Ford is adding ADM on 2022 Ford Mach E Orders now?

[ARK]

Ummm... That is the most confusing thing I've ever seen. The MSRP and invoice are the same in the picture (top right), yet the article says you can negotiate but also says "They cannot offer any approvals, incentives, or discounts on the vehicle." Then he goes on to say you can negotiate in person because, sure the dealer owns the car.

I spoke personally with 3 managers who all said they make no money on the them. Could they have lied? Sure. But if Ford is putting money in there for dealer prep, training etc, that's not profit, that's reimbursement of expenses.

I'll repeat... Dealerships are businesses, in business to make money, pay their employees and thrive. I would never expect a dealership to sell a car below cost. Cost includes many things and is not just the invoice. They have to insure every vehicle on their lot, prep them for sale, pay the sales person, finance person etc.

I would encourage anyone to speak up if you paid under MSRP with proof of that. I don't think we're gonna see that at all. I have been a vocal critic of dealers charging crazy amounts of ADM, but I do think there's reasonable amounts. I have also said, if you don't like your dealerships ADM go elsewhere. We have that freedom of choice!

Do you mean the dealer eating part of the price and going below MSRP as part of negotiations? I have not heard of that yet. But there have been a couple ways to go below MSRP through Ford programs.

Specifically, Options gave people a $1,000 or $2,000 cash savings based on where they were. Financing gave a better interest rate then available on Options, while a traditional lease gave no Ford incentive.

And then through X-Plan pricing, which lots of people got through signing up to the Mustang Club of America, the price dropped $500-ish dollars lower, depending on the specific MSRP of their vehicle.

Sponsored

 

[DevSecOps]

Do you mean the dealer eating part of the price and going below MSRP as part of negotiations? I have not heard of that yet. But there have been a couple ways to go below MSRP through Ford programs.

Specifically, Options gave people a $1,000 or $2,000 cash savings based on where they were. Financing gave a better interest rate then available on Options, while a traditional lease gave no Ford incentive.

And then through X-Plan pricing, which lots of people got through signing up to the Mustang Club of America, the price dropped $500-ish dollars lower, depending on the specific MSRP of their vehicle.

Yes my point was without programs. Most of those programs are funded by corporate. That's totally different because the dealership doesn't eat the cost, it's reimbursed by Ford Motor Company. There could be deals with finance packages etc, but again you're not ahead if you pay 15k in a 6 year loan when they give you 2k off. They are still making 13k.

If someone goes in cash in hand, no X-Plan/A-Plan etc, I don't think we're going to see anyone get below MSRP ... point being, there's no margin below MSRP without subsidized corporate deals.

 

[EpicMachE]

Yes my point was without programs. Most of those programs are funded by corporate. That's totally different because the dealership doesn't eat the cost, it's reimbursed by Ford Motor Company. There could be deals with finance packages etc, but again you're not ahead if you pay 15k in a 6 year loan when they give you 2k off. They are still making 13k.

If someone goes in cash in hand, no X-Plan/A-Plan etc, I don't think we're going to see anyone get below MSRP ... point being, there's no margin below MSRP without subsidized corporate deals.

Purchasing a 2021 CG Select this week I found, and canceling my 2022 order, since the colors I liked are both gone. I have Xplan thru my job and first offer out of the box is about $700 below MSRP. I am fine with that , they have to eat also.

 

[DevSecOps]

Purchasing a 2021 CG Select this week I found

Congrats on finding the car you want and a dealer willing to sell stock at MSRP. I found one as well when I got mine, just on the other side of the country. I keep telling people MSRP is possible, you just have to look around.

 

[yngwenli]

Congrats on finding the car you want and a dealer willing to sell stock at MSRP. I found one as well when I got mine, just on the other side of the country. I keep telling people MSRP is possible, you just have to look around.

I've noticed "Select" vehicles are far more common. There are 100+ on the inventory search for me and with "Premium", there are 2 with 50 miles...both Special Ordered. I wouldn't be surprised if dealers sell "Select" vehicles for MSRP as their inventory grows on it and a vehicle sits for whatever reason.

Pretty lucky on your GTPE.

 

[agoldman]

interesting:
The Mach-E, and future electric models in China, will be sold directly by Ford (without dealers).

 

[Tlow]

interesting:
The Mach-E, and future electric models in China, will be sold directly by Ford (without dealers).

The concept of "direct-to-consumer sales" is illegal in many US states. Tesla has been fighting this for years. I am certain that Ford would love to skip the middle man...reduce the price and increase profits. I guess China doesn't have those same rules.

 

[yngwenli]

The concept of "direct-to-consumer sales" is illegal in many US states. Tesla has been fighting this for years. I am certain that Ford would love to skip the middle man...reduce the price and increase profits. I guess China doesn't have those same rules.

I wonder what it would take to change the model...

Found this article on a quick search.
https://www.ftc.gov/news-events/blo...-consumer-auto-sales-its-not-just-about-tesla

 

[EpicMachE]

interesting:
The Mach-E, and future electric models in China, will be sold directly by Ford (without dealers).

Wow , How is that FAIR!!! FORD SELL DIRECT IN USA!!!

 

[jeffMachE]

NADA (National Automobile Dealers Association) and everyone of the state xADA's have an incredibly effective lobby which has resulted in "franchise laws" that prevent automobile manufacturers from selling directly to consumers. Slowly but surely Tesla has been challenging those laws and getting them changed. But the prevalent set of laws is still that its illegal for a manufacturer to sell directly to a consumer.

 

[Mach1E]

NADA (National Automobile Dealers Association) and everyone of the state xADA's have an incredibly effective lobby which has resulted in "franchise laws" that prevent automobile manufacturers from selling directly to consumers. Slowly but surely Tesla has been challenging those laws and getting them changed. But the prevalent set of laws is still that its illegal for a manufacturer to sell directly to a consumer.

My experience has been that when working directly with a dealership, you’re much more likely for them to be flexible (on getting warranty work done, price discounts etc).

Whenever I have had to deal with a manufacturer directly…….. zero flexibility.

If people are happy paying MSRP for vehicles and having to follow a strict set of rules set up by the manufacturers…….. we may get what we wish for and regret it.

In the boating world, you can buy boats through dealers or manufacturers directly. The experience is vastly different depending on the dealer and the manufacturer. There is no clear better model.

FWIW, on boats, manufacturer direct tend to be more expensive, less flexible on pricing and have very long (2+ yr) wait times. But you do get a more custom boat.

Want a deal on a cheap boat now? Gotta find a dealer with one in stock.

Want to service you boat locally? Local dealer. Want to have to ship the boat 3 states away for any major service? Manufacturer direct.

Definitely pros and cons to each model.

Sponsored