Dealer markups are neither a brand new phenomenon nor distinctive to Ford. Inventory shortages throughout the business over the previous year prompted shops that promote quite a few manufacturers to tack on “market adjustment” prices of various sizes on many scarce nameplates.
“It’s the blessing and the curse of a free market and capitalism,” Karl Brauer, government analyst at iseecars.com, stated in an interview. “If you’re really creative, you can almost always find a way to make a buck on something people want to buy.”
Galhotra stated Ford’s inner pricing knowledge reveals that greater than 90 p.c of its dealerships are charging round sticker value on key new fashions.
“The issue we’re trying to address is around a very small part of the network,” he stated, “and we’ll work with them to get it right.”
Jack Madden Ford in Norwood, Mass., initially deliberate to cost an additional $2,500 on Lightnings however eliminated the price after clients complained, proprietor Jack Madden stated in an interview.
“The pushback was pretty strong,” he stated. “We collectively decided that we’d sell them for whatever the retail price is and we’d live with that. A lot of people are angry about it, and management at Ford feels it’s the wrong thing to do.”
Madden stated the shop deliberate to cost the markup due to low stock. The dealership offered 77 autos in December and acquired solely 10 autos from Ford for the month, he stated.
The automaker has warned that the chip disaster doubtless will linger via the remainder of this year and is pushing a customized order-based system to make up for the dearth of obtainable stock.
“If the market in general is not supplying the base-level demand the buyers want, everything goes up in price, and in that environment the hot-ticket cars are that much more desirable,” Brauer stated. “The forces on demand versus supply going on right now are only adding to the potential for this kind of behavior.”