Dealer markups .

Kynno

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I ordered an XLT hybrid with just full spare ,Floor mats and Tow hitch hoping that none of it is held up in the supply chain issues. A local dealer ,not the one I ordered from ,has a Lariat with a $15000.00 "Factory Premium" and a dealer scarcity fee of $20000.00. The total sticker is $68,979.90! MSRP is $32,930.00 How can Ford allow this?
 

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rubydist

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MSRP = manufacturer's suggested retail price. Ford is not allowed to dictate pricing on vehicles available for sale on the lot.

I agree that the markup is ridiculous. We are getting $5k over for gas and $7.5k over for hybrid (if one becomes available) and they usually go in a day or two.
 

snoranger

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I don’t understand how they can legally claim (as seen in the 2nd pic) that the manufacturer retail price is $47,9xx. That’s absolutely not the manufacturers retail, that’s the dealers retail price. The manufacturers retail price is clearly listed on the window sticker.
Calling it a “factory premium” makes it sound like Ford is charging extra.
 

Kynno

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I don’t understand how they can legally claim (as seen in the 2nd pic) that the manufacturer retail price is $47,9xx. That’s absolutely not the manufacturers retail, that’s the dealers retail price. The manufacturers retail price is clearly listed on the window sticker.
Calling it a “factory premium” makes it sound like Ford is charging extra.
I agree, if you look at the second pic at the bottom it says "this is not a factory authorized sticker". I used the words "factory premium" (note parenthesis),so sorry, but when it says Manufacturers retail price ,what else are we to think?
 

snoranger

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I agree, if you look at the second pic at the bottom it says "this is not a factory authorized sticker". I used the words "factory premium" (note parenthesis),so sorry, but when it says Manufacturers retail price ,what else are we to think?
I’m not blaming you for the wording… they literally claim that the manufacturer retail price is $15,000 higher than the window sticker. Which is the the actual MSRP. They’re lying and making it look like Ford is charging $15k and they’re charging $20k.
 

wildbill23c

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LOL, well avoid that dealership at all costs obviously. 2 different stickers completely, and I don't think unless you add every option under the sun could you get a Maverick for over $40k. For almost the $70k price they have on that one, it better have the 7.3L Godzilla V8 and 4WD with lockers front and rear, skid plates, a 6" lift, offroad tires, etc.
 

Kynno

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LOL, well avoid that dealership at all costs obviously. 2 different stickers completely, and I don't think unless you add every option under the sun could you get a Maverick for over $40k. For almost the $70k price they have on that one, it better have the 7.3L Godzilla V8 and 4WD with lockers front and rear, skid plates, a 6" lift, offroad tires, etc.
:LOL::LOL:(y)
 

erad53

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I ordered an XLT hybrid with just full spare ,Floor mats and Tow hitch hoping that none of it is held up in the supply chain issues. A local dealer ,not the one I ordered from ,has a Lariat with a $15000.00 "Factory Premium" and a dealer scarcity fee of $20000.00. The total sticker is $68,979.90! MSRP is $32,930.00 How can Ford allow this?
I don't know how Ford can do this, I would check into state gouging laws.
 

Chapap

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There are things that manufacturers can do, but I've only heard of it for the highest level of vehicles they make. It could just be that they don't allocate vehicles to the crummy dealers. My local Chevy dealer always had a few used mid engine Vettes with 20 miles. I'm guessing the owner bought it to get around whatever markup block that Chevy had in place. I think the mid engine Vette Z06 came with a stipulation that if the first owner sells the car within a year, the warranty is voided.

I'm sure govt has something to do with it. I believe that mfgs CAN'T sell directly or something. Dealerships have territories so they don't get competition from the same manufacturer.
 

Jim Oaks

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I ordered an XLT hybrid with just full spare ,Floor mats and Tow hitch hoping that none of it is held up in the supply chain issues. A local dealer ,not the one I ordered from ,has a Lariat with a $15000.00 "Factory Premium" and a dealer scarcity fee of $20000.00. The total sticker is $68,979.90! MSRP is $32,930.00 How can Ford allow this?
I think this new business model of Ford's where they want people to order vehicles and have a limited amount of inventory on the lots is screwing the customers. Dealers are using it to gouge customers based on supply and demand.
 

wildbill23c

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I think this new business model of Ford's where they want people to order vehicles and have a limited amount of inventory on the lots is screwing the customers. Dealers are using it to gouge customers based on supply and demand.
Top that off with people are too stupid to just keep what they have, they just gotta do the keeping up with the Jones's routine to have the latest of everything, even if that means paying more than its worth.
 

snoranger

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Top that off with people are too stupid to just keep what they have, they just gotta do the keeping up with the Jones's routine to have the latest of everything, even if that means paying more than its worth.
I think leasing has a lot to do with that. I can buy out my lease or lease a new one for around the same payment… but I get a new vehicle, with new tires, brakes, and warranty that I don’t have to worry about replacing.
 

wildbill23c

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I think leasing has a lot to do with that. I can buy out my lease or lease a new one for around the same payment… but I get a new vehicle, with new tires, brakes, and warranty that I don’t have to worry about replacing.
A never ending car payment, no thanks LOL.

