My feelings regarding ADM

[RHeinz]

Stopped by my dealer today to check on my build date. Holy crap, I’ve moved up a week….now 4/4. Doesn’t mean I won’t be stuck on “the mountain” for months however…..

Anyway, this particular dealership has 3 Broncos for sale. One used with 200 something odd miles on it. All were being offered at around $8,000 over MSRP.

I fully understand the frustration of reserving and then waiting 7 to 24 months only to be confronted with unexpected ADM. It’s WRONG, UNDERHANDED and DECEPTIVE (which is illegal in Texas).

On the other hand, If you walked into THAT dealership today, wanting a Bronco, and were faced with what could be a 8 to 18 month wait to get a delivery, the $8000 ADM with instant delivery might be well worth it.

I’m sure I’ll get your opinions.

By the way, the Badlands Sasquatch, MGV, and wash out floors (which is what I saw today, and what I ordered) is BAD ASS, up front and personal. Can’t wait to get it out to AZ, UT, CO, NM, and Big Bend.

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[Garemlin]

There is no amount of time to not wait that would make $8k over worth it. Hell IMO anything over MSRP isn't worth it.

But if you have it and can't wait by all means throw your money away.

 

[Jawbox]

An extra 16 months at 500 a month, assuming no interest, seems terrible. 15% premium, hard pass.

 

[BR0NCO]

Stopped by my dealer today to check on my build date. Holy crap, I’ve moved up a week….now 4/4. Doesn’t mean I won’t be stuck on “the mountain” for months however…..

Anyway, this particular dealership has 3 Broncos for sale. One used with 200 something odd miles on it. All were being offered at around $8,000 over MSRP.

I fully understand the frustration of reserving and then waiting 7 to 24 months only to be confronted with unexpected ADM. It’s WRONG, UNDERHANDED and DECEPTIVE (which is illegal in Texas).

On the other hand, If you walked into THAT dealership today, wanting a Bronco, and were faced with what could be a 8 to 18 month wait to get a delivery, the $8000 ADM with instant delivery might be well worth it.

I’m sure I’ll get your opinions.

By the way, the Badlands Sasquatch, MGV, and wash out floors (which is what I saw today, and what I ordered) is BAD ASS, up front and personal. Can’t wait to get it out to AZ, UT, CO, NM, and Big Bend.

If someone comes in off the street and pays some MSRP I’m ok with that. If they were getting it for sticker price I’d be pissed if I’ve been waiting 18 months for mine

 

[lakesinai]

Stopped by my dealer today to check on my build date. Holy crap, I’ve moved up a week….now 4/4. Doesn’t mean I won’t be stuck on “the mountain” for months however…..

Anyway, this particular dealership has 3 Broncos for sale. One used with 200 something odd miles on it. All were being offered at around $8,000 over MSRP.

I fully understand the frustration of reserving and then waiting 7 to 24 months only to be confronted with unexpected ADM. It’s WRONG, UNDERHANDED and DECEPTIVE (which is illegal in Texas).

On the other hand, If you walked into THAT dealership today, wanting a Bronco, and were faced with what could be a 8 to 18 month wait to get a delivery, the $8000 ADM with instant delivery might be well worth it.

I’m sure I’ll get your opinions.

By the way, the Badlands Sasquatch, MGV, and wash out floors (which is what I saw today, and what I ordered) is BAD ASS, up front and personal. Can’t wait to get it out to AZ, UT, CO, NM, and Big Bend.

Its true, its your money and we all spend money on whats valuable to us . . . A painting, A vacation, front row seats at a concert or game with travel and hotel can easily get into the thousands of dollars. And some people have more of it than others, to be spent as they choose. If someone has cash to spend and can buy at an inflated price to get it more quickly, good for them. Others are using loans with less cash, and have to be more frugal. Good for them. Too.

 

[PSUTE]

If I'm a dealer, if something is on the lot, I ask whatever the traffic will bear. Order holders on the other hand are a different color of a horse. Would not even be there but for the order holder...

 

[bigblueboing]

There is no amount of time to not wait that would make $8k over worth it. Hell IMO anything over MSRP isn't worth it.

But if you have it and can't wait by all means throw your money away.

