Market Adjustments

What is a Market Adjustment?
  • A Market Adjustment is a change (typically above MSRP) in the selling price of goods or services based on current supply on hand vs. the demand for said supply. 

Why are dealers charging over MSRP for vehicles?

  • The U.S. dealership inventory of unsold new cars and trucks has been at or below 1 million units since August, according to Cox Automotive. That's less than one month's worth of sales. Pre-pandemic, a 60-day supply of cars and trucks was considered an industry benchmark. Total inventory was 915,000 as of Sept. 20, Cox said. A year earlier, it was 1.5 million higher. Pre-pandemic, in September 2019, it was 2.5 million higher. "It's a very different landscape from just two months ago. It's a dire situation," in terms of inventory, said Tom Libby, associate director, Loyalty Solutions and Industry Analysis, Automotive, for IHS Markit. The nation's biggest new-vehicle dealership chains all reported drastically low new-vehicle inventories, in third-quarter earnings reports.

  • Asbury Automotive Group, Duluth, Ga., said it had a 12-day supply of new vehicles at the end of the quarter, "well below our target range of 70-75 days. Our new vehicle inventory levels have been negatively impacted by production disruptions at the manufacturers caused primarily by the semiconductor chip shortage." AutoNation Inc., Fort Lauderdale, Fla., said it had just a 10-day supply of new vehicles as of Sept. 30, vs. 43 days a year earlier. Once a car comes in, the time to sell varies by brand, among other factors. Dealers for Kia, Toyota, Tesla, Subaru, Polestar and Honda, all popular with buyers, sell cars in less than 25 days, on average. Lotus, Infiniti, Maserati, Alfa Romeo, Karma and Fiat all take more than 80 days to sell an available car.

Can a dealer sell a vehicle above MSRP?
  • Yes. MSRP is a "Manufacturer Suggested Sale Price" is not a set in stone price for what a vehicle can or should be sold for. There are federal guidelines in place that actually restrict the ability of the manufacturer to interfere with the actual selling price of vehicles listed for sale by their privately owned franchisees. The automotive market is extremely volatile and changes more frequently than manufactures can update and print MSRP window stickers. Supply and demand being what it is, record-low inventory has created record-high transaction prices on average. 

Does Sale Ford charge over MSRP for new vehicles?
  • Yes. Based on current market conditions, the dealership is charging more than MSRP on most vehicles within the Ford lineup as the OEM struggles to keep up with demand. 

How can I avoid paying a Market Adjustment?
  • Market adjustment prices can usually be avoided by purchasing pre-owned vehicles. See your local store for more details. 

Other information regarding Market Adjustments:
  • Please be aware it's these same current local/global Market Conditions that are allowing you to receive more than ever before for the vehicle in your driveway (Your vehicle is worth more/our vehicle is worth more too).