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

[EVTruckGuy]

Both dealers in the Dallas area that I have spoke with sell all customer ordered vehicles for MSRP

I think the problem pointed out by Alex is that he also spoke to a dealer that claims to sell custom ordered Lightnings at MSRP, but a verbal assurance means nothing and didn't stop them from adding markup after the order was placed.

The 2 dealers you mention could do the same thing. There are no assurances until the purchase process is complete.

Dealers can easily say one thing and do another. I'm sure there are plenty of dealers not adding last minute markups, but the problem is that customers placing early orders are guinea pigs. Future Lightning orderers will have the benefit of reading reviews to see if their dealer dealer honored MSRP pricing.

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[Amps]

I think the problem pointed out by Alex is that he also spoke to a dealer that claims to sell custom ordered Lightnings at MSRP, but a verbal assurance means nothing and didn't stop them from adding markup after the order was placed.

^ This. The blame's not on Alex. Funny thing is that if they don't even blink and do it to him without so much as the decency of informing him, they'll do it to any order holder.

My dealer wouldn't even entertain the idea of a signed purchase order before the vehicle arrives on the lot. They verbally assured me that the MSRP would be the purchase price. It does no good until the paperwork is signed and the vehicle delivered. I chose them because they have a decent reputation and I thought they were large enough to get a large allocation. Money is a strong motivator, especially if the insane secondary market prices for Lightning are true and sustained.

Read the fine print on the reservation and order page to get an idea who is wearing the legal pants in the deal. It's not the orderer and it's not Ford.

 

[sotek2345]

^ This. The blame's not on Alex. Funny thing is that if they don't even blink and do it to him without so much as the decency of informing him, they'll do it to any order holder.

My dealer wouldn't even entertain the idea of a signed purchase order before the vehicle arrives on the lot. They verbally assured me that the MSRP would be the purchase price. It does no good until the paperwork is signed and the vehicle delivered. I chose to order from them because they have a decent reputation and I thought they were large enough to get a large allocation. Money is a strong motivator, especially if the insane secondary market prices for Lightning are true and sustained.

Read the fine print on the reservation and order page to get an idea who is wearing the legal pants in the deal. It's not the orderer and it's not Ford.

Yup, I had similar concerns but have a pretty good relationship with my dealer (I buy too many vehicles) and they held to MSRP and no add-ons for our Mach-e so I have a high level of confidence at this point.

 

[greenne]

Yup, I had similar concerns but have a pretty good relationship with my dealer (I buy too many vehicles) and they held to MSRP and no add-ons for our Mach-e so I have a high level of confidence at this point.

<fingers crossed>

I hope the Lightning goes the same way for both of us, My neighbor has also bought two vehicles from Metro and had nothing but good things to say. I explicitly asked the sales manager now 2x and the dealer confirmed MSRP. I will be royally pissed if they try any shenanigans....

 

[sotek2345]

<fingers crossed>

I hope the Lightning goes the same way for both of us, My neighbor has also bought two vehicles from Metro and had nothing but good things to say. I explicitly asked the sales manager now 2x and the dealer confirmed MSRP. I will be royally pissed if they try any shenanigans....

Whoever gets theirs first, let the other know!

 

[greenne]

Whoever gets theirs first, let the other know!

Exactly.

I also let the sales manager know I am very active on message boards, social media, and the internet. I am not afraid to let the world know about a dealer that does a great job but also not shy about letting everyone know if a dealer does a shitty job. Also..Ford is watching. I am on Levine's and Farley's twitter feeds..they are taking note of dealers that behave unprofessionally.

It may happen behind the scenes, but I am confident they are working to "correct" dealers who are giving Ford a bad name. A dealer may be an independent business--but it is FORD that is on the huge sign and Ford motor company that gets the bad press...

 

[F150ROD]

I’m looking for the tweet from Levine saying they could not help if the Order Summary on Ford.com was not at $0.

Alex most likely went of what the dealer said on the phone or email and didn’t bother to check the $10k add on before ordering. If that number was $0 and the dealer changed it to $10k after he placed his order then Ford needs to do something real quick about that and we need to screenshot that page.

