Recourse for Additional Dealer Markup (ADM) added AFTER ORDERING AT MSRP?

[MM in SouthTX]

A couple of threads have addressed this, but I wanted to see whether we could come together here and work on a solution, for Texas specifically, but for others as well.

My experience:

I was called up in Wave 7 by a dealer (autonation Corpus Christi) and offered a to place an order. I had some discussion about ADM prior to this call with this dealer. The sales manager told me it would depend on market conditions. So, when I went to order, the order page showed no ADM. I placed the order on my end, then called the dealer. The dealer accepted the order while on the phone with me and did not add markup.

I thought my price was locked in by that order. There is nothing on that page that says otherwise. I read all the asterisks, including E133, which says "By paying an Order Deposit, you are agreeing to the Dealer’s selling price for your selected vehicle." Sounded like a contract to me.

After the order, I started seeing some comments about dealers adding markup (ADM) after the order has been placed. It was then that I was steered to the "Order FAQ's" button much further down the order page. According to the language there, all I actually did was give the dealer a $500 deposit. That deposit allowed them to place the order for an F150 Lightning to come to their lot. It's theirs, not mine, unless I pay whatever they ask me to pay for it. They could ask $20,000 ADM, and if I refused, sell it to someone else. Furthermore, if I decide I don't want to buy it, they can keep my $500 (although I doubt they would).

Here is the fine print in the FAQ's: "The Dealer’s final selling price may be subject to change—that is between you and the Dealer and will be reflected in your Purchase Agreement."

So, worried that I had been duped into placing an order without a firm price, I asked them to enter into a Purchase Agreement, and that I expected it to be at MSRP. After considerable hemming and hawing, they finally told me in writing that it would be $5,000 over MSRP.

I have talked with Ford Customer Support about this. Paraphrasing: "Unfortunately these are independent dealers and we can't do anything. We are taking complaints, and have recorded yours, and these dealers who are doing this may have their allocations lowered in the future." I pointed out that their website is deceptive. Their answer didn't change.

So, I know there has been talk about the Texas AG, Ken Paxton, "going after" these dealers. Seems to me Ford has been deceptive as well. Has anyone actually attempted to address this, and if so, have you had any success?

Thanks all.

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[FlasherZ]

Unfortunately, not much you can do.

If you saved/printed a copy of your online order from Ford, make sure E24 (difference from MSRP) shows $0, and that it says "order accepted by dealer", and file a complaint with the Attorney General that says your dealership accepted the order at $0 difference from MSRP and after accepting it added an additional $5,000. In the complaint, note that Ford does not let you change dealers once the order has been accepted by the dealer, and I would go so far as to say that you believe the dealer committed fraud and misrepresentation by doing so.

Also file a complaint with the local Better Business Bureau, which becomes public.

The reality is that until you have something signed by the dealership (like the purchase agreement), they're free to set whatever price they wish with your only recourse a cancellation of your order. But at least the BBB and the Attorney General's office can ask them to explain why they accepted your order at one price in Ford's system and then told you otherwise. Unfortunately, Ford's FAQ is pretty clear and they'll defend their position using it.

Before they accepted the order, you could have changed it - but I understand that you did not know this until after they accepted your order.

 

[MM in SouthTX]

Please describe how to cancel the order. I thought the order belongs to the dealer, not me. I know I can decide not to buy the vehicle, but can I prevent the vehicle from being sent to the dealer?

The best case scenario for the dealer is that I don’t purchase it. Then they will have no qualms about charging $20,000 over MSRP.

 

[TaxmanHog]

No, you can only accept or reject the proposed sale price the dealer lays before you.

The order is theirs to do as they wish if you reject the proposed price and abandon the truck order.

IMHO, if you relied on the FORD.COM ordering system preview pricing with a 0.00 value on element 24, then IMHO you have grounds to see a full refund of your reservation fee and order deposits, they were not forthright with pricing the way FORD intended they be. Can you fight in court probably not, but a disappointed lost customer can bring irritation to them in media reviews, so they should give you back your funds as you step out the door.

 

[TaxmanHog]

Please describe how to cancel the order.

You can not, once the submit button is clicked to place the order.
Prior to that you could have, called FORD C/S to move to another dealer.

 

[MM in SouthTX]

I just had a cordial visit with the sales manager in the show room. I explained why I thought Ford‘s website is deceptive and that I thought he was deceptive for not disclosing ADM. He offered to “cancel the order“. I knew what that meant. That means they get the truck. He confirmed that, so I declined.

My hope right now is that they will reconsider. I did tell them that I registered a complaint with Ford. Ford says they are going to escalate it, whatever that means. They also say that they are reducing the allocations of dealers who do this. I’m going to give the dealer a little while to come around before I go to the next step. Not sure what that is.

Again, thank you all.

 

[MickeyAO]

Search for a previous thread where Paxton went after a dealer (Longview area if I recall). The dealer never acknowledged that the AG called them, just suddenly said it was added by mistake.

Just make sure you have a screenshot showing no difference and another with the ADM.

 

[MM in SouthTX]

Just make sure you have a screenshot showing no difference and another with the ADM.

Got it. Thank you. Hoping the person with the Longview case emerges here. I remember seeing something but no specifics.

 

[Amps]

Sadly, I think we are going to hear a lot more stories like yours as dealers get jealous of the flippers.

You can always take your sweet time in rejecting the order when it arrives before you get your deposit back. You know, financing takes a lot of time and a lot of institutions will not finance ADM, which increases your deposit, and on and on and on. Then, you go apply at another place.

"These things take time"

 

[p52Ranch]

Suggestion to send a tweet out to @mikelevine He is Ford's main PR person and has considerable influence. Give a shout out to Jim Farley too. Ford does not want to see any of these deceptive dealer practices particularly when a customer has a signed agreement on what the purchase price was supposed to be.

If Ford becomes aware of these dealer practices they will put leverage on that dealer. They cannot tell the dealer what price can be charged for an individual vehicle but they can and will control subsequent allocation of vehicles to that dealer. The dealer will not jeopardize a $5,000 ADM for reduced holdback, lower allocation or penalties for not meeting the match criteria.

If you do not take delivery of the vehicle do not respond to any emails received from the dealer giving that dealer a phony excuse as to why you didn't take delivery. They tried to rip you off and Ford needs to know that.

 

[RavenYZF-R6]

I like the test drive, crash, decline to buy strategy .

 

[jpepper07]

This is infuriating. I'm extremely scared of this as my dealer never said they would not charge adm. Just said it depends on the markets and they are not getting many. I wish I changed dealers as soon as I got the invite.

Now I'm hoping they play fair. I took screenshots of my order with e24 should $0. I will spam their business everywhere I can.

I am planning a garage and charger install for this. Yet they can screw you over.

 

[Amps]

I like the test drive, crash, decline to buy strategy .

“It’s a shame sumpin happened to your pretty truck, Mr. Dealer. I really didn’t mean to drive it into the showroom. I wish you had told me to be prepared for this insane acceleration.”

 

[metroshot]

$5K ADM isn't that bad when you consider a MY'23 will be at least that much more...

 

[F150ROD]

Easiest way is to Tweet the AG, along with the dealer, Elon Musk Levine, Farley, Social Media Stars and some Tesla Fanboys on Twitter. Post screenshots of before and after. That should get their attention.

It is my understanding these dealers are making $8k for not doing a damn. They can’t even track where the hell your truck is currently at.

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