Alex on Autos - Local dealer just added $10K markup on this shipped Lightning

[greenne]

There's a distinction between a special order and dealer stock. Alex placed an order at one price and was hit with a $10K markup after it was too late to find another dealer. The dealer is a drop-ship provider for that transaction and has next-to-no liability for the vehicle.

If that is the case and Alex can prove it, Ford should either make the dealer remove the $10k adm OR allocate the truck to another dealer that won't charge ADM and honor original agreement.

Dealers may be allowed to charge whatever they wish, but Ford has the right to allocate as they wish.

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[frautumn]

I placed my original reservation with Frontier Ford and was super excited to get in wave 3. When I went to place the order I saw they were adding a $10K markup, which was not okay with me. I called and they refused to remove it, saying it was a bargain and I wouldn't find a lower markup elsewhere. I told them I would transfer my reservation, but they didn't budge.

Thanks to advise I found on this forum, I called around and transferred my reservation to Capitol Ford (15 minutes away) and things have been great with them. No markup, scheduled build date is 8/8, so I hope all will go well.

Exactly this. For me the takeaway here is that Alex is being disingenuous about the markup -- he shows a screenshot of the 10k markup but doesn't show that it was previously zero markup (which would be the smoking gun, not the 10k markup screenshot). It was almost surely 10k all along, and he placed the order knowing that (or not bothering to look at the breakdown until now). Nothing new here, he should have transferred his reservation before accepting the order with 10k markup.

 

[Amps]

honor original agreement.

There is no enforceable agreement. There is an order placed by a franchised dealer on behalf of a prospective buyer. The dealer is the only one in the transaction who can deal directly with the manufacturer and sell the vehicle. The dealer has complete pricing authority. The recourse the manufacturer holds is allocating future supply, not an order that is built and has shipped to the dealer.

 

[vandy1981]

Exactly this. For me the takeaway here is that Alex is being disingenuous about the markup -- he shows a screenshot of the 10k markup but doesn't show that it was previously zero markup (which would be the smoking gun, not the 10k markup screenshot). It was almost surely 10k all along, and he placed the order knowing that (or not bothering to look at the breakdown until now). Nothing new here, he should have transferred his reservation before accepting the order with 10k markup.

Not sure why you're giving the dealer the benefit of the doubt. If you look at their Google reviews there are several reports of bait and switch with this dealer that date back several months.

 

[metroshot]

I know about them being able to change the price, however @Ford Motor Company reps have said that if your order summary on the Ford site says 0 difference from MSRP they will help you out and making sure you don’t pay that extra amount. But what Alex showed on his video is that same site printed out with a $10k difference which means dealers can change the price on that site. I thought once you ordered the numbers on that site were untouchable. Craziness

Seriously ? That is a total flaw!

I signed a dealer order sheet before they put it into RVOP and my dealer order sheet shows $0 ADM.

If my dealer tries that scam after my Lightning arrives, I will have a fit & Channel 4 Investigative will be on them like flies on .....

 

[frautumn]

Not sure why you're giving the dealer the benefit of the doubt.

Not giving them benefit of the doubt. Just looking at the facts. Most Bay Area dealers are doing a markup, 10k is not uncommon, and another poster just verified that this same dealer started his order with the 10k markup included, which he refused. Alex shows a screenshot with 10k but no screenshot with 0k, which is what is needed to prove his point that it was only just recently added.

Edit: Also, he would be the first person (that I am aware of) to have this happen to him where the ADM was added on the Ford website AFTER the fact. Surely others would have complained here if this happened to them.

 

[vandy1981]

Edit: Also, he would be the first person (that I am aware of) to have this happen to him where the ADM was added on the Ford website AFTER the fact. Surely others would have complained here if this happened to them.

He wouldn't be the first.

 

[greenne]

There is no enforceable agreement. There is an order placed by a franchised dealer on behalf of a prospective buyer. The dealer is the only one in the transaction who can deal directly with the manufacturer and sell the vehicle. The dealer has complete pricing authority. The recourse the manufacturer holds is allocating future supply, not an order that is built and has shipped to the dealer.

Not exactly. If the dealer accepted an order at $YYY price(no ADM) then that is an agreement to sell the vehicle at that price. This isn't a one way agreement. Ford would be well within their rights to send the order someplace else. (They have done this with some Bronco orders I believe). Ford is under no obligation to help a dealer fleece a customer. To me this seems like basic contract law...

 

[PV2EV]

This is not the first complaint of a dealer adding ADM after the order. It is crazy Ford allows this, as when I pay a deposit for a vehicle at a given price, that price should stand. This has got to be in violation of some consumer laws (if not state, then federal), as it is bait and switch.

