Dealers getting in the way

[Ghost Ryder]

Again, the difference is the customer service you are getting.

If you think you are getting a better price/deal by paying a full set fixed price from Tesla………

But hey, Ford seems to have figure the “trick” out as well.

Just look at how many people are HAPPY to pay full MSRP for a Mach E. And they didn’t even need to haggle!

Yes, the buying experience is much easier (and somehow more enjoyable) when no discount is available nor offered. Not sure if it’s voodoo magic, hypnotism or a Jedi mind trick, but people seem to be happier with the business model that results in paying a higher fixed price.

You're assuming the the MSRP stays the same for Dealership model vs. Tesla's Model. You can argue that the MSRP for Tesla is lower since they don't have to give any dealer Hold back and incentives.

My from understanding with the MACH E, there is very little that FORD is paying the dealer to deliver the car to the customer. Hence people are "happy" to pay full price. But if there was no direct ordering through Ford, the MSRP may be higher to account for the Dealer Holdback. So If you're great at negotiating, and the dealer is willing to play, then maybe you can get the price back to where it would of been if it was a direct sales model.

Sponsored

 

[Mach1E]

You're assuming the the MSRP stays the same for Dealership model vs. Tesla's Model. You can argue that the MSRP for Tesla is lower since they don't have to give any dealer Hold back and incentives.

My from understanding with the MACH E, there is very little that FORD is paying the dealer to deliver the car to the customer. Hence people are "happy" to pay full price. But if there was no direct ordering through Ford, the MSRP may be higher to account for the Dealer Holdback. So If you're great at negotiating, and the dealer is willing to play, then maybe you can get the price back to where it would of been if it was a direct sales model.

Nope, I’m assuming that a combination of research, experience, and negotiations allow me to get a better price.

I’m also assuming that manufacturers are “just as” greedy as dealerships when it comes to profit.

If the Tesla model resulted in lower prices, the Model Y would offer more features than the Mach E for less $$ and they would be able to sell them at a profit without tax credits or carbon credits.

I don’t think the dealer model drives up the price consumers pay. In fact I think the OPPOSITE is true.

New car sales are NOT the profit centers of car dealerships. Money is made in used cars, financing, service and accessories.

They sell you a new car for cheap because they make money in those other categories. Think of it as a “loss leader.”

 

[Ford Motor Company]

My first order was cancelled by me because the dealer insisted on a $1700 paint protection plan that somehow was not removable from the purchase. F that. There's another dealership in the area charging $1100 pre delivery fee. Uh what?

Hey there, Adam! We appreciate this feedback regarding our dealers. Would you please send us a private message with the name and location of the dealership, along with your VIN/order number? We'd like to investigate this further. Thanks!

 

[blue92lx]

Hey there, Adam! We appreciate this feedback regarding our dealers. Would you please send us a private message with the name and location of the dealership, along with your VIN/order number? We'd like to investigate this further. Thanks!

Message sent, happy to help!

 

[Scrannel]

Seen bits of this other places on line. But... hell...

Ford Mustang Mach-E Buyer Shares Horrible Dealership Experiences: Extreme Price Markups, Random $1000 Dealership Fees, & Enraged Salespeople | CleanTechnica

 

[igotnoclevername]

I get the same vibe from the solar industry. It's one of the main reasons I don't have panels on my roof.

Guy I work with does solar on the side, and he installed mine. (he was a licensed contractor in a different life). He told me there is a ton of mark up in solar. His quote was, "if your only two options are to be killed or get the crap beaten out of you, you're going to choose to get beaten. Still doesn't mean it was a good choice." Having him do the install was almost 40% off.

 

[Mach1E]

Guy I work with does solar on the side, and he installed mine. (he was a licensed contractor in a different life). He told me there is a ton of mark up in solar. His quote was, "if your only two options are to be killed or get the crap beaten out of you, you're going to choose to get beaten. Still doesn't mean it was a good choice." Having him do the install was almost 40% off.

Wait, you’re telling me that the kids going door to door trying to get me to install solar aren’t doing it to save the planet, they want to make lots of money??

That wasn’t a part of the sales pitch.

 

[Auto Motive]

As has been discussed here...
https://jalopnik.com/ford-wants-to-compete-with-tesla-but-its-dealers-are-g-1847694720

So true. I cannot understand why dealerships remain the same. My last dealership experience was in 2011 buying a new Kia optima sx fully optioned. Dealer discount at that time was $2500 shown in local paper. I was kept at the dealership for 3 hrs. Going from one Mr. To another for my discount. Never again will I buy from a dealership. My daughter bought a new 2012 challenger 392 from Landmark Dodge from GA fully on line . The advertised discount of $13000 off was fully honored with no screwing around. Back then it listed for a whopping $53000. She sent a wire transfer and had it delivered 800 miles for $600. We got the car in a week. Best purchase ever. My wife ordered a FTP on line and the process was great until went to dealer for a test drive. A typical salesman that knew nothing dressed like he was working in the yard. At least we got a guarantee of no msrp markup. Mach e topped out at just under $70000.
We are true seniors that has a family of car cruisers, drag racers and with the mach e we are going to try auto cross.
Good luck to everyone in ordering a Mach e. If you are from the Pittsburgh Region we has a race track[Pgh raceway] 17 miles east and auto cross in North Hills Pa. Our area has so many cruises 7 days a week and this pandemic has put a hold on most. We finally went to our first cruise since 2019 and it was so much fun. Get your shot sand stay healthy for a great 2022 season.

 

[yngwenli]

Seen bits of this other places on line. But... hell...

