Is $4k over sticker worth it? Originally they wanted $10k…

[goalieThreeOne]

Comparing TVs and the volume therein to the automotive space doesn't track. The volume discrepancies as they relate to price are MASSIVELY different. Example: Globally, LG sold 27.3 million TVs in 2022. Ford sold 4.2 million vehicles in the same year. The largest auto OEM in the world, Toyota, sold 10.5 million vehicles in 2022. Volkswagen Group (No.2 in the world) sold 8.3 million vehicles. So, Toyota + Volkswagen + Ford = 23 million vehicles. Still 4 million shy of LG's TVs. Add in Samsung and the discrepancy balloons!!

Within automotive, the MSRP no longer becomes "Manufacturer's Suggested Retail Price", but rather "Retail Price," entirely determined by them and their agreements with retail outlets. If you think that Ford et all would not increase the retail/selling price of their vehicles, essentially to match what dealers do now with ADM, you're kidding yourself. The OEMs would have even more control of the market. Just look at Tesla - they single-handedly control the EV market vis-à-vis pricing.

First, Tesla was the first to the wider EV market...and they had nearly 100% "premium EV" market share. Once the established OEMs began to produce more and take market share, they cut prices by 20% to maintain share. All the OEMs essentially followed suit. But Tesla & EVs are a unique case right now. If and when they become mainstream, and if cars were sold direct to consumer, we're at the liberty of whatever pricing they dictate....more so than we already are.

Ultimately, who do you want to control your pricing? The manufacturer or the retailer? In the TV space, it is a combination. Walmart/BJs/Costco has more buying power than BestBuy/PC Richards, so they buy more volume, thus receiving a lower wholesale price, generally speaking.

A manufacturer’s MSRP already includes built in margin/profit for the dealer. The true cost is invoice. All Ford has to do is sell it at MSRP and they get to pocket the built in margin for themselves and use it to cover the cost of the buying process. And the manufacturer ALREADY increases MSRP according to demand. That’s why the F150 Raptor is $92,000 now when it was $60,000 a few years back. Nothing about that changes. Demand doesn’t change when the manufacturer sells direct. Please look up and read about price elasticity and the demand curve.

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[Tyler90561]

I hate paying over MSRP but with the current market I'd be happy to find one for 4k over. Right now I'm seeing 10k plus in South Florida.

 

[R3G]

A reasonable rarity fee is usually justified by dealers for rare performance vehicles otherwise people will just buy it and flip it, so why wouldn’t the dealer want that profit? If they cant sell it they will lower the price. That said, dealers here are telling me $15,000 markup. I will not pay $15K over sticker but the dealers know that and start high so you feel like you get a deal paying $4K over. I would pay $4K over for this truck and not even think about it. $15K? No way I’m paying $75,000+ for a midsize truck.

 

[fordtrks4ever]

A reasonable rarity fee is usually justified by dealers for rare performance vehicles otherwise people will just buy it and flip it, so why wouldn’t the dealer want that profit? If they cant sell it they will lower the price. That said, dealers here are telling me $15,000 markup. I will not pay $15K over sticker but the dealers know that and start high so you feel like you get a deal paying $4K over. I would pay $4K over for this truck and not even think about it. $15K? No way I’m paying $75,000+ for a midsize truck.

The problem paying over MSRP
is you can never recover the amount.
Say after a month of ownership the vehicle is totaled. The insurance company goes by MSRP
not what you paid.
The dealers around me are also marking up $15,000. for Ranger Raptor. I agree it is too much.
My dealer had a Raptor R marked up $50,000. A XLT maverick marked up $1,500.
Problem is people pay it. If no one did then there would be no markups.

 

[LFRR13]

A manufacturer’s MSRP already includes built in margin/profit for the dealer. The true cost is invoice. All Ford has to do is sell it at MSRP and they get to pocket the built in margin for themselves and use it to cover the cost of the buying process. And the manufacturer ALREADY increases MSRP according to demand. That’s why the F150 Raptor is $92,000 now when it was $60,000 a few years back. Nothing about that changes. Demand doesn’t change when the manufacturer sells direct. Please look up and read about price elasticity and the demand curve.

I fully understand price elasticity. Currently, the true cost of the vehicle to the OEM is not invoice. It is less than that. That's the discounted price to the dealer, and then invoice to MSRP is the provided profit for the dealer. The deviation between invoice and MSRP varies from OEM to OEM. For some it's 7%, some its 3%. For some it's more. Where do you think the monthly and seasonal incentives come from? All that "money back"? That doesn't come from the dealer, it comes from the OEM, effectively lowering the invoice price, so the dealer can sell for less than MSRP, and still make a profit.

Invoice minus incentive = greater spread to MSRP. More potential profit or more wiggle room on price to make a given vehicle more attractive.

If you remove the need for the OEM to placate the dealer, nothing is stopping them from determining price either by arbitrary means or reducing volume to increase demand. Redbull & Apple have done this for years - it is rare for there to be significant discounts on Apple products because they control demand and retail pricing so strictly. Same with Redbull - by and large 8oz is $3, 12oz is $4, 16oz is $5. And Redbull sells direct to retailers, not through wholesalers.