I always wonder why msrp is the line in the sand for people. FORD really says it’s manufactured suggested retail price. Yet people are like I won’t pay one cent over msrp. I’m just curious why. In a down car economy you wouldn’t pay close to sticker it would be closer to invoice or under invoice depending on how bad the dealership wanted to move it. Anyways why msrp. If there is a scarcity and that drives prices up well isn’t that just the cost of what you want reflected in the current market. Why is it so offensive to people.

 

[Fordmanbob]

There is no amount of time to not wait that would make $8k over worth it. Hell IMO anything over MSRP isn't worth it.

But if you have it and can't wait by all means throw your money away.

The reason there are ADMs is because people(OP) walk in with their sweaty wad of cash. That just ruins it for everyone. Do I want to wait.....hell no! But I'll be damned if I pay some greedy dealer 1Cent over MSRP!I walked once on a 2007 .....Shelby! I'll do it again..
..

 

[hemiblas]

I ended up getting something else under invoice instead of paying msrp or above.

 

[Gasherbrum]

I'm probably in the minority here, but in today's market paying $ 8k ADM for a Bronco isn't as bad of a deal as it might appear, at least for some buyers. If I need to buy a car now and my choices are 1) a new Bronco at 15% over MSRP or 2) a used car that costs 40% more than it did a year ago, it likely makes a lot more sense financially to buy the Bronco even with the ADM. Plus you get a really cool car as well.

Here's the link to the USA Today story on the increase in used car prices

 

[‘21OBX]

In think it ridiculous for a dealer to even ask for ADM. This is the first vehicle that I’ve actually had to pay msrp. Usually it’s quite a bit under msrp but todays market is all kinds of messed up. If my dealer would have asked for anything more I’d have passed and kept my truck for longer. Usually I aim for 5% under msrp minimum.

 

[CyberOrangeFanatic]

I always wonder why msrp is the line in the sand for people. FORD really says it’s manufactured suggested retail price. Yet people are like I won’t pay one cent over msrp. I’m just curious why. In a down car economy you wouldn’t pay close to sticker it would be closer to invoice or under invoice depending on how bad the dealership wanted to move it. Anyways why msrp. If there is a scarcity and that drives prices up well isn’t that just the cost of what you want reflected in the current market. Why is it so offensive to people.

Agreed. I own a business where we deal with hundreds of suppliers in the current craziness of our global supply chain. It's madness out there right now. Prices go up every single time you engage with a supplier. And everything requires waiting 4x-8x longer than ever before. So my business bought 8x worth of supplies and we are charging more for it, both because we had to buy up so much inventory as well as because all of our suppliers are increasing prices every single time we order. That's how I chose to deal with this because I had the option to buy up inventory stock when it was available. Ford doesn't really have that choice now, though, which is part of the problem.

Meanwhile, my company has distributors for our products, and I have essentially told them to do what they need to do to subsist. We have a recommended price, but the only thing we are currently guaranteeing is that we will have our items in stock and ready to ship. Charge whatever is necessary to maintain your business and we will stand behind you.

I think that's the crappy thing about this for auto manufacturers. Where my business may require anywhere from 2-75 parts per product that we make, the auto industry has thousands of parts per vehicle. It's incredibly intricate and it's an absolute mess for them to try to figure out in the modern supply chain landscape. These dealership mark-ups are a direct reflection of the fact that Ford (and essentially every auto manufacturer) cannot keep up with the demand due to the fantastic complexity of their supply chain breaking down since the pandemic began. This is the dealerships saying "this is what we need to do to survive."

Look at Tesla vehicles, and specifically at the Model 3. They went up around $8.5K from 2020 to 2021, which is around a 20-25% increase depending on the trim. And that's without a middle man involved like a dealership. Dealerships gotta eat, guys. They're a business all on their own. It's a fact of life, and I can't begrudge dealerships who have basically no new cars on their lots these days. Pay it or don't pay it. Wait or don't wait. It's up to you, and you're welcome to be curmudgeonly (because waiting sucks a**). But let's not cast stones on the entirety of dealerships for charging ADM's -- they almost have to do so to survive right now.