Ford Mustang Mach-E Buyer Shares Horrible Dealership Experiences: Extreme Price Markups, Random $1000 Dealership Fees, & Enraged Salespeople | CleanTechnica

This is why I keep saying as more and more manufacturers switch to EVs, the dealership model needs to change since there is an inherent conflict of interest there. Like power companies (maximize profits, do minimal maintenance of infrastructure (PG&E) or drug companies, (Insulin)), dealerships want to get rich like the next guy and that means taking more $$ from hot cars that can sell like hot cakes. Until manufacturers own the dealership or simply, the "Delivery/Service center", this won't change.

I also think the article's writer simply had a salelady who was in it just to pay her rent/expenses. I think with EVs, expecting them to know more is naive (and almost dumb to expect that...article writer's fault). Anything anyone cares more about is going to know more than the basic commissioned salesperson. They're just doing it for a paycheck and will do the minimum...and as mentioned in the article, the lady didn't even care to learn about the Mach-E since it doesn't put food on her table. This is not only a Ford problem, but a general societal problem (look at solar). Does anyone seriously work for free? Of course she's not going to bother to learn a thing because selling Mach-Es and wasting time on the article writer is a total waste of her time (she'll eventually leave the car sales industry IMO). I think the article/video writer deserves a lot of the blame personally...want to cut in line people waiting 6 months and no ADM when dealerships are stuck in this franchisee model? Not happening usually until the model changes.

I don't think it's surprising any in-stock vehicle has a mark up now, NOT ONLY EVs...but yeah, the order online, mark up on the same ordered car should simply never be allowed by any manufacturer. Ford/every manufacturer should blacklist all dealers which do this.

The video maker should/can twitter that exec who is watching these dealers do this and they should probably ban all those dealers from selling any F150/Mach-e moving forward...(AND make sure dealers who are doing the right thing are compensated fairly in this new world model (less salespeople on site, smaller dealerships, more online advisors, different compensation plan, etc).

I should add the advisor I am emailing on my order has been incredibly helpful and quick so just because writer's saleslady was bad doesn't mean they all are neither.

 

[SpaceEVDriver]

Related. Some dealers are creating fake Bronco customers to manipulate the ordering process.


https://www.cnet.com/google-amp/new...-up-fake-bronco-customers-and-its-had-enough/

 

[Maquis]

I guess I'm just lucky. My dealer was very transparent, no mark-up and honored X-Plan.

I ran into my sales guy last night in town and was talking to him about all this craziness. He mentioned that the owner of the dealership was in the office that day and made it a point to tell the sales staff "we're not doing that (dealer mark-ups)...people will remember who treated them right and who didn't".

Oh, I also talked to a guy who tried to buy a Yukon from our local GM dealer....$25K add-on, take it or leave it!

 

[kennethjk]

I guess I'm just lucky. My dealer was very transparent, no mark-up and honored X-Plan.

I ran into my sales guy last night in town and was talking to him about all this craziness. He mentioned that the owner of the dealership was in the office that day and made it a point to tell the sales staff "we're not doing that (dealer mark-ups)...people will remember who treated them right and who didn't".

Oh, I also talked to a guy who tried to buy a Yukon from our local GM dealer....$25K add-on, take it or leave it!

Difference between long term and short term thinkers

 

[Canchino77]

My dealer was decent (no ADM), although it has been like pulling teeth trying to get my reservation deposit refunded (I purchased a customer cancellation).

 

[Caramel]

I just had a horrible experience with a dealer here in Colorado. Had a new '21 Select on lot and was charging an extra $7000 for it because of "market conditions," making a $47K car into a $54K. What's worse, their website implied that the $54K was MSRP. It said MSRP right there. There was a tiny superscript 1 next to the word MSRP, but the fine print for 1 wasn't anywhere on the page, and my husband and I both looked. There was some other fine print on the bottom of the page, but none of it referred to pricing. When confronted, the dealer claimed that "every dealer all over the country" is marking up the price by $10,000 (so they're the good guys by only charging an extra $7,000??) and when I said that I hadn't seen that, and I'd been looking all over - the only reason I was moving forward with the Colorado dealership was that it was local - they were very patronizing. When I told them they shouldn't be listing the price as MSRP when it's not (a tiny 1 that didn't actually have a corresponding footnote doesn't count) they said they "can't change their website."

 

[SpaceEVDriver]

I just had a horrible experience with a dealer here in Colorado. Had a new '21 Select on lot and was charging an extra $7000 for it because of "market conditions," making a $47K car into a $54K. What's worse, their website implied that the $54K was MSRP. It said MSRP right there. There was a tiny superscript 1 next to the word MSRP, but the fine print for 1 wasn't anywhere on the page, and my husband and I both looked. There was some other fine print on the bottom of the page, but none of it referred to pricing. When confronted, the dealer claimed that "every dealer all over the country" is marking up the price by $10,000 (so they're the good guys by only charging an extra $7,000??) and when I said that I hadn't seen that, and I'd been looking all over - the only reason I was moving forward with the Colorado dealership was that it was local - they were very patronizing. When I told them they shouldn't be listing the price as MSRP when it's not (a tiny 1 that didn't actually have a corresponding footnote doesn't count) they said they "can't change their website."

The lying, deception, and general unethical behavior of so many dealers, coupled with protection by their incredibly powerful lobbyists and the destruction of any sort of competition or "free market" is the part that disgusts me. We need a major disruption to the dealership model. Tesla wasn't and won't be it. I hope we get something better soon.

Sponsored