 

[p52Ranch]

I believe the problem is actually with the display on the order page. Ford added this for visibility to the end customer. However, Ford did not design this display to "lock in" the price.

Example if you had a Wave 1, 2 or 3 order, the delivery fee has increased by $100 to $1,795. We have an agreed to delivery fee of $1,695 on our order. We will have to get this $100 back from the dealer at the time of purchase. Same thing happens if the dealer decides to charge a $10,000 ADM on future orders. The dealer now has to set that up into Ford's system so it becomes visible. Problem is that the $10,000 ADM will pop up on all of the orders in the system.

So the dealer may not be intending on charging the $10,000 ADM but it does show up.

Also, I have seen some glitches in this order pricing. Example on my Bronco order a $10,000 ADM has popped up and my dealer has no idea why it is there. I trust the dealer on their answer to me. Ford is also giving me credit for a $100 Reservation and a $1,000 deposit neither of which exist (I transferred my reservation so the $100 was refunded to me).

 

[greenne]

This is not the first complaint of a dealer adding ADM after the order. It is crazy Ford allows this, as when I pay a deposit for a vehicle at a given price, that price should stand. This has got to be in violation of some consumer laws (if not state, then federal), as it is bait and switch.

If this were to occur(and I had proof of agreed upon price when order was submitted), I'd be calling the state Attorney General.

Living in a Blue State, the government doesn't take to kindly to bad business. You know, those pesky regulations...

 

[jpepper07]

As a believer in the free market, I have no problems with ADM. That said, I will not order/buy from a dealer that has ADM. There are dealers out there that will order at MSRP. Its up to you as consumer to execute caution and clear communication with the dealer. Its a business relationship. It also incumbent upon consumers to reward dealers that do "right" (no ADM) with more business vs, those that have bad business practices.

Where I draw the line is where a dealer is intentionally deceptive or dishonest. I take an agreement very seriously. No excuse for a dealer that agrees(either in writing or verbally) to MSRP then balks.

Also..what goes around comes around. At some point the market will turn and supply will equal(or exceed) demand. Dealers will have to compete...you can bet people that got a surprise ADM will not be repeat buyers and also people do read negative reviews and will choose another dealer.

While I agree for the most part I disagree that is a fair free market. It is a manipulated market where the dealership has most of the control. For those who don't participate in forums they have even less knowledge about what is happening and how to avoid it. So they are being fleeced.

Also a free market is fine for their inventory vehicles. These are all reservations converted to orders. Where we had to put money down first for the option to order. The delivery location should have the option to free control the price that we told ford we was willing to pay.

 

[greenne]

While I agree for the most part I disagree that is a fair free market. It is a manipulated market where the dealership has most of the control. For those who don't participate in forums they have even less knowledge about what is happening and how to avoid it. So they are being fleeced.

Why? You can freely designate your dealer. You can even change that dealer(without penalty) if you decide the dealer is no acting fairly.

You can choose any dealer in the US-- some have chosen to buy/order from dealers in other states.

The problem is people either don't know OR are too lazy to research. Also they are under the mistaken impression they do not have choice and/or they have to choose the dealer closest to them.

There ARE dealers(lots of them) selling for MSRP. It would be an issue if these were rare and/or not out there.

At the end of the day, you can also walk away. (It sucks and I'm not saying its an easy or fair option..but it is an option. No one is forcing you to buy. No oneis forcing you to buy from any particular dealer)

 

[sotek2345]

Why? You can freely designate your dealer. You can even change that dealer(without penalty) if you decide the dealer is no acting fairly.

You can choose any dealer in the US-- some have chosen to buy/order from dealers in other states.

The problem is people either don't know OR are too lazy to research. Also they are under the mistaken impression they do not have choice and/or they have to choose the dealer closest to them.

There ARE dealers(lots of them) selling for MSRP. It would be an issue if these were rare and/or not out there.

At the end of the day, you can also walk away. (It sucks and I'm not saying its an easy or fair option..but it is an option. No one is forcing you to buy. No oneis forcing you to buy from any particular dealer)

One could argue that the existence of laws protecting dealerships, by definition, means that it is not a free and fair (read unregulated) market. If Ford could sell direct and people had the option of doing that or going to a dealer and paying ADM - I think you would see almost all of the ADM disappear.

 

[F150ROD]

So this happened with a Mach-E order when they first came out. The person who ordered had a copy of the order summary with $0 difference between MSRP and Dealer price. Because of this, Ford changed his delivery dealer ASAP even after it was scheduled for delivery. I am combing through all the tweets and Mach -E forum because I remember this story.

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