Ford Dealers Could Get Penalized For Selling To Flippers

[AzScorpion]

I don't agree with this at all. Ford is letting their dealers markup their vehicles when they said many times dealers would be penalized for doing so. So far...Nothing! So now they want to penalize the customer if they turn around and flip certain vehicles for a profit? Now I agree doing this to someone who's a broker but a customer should be able to sell if they want to. I was asked a series of questions from one of my local dealers here when I inquired about getting on the list for the Ranger Raptor. He wanted to make sure I was going to keep it and not flip it as they sell everything for MSRP but never asked if I'd sign anything. But certain dealers were asking customers to sign a contract stating they wouldn't sell. If they refused, they'd have to pay and additional $20K. ? A little hypocritical wouldn't ya say?

https://fordauthority.com/2023/03/ford-dealers-could-get-penalized-for-selling-to-flippers/

“Dealers are independent franchises and set the final contract with a customer,” a Ford spokesperson told the site. “Ford has a company policy designed to mitigate against the improper sale of new vehicles to customers who broker, resell, or export vehicles, and helps to protect customers looking to legitimately purchase a vehicle for their own use, our dealers, and Ford. Any contract requirement beyond this policy is between the dealer and the customer.”

This news stems from a Ford Bronco Raptor buyer in Texas that was asked to sign a contract upon taking delivery stating that the customer will give the dealer the chance to buy the vehicle back if they decided to sell it, and if they didn’t agree to those terms, they would be paying a $20,000 markup on the SUV.

The idea here is to sell these special, high-demand vehicles to customers that will actually keep and drive them, it seems, though additional details regarding this policy are currently unclear. If nothing else, it’s seemingly a step in the right direction, though it remains to be seen if it prevents dealers from placing massive markups on vehicles – or buyers from flipping them for a profit.

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[DukeCanBuildit]

 

[AzScorpion]

lol That should be a BS meter. When I called the Ford dealer in Buckeye (Jones Ford) he came right out and said we add $30K to every Raptor. Then he sarcastically said "good luck" with a laugh when I said I was looking for MSRP.

 

[P. A. Schilke]

I don't agree with this at all. Ford is letting their dealers markup their vehicles when they said many times dealers would be penalized for doing so. So far...Nothing! So now they want to penalize the customer if they turn around and flip certain vehicles for a profit? Now I agree doing this to someone who's a broker but a customer should be able to sell if they want to. I was asked a series of questions from one of my local dealers here when I inquired about getting on the list for the Ranger Raptor. He wanted to make sure I was going to keep it and not flip it as they sell everything for MSRP but never asked if I'd sign anything. But certain dealers were asking customers to sign a contract stating they wouldn't sell. If they refused, they'd have to pay and additional $20K. ? A little hypocritical wouldn't ya say?

https://fordauthority.com/2023/03/ford-dealers-could-get-penalized-for-selling-to-flippers/

Hi Dave,

If you buy on X Plan or A/Z plan, there is a stipulation that you will not sell the vehicle for 6 months to stop this practice of flipping vehicles at a profit. But when you buy for MSRP and then sell it above it is non of the dealers business how long you have the vehicle. This is clearly trying to line the dealers pockets. This really sucks... I was in line to get a 2005 Ford GT but the dealer tagged $100,000 extra on the MSRP. Screw that...so I bought a motorhome that was more than that, and it can haul more than a six pack of beer that the Ford GT would haul...

Best,
Phil

 

[AzScorpion]

Hi Dave,

If you buy on X Plan or A/Z plan, there is a stipulation that you will not sell the vehicle for 6 months to stop this practice of flipping vehicles at a profit. But when you buy for MSRP and then sell it above it is non of the dealers business how long you have the vehicle. This is clearly trying to line the dealers pockets. This really sucks... I was in line to get a 2005 Ford GT but the dealer tagged $100,000 extra on the MSRP. Screw that...so I bought a motorhome that was more than that, and it can haul more than a six pack of beer that the Ford GT would haul...