In the end you still have a car payment, on yet another car...so you don't gain a thing. Instead, put that car payment money aside for repairs, and just buy a car LOL.

I've done 2 new car purchases, never again....you end up eating a lot of loss. An off lease used car would make more sense I think. Rather one of the many "Certified" used vehicles. At least you have an end date on payments for something you'll actually own rather than never owning anything and just making payments forever.

But hey its your wallet, keep leasing it cuts out all the loss in immediate new car depreciation LOL. Not to mention the limits you have on mileage each year. For me now it wouldn't matter, between 3 vehicles I barely manage 5-7k a year in mileage LOL.

I'd rather buy and be done with it than keep making never ending payments, but I hate owing money so that's one huge difference between lease and buy. Plus the enormous down payment to lease a vehicle is a thumbs down for me too.
 

snoranger

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A never ending car payment, no thanks LOL.

In the end you still have a car payment, on yet another car...so you don't gain a thing. Instead, put that car payment money aside for repairs, and just buy a car LOL.

I've done 2 new car purchases, never again....you end up eating a lot of loss. An off lease used car would make more sense I think. Rather one of the many "Certified" used vehicles. At least you have an end date on payments for something you'll actually own rather than never owning anything and just making payments forever.

But hey its your wallet, keep leasing it cuts out all the loss in immediate new car depreciation LOL. Not to mention the limits you have on mileage each year. For me now it wouldn't matter, between 3 vehicles I barely manage 5-7k a year in mileage LOL.

I'd rather buy and be done with it than keep making never ending payments, but I hate owing money so that's one huge difference between lease and buy. Plus the enormous down payment to lease a vehicle is a thumbs down for me too.
Meh… I don’t really worry about money. I’d rather have a new car.
 

Chapap

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A never ending car payment, no thanks LOL.
I made a decent excel sheet once to figure out lifetime costs. Lease was super expensive compared to new and used... but that's for a different kind of car owner. A 25k new car with ext warranty (assuming those are any good) every 7 years was on par with an 8k used car (used personal ownership as cost baseline). I think new wound up saving money at like 15 years and on. Allot of assumptions in there... and it was pre-covid.
 

rubydist

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Unfortunately in today's world its more like a 50k new vehicle or a 16k used one. Pretty hard to find anything worth buying for under 10k right now.
 

wildbill23c

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Meh… I don’t really worry about money. I’d rather have a new car.
The never ending payments would annoy me LOL. Although having a vehicle under warranty would kind of be nice for repair issues I guess. I understand what you mean, but the continual payments would just make me upset.
 

wildbill23c

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I made a decent excel sheet once to figure out lifetime costs. Lease was super expensive compared to new and used... but that's for a different kind of car owner. A 25k new car with ext warranty (assuming those are any good) every 7 years was on par with an 8k used car (used personal ownership as cost baseline). I think new wound up saving money at like 15 years and on. Allot of assumptions in there... and it was pre-covid.
The 2008 Toyota Tundra I bought new with the extended warranty paid for itself on the first use with the front differential howl/growl TSB which required replacement of the front differential, an almost $4,000 job...didn't cost me anything after a few words with Toyota Corporate....one thing about maintaining a vehicle at a dealership, they got all the service records and notes....so they had to repair it under warranty even though the warranty was out because of the continual documentation of the issue that the dealer kept ignoring all the while it was under factory warranty. The extended warranty I had was a Toyota warranty though, not a 3rd party.

I would just hate the never ending car payments all my life with a lease option, and the payments are usually high too, as well as a high down payment.

I also recall somewhere that you have to have extremely good credit to even be considered for a lease? As in you are much more likely to get approved for an auto loan with not very good credit, where you'd be turned down for even applying for a lease option?
 

rubydist

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Typically it is easier to get someone approved on a lease than a finance transaction, although all of the banks are getting more conservative now that rates are going up and the general economy is going down.
 

wildbill23c

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Typically it is easier to get someone approved on a lease than a finance transaction, although all of the banks are getting more conservative now that rates are going up and the general economy is going down.
I figured leases were harder to get with bad or not good credit than a loan would be? Wonder why that's the case....oh well not really interested at this time, with today's market prices LOL.

I guess the huge plus with a lease is in fact you are under warranty all the time, but I don't think you can really modify the vehicle it has to stay stock, can't mount stuff on them, etc. from my understanding?
 
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