ADM is now a Ford problem

[da_jokker]

I know this topic has been discussed a few times. However, the ability for dealers to hold reservation holders hostage at purchase by forcing the buyer to accept ADM up charges or forgo the order is wrong. We made the reservation for the Bronco. We spec’d it out and placed the order. We anticipated Ford delivering to us our Bronco. Pricing was established at the order. Granted, there are dealer fees associated with delivery, tax, title, etc. But a pure mark up based on demand is wrong. The challenges with delivering Broncos has added to the demand. Dealers know it and are using it to their advantage. I purchased my Badlands yesterday. There was a $5K markup. When I balked at it, they said that is the going rate right now. I pushed back. I was basically left with either buying my bronco with a markup or watch it be sold to someone else and have to wait another year plus for a replacement. Ford has talked about holding pricing but that is meaningless when dealers are permitted to mark up the Bronco.

I love this Bronco. It is really an awesome Truck. Ford has done an excellent job. It sucks that the experience is tainted by BS practices of dealers. The worst part, I moved my early reservation from one dealer (that was non-response) to this dealer. So they would not have had my early reservation but for me. They Would have to wait on their other MIC top, constraint laden orders.

Hoping @FordMotorCompany can find a way to deal with this.

It's ironic on the other forum I posted a response about how dealers are ending up with so many reservations.

I basically stated exactly what happened to you, that people were showing up to pick up their Broncos and finding out dealers wanted ADMs, And so people were walking.

... To which I was drilled about providing proof. Of course the best response to this, is just not to respond.

Sorry for your situation. I'd probably pay an extra $5 if I could have mine right now, but to be hit with it is total BS.

The only people that should be getting ADM right now are those walking in and buying stock builds, not people that had reservations.

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[Fordmanbob]

As far as I'm concerned once you order that bronco and you put a deposit down that's as good as a signed contract to me because I shook hands with the dealer there were people there that saw it and a handshake is as good as a contract

 

[mpoteet]

I would tell them you are going to take another 5k and rent a billboard by the closest interstate and let everyone know the real story. I rent a billboard currently for my business and will absolutely be doing that if they try that with me.

 

[Natai]

Plenty of responsibility to go around on this one.

OP should have gotten agreed to pricing in writing at the time of order.

However, if Ford is going to keep talking about price protection in their apology emails, they do need to take some actual responsibility regarding the prices for which the Bronco is being sold.

A mark up on a Bronco the reservation holder walked away from and is now being sold off the lot is one thing - as is a mark up on the demo models - but a mark up on a delivered order going to the person that ordered it is a little different.

Point is, it's not in Ford's best interest to allow this kind of practice to continue unchecked.

 

[Seacat]

I agree with the OP, that's total crap on the dealers part.

 

[Toolman1960]

Ford over promised and under delivered with this product launch. By doing this they've created a target rich environment for unscrupoulous dealers to raid our piggy banks. I'm in sales, it's in violation of our nations fair trade laws for Ford to try and dictate what a dealer can resell their product for. This is why it's called (MSRP) Manufacturer"s Suggested Retail Price. Think of it like this, does anyone complain when the dealer 20 miles down the road under sells your dealer? Does Ford try to step in and keep dealers from discounting heavily to move more units? No they don't because it's illegal, at the end of the day the dealers are Fords direct customers, Ford receives their profit from those dealers doing their job and will not rock that boat. It's the publics fault the dealers feel emboldened to charge the additional markups because someone is always waiting in the shadows to hand them more money so they can be the first on the block to have something different. This is unfortunate and I really feel for the victims of this behavior but there's nothing to be done but take your business somewhere else or refuse to play the dealer markup game and walk away from the product until the environment changes. We in the public shouldn't incentivize this behavior but there's always those that will...

 

[thenewjs]

Plenty of dealers with pricing starting below invoice to MSRP.

 

[Charky]

Quote from Ford's 8-13 email:

"What does price protection for the 2022 and 2023 model year mean?
Ford will honor 2021 MY MSRP pricing for a similarly equipped vehicle for all customers who had a reservation or order as of March 19, 2021. Final selling price is based on the buyer’s agreement with your selected dealer."

Agree with everyone else's comments that this is a BS move on your dealership's part. Call them out in everyway possible in social media, surveys, and in taking your Bronco somewhere else for service.

 

[zigtig]

Ford over promised and under delivered with this product launch. By doing this they've created a target rich environment for unscrupoulous dealers to raid our piggy banks. I'm in sales, it's in violation of our nations fair trade laws for Ford to try and dictate what a dealer can resell their product for. This is why it's called (MSRP) Manufacturer"s Suggested Retail Price. Think of it like this, does anyone complain when the dealer 20 miles down the road under sells your dealer? Does Ford try to step in and keep dealers from discounting heavily to move more units? No they don't because it's illegal, at the end of the day the dealers are Fords direct customers, Ford receives their profit from those dealers doing their job and will not rock that boat. It's the publics fault the dealers feel emboldened to charge the additional markups because someone is always waiting in the shadows to hand them more money so they can be the first on the block to have something different. This is unfortunate and I really feel for the victims of this behavior but there's nothing to be done but take your business somewhere else or refuse to play the dealer markup game and walk away from the product until the environment changes. We in the public shouldn't incentivize this behavior but there's always those that will...

