Ford to Impose Non-Negotiable Pricing on EV Sales as Part of Model E Division Plan

[RedStallion]

Ford should make all financial transactions available online. The most unpleasant part of visiting a dealership is dealing with the sleazy sales managers.

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[1969Camaro]

Millennial here too and couldn't agree more: I'm looking for the bottom line, and the final price. No games, no gimmicks. If it's bad news (too much $$), I can walk (if I can't, that's on me for putting myself in that position.) I've purchased/leased a lot of cars and have learned to cut through the crap quickly when it comes to dealerships. If they can't adapt, to hell with them; consumers deserve better.

As for servicing and where profits will come from, I trust FoMoCo to figure it out. If it means the end of slimy sales tactics, I won't complain.

I'm a boomer and absolutely despise these old car salesmen ways. No reason to even have sales do anything with pricing. Their job should be features, options and test drive. Pricing is set.

 

[Mike Curtis]

I'm a boomer and absolutely despise these old car salesmen ways. No reason to even have sales do anything with pricing. Their job should be features, options and test drive. Pricing is set.

Hallelujah - agree completely. I've only bought 2 new cars ever (2002 and 2011), TRIED to buy them both online and still had way too much BS dealing with dealerships. They Did This To Themselves - everyone loathes them.

 

[VaderMachE]

I don't know that as a practical matter, they would want to refuse service. Servicing a vehicle is an additional revenue stream for a dealer, if they see the non-negotiable pricing as 'bad' for them, I think they will try to avoid having to sign up for that while still servicing everyone they can.

Exactly! Fixed ops are a huge portion of revenue for any dealership.

 

[bp99]

So demand based pricing will just be done by Ford. Ford will get the extra money instead of the dealer. There will be little difference to the consumer. Except, it might be harder to get good deals in a more normal market than currently exists.

Don't for a moment believe Ford is doing this for the customer. They're seeing a missed opportunity to pocket more of the revenue for themselves.

 

[methorian]

I am in the car business.....

1. Yes. Ford apparently is going to also put more requirements on dealers who sell EVs. Making them install DC Fast Chargers (at their expense), implementing haggle free pricing, requiring a certain amount of EV Certified Techs, etc. For a small dealer, this will not be Feasible as they can't afford the expense.

2. It's not that they will "refuse" the work. They always want warranty work. They may not be able to do the work as they are not an EV Certified Dealer because they opted out.

Be careful what you want as a consumer. Consumers can't always have their way. I think MSRP for a Mach E (Reg or GT) is fair.... and slightly over MSRP for a GT PE is fair too as they are more rare. I think if you order one you should get MSRP on a GT PE.

I was lucky enough to use MCA to get my MME at X-Plan. Ford has announced that X-Plan will not be offered on Lightning. I think this will start to happen going forward across the entire EV division. Can't ask dealerships to accept one price, and then force them to honor discounts like X-Plan.

It is interested how this is gonna go. Ford is trying to adopt some of Tesla's model, but Ford has larger dealership service model and that is one of their advantages over Tesla.

We will see how this goes.......

I was surprised when I stopped by my local Hyundai dealer once I heard they had some Ioniq 5's in stock and saw a brand-new DCFC. They mentioned that Hyundai required them to install it in order to sell Ioniq 5's. I was impressed... It would be nice for a dealership to be able to offer DCFC to customers, especially in a pinch (think about that emergency tow because Jane accidentally ran out of battery on the road. She can just get towed to her local Ford dealer and they can charge it up much faster now. Especially true in more rural areas without third-party DCFC options.)

With the market trending towards EVs, dealerships must change as well. Those that won't or can't will go like any business that can't "keep up with the times" unfortunately.

 

[COACH CHRIS]

Boomers Millennials
?
Hating Sleazy Salespeople

 

[Jppumper]

When I ordered my MME in March 2021 the salesperson told me at that time that there is no negotiation about the price. All MME's would be sold at MSRP. Maybe that was just the dealer though.

 

[Draconfier]

Saw this and have been paying attention to the ADM horror stories for both the MME and F150 Lightning (fortunately, my dealer doesn’t do ADM).

Ford is not just competing with other EV makers for consumer attention and sales, but also with new emerging business models for direct-to-consumer selling.

As an ‘older’ guy with a dozen or so dealership buying experiences in my lifetime, I've become adept at seeing, and walking away from, any tactics geared solely for the dealer's financial benefit. Millenials have zero tolerance for these games or negotiations, so the dealership model will be forced to change for all car makers...and change fast. Good on Ford for making this happen now vs. when forced to in a year or two.

Awesome
I had commented in another post that Ford might do this, glad to see they are getting with the times and forcing this unscrupulous ADM dealers to toe the line.

 

[Cabel]

a setp in the right direction.

Hope so, but "slimy" dealers who play sales gimmicks and tricks will just double-down on slimy maintenance and repair practices to make up the difference in lost income.

 

[shutterbug]

I don't think the no-haggle pricing was the cause of their demise.

It wasn't.

 

[Tangible]

The old adage "it's not what you know, but who you know" played out in this case.

Actually, it’s whom you know.

Negotiated pricing worked well for dealers in the pre-Internet era, when they had far more information than consumers. In todays world everyone who isn’t an idiot pays about the same.

What we really need is the repeal of state laws that make it illegal for anyone but a dealer to sell a new car. My dream is to buy my next car on Amazon. I already have their in-garage delivery for packages, so I’m ready to wake up one morning with a new car in there.

 

[Logal727]

So demand based pricing will just be done by Ford. Ford will get the extra money instead of the dealer. There will be little difference to the consumer. Except, it might be harder to get good deals in a more normal market than currently exists.

Don't for a moment believe Ford is doing this for the customer. They're seeing a missed opportunity to pocket more of the revenue for themselves.

Honestly worth it to not have to deal with all the games

 

[EELinneman]

When I ordered my MME in March 2021 the salesperson told me at that time that there is no negotiation about the price. All MME's would be sold at MSRP. Maybe that was just the dealer though.

Perhaps, but with the wait that all orders come with, you have plenty of time to join the Mustang Club of America, be a member for 90 days and get X-Plan pricing. Of course, not all dealers take this, but why would you work with a dealer who doesnt?

 

[BayouEV]

I have purchased a Tesla and a Mach E online. Neither experience was acceptable in my view. My best car buying experiences have occurred with a dealer I trust and with whom I have a relationship. But I have also had unacceptable buying experiences with other dealers who no longer get my business. Both experiences have their pros and cons. Ultimately, the online process offers too many advantages for the manufacturers and all sales will trend this way. If the online experience goes smoothly, it will be great. If it doesn't, good luck getting a human being to assist in a solution.

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