ADM - It won't stop

[bigedizzle]

Nobody likes ADM but the dealers. Look how many threads here are talking about it. The reality is that ADM will continue until people quit paying it. It really is that simple, but oh so difficult to make happen.

We've all seen stories of people walking away from previously agreed on deals because of ADM, and we should absolutely applaud them. They should get special status here among fellow enthusiasts. But for every person who walks away, there are many more who are willing to pay ADM. That's why it won't go away.

I can't speak for other dealerships but at ours any ordered vehicle is sold at msrp or less. We only put a 7k adm on broncos that are refused. Simply because they can choose to buy it now for 7k over or wait two years to get one. That is the adm sole purpose, since we never received any stock units. It boils down to supply and demand, it has never changed and never will when talking about economics. Those who are paying an adm on an ordered vehicle is criminal in my eyes and walking away would definitely be applaudable

Sponsored

 

[bigedizzle]

The only thing that will slow ADM for the next 12-18 months is the manufactures raising the dealer cost…which they will, because they are leaving money on the table. Eventually the cost and demand will equalize. As much as the OEMs and dealers love to sell new vehicles…the love servicing 2-5 year old cars even more…that’s where the real margin is.

used car market for the past 20 years has always been 36-40 million units a year even during 2008. New cars are and will always be the ones harder to come by

 

[bigedizzle]

It's no big secret that the only way to stop dealer ADM is for everyone to stop paying it. But as long as their are people with plenty of disposable income, more money than sense or the dire need to have it right now at any cost that won't happen.

the fear of missing out is probably the biggest reason adm's are being paid.

 

[MnLakeBum]

the fear of missing out is probably the biggest reason adm's are being paid.

FOMO is also driving real estate prices to record highs from Florida to Montana. We close on a FL condo on Wednesday, and we paid exactly double the price that the sellers did 20 months ago. We likely bought at or near the top, but who knows? Since Covid, rental prices have more than doubled in the area, and if we rent it for four months each January , it will cover all taxes, association dues insurance, and loan payment. 1,000 people are moving to Florida each day, so I think the demand will only go higher for beachfront condos and rentals. We've rented ours already just through word of mouth.

 

[bigedizzle]

FOMO is also driving real estate prices to record highs from Florida to Montana. We close on a FL condo on Wednesday, and we paid exactly double the price that the sellers did 20 months ago. We likely bought at or near the top, but who knows? Since Covid, rental prices have more than doubled in the area, and if we rent it for four months each January , it will cover all taxes, association dues insurance, and loan payment. 1,000 people are moving to Florida each day, so I think the demand will only go higher for beachfront condos and rentals. We've rented ours already just through word of mouth.

I moved from tampa to maryland in 2012 and Tampa is blowing up faster than anywhere right now

 

[MnLakeBum]

I moved from Tampa to Maryland in 2012 and Tampa is blowing up faster than anywhere right now

It's a real estate market gone mad! I have MN neighbors/friends in St. Pete Beach who just signed a two-year lease on a condo for $11.5K per month. Naples Beachfront 2 bedroom condos rent for $15-$20k per month during the peak Novmeber through April snowbird season.

$50,000/month is the rental price for this 2,600 sq. ft. home in Naples with a pool(not on the beach, just in Olde Naples) for November and December. It's already been rented next January through March, lol.

 

[TopRecon]

Having a good laugh at people defending state-mandated middlemen and lobbied regulations as glorious capitalism. If the market were truly free Ford would sell directly to consumers and take every penny of that MSRP for themselves instead of having to give salesmen a slice of the pie.

 

[JoshuaPrieto]

ADMs wont go away, just like customers selling their vehicles for more than what they paid for wont go away.

You cannot have it both ways, just my honest opinion.

Now, if you do some searching, you find a honest reputable dealer that'll sell for MSRP or even honor Employee Pricing.

Just be smart everyone and don't panic buy.

EDIT: It will die down eventually, just probably not for another year

 

[Fordmanbob]

Nobody likes ADM but the dealers. Look how many threads here are talking about it. The reality is that ADM will continue until people quit paying it. It really is that simple, but oh so difficult to make happen.

We've all seen stories of people walking away from previously agreed on deals because of ADM, and we should absolutely applaud them. They should get special status here among fellow enthusiasts. But for every person who walks away, there are many more who are willing to pay ADM. That's why it won't go away.

The rich people fuck it up for the rest of us

 

[BUDXR7]

The rich people fuck it up for the rest of us

Lol. I won’t pay over MSRP but to think having an extra $15k to spend makes you rich is ridiculous. You save much? No? Jealous? Go find a mirror. “Rich people” is such a bullshit excuse for our woes as a nation. Elon musk paid more taxes than anybody in the history of the IRS. Your government spent 2x what he and I paid them.

 

[Fordmanbob]

Lol. I won’t pay over MSRP but to think having an extra $15k to spend makes you rich is ridiculous. You save much? No? Jealous? Go find a mirror. “Rich people” is such a bullshit excuse for our woes as a nation. Elon musk paid more taxes than anybody in the history of the IRS. Your government spent 2x what he and I paid them.

Your opinion is just that.

 

[IWDesertGuy]

The ADM is actually much worse with sports cars such as Porsches and Corvettes.. Boats are ridiculous right now. My 2018 boat is worth $15k more than I paid for it and it has a lot of hours on it.

Yep!!

1. 2021 Porsche 718 Boxster GTS 4.0 purchased 2/2021 = -$3.500 from MSRP
2. 2022 Porsche 718 GT4 purchased 11/2021 = +$20,000 over MSRP

BUT, there are FAR fewer GT4s being built than new Ford Broncos but demand - adjusted on a relative basis for car types and pricing - is in a similar league.

AND, with 4,500 miles I have been offered +$40,000 over what I paid for the GT4 last November. If I weren't loving the GT4 so much I would monetize this opportunity to help pay for my on order 2022(23?) Badlands + SAS + LUX off road toy.

 

[bcl0404]

Agreed that ADM's are fractionally the fault of consumers - in that: if consumers let dealers get away with ADMs, then dealers will continue to play the ADM game.

In this last week, while looking for a 2022 half-ton work truck, I walked away from 4 different dealers trying to apply dealer-discretionary surcharges (ADMs). After 2 days of diligence, I found a non-local dealer whose management decided not to charge ADMs. I commended them for it and am now their customer. I will have to drive a few extra hours to retrieve the vehicle, but I'm happy to do it out of principle, and I won't be paying an ADM.

 

[Ford Motor Company]

We picked our, 2D Badlands up yesterday. We arrived about 4pm at the dealer and left there about 545. There was not another customer there the entire time. Saturday afternoon, pretty nice weather, what I would consider fairly good amount of inventory in comparison to other dealers around, and it was absolutely dead there. Outskirts of OKC, right on the interstate as well. I should have looked at some other vehicles to see if they had ADM on any of them. Tough times in the car industry.

Congratulations on the new Bronco! Hope you enjoy it.

 

[Carolina Jim]

....and you thought by end of 2022 it would be safe to go back in the water....

CNBC today:

DETROIT – Ford CEO Jim Farley said the company plans to scale production of its electric F-150 Lightning pickup faster than its competitors, with plans to increase production of the Lightning at a plant in Dearborn, Michigan, to 150,000 units in the next year or so, up from an initial target of 40,000 vehicles.

Ford also will prioritize supplies of semiconductor chips, which have been a major supply chain problem for more than a year, for the Lightning, Farley said.

Sponsored