Dealer Markup

hedgehog99

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So after patiently waiting for my order for 4 months, I started seeing Mach-E that fit my built on the lots. So after confirming there will be no dealer markup, I went into the dealer (different from the one that I ordered from) to finalize the deal. It was all smiles until they show me a piece of paper with OTD 10K extra. Besides the extra warranty, the incorrect sales tax, there was this 3rd party, aftermarket lifetime protection for the 12V battery and key fob. They claimed it's already in the car and is not optional. Is this common? I assume that my pre-ordered car won't show up with this BS add-on. Just curious.
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Ghost Ryder

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Run away. They are fleecing you. There are lots of MME on dealer lots now. Reports of people getting some discounts off MSRP are starting to show up.

Which dealer is this? They need to be publicly shamed for being dishonest.
 
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4sallypat

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So after patiently waiting for my order for 4 months, I started seeing Mach-E that fit my built on the lots. So after confirming there will be no dealer markup, I went into the dealer (different from the one that I ordered from) to finalize the deal. It was all smiles until they show me a piece of paper with OTD 10K extra. Besides the extra warranty, the incorrect sales tax, there was this 3rd party, aftermarket lifetime protection for the 12V battery and key fob. They claimed it's already in the car and is not optional. Is this common? I assume that my pre-ordered car won't show up with this BS add-on. Just curious.
Patiently ?

Really ?

My MME order has been 11 months going onto a full year as delivery ETA keeps slipping since December 2022.

I am hanging on to my original order since I will get the price protection at time of re-order (4.49%, $2000 options cash, $2500 PCO).

If you can't wait, and you must get an on lot MME in CA, then you will have to put up with:
  • ADM markup
  • Dealer added junk accessories
  • Or BOTH
Dealers in CA know you can get the full $7500 tax credit + $2000 CVRP in CA.

That's how they justify the markups & added junk.
My Ford dealer are charging $5K-$10K ADM plus add on junk ($1000 nitrogen air fill, $600 plastic door strips, $2000 alarm systems, $1500 LoJack) on lot MMEs.

Try Morgan Hill Ford in Nor Cal - they don't mark up ADM....
 

RedStallion

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So after patiently waiting for my order for 4 months, I started seeing Mach-E that fit my built on the lots. So after confirming there will be no dealer markup, I went into the dealer (different from the one that I ordered from) to finalize the deal. It was all smiles until they show me a piece of paper with OTD 10K extra. Besides the extra warranty, the incorrect sales tax, there was this 3rd party, aftermarket lifetime protection for the 12V battery and key fob. They claimed it's already in the car and is not optional. Is this common? I assume that my pre-ordered car won't show up with this BS add-on. Just curious.
Just tell them: call me when you have a fire sale.

There is so much wrong with the economy in general, and the dealerships in particular, I think many of them won't survive the coming recession.
 


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hedgehog99

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The dealer also tried to give me a 7.3+% financing multiple time even though it is still 5.59% on Ford.com. They showed me their loan application to my bank. They APPLIED FOR 6.99% and got offered 7.29% Is this how it works? Would a bank give them a better rate than their application? I could have bought the car with cash, but that was the last straw. On my way out, they MAGICALLY showed up with a 5.7% offer. Yep, no thanks.
 
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hedgehog99

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Patiently ?

Really ?

My MME order has been 11 months going onto a full year as delivery ETA keeps slipping since December 2022.

I am hanging on to my original order since I will get the price protection at time of re-order (4.49%, $2000 options cash, $2500 PCO).

If you can't wait, and you must get an on lot MME in CA, then you will have to put up with:
  • ADM markup
  • Dealer added junk accessories
  • Or BOTH
Dealers in CA know you can get the full $7500 tax credit + $2000 CVRP in CA.

That's how they justify the markups & added junk.
My Ford dealer are charging $5K-$10K ADM plus add on junk ($1000 nitrogen air fill, $600 plastic door strips, $2000 alarm systems, $1500 LoJack) on lot MMEs.

Try Morgan Hill Ford in Nor Cal - they don't mark up ADM....
Thanks? I guess that should make me feel better. Dealer should have known I don't qualify for any tax credit so all add-ons are out of my pocket.

I assume the dealer won't give me Ford financing because they are getting markup rate and kick backs with non-Ford lenders. I think this is legal, but why doesn't Ford financing care?

