Sometimes you can forget that car dealerships and manufacturers aren’t the same entity. If you’re used to how Tesla does business, than seeing reports of Ford dealerships adding $15,000 mark ups to the upcoming Mach-E Mustang, can remind you how toxic buying a car can be.
Even though Ford plans on producing around 50,000 of their new electric Mustangs every year, the release edition has been sold-out. Furthermore, the regular edition has also been building up a giant wait-list.
Even though Ford’s starting MSRP for the Mach-E, $43,895, is relatively pricey for the electric crossover, that’s not enough for some dealerships. Potential buyers have been reporting markups of $5,000 to $15,000 in some cases.
As the Mach-E arrives in dealerships Q4 2020, then we will find out how many of these markups can last as demand and anticipation meets supply increases. Frankly, this sort of old-fashioned form of selling cars is one of the worst aspects of the auto industry.
It’s curious how legacy manufacturers can see the benefit of switching to electric lineups, as Tesla eats their lunch, but then not realize the other massive advantage they have is knocking out these kinds of shenanigans.
Of course, everyone knows that hot new cars get dealer markups all the time, look at the Toyota Supra release, which saw one allegedly sell for %150 at nearly $200,000. Regardless, hearing stories like this reminds me of when I found out they were still shooting movies on 35mm film in the 2010s, even though they had digital cameras for over a decade.
As long as dealerships can squeeze car buyers for more than the customary %2-5, brands are going to fall behind because of that unnecessary cost. There’s no holding your breath for Ford to do anything about this, it’s just the way it is.