really have much to lose.

Thanks. Your situation sounds exactly like mine. One thing I've been certain to do is communicate everything regarding pricing via text message with my salesman, even if that text message is clarifying the in person conversation we had. This way I have the purchase agreement email along with a copy of the text conversation backing up what was said.

Sure, that's not legally binding and Ford would likely do nothing about it should I complain if the deal went sideways, but I suppose it's better than nothing.

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