 

[greenne]

I’m looking for the tweet from Levine saying they could not help if the Order Summary on Ford.com was not at $0.

Alex most likely went of what the dealer said on the phone or email and didn’t bother to check the $10k add on before ordering. If that number was $0 and the dealer changed it to $10k after he placed his order then Ford needs to do something real quick about that and we need to screenshot that page.

Alex says it "suddenly" jumped from $0 to $10,000 just prior to delivery. I can't believe a dealer ha the ability to do that once they "accepted" the order...(mutual agreement), but you can bet your bottom dollar I'd be printing out that page that shows "$0" (or screenshot).

If it was changed after both parties agreed, Ford needs to get involved--that is highly unethical and can be viewed by some a breach of contract (Does accepting the electric order constitute a formal agreement, if a dealer say they will sell at MSRP is that a verbal contract?)

I hope Alex saved a screenshot/printout of the $0 order summary

 

[FordLightningMan]

If Alex gets the Rivian at the original Price, he can flip it in a few months for 25k profit. If he gets the Ford he *might* just break even in 3 months.

Am I genuinely the only person on this forum that sees the irony with all these anti-ADM threads and then equally as many people talking about being able to sell their vehicles above what they paid?

It's like when my parents used to say "do as your told, not what I do."

 

[DeLariats]

Long time lurker, but finally decided to jump on here since I had a since this one hits close to home.

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.

While I agree the markup sucks and I wouldn't pay it, I doubt they added it after he placed the order as he says, given that I saw it on mine. He may have more influence than me in getting it taken off, but I had no luck. If he refuses to pay, they will sell it for more. Thankfully I noticed this before placing the order and was able to transfer my reservation.

 

[greenne]

Am I genuinely the only person on this forum that sees the irony with all these anti-ADM threads and then equally as many people talking about being able to sell their vehicles above what they paid?

It's like when my parents used to say "do as your told, not what I do."

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.

 

[Prime8]

Am I genuinely the only person on this forum that sees the irony with all these anti-ADM threads and then equally as many people talking about being able to sell their vehicles above what they paid?

It's like when my parents used to say "do as your told, not what I do."
[/QUOTE

Long time lurker, but finally decided to jump on here since I had a since this one hits close to home.

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.

While I agree the markup sucks and I wouldn't pay it, I doubt they added it after he placed the order as he says, given that I saw it on mine. He may have more influence than me in getting it taken off, but I had no luck. If he refuses to pay, they will sell it for more. Thankfully I noticed this before placing the order and was able to transfer my reservation.

I'm guessing that 10k was on Alex's order from the start also...
I'm in the Bay Area also and I have my order with Serramonte Ford. No ADM so far, not on the Ford order summary and I have emails and a purchase order stating msrp sales price. Purchase order is not signed though so I'm still a bit worried. Blend date is tomorrow 6/10 so hopefully everything goes smoothly.

 

[FordLightningMan]

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.

This is a very fair point, there is a distinct difference between openly acknowledged ADM and deceptive ADM. I think your take on the free market is actually very rationale from a ADM/resale perspective, in that you're much more in the gray area on the subject than I am.

 

[greenne]

This is a very fair point, there is a distinct difference between openly acknowledged ADM and deceptive ADM. I think your take on the free market is actually very rationale from a ADM/resale perspective, in that you're much more in the gray area on the subject than I am.

Dealers have the right to charge ADM. I have the right to tell them to F off and then go to another dealer that does not have ADM. (As long as everyone is honest and upfront)

 

[vandy1981]

Am I genuinely the only person on this forum that sees the irony with all these anti-ADM threads and then equally as many people talking about being able to sell their vehicles above what they paid?

It's like when my parents used to say "do as your told, not what I do."

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.

There are many people complaining about high markups on dealer stock but I think the dealer can make an honest argument that they have to assume financial liability for the vehicle and have the right to charge whatever the market will bear. It's not a good look for the dealer or Ford, but it's not egregious as the bait-and-switch that Alex describes.

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