Highway Robbery or The New Norm

[Snacktime]

2k miles of smiles here, no regrets with picking up my temporary Big Bend. I paid more than I should but I work for the government and that's how we roll.

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[TinStar]

That bronco isn't worth 75k

NO bronco is worth 75K.

 

[ctandc]

It's not robbery if someone is dumb enough to give them their money. If someone pays over MSRP they will have a bad day a few years from now when they want to get rid of it and they are upside down and lose their a$$ getting rid of it.

Not too long ago I would have agreed with you. But not now, and not in the next few years either. This isn't 2008.

Production numbers for vehicles isn't going to magically increase so that their is a supply glut - like there was not too long ago. The chip shortage isn't going to magically stop in the next couple of years. Hell it takes a couple of YEARS just to get a new IC plant up and running, not to mention the HUGE amount of capital required.

While auto manufacturers are the ones everyone seems to concentrate on when we mention "Chip shortages" it's the 3rd party suppliers who are getting hammered by this. Ford employees aren't "installing chips" in vehicles. They are installing computer modules, and complete part sub-assemblies that have chips in them. These parts are built by companies that supply parts to Ford and other auto manufacturers. A good number of these suppliers overlap between manufacturers.

When COVID lockdowns hit, depending on the state and local lockdown rules, some of these plants reduced work hours or shutdown. Now add the companies (again all in different states / locales with different lockdown policies in effect at different times) that supply sub-assemblies to those companies who supply ready to install parts to Ford and other companies.

This is all a DIRECT result of the "just in time" logistics model that Ford and many other manufacturers of cars / trucks (and many other finished goods) went to years ago to increase profit margins.

Finally the bean counters and "Logistics experts" have realized what many people in the same arena have been saying for YEARS - that the 'just in time' model depends on every link in the chain and any break or disruption throws everything out of whack. Same reason that commercial warehouse space is seeing a huge increase of demand in many parts of the country.

I know it sucks - but it is what it is. If memory serves, it was Ford that has something like 1000 different companies supplying parts directly to them for vehicle assembly. How many companies beyond that do you think are involved supplying those 1000 companies materials and sub-assemblies so they can build their parts and get them to Ford?

Prices aren't going down any time soon, because when demand is HIGH - like it is now - all these 3rd party suppliers have to actively look for other sources for their materials and it simply costs more to get these materials in a timely fashion than it did before all this started.

 

[TomLyger]

So my general thought over MSRP may not be the new norm, but paying under sticker will become rarer and rarer across all vehicles, I think dealers will begin to maintain less stock on the lot, and custom orders will become more prevalent prices will stay higher. The Bronco will come down in price on the lots when/if the bulk of the orders switch from reservations to Dealer stock.

 

[OCNORB1974]

2k miles of smiles here, no regrets with picking up my temporary Big Bend. I paid more than I should but I work for the government and that's how we roll.

Hopefully not in finance.

 

[Snacktime]

Hopefully not in finance.

100% Financed to the moon! Minimum payments! If it gets stolen/wrecked/burned(fire country) I have as little invested as possible. Being able to pay cash and not putting your cash on the curb are to very different things.

I'm also winning on 2% interest loan with the current inflation.

 

[madfella]

100% Financed to the moon! Minimum payments! If it gets stolen/wrecked/burned(fire country) I have as little invested as possible. Being able to pay cash and not putting your cash on the curb are to very different things.

I'm also winning on 2% interest loan with the current inflation.

I think he meant he hopes you don’t work in finance for the government.

 

[vzqhsg]

Not too long ago I would have agreed with you. But not now, and not in the next few years either. This isn't 2008.

Production numbers for vehicles isn't going to magically increase so that their is a supply glut - like there was not too long ago. The chip shortage isn't going to magically stop in the next couple of years. Hell it takes a couple of YEARS just to get a new IC plant up and running, not to mention the HUGE amount of capital required.

