No Haggle Pricing coming in 2024 (Ford EVs)

[67 Stang Convertible]

https://www.motor1.com/news/668937/ford-ceo-jim-farley-announces-fixes-prices-for-future-vehicles/

Moving closer to the TESLA model. Yet, still have to have a dealer. An inventory that lets you get the car with in 10 days. All very interesting.

Will the dealers that agreed to the program adhere to it? How much shenanigans do you think the dealers will play with this model?

Sponsored

 

[Murse-In-Airy]

There will be so much shenanigans. All the shenanigans. The entire car dealer industry is built on shenanigans. Their motto and mission statement is simply “Shenanigans.”

 

[DennisD]

There will be so much shenanigans. All the shenanigans. The entire car dealer industry is built on shenanigans. Their motto and mission statement is simply “Shenanigans.”

They will still try to get the "extras". Carpet Protection, Paint Protection, Extended Warranties, Glass Protection.........................................

That is and always has been their bread and butter. New car sales were never their main market although the Service Dept. is going to be hurting in a few years though.

 

[PicoR]

Of course a bunch of dealers are suing Ford over the EV program:
Ford Dealers In Multiple States Push Back Against EV Dealer Plans

"Once dealers invest the money and agree to sell EVs, Ford says they also have to agree to work within a new set of rules. One of the rules that's rubbing some dealers the wrong way is "nonnegotiable prices." At least one of the lawsuits calls this unlawful. Rich Sox, a lawyer involved in the New York lawsuits, shared via Automotive News:

"Every dealer under the current franchise agreement has a right to every Ford vehicle manufactured with that nameplate on it, to include the newest EVs. They have a right to their fair allocation of those vehicles based on their market size, sales history, etc. This is about making sure all dealers have access to EVs and not being pigeonholed into one of three categories the program arbitrarily created."

 

[Mach1E]

https://www.motor1.com/news/668937/ford-ceo-jim-farley-announces-fixes-prices-for-future-vehicles/

Moving closer to the TESLA model. Yet, still have to have a dealer. An inventory that lets you get the car with in 10 days. All very interesting.

Will the dealers that agreed to the program adhere to it? How much shenanigans do you think the dealers will play with this model?

No haggle may reduce “some” stress buying a car, but the end result is just that everyone pays the same higher price.

The irony of getting that is that the price of a new car has always been the thing that’s LEAST negotiable. Outside of the extremely unusual car market the last few years, people for the last few decades almost always paid the same price for a new car (give or take a few hundred $$).

That price was- invoice minus rebates.

Where do the biggest differences come? Used car trade in and financing rates. By FAR the most wiggle room and difference made there. And “no haggle” changes nothing there.

Maybe the funniest thing is that for the last few years almost everyone paid either MSRP or X plan. And MSRP actually WAS “invoice minus rebates.” Sounds pretty “no haggle” to me.

 

[DennisD]

No haggle may reduce “some” stress buying a car, but the end result is just that everyone pays the same higher price.

The irony of getting that is that the price of a new car has always been the thing that’s LEAST negotiable. Outside of the extremely unusual car market the last few years, people for the last few decades almost always paid the same price for a new car (give or take a few hundred $$).

That price was- invoice minus rebates.

Where do the biggest differences come? Used car trade in and financing rates. By FAR the most wiggle room and difference made there. And “no haggle” changes nothing there.

Maybe the funniest thing is that for the last few years almost everyone paid either MSRP or X plan. And MSRP actually WAS “invoice minus rebates.” Sounds pretty “no haggle” to me.

So when I look at my local Dealership that I paid MSRP for back in September and they are now selling it for $1,700 dollars less than the MSRP https://www.baxterford.com/new-vehi...ch-E&_dFR[type][0]=New&_paymentType=our_price , they are actually losing money?

I will go ahead and answer that for you. They are STILL not losing money and they made big bank that last couple of years selling them at MSRP.

The last couple of years could be known as "legal rape". I had to submit to paying MSRP or higher while not enjoying it.

 

[eleven24]

https://www.motor1.com/news/668937/ford-ceo-jim-farley-announces-fixes-prices-for-future-vehicles/

Moving closer to the TESLA model. Yet, still have to have a dealer. An inventory that lets you get the car with in 10 days. All very interesting.

Will the dealers that agreed to the program adhere to it? How much shenanigans do you think the dealers will play with this model?

Dealers will then just add on $1000 wheel locks, $800 windshield armor packages, and rape buyers in the finance office on top of it.

 

[SpaceEVDriver]

If the grifter-in-the-middle attack we're subjected to by dealers isn't fixed soon, I think the Mustang may be my last new vehicle and I'll go back to buying used from individuals. The dealership model doesn't offer me any benefits, has many drawbacks, and it's a ridiculous legal requirement that we cannot choose to purchase from manufacturers directly.

