Why is Bronco markup so high?
The Bronco markup, the difference between the manufacturer's suggested retail price (MSRP) and the actual selling price of a Ford Bronco, has been notably high in recent years. This is due to a combination of factors, including high demand, limited supply, and the unique appeal of the Bronco model.
High Demand and Limited Supply
The Ford Bronco, a revived iconic off-road SUV, has generated significant interest and demand since its reintroduction in 2021. The Bronco's combination of retro styling, capable off-road performance, and modern features has made it a highly sought-after vehicle. However, the COVID-19 pandemic and global supply chain issues have constrained the production of the Bronco, leading to limited availability.
As a result, dealers have been able to charge well above the MSRP, with some Broncos selling for thousands of dollars over the list price. This markup, known as the "Bronco markup," has become a common practice in the automotive industry when demand outpaces supply.
Unique Appeal and Desirability
The Bronco's unique design and off-road capabilities have also contributed to its high desirability. The Bronco is seen as a lifestyle vehicle, appealing to outdoor enthusiasts and those who value the rugged, adventurous image it projects. This demand, combined with the limited supply, has allowed dealers to charge a premium for the Bronco.
Additionally, the Bronco's status as a revived model has added to its appeal, as many consumers are eager to own a piece of automotive history. This nostalgia factor has further driven up the Bronco's markup.
Dealer Pricing Strategies
Dealers have also employed various pricing strategies to capitalize on the high demand for the Bronco. Some dealers have implemented "market adjustment" fees, which can add thousands of dollars to the MSRP. Others have bundled the Bronco with additional accessories or packages, further increasing the final price.
These pricing strategies have been met with some criticism, as they can make the Bronco unaffordable for many consumers. However, as long as demand remains high and supply remains constrained, the Bronco markup is likely to persist.
Conclusion
The high Bronco markup is a result of the vehicle's strong demand, limited supply, unique appeal, and dealer pricing strategies. While this may be frustrating for some consumers, it is a common occurrence in the automotive industry when a highly desirable model is in short supply. As the Bronco production and supply chain issues are resolved, the markup may eventually decrease, but for now, the Bronco's popularity and exclusivity continue to drive up its selling price.
Are Ford Broncos losing value?
A 2023 Ford Bronco has depreciated $8,593 or 20% in the last 2 years and has a current resale value of $32,432 and trade-in value of $28,081. A 2023 Ford Bronco has depreciated $8,593 or 20% in the last 2 years and has a current resale value of $32,432 and trade-in value of $28,081.
Are Ford dealers marking up Broncos?
And Ford knew that meant dealers were getting ready to gouge buyers by tacking on additional dealer markups (ADM). They tried to prevent it, but it was inevitable. In fact, in July 2021 we published an article that called out the highest ADMs on the 2021 Ford Bronco in the country.
How do I get rid of dealer markup?
How To Avoid Paying High Dealer Markups And Get The Best Deal On Your New Car
- Do your research.
- Know the invoice price.
- Get quotes from multiple dealerships.
- Avoid dealer-added accessories.
- Look for manufacturer incentives.
- Negotiate a discount.
- Pay attention to dealer fees.
- Get the price in writing.
Why sell below MSRP?
A dealer may advertise a price “below MSRP” as an incentive, or it might add a markup to the MSRP if the car is in high demand. Few vehicles are sold for the exact MSRP, but it's a good place to start negotiations. Know that simply getting a price below the MSRP doesn't always mean you got the best deal.
Who is the target audience for the Ford Bronco?
with a larger percentage of male owners. In terms of demographics, Bronco owners are mainly of Western European descent, and less likely to be African American, Asian, or Hispanic, and almost twice as likely to have a pickup in the garage, too – with around half owning another Ford vehicle of some sort” (Foote, 2022).
Are Ford Broncos still in demand?
The Ford Bronco is Ford's top-performing off-road vehicle. Of course, it has long been famous for adventurers and outdoor enthusiasts. But the 2022 Ford Bronco is in high demand because of its new trims and excellent performance.
Why are Broncos above MSRP?
The decision was purely about increasing gross margin. They only had so much factory room, and they'd rather pump out overpriced crossovers and SUVs than cheaper sedans and hatches.
Are Bronco sales declining?
In the United States, Ford Bronco deliveries totaled 26,796 units in Q3 2024, a decrease of about 19 percent compared to 32,888 units sold in Q3 2023.
How do you avoid Bronco markup?
If you're willing to wait to avoid paying a premium over the MSRP, the easiest solution will be to place an order with a dealer that agrees not to add a markup to your vehicle. Signing a Buyer's Order with the dealer locks in the price, but it may also obligate you to purchase that vehicle once it arrives.
Is it cheaper to order a car from the factory?
All things considered equal, ordered vehicles cost no more than vehicles in dealer stock and, in some cases, may actually cost less. When you buy from dealer stock, you may have to settle for a vehicle with either more or less equipment or your second or third color choice.
