Current New Vehicle Market

[13COBRA]

@13COBRA
Any truth to this? (Not sure if this has been discussed earlier. If so, I apologize.)

Ford Boss Puts the Kibosh on ‘Unreasonable’ Dealer Markups

Jim Farley has his eyes on the brand's dealerships, and he's not afraid to pull vehicle allocations for those who step out of line.

www.thedrive.com

They can't withhold allocation based on what dealerships charge for vehicles.

The VAST majority of dealers who are charging ridiculous ADMs on vehicle are some of Ford's largest volume stores.

 

[CobraBob]

I'll ask the same question in this thread.

Nick, what's your take then on what Jim Farley said in the Fox News report? All fluff?

 

[13COBRA]

I'll ask the same question in this thread.

Nick, what's your take then on what Jim Farley said in the Fox News report? All fluff?

Copy/Paste

Definitely good PR.

Jim Farley is a great dude. Had a lot of fun conversations with him about his past in SCCA Racing and stuff...

He knows as well as anyone that he, nor Ford Motor Company, can dictate to dealers what they charge for vehicles.

 

[me32]

They can't withhold allocation based on what dealerships charge for vehicles.

The VAST majority of dealers who are charging ridiculous ADMs on vehicle are some of Ford's largest volume stores.

Exactly

 

[sonicx]

Copy/Paste

Definitely good PR.

Jim Farley is a great dude. Had a lot of fun conversations with him about his past in SCCA Racing and stuff...

He knows as well as anyone that he, nor Ford Motor Company, can dictate to dealers what they charge for vehicles.

Shoulda asked him how many times a day he gets asked if he’s related to Chris Farley proceeded by if he can do any impressive impressions

 

[tones_RS3]

Shoulda asked him how many times a day he gets asked if he’s related to Chris Farley proceeded by if he can do any impressive impressions

 

[jbr03cobra]

That’s ridiculous

 

[598]

On an unrelated side note, one of my friends ran with Chris Farley some when he was in Chicago in the early days. Dude was absolutely nuts, 24-7. In a fun but not sustainable way. We actually had a few friends that met that threshold back then, and maybe did ourselves a few times. Youth is a dangerous time with a little money and a big city in your pocket. RIP Farley

 

[01yellercobra]

Friend of mine is looking for a new truck soon. He sent me a link to a local dealer that had an $18k mark up on a new Dodge dually. Ouch.

 

[13COBRA]

Friend of mine is looking for a new truck soon. He sent me a link to a local dealer that had an $18k mark up on a new Dodge dually. Ouch.

Yep, isn't that nuts.

 

[Morgan]

I see ads from a Toyota dealer promoting Corollas available for lease at $119/mth. I’ve not shopped for Corollas but this price seems like a bargain.

Have residuals improved such that leases are more attractive across the board?

 

[13COBRA]

I see ads from a Toyota dealer promoting Corollas available for lease at $119/mth. I’ve not shopped for Corollas but this price seems like a bargain.

Have residuals improved such that leases are more attractive across the board?

Yes and no.

That sounds like a advertised lease payment if I've ever seen one.

10% down, 10k miles a year, all taxes/destination delivery/etc excluded...

For a 24 month lease, that's paying $2856.

 

[BlueSnake01]

Yes and no.

That sounds like a advertised lease payment if I've ever seen one.

10% down, 10k miles a year, all taxes/destination delivery/etc excluded...

For a 24 month lease, that's paying $2856.

On top of that, it's usually the basic model that no dealer will even carry.

 

[13COBRA]

On top of that, it's usually the basic model that no dealer will even carry.

Correct.

 

[CobraBob]

You could also correctly define that as a bait and switch.

 

[BlueSnake01]

You could also correctly define that as a bait and switch.

Was duped into something like that a year ago for a Jeep. Jeep was under 10% MSRP on their site, no extra fees was confirmed over the phone with a "salesman". After making a 60 mile drive, found out they were adding extra charges for installed dealer equipment that was making the car over MSRP and wouldnt budge on removing it.

I hate those stupid ads and even more sales people that are not straightforward.

 

[robvas]

Saw. $659/month expedition lease for 24 months that wanted $4500 down! So $850/month if you're bad at math

 

[13COBRA]

You could also correctly define that as a bait and switch.

No, not necessarily.

Saw. $659/month expedition lease for 24 months that wanted $4500 down! So $850/month if you're bad at math

That's not horrible.

Sent from my Potato

 

[CobraBob]

No, not necessarily.

Sent from my Potato

Nick, do (some) dealers knowingly advertise a vehicle for a specific price (ie. basic model example) knowing that the vehicle advertised isn't available for purchase or lease?

In that example, if the dealer offers another similar vehicle at a higher price, isn't that a bait and switch?

If it isn't, please explain why. Thanks.

 

[13COBRA]

Nick, do (some) dealers knowingly advertise a vehicle for a specific price (ie. basic model example) knowing that the vehicle advertised isn't available for purchase or lease?

In that example, if the dealer offers another similar vehicle at a higher price, isn't that a bait and switch?

If it isn't, please explain why. Thanks.

In order for a dealer to advertise a payment or price on a particular unit they HAVE to include the interest rate, term and down payment in order to get to the advertised payment. If it's just a super low price, they obviously don't need to display any of that. Regardless, either way they have to advertise the stock number or numbers that fit the advertisement.

Is it possible they have 1 unit that they can price ridiculously low, and then have 10 others that are a little bit higher....sure. That's not bait and switch by law though.

Bait and switch would be a dealer advertising all new Escapes starting at $19,995, yet when you call or get to the dealer they either add destination/delivery on top, add-ons to increase the sales price, OR if they don't have any vehicles that would fit their advertisement.

Kinda like a Black Friday sale. Best Buy can advertise 50" TV door busters for $200 limited to the first 20 purchases. After the 20 are sold, then they can charge what they want for the rest.