Ford Authority

New Vehicle Markups Cause Many To Ditch Brands, Dealerships

Over the course of the last three years or so, numerous supply chain constraints and other economic factors have caused both used and new vehicle prices to soar to new record highs, much to the dismay of customers. However, another side effect of this phenomenon is the rise of new vehicle markups, which were once only reserved for special, limited-edition, or more desirable, collector-type cars, though now, it’s not uncommon to see just about anything sporting a sticker price higher than MSRP. However, according to a recent study uncovered by Automotive News, such practices have ultimately impacted loyalty to both brands and dealerships.

The study – conducted by German market research company GfK – found that while 34 percent of consumers paid some sort of new vehicle markup in December of last year, it didn’t exactly settle well with them. In fact, 27 percent of the customers surveyed for this study indicated that they would never buy the same brand vehicle again, while 21 percent said they won’t recommend their dealer to someone else, and 29 percent will not return to the same dealer when it’s time to buy a new vehicle themselves.

This data is particularly interesting because while automakers – including Ford – typically allow dealers to set their own prices, the practice can still have a negative impact on the brand itself. “There are downstream revenue implications and customer relationship implications with charging over MSRP,” said Julie Kenar, GfK senior vice president of consulting. “There’s a much bigger lift” associated with paying more than sticker price versus merely paying MSRP, she added.

These sentiments were shared by a handful of dealers, including Keith Powell, owner of Yes Ford near Charleston, West Virginia, who noted that his dealership does not sell vehicles for more than MSRP. “It’s not good for CSI, it’s not good for customer retention,” Powell said. We gotta take care of the people that do business with us.”

We’ll have more on the state of new vehicle markups soon, so be sure and subscribe to Ford Authority for non-stop 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. John

    It will be even worse with this EV push.

  2. Pat

    Toyota will get away with it.

    1. NoComment

      Maybe the brand but not the dealership. Even though I bought my Tundra from one of them several years ago, I won’t ever go back to two particular Northwest Houston Toyota dealerships owned by the same entity (initials FH) due to their blatant and excessive ADM during the pandemic…

  3. Earl Yong

    What’s this Trump crap, He’s not been the President for 3 years. Wake up Washington.

    1. G O PEE

      DT is still president

  4. Steve

    Anyone stupid enough to pay MSRP and markup deserves to lose thousands. However, most of these vehicles aren’t worth half of even MSRP. That crap Maverick truck for example. Just look on Carmax, caravana, vroom, echo park, etc., and 90% of their top trucks are mavericks, all with less that 3000 miles, some less than 1000.

  5. Mary CT

    yes, i have been loyal Ford driver since 1974 with my first 66 Mustang, have driven Ford trucks since then. My current 2003 F150 that still runs strong but rusting away and sad to let her go but have been keeping my eye on the Mavericks, went down last weekend MSRP $27k and sticker price $32k (much more than original advertised roll out price of $20k) Salesmen gave me the old you dont understand how Rare this truck is better grab it while you can…. Just shook my head so much for Brand loyalty got back in my still reliable 03 and drove away. Actually cruised the “GASP” Toyotas, Hyundai’s – Thought i would be a Ford Customer for life but unless i let me pickup lovin self go with a used Escape… not going to be pushed into paying so much more for poor management on the part of Ford. UGH

    1. Richard

      There are plenty of dealerships that do not sell over MSRP. I work for one.

      1. Richard

        I am referring to Ford dealerships

  6. Dave

    I just ordered a new 2023 Escape. Here in Tucson I had a choice of three Ford dealers. The first had Tucson city sales tax plus a $2000 markup. The second had Sierra Vista sales tax plus a $1500 markup. The third, in Oracle, had no city sales tax and no markup. I’ve bought from dealers 1 and 2 before, but not this time. Went with dealer number 3.