While auto manufacturers are the ones everyone seems to concentrate on when we mention "Chip shortages" it's the 3rd party suppliers who are getting hammered by this. Ford employees aren't "installing chips" in vehicles. They are installing computer modules, and complete part sub-assemblies that have chips in them. These parts are built by companies that supply parts to Ford and other auto manufacturers. A good number of these suppliers overlap between manufacturers.

When COVID lockdowns hit, depending on the state and local lockdown rules, some of these plants reduced work hours or shutdown. Now add the companies (again all in different states / locales with different lockdown policies in effect at different times) that supply sub-assemblies to those companies who supply ready to install parts to Ford and other companies.

This is all a DIRECT result of the "just in time" logistics model that Ford and many other manufacturers of cars / trucks (and many other finished goods) went to years ago to increase profit margins.

Finally the bean counters and "Logistics experts" have realized what many people in the same arena have been saying for YEARS - that the 'just in time' model depends on every link in the chain and any break or disruption throws everything out of whack. Same reason that commercial warehouse space is seeing a huge increase of demand in many parts of the country.

I know it sucks - but it is what it is. If memory serves, it was Ford that has something like 1000 different companies supplying parts directly to them for vehicle assembly. How many companies beyond that do you think are involved supplying those 1000 companies materials and sub-assemblies so they can build their parts and get them to Ford?

Prices aren't going down any time soon, because when demand is HIGH - like it is now - all these 3rd party suppliers have to actively look for other sources for their materials and it simply costs more to get these materials in a timely fashion than it did before all this started.

Good thread, but there is still one common issue that no one will talk about. US mfgs. sent everything over seas and eliminated our ability to control our own destiny. Kind of like drilling for oil, being energy independent. God help us if we go to war with China or Russia, etc. Lets see...the conversation will go something like this. We are at war with you, but please send me the tanks, planes, ammo, etc. we need to destroy you. What's the odds??

 

[ctandc]

Good thread, but there is still one common issue that no one will talk about. US mfgs. sent everything over seas and eliminated our ability to control our own destiny. Kind of like drilling for oil, being energy independent. God help us if we go to war with China or Russia, etc. Lets see...the conversation will go something like this. We are at war with you, but please send me the tanks, planes, ammo, etc. we need to destroy you. What's the odds??

Well it's funny you mention that...........there has been legislation in effect for decades. We design and manufacturer our tanks, planes, ammo all in the U.S. You can't even import most foreign made (Israel and a few other non Chines / Russian countries) .

So cars? Not so much. Tanks? Planes? Firearms? Ammo? Yes - we're quite okay on those fronts.

 

[vzqhsg]

2k miles of smiles here, no regrets with picking up my temporary Big Bend. I paid more than I should but I work for the government and that's how we roll.

And there is another conversation that we can't have here.

 

[kylebw7]

They have had a base at my dealer for a while asking fully loaded wildtrak price for it. No way I’d pay a Penny extra for the base

 

[NathanW]

It's easy money, they didn't work for it.

Us working folk can't pay those markups!

You seem to wear envy and ignorance as a badge of honor....

 

[Tunagates]

I’m getting impatient waiting for my Wildtrak so in April I bought a Big Bend Sport. The dealer knows I’m still waiting so my salesman sends me a message every time they have an order fall through. Two times I’ve almost done it (both times it was +10k over MSRP) but didn’t. Yesterday he sent me a picture of an Outer Banks in Gray and the sticker. Check out the attached pictures. $51k MSRP asking $75k…with no room for negotiation. So my question is this, is this the new norm? I’m not going to buy it, I want to know what the general consensus is.

Who is would pay that??? Looks awful in that pic too… non squatch is rough.

 

[madfella]

Who is would pay that??? Looks awful in that pic too… non squatch is rough.

People are paying these ridiculous prices.

 

[Los]

@21Obx,
Heck with all the updates on my WT with HOSS 3.0 I'm at over 61k, and don't even have leather.

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