 

[2.7EcoBoost]

Is it worth it? That's a simple question and the correct answer is no, it is not worth it. Paying MSRP you will lose a significant amount of money in a matter of a few months. Is it worth it to you? That's a question only you can answer. With the new Taco coming and the revamped ZR2 Colorado I don't see the Ranger Raptor being an exuberant high demand truck. My hope is to order a 2025 in one year for about $5k under MSRP. I see Bronco's selling for under MSRP and that was a much higher demand vehicle that happened during an extreme supply chain shortage. I imagine there a few $10-$15k ADM buyers out there who might be wondering if it was really "worth it" if they actually kept them. Just my $.02, but like I said the real question is: Is it worth it to you? Sweet truck, I'll own one, but I'm gonna let Ford get the first 10 recalls fixed and the market to stabilize. I'm too old to take a big loss!!

 

[Dubfound]

Yes it's worth paying $4k over for a 2024 allocation at the $56,960 MSRP. You will be one of the first people in your area to have this truck and that's worth some extra money I think. Plus you know the 2025 models are not going to have a $57k MSRP. I would imagine they are probably going to be $3-5k more. I'm personally paying $2,500 over and perfectly ok with it. And plus the dealer is my local Ford dealer 5 miles down the road from me.

 

[medocbiga]

just order a F150 raptor under MSRP, so wait the market cool off.

 

[sjl136]

Normally I would be 100% against paying any dealer markup, but now that some of the Tacoma pricing is out, $4k ADM on an RR isn't looking so bad. As others have said, I'd expect the Ranger Raptor MSRP to go up a fair bit for the next model year. If a loaded hybrid Tacoma TRD Off Road is going to be pushing $58k+, then a TRD Pro or Trailhunter will end up around $62k+. Ford will reprice the RR to be at least as much as the TRD Pro, and probably more since the RR is a higher performance, halo vehicle for the midsize truck market. I'd guess at least a $4k MSRP increase on the RR.

 

[Mikknj]

Hello!

A local dealer here in SoCal originally quoted me $10k above sticker. I managed to bring it down to $4k.

Thoughts?

Don’t bash me for agreeing to pay the mark up. At least it’s not $10k.



Disclaimer: I just placed an order and can back out at any time. I don’t plan to.

No! In this environment you should not be paying anything over sticker!

 

[LCW]

The dealer near me where I got my Bronco - which they are huge POS’s - told me $25K over for the Ranger Raptor.

 

[TigerLilly]

Hello!

A local dealer here in SoCal originally quoted me $10k above sticker. I managed to bring it down to $4k.

Thoughts?

Don’t bash me for agreeing to pay the mark up. At least it’s not $10k.



Disclaimer: I just placed an order and can back out at any time. I don’t plan to.

Hi fellow So Cal…. Let’s face it, we live in a different market than most on this thread. I paid $8k over and actually flew to IL to pick it up and drive it back! I love everything about my Raptor and because Cali so “special “ I had to smog it to get it registered. And even more “special” that it cost $102 to fill the tank! As where every other state I traveled through was $66 at most!
I called every dealer in So Cal back in Jan when I first started this “adventure “ to finding one. There was only one dealer that didn’t have it reserved. Maybe the one you found … it just wasn’t the color I wanted! IMO if you’re asking this thread if it’s worth $4k and they haven’t driven one yet … could be one sided. The Raptor isn’t perfect…. At least mine isn’t, I’ve noticed some gaps like others have and the there’s a weird buzzing noise when my husband is charging his phone on the charging pad (BUT it’s not his Raptor, it’s mine and I can care less if it doesn’t want to charge his phone!) if there’s any perspective for you, I was driving a Masterati and my husband swore by only driving a BMW…. Now he wants to trade in his Beamer for a Bronco Raptor (say what?!) I love the Ford Performance and I’ll never go back Good luck! Hope to see a fellow RR on the road in So Cal!

 

[RangerRick1234]

Simple answer..... NO! Would not pay over MSRP for a depreciating asset.

 

[cc1999]

I am not against paying a little markup to get something like this sooner than later.

I paid 2k over for mine. But I would not have paid a mark up for an order unit, that I would have had to wait an unknow period time to get.
I only did it because it was already built and about to ship.

But really there are not hardly any options on these trucks, they are all loaded up,
you get to pick your color, an optional wheel and if you want stickers or not.
All of which can be easily delt with after purchase.

I mention that because, you can probably find one now on lot or about to be landing on a lot in the color you want for that sort of price or markup, possibly including the shipping to your door from about any dealer location in the country.
Not meaning all dealers charge less, but just that at that markup I would not think would be hard to find one available now.

Meaning a little searching online you can probably have one for the same money in your driveway in the next week or two.

To me that is the main reason to pay a little markup, that is to get it now, not several months or a year from now.

 

[Imprezive]

The problem paying over MSRP
is you can never recover the amount.
Say after a month of ownership the vehicle is totaled. The insurance company goes by MSRP
not what you paid.
The dealers around me are also marking up $15,000. for Ranger Raptor. I agree it is too much.
My dealer had a Raptor R marked up $50,000. A XLT maverick marked up $1,500.
Problem is people pay it. If no one did then there would be no markups.

This isn’t always true. Tacoma TRD Pros were going for over MSRP used as do plenty of high demand vehicles. It’s not like the used market just resets to depreciate from MSRP. I don’t think a Ranger will hold that kind of value but it’s not a given one way or the other. Personally I offered my local socal dealer $5k over and they said they were firm at $15k over. I’d probably do $4k in OPs shoes assuming he can afford it.

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