  7. Kenneth Jamrozy

    Not only have the new vehicle costs escalated, but the price gouging over msrp has become almost common place.
    I don’t know about you, but I am not going to participate in this attempt to defraud the consumer. The interest rates are nuts and 7 year loans are getting to be more common.
    The choices are still mine to make and I’m sitting this one out until prices and interest rates return to more acceptable levels.
    Good luck with those floor plan interest payments.

  8. Bill

    I originally paid a small mark up of $2k (2023 Ford Bronco) when ordering a dealer stock order that was about two months out from being delivered.

    When it did get delivered, Ford had already raised prices twice since I confirmed the order. Dealer honored original rate we agreed on, and at the end of the day I basically paid $1,500 under MSRP compared to someone buying it that day. Crazy!

  9. Steve

    At Grieco Ford in Ft. Lauderdale, I saw a Maverick XLT with a margin markup of $7,000.00!!!! which brought the price up to almost $40,000.00. That is exactly why I deal with a Family owned dealership 300 miles North in St. Augustine that doesn’t do that except on extremely rare collector cars. I love Bozard Ford.

  10. Michael J Genzale

    Reality check. How many products have Manufactures SUGGESTED retail price?. Vehicles do, creating an artificial ceiling. More than that feels like a rip off.
    Dealers that put big over MSRP addendum stickers are playing the short game. With the shortage most accept foregoing any dealer discount. The dealers are reping the additional profit of selling without discount reducing their profit per unit sales. Turn the inventory over earn a replacement and reduce floor plan expense (interest paid on lot inventory) earn a customer in service as well.

  11. Paul

    When I ordered my Maverick Sept. 16th there was a sign above the sales office that said ‘Under New Management’. They sent me an ad on my phone April advertising a sale again with the banner’ Under New Management’ 8 months later. I thought it was interesting in that it was the only communication with them I’ve had since they haven’t returned 5 phone calls To them.

  12. mountainman

    Bought my 22 Bronco WT from Stephens Auto Center in WVa. $1,200 under invoice, free goodies, no hassle or games. I went through 3 states and passed untelling how many dealerships on the way to pick it up. I’d do it again and I plan on doing it again if I need another automobile.

  13. Tom

    asking above MSRP is a big leap on first time buyers.
    I called out a Ford dealer for their Maverick mark-ups, especially when they had the MSRP on the vehicle and no other price. “Friendly Ford” ain’t so Friendly. I wrote Ford Motors and they agreed- which is why Ford is still on my shopping list.
    Months later it still bothers me, because they sell in my community. Ripping off my neighbors ain’t cool either.

  14. Greg

    I bought a Ford Ranger in 2003 for about $22K. It’s a 6cyI, 4WD, automatic, step-side with power steering/brakes/windows/mirrors, intermediate wipers, cruise control, AM-FM radio, 6 CD changer, AC, fog lights, ash tray and cigarette lighter. It has the original starter, alternator and fuel pump. It just turned 96K miles.

    When the new ones came out a couple years ago I priced three at a local dealership; $42K, $43K and $45K. Can’t remember how much but they were all marked-up.

    Needless to say I am still driving my 2003 with classic plates. I am done with Ford as they priced me out of the market.

  15. Greg

    Forgot this; I get her (Chloe) detailed every year on her birthday and she looks like she just rolled off the assembly line.

  16. J. Psi

    As far as markups go, I will look elsewhere, their loss.
    My overall take on Ford, is they are full of crap. I don’t see how they are making their numbers at all anymore as there is still close to zero availability on vehicles. They are selling nothing compared to what they were selling before the pandemic. They are also filling Wall Street with fluff, their stock is going to go further downward as it’s a sinking ship.

  17. Steve M.

    Dealers that have been gouging their former customers will wish they had loyal customers when the bottom falls out of this economy. I witnessed a sales person for a Ford dealer in Texas call someone a commie on FB when that person didn’t believe that a Maverick was worth 10k over MSRP. The audacity of some of these dealers and sales con-artists is unreal.

  18. RussMc

    Serramonte Ford in the SF bay area is still asking for $12K over MSRP for every Maverick on the lot in May 2023 – I’m done with Ford, for good,


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