Best,
Phil

Unless someone falls on hard times (job loss, medical condition) 6 months is somewhat reasonable. But with the GT it was a 2 year non sell contract which is BS! My gripe is they want to crack down on flippers but have no issue with dealers overcharging their customers $20K+ for a Bronco. ?

 

[BS67]

lol That should be a BS meter. When I called the Ford dealer in Buckeye (Jones Ford) he came right out and said we add $30K to every Raptor. Then he sarcastically said "good luck" with a laugh when I said I was looking for MSRP.

 

[Dr_Strangelove]

Well as one of the few unfortunate 5g members that paid an ADM for their truck I feel obligated to pitch in at this very moment that one of the justifications the dealer used for adding markup to the truck was - wait for it - "you could sell it tomorrow for $10k over what you're buying it for today."


1) BS
2) Dealer advocates flipping!

 

[9zero1790]

i know nothing of any plans folks sign up for. however, i know for certain 100% if i buy something - it should be mine to do with as i please.. keep it, flip it, crush it, grow mold in it- whatever i want. when one becomes the OWNER it should never be the maker or dealers business if the person keeps sells flips or stuffs full of clowns and sets it on fire. it is no longer the property of the dealers or makers and they need to have a coke and smile... How dare (we) do what we are allowed to do with our property. apparently it will not be long until we dont own anything and we will be happy. the anointed leaders have already made it clear thats the plan.

 

[Bsthroop]

The reason dealers can add markups is that people are paying them. I will never pay MSRP or more, but as long as people are willing it will keep happening. No vehicle is that valuable, so I don't blame the dealers. Plenty of people willing to flush their money.

 

[9zero1790]

The reason dealers can add markups is that people are paying them. I will never pay MSRP or more, but as long as people are willing it will keep happening. No vehicle is that valuable, so I don't blame the dealers. Plenty of people willing to flush their money.

agreed. unethical- maybe. but if people keep paying why would they not keep up the price gouging.

 

[dtech]

CEO Jim Farley has stated that the current distribution model adds up to $2k cost per vehicle, sounds high but that's what he said. Some analysts believe his splitting the company into 2 divisions maybe be driven in part by plans to go to a direct sales model with EVs , like of course Tesla does. So I would have to believe all this talk of stopping dealer markups is just lip service , if he executes his plan he'll have the last laugh, so let the dealers make it while they can. That pic I posted of CEO Farley rubbing an F150 Lightning is really him imagining it's a magic lamp and his only wish to the genie is to be like Tesla. At times I attempt to come across as an EV proponent but CEO Farley is the real deal.

 

[ControlNode]

Well, as I read that, the customer can buy it without the ADM by signing the agreement, then without leaving give a writing offer to sell it back to the dealer at the marked up price the buyer wants for it, if the dealer refuses to buy it back at that asking price just document that on the offer letter that the dealer was giving the first change buy it and now the buyer is free to sell to anyone else.

 

[Dgc333]

As far as I am concerned dealers should be allowed to sell their vehicles for whatever the market will bear. As the acronym states MSRP is the "suggested" price, it's not fixed.

In a buyer's market the consumer will be able to purchase for less than MSRP, in a seller's market the consumer will pay more than MSRP.

None of these specialty vehicles are something folks need to have, they want them. So, let the market set the price.

 

[Jason B]

I don't see this as a legally binding action. Dealers should be out of the equation once the sale is complete. But I have read somewhere that Ferrari has many stipulations about want you can do to the car once you buy it, including painting it a non-Ferrari color.

As for current pricing and market values, I took my Ranger for its 30K service and walked the lot looking at new vehicles. NONE had window stickers on them. My guess is so they can make up the numbers as market dictates.

PS: They had a sweet SCAB STX-SE in Velocity Blue with the black out package. Their web shows $32,480. Boy was I tempted and would have bit the hook had it been 4x4.

 

[stringbreaker]

Communism at it's finest. The so called free market system will always figure a way to make money. Just like McDonald's and the other fast food outfits having kiosk ordering to get around the $15.00 an hour minimum wage

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