2021 Ford Bronco Dealer Markups Are Already a Problem
2021 Ford Bronco owners have displayed otherworldly patience and grace. Now potential buyers face even more frustration as units finally make it to dealerships. Like the Kia Telluride, outrageous Bronco markups have been seen in response to the massive demand for this SUV.
Delays have driven up demand for the 2021 Ford Bronco
The 2021 Ford Bronco has faced multiple delays since its intended release this spring. Supply chain interruptions impact frustrated buyers, but issues with Webatso are at the heart of the most prolonged delays. The supplier is responsible for manufacturing the SUV’s hardtop roof.
Ford has made an effort to be transparent with buyers about what’s keeping these trucks off the showroom floor. These communications have sometimes been unconventional, including late-night registered letters. To prevent further frustration, Ford has put a temporary hold on communications regarding the Webasto supply issues. The automaker says it will resume communications when the situation stabilizes.
The automaker now estimates hardtop options ordered in 2021 will be available in 2023. Buyers have the opportunity to amend their orders to soft-top models, which have already begun to be delivered. Ford has even offered complimentary conversion kits to allow buyers to switch to soft-top now and convert later.
Bronco pricing reflects the demand for the SUV
Demand for the 2021 Ford Bronco has been high since the announcement of the SUV. The first edition sold out within hours, even after Ford extended the production run. This demand has lead to some dealerships marking up prices.
Whether the demand is high or low, dealerships will mark up prices. Increased demand can increase these markups beyond typical market trends. At least one dealership in California offers the Bronco First Edition at a staggering $79,115, an entire $20,000 above MSRP.
This extreme markup isn’t an outlier. In the current volatile market, supplies are low, and demand is high. Dealerships have used markup to control sales of popular models. The Kia Telluride saw high markup as well.
What can you do to protect yourself from dealership markup?
With inventories at historic lows and demand on the rise, high dealership markup isn’t likely to go anywhere. Buyers need to learn how to spot an inflated price to navigate the current market. Knowing how much markup to expect before going to the dealership can prevent sticker shock.
Thorough price research should be the first step in any car buying process. Buyers should learn the suggested retail price and what others in their region are paying. Comparing those figures to a dealer’s asking price can highlight frivolous upcharges.
One of the surest ways to avoid paying a high markup is not a strategy most buyers want to hear. Simply waiting out the demand is the best way to pay retail price. In this case, buyers have already been waiting and may choose to pay the difference.
Bronco fans are still excited to see the SUV starting to hit the streets after so many delays. Dealers know the demand will stay high as more Broncos roll off the production line. Broncos could have high markup at dealerships, but savvy buyers can spot it with some research.