 

[Mach1E]

So when I look at my local Dealership that I paid MSRP for back in September and they are now selling it for $1,700 dollars less than the MSRP https://www.baxterford.com/new-vehicles/?_dFR[model][0]=Mustang%20Mach-E&_dFR[type][0]=New&_paymentType=our_price , they are actually losing money?

I will go ahead and answer that for you. They are STILL not losing money and they made big bank that last couple of years selling them at MSRP.

The last couple of years could be known as "legal rape". I had to submit to paying MSRP or higher while not enjoying it.

Never said they’re losing money, not sure where you got that idea.

But yes, invoice is MSRP on the Mach E.

Excluding the last couple years, New vehicles have historically had very small margins, thus less negotiating room.

FWIW, I spent 8 years doing advertising for local car dealers. I sat many days listening to the sales managers figure out pricing on the cars.

The whole “no haggle” thing is a bit of a farce since, again, most people pay the same price for new cars anyways.

Sure, it may save some people from the horrible ADM, but the free market kinda got rid of that for us already this year.

 

[Maquis]

Never said they’re losing money, not sure where you got that idea.

But yes, invoice is MSRP on the Mach E.

Excluding the last couple years, New vehicles have historically had very small margins, thus less negotiating room.

FWIW, I spent 8 years doing advertising for local car dealers. I sat many days listening to the sales managers figure out pricing on the cars.

The whole “no haggle” thing is a bit of a farce since, again, most people pay the same price for new cars anyways.

Sure, it may save some people from the horrible ADM, but the free market kinda got rid of that for us already this year.

This the dealer pricing model for the Lightning. I’d guess the Mach-E is the same.

 

[DennisD]

Never said they’re losing money, not sure where you got that idea.

But yes, invoice is MSRP on the Mach E.

Excluding the last couple years, New vehicles have historically had very small margins, thus less negotiating room.

FWIW, I spent 8 years doing advertising for local car dealers. I sat many days listening to the sales managers figure out pricing on the cars.

The whole “no haggle” thing is a bit of a farce since, again, most people pay the same price for new cars anyways.

Sure, it may save some people from the horrible ADM, but the free market kinda got rid of that for us already this year.

My Nephew is the GM at a local Dealership in the area. You were suggesting in an earlier post that MSRP was invoice. It is not. I went onto to prove to you that the same Mach-E's are being advertised for $1,700 under MSRP. They are still making money on them with this reduced pricing. If MSRP were invoice (as you suggested) they would in effect be losing money by selling under MSRP in your world.

The last few years have been a windfall for the owners of the Dealership's according to my nephew. Many people were getting "raped" and didn't even know it. I have no love for any dealership and the "free" market was being abused by the elites for the last few years. They received PPP money AND substantial profits on top of that. If you don't regulate things, people find ways to take advantage of the "ill-informed". A free market comes with abuses until they get checked. Just pick up a history book and take a look at past abuses.

While I see a free market price being attractive to those that can haggle, I also see fixed prices curb the abuse to a certain extent. Once again, those Dealership's will find another avenue of taking advantage of the weak minded.

 

[Maquis]

My Nephew is the GM at a local Dealership in the area. You were suggesting in an earlier post that MSRP was invoice. It is not. I went onto to prove to you that the same Mach-E's are being advertised for $1,700 under MSRP. They are still making money on them with this reduced pricing. If MSRP were invoice (as you suggested) they would in effect be losing money by selling under MSRP in your world.

The last few years have been a windfall for the owners of the Dealership's according to my nephew. Many people were getting "raped" and didn't even know it. I have no love for any dealership and the "free" market was being abused by the elites for the last few years. They received PPP money AND substantial profits on top of that. If you don't regulate things, people find ways to take advantage of the "ill-informed". A free market comes with abuses until they get checked. Just pick up a history book and take a look at past abuses.

While I see a free market price being attractive to those that can haggle, I also see fixed prices curb the abuse to a certain extent. Once again, those Dealership's will find another avenue of taking advantage of the weak minded.

What Ford calls “MSRP” and “Invoice” are the same. The dealer gets paid for each car sold based on the criteria in post 10.
It’s just semantics.

 

[azerik]

Don't forget the undercoating and $1600 ceramic coating. (Both applied by the same spray bottle)

 

[DennisD]

What Ford calls “MSRP” and “Invoice” are the same. The dealer gets paid for each car sold based on the criteria in post 10.
It’s just semantics.

The "invoice" is what the Dealership pays to Ford for said vehicle.

The "MSRP" is what Ford suggests selling them for.

When you pay MSRP, you in effect many times are paying much more than invoice.

 

[Maquis]

The "invoice" is what the Dealership pays to Ford for said vehicle.

The "MSRP" is what Ford suggests selling them for.

When you pay MSRP, you in effect many times are paying much more than invoice.

Whatever…..”Blended invoice” and “MSRP” are the same figure. ??‍

Sponsored