Many vehicles currently over MSRP

[Broncodave]

Well, I've been educated by this thread. It's all so simple now. To fix the problem of dealers charging ADMs, all you need to do is get rid of the "other" people paying over MSRP and it will never happen again. Easy peasy.

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[Mybbackpacker]

What idiot is paying $100K for a RAV4?

I think you answered your own question.

 

[Comadivine11]

Well, I've been educated by this thread. It's all so simple now. To fix the problem of dealers charging ADMs, all you need to do is get rid of the "other" people paying over MSRP and it will never happen again. Easy peasy.

If everybody refused to pay inflated prices, the ADMs would go away. Unfortunately, people are idiots and will continue to do so.

That wasn't my point though. My point is that ADMs are not necessary; they are not justified using actual supply and demand principles; they are a cash grab pure and simple. It's a moot point for me though. I refuse to buy a vehicle from shady dealerships and yet I'll still be getting my Bronco in February. At MSRP.

If you're dumb enough to pay ADMs, that's your problem.

 

[murphtron]

My dealer sent all reservation holders an email confirming no ADM. I was quite pleased with this response. I know they were inundated with questions after posts on here about dealer markups for reservation holders. They responded. It was very professional. It’s not a sales contract but I trust them. Also many corroborated reports from owners with delivered Broncos.

Fortunately for me I have a lease that just ended. I always planned to return the car at lease end. The lease residual seemed crazy high to me when I leased it. Carvana and Carmax both offered me $5k over the residual. So I paid the residual and bought the car. I need it until the Bronco comes. Who knows when! But this worked out for me. Pure luck. Of course I’d rather have the Bronco parked at my house. But at least I’m not screwed without a car.

Of course if my dishwasher or fridge die I’ll be screwed from what I hear…

 

[Mr. Nice]

That doesn’t make it any more intelligent.

Your thinking a like poor man not a rich one…

 

[22greenfordbronco]

Your thinking a like poor man not a rich one…

I make plenty of money. I’m thinking like someone who has a functioning brain.

 

[Mr. Nice]

I make plenty of money. I’m thinking like someone who has a functioning brain.

Rich folks may or may not be any more intelligent. It has nothing to do with that.
They have more money . It’s all relative.

 

[phocion]

The MSRP is a number invented by the Ford sales team. There's nothing magical about it that makes it the morally just price for a vehicle. It's not automatically a good deal to get a car below sticker (or below invoice for that matter), and it's not automatically a bad deal to get a car above sticker. It all depends on your own individual values.

Real world prices for vehicles, unlike MSRP, are determined by supply and demand. They are almost always below MSRP. Almost. We are in a period that is an exception to the rule, because demand is very high and supply is very low. People are no more or less greedy than they were 5 years ago. It's the conditions that have changed.

 

[Markpf189]

That actually seems like a pretty honest and straightforward answer. Looks like he is trying to justify $5K over MSRP, which isn’t unreasonable in this market. Like I said before, I don’t like it either, but the dealerships need to keep the lights on and mouths fed. Dealerships do make money in service and parts too, but techs are demanding more money or retiring, and they can’t get parts to sell due to supply chain issues. No dealership I’ve talked to is doing well right now.

It’s not just car dealerships running short on commodities. My local Marina is selling their allotment of 2023 outboards currently.

Interestingly all the people I know at dealerships are having their best months ever the last 6 months. Selling everything at or over msrp and used cars for absurd prices. Record months.

 

[Markpf189]

You're drastically misunderstanding him. The point is that dealerships as an institution are not *really* subject to simple 'supply v demand' economics because they don't produce nor are they the end consumer. At *best* a dealership is palatable and 99% of the time they're just obfuscatory and conniving. In a truly free market they wouldn't even exist.

They are essentially protected by outdated laws due to their lobbying power…so this is pretty true.

 

[robertccribb]

What are you basing that on? Banks and CUs have financed ADMs in the past.

I have worked for a CU/Bank for over 20 years. They are not going to do a auto loan for over 125-135% LTV. The value is likely going to be pulled via NADA or Black Book or some version of those systems. Going that high above the MSRP is very unlikely.

 

[PSUTE]

You're drastically misunderstanding him. The point is that dealerships as an institution are not *really* subject to simple 'supply v demand' economics because they don't produce nor are they the end consumer. At *best* a dealership is palatable and 99% of the time they're just obfuscatory and conniving. In a truly free market they wouldn't even exist.

When was the last time anybody here bought directly from a manufacturer? Closest I can get is buying produce from my Amish neighbors that grew it last month. Everything else I have purchased was through companies who do not produce anything, they are middlemen...

 

[The Dmv]

Ahh yes, more evidence that everything’s better in California. Prop 65 Warning: reading that post is known to the super wise and very-concerned-about-us state of California to cause cancer.

 

[Roll Sound]

I remember when the ford Probe had huge ADMs. Lol

Oh man. We almost bought a Probe. So glad We didn't. We ended up getting a 1991 Thunderbird SC instead. I loved that car.

 

[Deleted member 21681]

Just here to watch sour grapes armchair economists tell us they’re commies without telling us they’re commies.

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