I’m trying to figure this out. It is probably BS, but some dealers claim to have Broncos “in stock.” Now, when I look at auction numbers, it seems I should be able to make a killing on one. For example, Big Bend 4x4 4-doors show up as all selling for $58k+ at the Manheim block.
A few dealers around me show some in-stock units in the low $40k range. Of course, to be sure, I ran a couple of units through Carvana and Autonation and received bids in the $38k range. Huh? What’s the deal?
EDIT: just received a bid from Vroom at $47k. Better, but still well below the $60k they are going for. And not enough meat there to make sense after I pay taxes/fees/reg.
What do you mean by “dealers claim to have Broncos in stock”?
Did you physically call the dealers and confirm that the vehicles are available and at sticker? You CAN’T search online for them - their websites and thus autotrader/cargurus/etc. will automatically add vehicles that are produced by Ford and in transit to the dealership, even if the car is a special order for a customer (which they all are). The few Bronco’s that someone refused delivery of, are selling for well over sticker, so not really flippable.
Last, the bids from Carvana/Vroom/AL Go do not have a direct correlation to MMR. I’m sure MMR is somehow factored in, but it’s not the only thing they look at. For example. MMR on my GTR is $55k but Vroom offered me $38k.
I mean there are some dealer websites that actually have an “in stock” graphic on some Broncos. Whether or not it is true is irrelevant to the conversation at hand, however. I am curious if anyone (especially those in the biz) has insight as to why MMR and offers would be so drastically different. This is the first vehicle I have seen this on.
If I had to fathom a guess, it’s that they have their own algorithm that auto generates pricing based on how quickly vehicles sell from their inventory. There probably aren’t enough that have gone through inventory yet to establish pricing.
But they may be selling those for $20k over. Just because it’s listed with the MSRP, doesn’t mean that’s what they’ll actually be selling it for. For example, a mandatory $20k ‘protection package’ or some other way to bait and switch.
Doesn’t change the issue at hand. These are going for huge premiums at auctions but the online buyers aren’t recognizing that. Discuss.
I have noticed the online buyers are not putting up high numbers on these as well, but I am sure if you sell it privately or to a Ford dealer, you would do pretty well. Maybe they too are confused (like most of the public) about the difference between the Bronco and Bronco Sport and their algorithms are somehow pulling those numbers in as well. I wonder what GMTV would do on one.
I think this is the crux. Some sites don’t even have 2022 model year in their drop down menu but I went through with the valuation request on a different car anyway. Some systems are valuing 2022s below what others are offering for 2021s.
Probably a risk mitigation failsafe for insufficient data.
I get that your main point is the disparity between MMR and online retailers. I was addressing the point you have also been making about broncos being in stock and seemingly available at sticker, which they aren’t.
Evidently, I’ll never know since the profit potential is not compelling me to ask, nor would I poll dealers across the country to have that answer.
I would think you’d have better luck from a resell standpoint with someone like gmtv or dare I say Rodo
I hear ya. The juice has gotta be worth the squeeze.
Also as a lease the MF is terrible from ford. For example f-150 Lariat, limited, platinum all have residual of 67% for 36/10 and interest ranging from 4.17% to 7.07%
Base Bronco has like maybe 71% for 36 mo but sky high interest make no sense
Because that isn’t their business model. They want cars that are reasonably priced so they can sell them to a large customer base and get money from financing/warranties. No bank is going to finance a Bronco without a huge down payment if the bank is valuing the car at MSRP and they are selling for 150% of MSRP.
Many of the dealers have 1-2 in stock Mannequins. That could be some of what you’re seeing. Once they’ve reached the 6 month hold the dealers will put them up for sale if they haven’t already taken a deposit from someone. Any additional stock they show is incoming customer orders. From the latest I’ve read the Bronco is on a 6-10 month wait list.