Wife wanted a Telluride. Found the exact one and went to buy it. It had 5k ADM plus 5k of BS like nitrogen in tires, ceramic coating, theft protection. I walked away and ordered what she wanted from my local dealer. They told me no ADM's or added BS. 6 months later picked it up and gave a rave review to my local dealer and absolutely slammed the dealer. Oh for your Vegas folk, it was TOWBIN. They SUCK. Findlay was great to work with. I'll blast TOBIN every chance I get. Had that happened on an ordered unit, it would lead to someone going bazerk at the dealership.

 

[mandrew]

At this point Ford should reinstate X-Plan pricing for all reservation holders before [insert date here].

I realize the dealer could chose to not honor it, but this is a violation of their participation in the plan and they can lose it for all models. This is a knob Ford can turn....I will not be holding my breath.

 

[HoosierDaddy]

Because Ford keeps touting Price Protection to order holders. Order holders do not have any price protection if the dealer can mark it up however they want.

I can only guess a lot of folks have not read the document completely.

The last sentence states the dealer has final say in what the pricing strategy will be. Ford is only saying FoMoCo will not raise the MSRP.
Here is the excerpt: I highlighted the last sentence.
-----------------------------------------
What does price protection for the 2022 and 2023 model year mean?
Ford will honor 2021 MY MSRP pricing for a similarly equipped vehicle for all customers who had a reservation or order as of March 19, 2021. Final selling price is based on the buyer’s agreement with your selected dealer.

--------------------------------------------
It is an absolutely worthless statement that guarantees almost nothing to the customer.

I cannot believe how many people did not sign a pricing agreement at order time.

 

[bbkat]

I've asked my dealer face to face 3x if they are going to mark up/ charge ADM when the Bronco eventually shows up and they have replied no each time. They admitted they will do that for stock units but claim orders will not be marked up. That's not to say they won't do it when the time comes but at this point I have no choice but to believe them. We shall see indeed.

I too only had a verbal commitment of no markup from my dealer. Then after the drama with the woman in TX hit with $15k ADM, I was up worrying in the middle of the night because I was truly at the dealer's mercy several months after placing the order. (huge lesson learned)

So I emailed my dealer and asked him to put it in writing. He responded via email, confirming our no-ADM understanding. He seemed a bit bothered by my lack of trust, but he "got it" when I explained to him that I needed the protection in the event he may no longer be around when I take delivery.

. . . which could be over six months from now at the rate the MIC debacle is unfolding

 

[Chaos]

This is a potential looming sh$t show... There are a few thousand vehicles sitting at MAP to be delivered, these represent the majority of the 21" model year vehicles that will be delivered, unless everyone with a eligible 4-door opts for the soft top right now and they ramp up production balls to the wall..... We will see how many people end up getting hit with ADMs on these vehicles.

Clearly there are many people with strong belief in how the dealer manufacturer relationship works, but very few that truly understand it. Ford as the manufacturer does hold ultimate power here. Dealers are just legally mandated/forced middle men. In most case simply due to each states franchise laws. In time that will change.

 

[RobbyBronco]

I'm failing to see how this is Ford's problem. Dealerships are Ford's customers. We're dealership customers.

I mean, yeah, it really sucks, but unless you're planning to bring a class action lawsuit against Ford this really is beyond their control, right?

1. Ask Ford whom their customers are and you’ll likely find that you’re wrong.

2. You should probably avoid offering legal advice completely.

 

[Briley]

I too only had a verbal commitment of no markup from my dealer. Then after the drama with the woman in TX hit with $15k ADM, I was up worrying in the middle of the night because I was truly at the dealer's mercy several months after placing the order. (huge lesson learned)

So I emailed my dealer and asked him to put it in writing. He responded via email, confirming our no-ADM understanding. He seemed a bit bothered by my lack of trust, but he "got it" when I explained to him that I needed the protection in the event he may no longer be around when I take delivery.

. . . which could be over six months from now at the rate the MIC debacle is unfolding

The part about him not being around when it comes in makes total sense to me. I have a similar situation and I text mine this morning and am still waiting for a reply. I guess by tomorrow if he doesn’t reply I will be emailing and calling the dealership. If he didn’t want to be bothered on his personal line, he shouldn’t have given it to me when he took my res and deposit money when he placed the order.
A simple, “I’m not working today” or “I’ll get back to you after I digest this shit sammich that Ford just fed everyone”, would go a long way. At this point if the kid gets scolded for not helping his customers after I go over his head isn’t on me.

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