 

[Havok]

Stopped by my dealer today to check on my build date. Holy crap, I’ve moved up a week….now 4/4. Doesn’t mean I won’t be stuck on “the mountain” for months however…..

Anyway, this particular dealership has 3 Broncos for sale. One used with 200 something odd miles on it. All were being offered at around $8,000 over MSRP.

I fully understand the frustration of reserving and then waiting 7 to 24 months only to be confronted with unexpected ADM. It’s WRONG, UNDERHANDED and DECEPTIVE (which is illegal in Texas).

On the other hand, If you walked into THAT dealership today, wanting a Bronco, and were faced with what could be a 8 to 18 month wait to get a delivery, the $8000 ADM with instant delivery might be well worth it.

I’m sure I’ll get your opinions.

By the way, the Badlands Sasquatch, MGV, and wash out floors (which is what I saw today, and what I ordered) is BAD ASS, up front and personal. Can’t wait to get it out to AZ, UT, CO, NM, and Big Bend.

Broncos are currently valued and selling well above MSRP currently, even used with thousands of miles on them. It’s fine if a seller can get more than they paid.

But what the issue is on so many of the threads on this forum is dealerships who verbally or in writing in some cases said they would charge MSRP upon delivery of an Oder holders build are now charging crazy ADMs. That’s where the anger comes from.

 

[Havok]

Agreed. I own a business where we deal with hundreds of suppliers in the current craziness of our global supply chain. It's madness out there right now. Prices go up every single time you engage with a supplier. And everything requires waiting 4x-8x longer than ever before. So my business bought 8x worth of supplies and we are charging more for it, both because we had to buy up so much inventory as well as because all of our suppliers are increasing prices every single time we order. That's how I chose to deal with this because I had the option to buy up inventory stock when it was available. Ford doesn't really have that choice now, though, which is part of the problem.

Meanwhile, my company has distributors for our products, and I have essentially told them to do what they need to do to subsist. We have a recommended price, but the only thing we are currently guaranteeing is that we will have our items in stock and ready to ship. Charge whatever is necessary to maintain your business and we will stand behind you.

I think that's the crappy thing about this for auto manufacturers. Where my business may require anywhere from 2-75 parts per product that we make, the auto industry has thousands of parts per vehicle. It's incredibly intricate and it's an absolute mess for them to try to figure out in the modern supply chain landscape. These dealership mark-ups are a direct reflection of the fact that Ford (and essentially every auto manufacturer) cannot keep up with the demand due to the fantastic complexity of their supply chain breaking down since the pandemic began. This is the dealerships saying "this is what we need to do to survive."

Look at Tesla vehicles, and specifically at the Model 3. They went up around $8.5K from 2020 to 2021, which is around a 20-25% increase depending on the trim. And that's without a middle man involved like a dealership. Dealerships gotta eat, guys. They're a business all on their own. It's a fact of life, and I can't begrudge dealerships who have basically no new cars on their lots these days. Pay it or don't pay it. Wait or don't wait. It's up to you, and you're welcome to be curmudgeonly (because waiting sucks a**). But let's not cast stones on the entirety of dealerships for charging ADM's -- they almost have to do so to survive right now.

Your post doesn’t address the main issue going on with Bronco sales costs right now. If a dealership orders your Bronco and agrees to charge MSRP, why are you giving them justification to charge more when it’s delivered. Please explain.

 

[CyberOrangeFanatic]

In think it ridiculous for a dealer to even ask for ADM. This is the first vehicle that I’ve actually had to pay msrp. Usually it’s quite a bit under msrp but todays market is all kinds of messed up. If my dealer would have asked for anything more I’d have passed and kept my truck for longer. Usually I aim for 5% under msrp minimum.

Have you ever bought a highly desirable vehicle that had a global shortage of inventory before? My guess is no based on your comment, but please let me know if I am incorrect. The ADM stuff isn't new to sports car enthusiasts or short-run special trims (i.e. Ford F-150 Raptors), but it's now trickling down into regular inventory due to the supply chain chaos, especially for the highly desirable vehicles like the Bronco. This is good old-fashioned supply/demand economics at work. Love it or hate it, it's the reality of the world at the moment.

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