Also, they added an extra 1% on my sales tax. Why would they do that? It won't go through when the actual tax is assessed. Or could they tack the extra $500 onto the final loan amount?

I'm trying to decide if 1) they are sloppy 2) they are greedy and stupid and think I can't do back calculation and check every line item, or 3) that's MO of all dealers. I haven't personally bought a car in 20 years, so just curious.
 
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axelheimer24

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The dealer also tried to give me a 7.3+% financing multiple time even though it is still 5.59% on Ford.com. They showed me their loan application to my bank. They APPLIED FOR 6.99% and got offered 7.29% Is this how it works? Would a bank give them a better rate than their application? I could have bought the car with cash, but that was the last straw. On my way out, they MAGICALLY showed up with a 5.7% offer. Yep, no thanks.
Dealers make a significant portion of their profits from F&I. Their costs on all the added warranties and products are low and they see how much they can mark them up. They also mark up the financing by giving you a higher rate than the bank charges them. Decline all extra products and services and go in with your own loan quote from a local credit union or bank. If they can match that rate, then great. If you want an extended warranty, first check granger ford or one of the low mark up online dealers (you can buy at a later date).
 

mburtsvt

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Thanks? I guess that should make me feel better. Dealer should have known I don't qualify for any tax credit so all add-ons are out of my pocket.

I assume the dealer won't give me Ford financing because they are getting markup rate and kick backs with non-Ford lenders. I think this is legal, but why doesn't Ford financing care?

Also, they added an extra 1% on my sales tax. Why would they do that? It won't go through when the actual tax is assessed. Or could they tack the extra $500 onto the final loan amount?

I'm trying to decide if 1) they are sloppy 2) they are greedy and stupid and think I can't do back calculation and check every line item, or 3) that's MO of all dealers. I haven't personally bought a car in 20 years, so just curious.
Who are these morons?
 

axelheimer24

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Unfortunately many people only focus on the monthly payment and by extending the loan terms they can pack in a lot of junk “for only $x per month”
 

Phil-Springs

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Thanks? I guess that should make me feel better. Dealer should have known I don't qualify for any tax credit so all add-ons are out of my pocket.

I assume the dealer won't give me Ford financing because they are getting markup rate and kick backs with non-Ford lenders. I think this is legal, but why doesn't Ford financing care?

Also, they added an extra 1% on my sales tax. Why would they do that? It won't go through when the actual tax is assessed. Or could they tack the extra $500 onto the final loan amount?

I'm trying to decide if 1) they are sloppy 2) they are greedy and stupid and think I can't do back calculation and check every line item, or 3) that's MO of all dealers. I haven't personally bought a car in 20 years, so just curious.
They are not sloppy. They are running all the usual tactics on you . Do yourself a favor .. walk away from this dealer.
 

4sallypat

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Thanks? I guess that should make me feel better. Dealer should have known I don't qualify for any tax credit so all add-ons are out of my pocket.

I assume the dealer won't give me Ford financing because they are getting markup rate and kick backs with non-Ford lenders. I think this is legal, but why doesn't Ford financing care?

Also, they added an extra 1% on my sales tax. Why would they do that? It won't go through when the actual tax is assessed. Or could they tack the extra $500 onto the final loan amount?

I'm trying to decide if 1) they are sloppy 2) they are greedy and stupid and think I can't do back calculation and check every line item, or 3) that's MO of all dealers. I haven't personally bought a car in 20 years, so just curious.
If you don't qualify for the $7500 and/or $2000 state of CA - then it might behoove you to find an out of state dealer willing to sell at MSRP.

I have to stick with a CA dealer as the $2000 CVRP applies to EVs purchased in state.
And since I make less than $150K, I qualify for the $7500 - just got my $7500 refunded for my 2022 Lightning I purchased last summer.

Ford financing - standard rates only apply to top tier credit applicants - last time I heard was 9.9%.

As for the sales tax, it's based on your residence. If you have more than 1, use the lower tax rate. Dealer is supposed to collect on the sales tax for where you declare your home - nothing more - nothing less.

Dealer is not worth your headache.

Are you familiar with Morgan Hill Ford Store ?

They charge MSRP with no junk fees, no add ons, no ADM, etc...
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