Why are Broncos so high above MSRP?
The Ford Bronco has become one of the most sought-after SUVs in recent years, with demand far outpacing supply. This has led to a significant markup above the Manufacturer's Suggested Retail Price (MSRP) at dealerships. In this article, we’ll explore the reasons behind this phenomenon and what it means for potential buyers.
1. High Demand and Limited Supply
The Ford Bronco's resurgence has been met with overwhelming enthusiasm. Its retro-inspired design, off-road capabilities, and customizable features have made it a favorite among car enthusiasts. However, Ford has struggled to keep up with the demand due to production constraints, including:
- Supply Chain Issues: The global semiconductor chip shortage has impacted the automotive industry, limiting production capacity for many manufacturers, including Ford.
- Production Delays: Manufacturing delays caused by logistical challenges and high demand for other Ford models have further constrained Bronco availability.
With fewer Broncos available, dealerships have taken advantage of the scarcity by marking up prices significantly.
2. Dealer Markups and Market Trends
Dealerships often adjust pricing based on market demand, and the Bronco is no exception. Here’s why dealer markups are so prevalent:
- Profit Maximization: Dealerships recognize the Bronco's popularity and are capitalizing on the willingness of buyers to pay a premium for the vehicle.
- Resale Value: The Bronco's strong resale value has encouraged buyers to pay above MSRP, knowing they can recoup much of the cost if they decide to sell later.
These market dynamics have created a perfect storm for inflated prices.
3. Special Editions and Customization
Ford has released several special editions of the Bronco, such as the Wildtrak and First Edition models, which come with exclusive features and higher price tags. Additionally, the Bronco's extensive customization options allow buyers to tailor the vehicle to their preferences, further driving up costs. Popular add-ons include:
- Advanced off-road packages
- High-performance tires
- Unique paint colors and interior trims
These options not only increase the MSRP but also make the vehicle more desirable, contributing to higher dealer markups.
4. The Bronco's Cult Following
The Ford Bronco has a loyal fan base that spans decades. Its return to the market after a 25-year hiatus has reignited passion among enthusiasts, many of whom are willing to pay a premium to own one. This emotional connection to the brand has played a significant role in driving up prices.
What Can Buyers Do?
If you’re in the market for a Ford Bronco but are hesitant about paying above MSRP, consider these tips:
- Wait for Supply to Stabilize: As production ramps up and supply chain issues are resolved, prices may begin to normalize.
- Shop Around: Some dealerships may offer more competitive pricing, especially in less competitive markets.
- Consider Pre-Ordering: Placing a custom order directly with Ford can help you avoid excessive dealer markups.
While the current market conditions make it challenging to find a Bronco at MSRP, patience and research can go a long way in securing a fair deal.
Conclusion
The Ford Bronco's high prices above MSRP are a result of a perfect storm of high demand, limited supply, dealer markups, and the vehicle's cult status. While this may be frustrating for buyers, understanding the factors at play can help you make an informed decision. At Kevin's Autos, we always recommend doing your homework and exploring all your options before making a purchase. Happy car hunting!
Frequently Asked Questions
What should I pay for a Ford Bronco?
2023 Ford Bronco MSRP and Invoice Price
| Trims | MSRP | Edmunds Suggested |
|---|---|---|
| Big Bend | $39,880 | $37,241 |
| Black Diamond | $42,545 | $39,721 |
| Outer Banks Most Popular | $45,450 | $42,425 |
| Heritage Edition | $46,100 | $43,745 |
Are broncos holding their value?
A Ford Bronco will depreciate 47% after 5 years and have a 5 year resale value of $32,894. The chart below shows the expected depreciation for the next 10 years. These results are for vehicles in good condition, averaging 12,000 miles per year. It also assumes a selling price of $62,075 when new.
Do the new Broncos have issues?
We expect the 2025 Bronco will have about average reliability when compared to the average new car. This prediction is based on data from 2022 and 2023 models, and the Ford brand score.
What are people paying for new Broncos?
On average, you can expect to pay between $41,000 and $91,000 for a new Ford Bronco, depending on trim and customizations. This range makes it versatile, with basic and premium configurations.
Where are the 2024 Broncos built?
Wayne
DEARBORN, Mich., Jan. 19, 2024 – Ford Motor Company announced plans to create nearly 900 new jobs as part of a new third crew at Michigan Assembly Plant in Wayne to meet demand for the popular Bronco and Bronco Raptor and the all-new Ranger and Ranger Raptor.
Why are Broncos selling over MSRP?
The sixth-generation Ford Bronco debuted to tremendous demand in the midst of many production challenges and supply chain issues, which led to an immediate and rather massive backlog.
Are Ford Broncos losing value?
In the first year of ownership, it will depreciate around 8% and will continue to drop from there. A typical Ford Bronco should be able to sell for more than half its original price after the first five years of ownership, which is an excellent feat.
Are there any problems with the Ford Bronco?
Not being thorough. Enough that said these issues have been reported to a minimal number of Broncos. And as far as we know the new Broncos do not suffer from this issue.
Are Ford Bronco sales declining?
The automaker confirmed this move on November 20, and it will take place in the first quarter of 2025 as part of ongoing efforts to align production with fluctuating demand. Sales of the Ford Bronco have been declining in 2024, with a reported 10% decrease through October.
Will Broncos hold their value?
A Ford Bronco will depreciate 47% after 5 years and have a 5 year resale value of $32,894. The chart below shows the expected depreciation for the next 10 years.
