F150 Lightning markups have already started

[Temerarius]

According to Twitter and Jalopnik Ford dealers are already being unpleasant and one of the biggest hurdles that legacy auto makers will face.

Link to the price gouging dealerships (on F150gen14.com):

F-150 Lightning Dealers Already Requiring ADM Price Markup to “Prioritize” Order

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[SeaGeo]

glad I chose the dealer I did...

 

[mkg3]

This is the exactly the reason I prefer Tesla and Rivian’s direct sales approach.

In addition, traditional car makers have to prop up the dealerships by requiring services when not needed. EVs have little to no maintenance compared ICE vehicles.

I’ve heard dealers marking up $7500 on popular EVs around us.

 

[Redline]

Car dealerships are such cesspools.

 

[DuckTruck]

Car dealerships are such cesspools.

Not to criticize, but, uh, maybe that's being a little harsh? I've seen some fairly nice cesspools, comparatively speaking.

 

[SeaGeo]

This is the exactly the reason I prefer Tesla and Rivian’s direct sales approach.

In addition, traditional car makers have to prop up the dealerships by requiring services when not needed. EVs have little to no maintenance compared ICE vehicles.

I’ve heard dealers marking up $7500 on popular EVs around us.

I mean, the Ford dealer I'm working with doesn't do any markups. Tesla has marked up the model Y by what... roughly 10k since the start of the year? They just say they're increasing the price.

 

[mkg3]

Not to criticize, but, uh, maybe that's being a little harsh? I've seen some fairly nice cesspools, comparatively speaking.

However much nice, avoiding it is much better...

 

[Sgt Beavis]

My local Ford dealer restated to me that they won’t have any markup. They did admit that a few VIPs were moved up, but I’m still within the first wave allocation and will be asked to order in January.

That said, I’m 90% sure I’m picking a Rivian over the Lightning. It may come down to Ford’s final pricing on the XLT or Lariat trim and perhaps Rivian’s delivery time frame.

I would have liked to consider the EV Silverado and Sierra, but those are just coming into the game too late.

 

[mkg3]

I mean, the Ford dealer I'm working with doesn't do any markups. Tesla has marked up the model Y by what... roughly 10k since the start of the year? They just say they're increasing the price.

You are confusing mfg price increase vs individual dealership gauging consumers by jacking the price up after the fact. Just about every thing we buy has gone up in price due to inflation, supply shortage and the over stimulated economy thanks to M2 money supply increase.

 

[mkg3]

My local Ford dealer restated to me that they won’t have any markup. They did admit that a few VIPs were moved up, but I’m still within the first wave allocation and will be asked to order in January.

That said, I’m 90% sure I’m picking a Rivian over the Lightning. It may come down to Ford’s final pricing on the XLT or Lariat trim and perhaps Rivian’s delivery time frame.

I would have liked to consider the EV Silverado and Sierra, but those are just coming into the game too late.

Don't forget that extra extended warrantee, theft device, tacked on accessories (wheel locks, mud flaps, pin stripping and so on) on the top of the vehicle that dealer decides to put on.

Yes you can decline and have them take it all of but still its a hassle dealing with them - from the sales person to finance manager.

 

[SeaGeo]

You are confusing mfg price increase vs individual dealership gauging consumers by jacking the price up after the fact. Just about every thing we buy has gone up in price due to inflation, supply shortage and the over stimulated economy thanks to M2 money supply increase.

No, because Tesla has made good margins on their cars. They could absorb some price increases if they wanted. They seem to be jacking the prices up because they can, much more than other manufacturers. Just like dealers.

The point is that a cost increase is a cost increase. A direct to consumer model doesn't prevent manufacturers from raising the price for demand any more than the dealership model does. It's just less transparent.

 

[SeaGeo]

Don't forget that extra extended warrantee, theft device, tacked on accessories (wheel locks, mud flaps, pin stripping and so on) on the top of the vehicle that dealer decides to put on.

Yes you can decline and have them take it all of but still its a hassle dealing with them - from the sales person to finance manager.

To your last point, my experience when I was considering a Tesla a year ago was significantly worse and more aggressive than any of the dealers I've interacted with from Kia to Ford to Audi to VW.

Direct to consumer models can suck. Just like dealers can suck.

Case in point, Seattle Volvo service department and sales group is fantastic. The Bllevue service center is definitely sub optimal.

 

[thrill]

No, because Tesla has made good margins on their cars. They could absorb some price increases if they wanted. They seem to be jacking the prices up because they can, much more than other manufacturers. Just like dealers.

The point is that a cost increase is a cost increase. A direct to consumer model doesn't prevent manufacturers from raising the price for demand any more than the dealership model does. It's just less transparent.

The dealership model is just an unnecessary additional layer of middlemen who tack on their own "value added" and additional price increase.

 

[SeaGeo]

The dealership model is just an unnecessary additional layer of middlemen who tack on their own "value added" and additional price increase.

Sometimes they do. But when demand is low. You're also able to get cars below MSRP. Do you think Tesla is going to be dropping the model Y price anytime soon? I just find it funny that people seem to be a-ok having a manufacturer increase the price due to demand, but the moment a dealer does its outrageous. Both systems have advantages and flaws. Personally I generally like a direct to consumer model. That being said, generally the dealers I've worked with care a lot more about my business and the relationship than the manufacturer does.

 

[SoCal Rob]

According to Twitter and Jalopnik Ford dealers are already being unpleasant and one of the biggest hurdles that legacy auto makers will face.

Link to the price gouging dealerships (on F150gen14.com):

F-150 Lightning Dealers Already Requiring ADM Price Markup to “Prioritize” Order

This is disappointing and not at all surprising. The dealership model is a major reason I prefer the way Tesla and Rivian handle things. I seem to recall that Saturn sold vehicles exclusively at MSRP (no haggle) at launch and touted this as an advantage for the buyer. It seemed like a good idea to me. We've purchased a lot of cars over the years and I've always found the negotiation distasteful.

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