Ford Authority

Ford Dealers Could Get Penalized For Selling To Flippers

When the second-generation Ford GT launched years ago, The Blue Oval not only required prospective buyers to apply for the privilege of doing so, but also required them to sign a contract stating that they wouldn’t sell the car for two years – a pact that pro wrestler John Cena later broke and was promptly sued for doing precisely that. As Ford Authority reported last July, the automaker recently implemented new, stricter penalties on Ford dealers in an effort to stop brokers and resellers from abusing the reservation, order, and vehicle allocation processes, as well as grossly marking up vehicles. Now, it seems as if The Blue Oval is taking yet another step to prevent flipping, according to CarScoops.

Ford Bronco Raptor Off-Roadeo Front Three Quarters View

“Dealers are independent franchises and set the final contract with a customer,” a Ford spokesperson told the site. “Ford has a company policy designed to mitigate against the improper sale of new vehicles to customers who broker, resell, or export vehicles, and helps to protect customers looking to legitimately purchase a vehicle for their own use, our dealers, and Ford. Any contract requirement beyond this policy is between the dealer and the customer.”

This news stems from a Ford Bronco Raptor buyer in Texas that was asked to sign a contract upon taking delivery stating that the customer will give the dealer the chance to buy the vehicle back if they decided to sell it, and if they didn’t agree to those terms, they would be paying a $20,000 markup on the SUV.

Ford Bronco Raptor Off-Roadeo Front Three Quarters View

The idea here is to sell these special, high-demand vehicles to customers that will actually keep and drive them, it seems, though additional details regarding this policy are currently unclear. If nothing else, it’s seemingly a step in the right direction, though it remains to be seen if it prevents dealers from placing massive markups on vehicles – or buyers from flipping them for a profit.

We’ll have more on Ford’s efforts to stop flippers soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. Joe

    There are New Broncos and Lightnings on Bring a Trailer everyday. When one ends and a new one begins. Ford is doing nothing.

    1. Mortimer Duke

      Precisely what do you believe Ford actually can do, bearing in mind that each of the fifty states may consider the matter differently?

  2. David Dickinson II

    A fool and his money are soon parted. Let the free market be the free market.

    Ford can halt the problem by producing vehicles in line with consumer demand. However, I suspect Ford really likes their new “limited production” model that gives Ford jacked up profits on their throttled production. Hypocrites. Ford doesn’t want dealers to make additional money on individual vehicles when, at the same time, Ford has cut the volume of sales by failing to produce enough vehicles. The mortgage still needs to get paid, as do the sales staff, mechanics, managers, utility bills, insurance premiums, tax payments, etc. etc.

    1. Mortimer Duke

      Amazing how so many so-called “fools” are merely others with more resources who are willing to spend them upon owning or doing something than others.

      1. Larry

        right on man, if you have the funds and want it first, go buy it. this is the USA , its a capitalist country, you don’t deserve a trophy for just showing up, if you come in second or third , you Lost. this wishy washy country needs to grow some nad’s

  3. EcoBoost29579

    Ford’s only concern should be the sale. Who buys it is none of their concern. If folks want to try and flip, so be it. Those that buy flipped vehicles have too little brains and too much money, but nothing can be done short of mandatory brain transplants. I agree 100% though, with David D. above as far as limiting production. Hope that backfires.

  4. The Retired Viking

    Mortimer Duke is correct; the joint and several states may take a different view from that of Ford. If I have the title / “pink slip” in my hands, it means the vehicle is mine, not FoMoCo’s. Someone wants to pay me my asking price, be it a Bronco, Ford GT, or a ’65 Mustang with a 6 and 3 on the floor, Ford has no say in the matter.

    Then again, I’d never sign a paper limiting me in the first place.

  5. Michael J Genzale

    If a vehicle is ordered ‘sold’ which requires a customer name, then not reported sold in the delivery system that triggers the warranty start date to the same name an allocation penalty should be levied.

  6. Larry F

    Sounds like a lot of double speak.
    With the info provided, seems the attention is on one specific retail purchaser from making a profit, rather than protecting the general consumer from the more/most widely practice of the dealers, who are the real culprits in marking up the MSRP. Like a bait and switch selling at an above price than advertised price.

  7. Boomer

    COMICAL!!!!! And JIMMY HAD this Under Control I thought???

  8. Mike says...

    This all sounds a bit like the overheated real estate market… which is only getting worse due to ‘investment interests’ driving the problem forward.
    I cringe at the thought of regulations and controls…. but they maybe needed to avoid a severe outcome for many customers and individuals not involved in ‘flipping’.

  9. stevesultra

    How is buying a vehicle and flipping it any different than a dealer upcharging just because they have a limited availability vehicle. And, if Ford has no ground to stand on to stop it, it’s much ado about nothing! Just wait it out. There is a used car dealer not far from me that has 20 Broncos. All marked up. All but one with soft tops. I think he will lose his a _ _ .

    1. Mike says...

      I think Ford addressed those dealers who were up charging by saying their new vehicle allotments would be reduced into the future.
      I have no way of knowing if this ever happened.
      To your ask, buying a vehicle to flip has nothing to do with how Ford operates and disciplines its dealership network who go rogue.
      As consumers, we all should be able to buy whatever we want from reputable sources (read not flippers) with confidence that the manufacturer is not working to manipulate the market place.
      People spend their money as they like, wealthy people often spend their money foolishly because they can… a sad example of being ‘stupid’… because you can!


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