Showroom shock! Dealer jacks up truck’s MSRP 43% amid auto industry crisis

New York Post ^ | February 12, 2022 | Kerry J. Byrne, Griffin Kelly

[nickcarraway]

A New Jersey auto dealer is selling a new Ford Bronco for a staggering 43 percent above the manufacturer’s suggested retail price, as inflation reaches historic levels and auto inventory shortages wreak havoc on consumer wallets.

“We are going to be like Cuba soon,” said one customer at All American Ford in Old Bridge, NJ. “No new cars and we’ll all be driving ’57 Chevys.”

A New York City man expressed his truckin’ outrage on social media this week after he found a 2021 Ford Bronco at the Old Bridge dealer with a manufacturer’s suggested retail price of $34,855 being sold instead for $49,855 – a “market adjustment” of $15,000.

[Farmerbob]

I have a feeling that when show rooms do fill back up, it will be with only e vehicles. Or they may never go back to normal. Ride the bus or walk.

[Gay State Conservative]

The factory warranty on my car expires in a few months. It's a German car and they're well known for spending a lot of time in the shop...so I think I'll be extending that warranty rather than buying a new one.That was my original plan.

[Flick Lives]

A New York City man expressed his truckin’ outrage on social media this week after he found a 2021 Ford Bronco at the Old Bridge dealer with a manufacturer’s suggested retail price of $34,855 being sold instead for $49,855 – a “market adjustment” of $15,000.

—

I’m not sure when this auto lunacy ends, but it will eventually end. Two things...
1. People purchasing cars 50% over list, especially if they take an auto loan, are going to be severely underwater if they try and trade in the car before the loan is paid in full.
2. I hope people remember the dealerships who gouged people and shop elsewhere in the future.

[moovova]

Supply & demand.

[BudgieRamone]

shoot they are selling for 60k plus here. and people are buying them. none for me thanks.

[cranked]

The utter amount of blatant price gauging is criminal....

[mewzilla]

NJ...

Now why am I not surprised.

Bet it’s not just trucks...

[Cobra64]

I had a Beemr and now have three Mercedes and never had a problem with any of them. Too many people don’t bother having their cars serviced.

[mewzilla]

Manufacturers don’t like the practice.

[nickcarraway]

They get their supply from someone else, and that party can cut off the supply if they think it’s being abused.

[Cobra64]

Yup. Wait until supply stabilizes back to normal.

[Carriage Hill]

I could do some cool things with a ‘52 Checker Cab and a crate 392 Supercharged HEMI V8.

[NetAddicted]

What are used cars selling for?

[Revel]

A fine example of technology biting everyone in the butt.

[nicollo]

I’m not sure when this auto lunacy ends...
1. People purchasing cars 50% over list, especially if they take an auto loan

Like housing, automobile pricing is financial- and not market-driven. Higher interest rates will drive down prices. Additionally, further market resets will drive up down-payments for both autos and houses, which will further drive prices downward

In 1919, GM finally figured out how to beat the Model T: financing. GM didn't invent it, but it was the first to standardize and market it nationally. Ford hated banks, so he just dropped the T price downward hoping to compete with the higher prices of GM cars that were priced monthly/annually. Ford finally gave up in '26, following Chevrolet's ascension to no. 1 seller with a price several hundred more than the T but with more features and affordable payments.

So, when monthlies rise, prices will drop.

[SaxxonWoods]

I recently read that some manufacturer threatened dealers over marking up new cars too far. As always, anything goes with used cars.

[wally_bert]

When I’m medically cleared to do stuff, I am going to get back on the project vehicle thing.

I love my 16 Tacoma but I don’t want to buy another new vehicle.

FWIW, an episode of TAXi is on.

Great comedy.

[RGF]

Used car prices are ridiculous. Around Thanksgiving we “traded in” our 2020 Hyundai Palisade Limited with 30,000 miles for a new 2022 Hyundai Palisade Calligraphy. We got a credit of $45K for our car even though the sticker when new was just $46K. Fortunately, this dealer’s owner WILL NOT CHARGE OVER MSRP.

So the new car with no miles, new warranty, free service for 30K miles cost us a couple grand. Not a bad deal, we even saved virtually all the sales tax with the trade in.

[MrKatykelly]

While I’m not meaning to defend car dealers, I’d just like to point out every business has overhead. If a business has reduced inventory they have to mark up what they have or go out of business. Car dealers have a lot of very expensive real estate. Their shop and parts depts will support themselves, but that lot and showroom and the back rooms have to rely on sales. The inventory shortage is killing them. You think it’s bad for the customer, imagine being a salesman on commission with nothing to sell, or a manager with huge bills due and nothing to sell. Just saying shortages and unintended consequences aren’t all just pure supply and demand issues.