Ford needs a new kind of dealer model

[Jeffvisor]

With so many dealers adding huge ADM's on the Mustang Mach-e and I am sure when the F-150 Lightning coming out dealers will abuse those customers as well. Ford should change the dealer model to punish those that do this. When there is weather emergency gas stations are not allowed to artificially raise there pricing and gouge customers Ford dealers when cars are hard to get should not be allowed to do that either. They are getting full list price to add $5,000-$10,000 additional markup should be illegal. Ford needs to get this under control or lose customers to Tesla. There should be laws against this. This old fashion dealer network they have must change to the future so it aligns with Fords values and desires to grow their new car business and especially the EV line up against a very formable competitor like Tesla who does not have this legacy old network of dealers.

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[Dancefreak]

It's antiquated for sure, but in many states Ford is not legally allowed to sell cars directly to consumers, and in other states their dealer contracts are very protective of the current model. There's not a lot they can do beyond controlling allocations, but dealers can collude against even that. Even dealers that don't do markups don't necessarily want to cede control to the manufacturer and lose their right to operate independently as they see fit.

 

[Pushrods&Capacitors]

With so many dealers adding huge ADM's on the Mustang Mach-e and I am sure when the F-150 Lightning coming out dealers will abuse those customers as well. Ford should change the dealer model to punish those that do this. When there is weather emergency gas stations are not allowed to artificially raise there pricing and gouge customers Ford dealers when cars are hard to get should not be allowed to do that either. They are getting full list price to add $5,000-$10,000 additional markup should be illegal. Ford needs to get this under control or lose customers to Tesla. There should be laws against this. This old fashion dealer network they have must change to the future so it aligns with Fords values and desires to grow their new car business and especially the EV line up against a very formable competitor like Tesla who does not have this legacy old network of dealers.

The dealer franchise model is imperfect. However, in a free/mixed market economy you can’t just wave away supply/demand. You see Honda Civic Type R prices pre-supply crunch? Lots of dealers asking $5-10K ADM 3.5 years after intro of the model ??‍. And getting it too.

Also, careful what you wish for re: Tesla and the direct to consumer model. I’ve had two instances, both with Mustang GTs, where my selling dealers advocated for, and secured, warranty repairs that Ford wasn’t wanting to cover. Without those dealers I’d have been pretty much at Ford’s mercy. Like the Tesla owners in their forums complaining about how Tesla is denying legit warranty claims.

 

[Mach1E]

No one complains about the dealer pricing model when they get $10,000 off msrp on in stock vehicles. Sure, not happening during short supply Covid times, but we will get back there.

Want manufacturer direct pricing to pay MSRP on the Mach E?

That’s easy! Just order one and wait 6 months.

Want a Mach E now? Pay more, or call a ton of dealers.

The issue isn’t the dealer model, it’s short supply that’s the issue.

 

[yngwenli]

Not today, but I think things will eventually change longer term for the better. As stated, there are laws to prevent manufacturers to sell direct so their hands are tied since the dealership is an independent franchise or something.

Ford can't completely control how they operate.

I think with less service for EVs, the model has to eventually change, but like the rest of the things in our country, different parties will fight kicking and screaming.

In CA, we can't even decide if we want to get rid of Day Light Savings Time even though it passed 3 years ago to get rid of it (they can't decide to stay on Standard vs. Day Light now).

 

[Scrannel]

The dealer franchise model is imperfect. However, in a free/mixed market economy you can’t just wave away supply/demand. You see Honda Civic Type R prices pre-supply crunch? Lots of dealers asking $5-10K ADM 3.5 years after intro of the model ??‍. And getting it too.

Also, careful what you wish for re: Tesla and the direct to consumer model. I’ve had two instances, both with Mustang GTs, where my selling dealers advocated for, and secured, warranty repairs that Ford wasn’t wanting to cover. Without those dealers I’d have been pretty much at Ford’s mercy. Like the Tesla owners in their forums complaining about how Tesla is denying legit warranty claims.

Sorry, as a Tesla owner must disagree. There are posts with owners claiming Tesla won't cover what should be warrantee items, but usually they end up covering whatever. In my experience dealers are no better and are sometimes worse. After buying a Tesla I never want to buy from a dealer again. My wife, however, has had a stellar experience with our local Rover dealer. So, she feels the opposite. Time will tell how legacy companies sort their dealer relationships.

 

[sotek2345]

No one complains about the dealer pricing model when they get $10,000 off msrp on in stock vehicles. Sure, not happening during short supply Covid times, but we will get back there.

Want manufacturer direct pricing to pay MSRP on the Mach E?

That’s easy! Just order one and wait 6 months.

Want a Mach E now? Pay more, or call a ton of dealers.

The issue isn’t the dealer model, it’s short supply that’s the issue.

If waiting was a way to ensure getting MSRP, It think there would be far less concern. Unfortunately there have been cases of people ordering, getting an agreed to price, waiting, and then getting an ADM slapped on last minute at delivery. This is my biggest concern. So far my dealer has been saying and writing all of the right things, but they could always decide to add tens of thousands to the purchase price at the last minute and we have no recourse other than to walk away and get to the back of the line at another dealer that hopefully will be better (but could do the exact same thing).

 

[veronicablack]

If waiting was a way to ensure getting MSRP, It think there would be far less concern. Unfortunately there have been cases of people ordering, getting an agreed to price, waiting, and then getting an ADM slapped on last minute at delivery. This is my biggest concern. So far my dealer has been saying and writing all of the right things, but they could always decide to add tens of thousands to the purchase price at the last minute and we have no recourse other than to walk away and get to the back of the line at another dealer that hopefully will be better (but could do the exact same thing).

This. And considering how bad public transportation is in this country... like I get I don't *need* a Mach E specifically, but I do need *a* car to be able to go to work, see aging family, buy groceries... etc etc.

I would be kind of bummed about the wait time but also very EXCITED if it was just a matter of "wait X time, pay Y amount". But the fact that I can wait all this time and end up priced out and then have to go find another car is a crap place to be in. I'm lucky I own my current car and don't lease it but my current car is ~15 years old at this point and has been showing more and more signs of its age.

 

[sotek2345]

This. And considering how bad public transportation is in this country... like I get I don't *need* a Mach E specifically, but I do need *a* car to be able to go to work, see aging family, buy groceries... etc etc.

I would be kind of bummed about the wait time but also very EXCITED if it was just a matter of "wait X time, pay Y amount". But the fact that I can wait all this time and end up priced out and then have to go find another car is a crap place to be in. I'm lucky I own my current car and don't lease it but my current car is ~15 years old at this point and has been showing more and more signs of its age.

Yup - and this just gets worse as lead times extend. For my Lightning, it is most likely going to be ~2.5 years. If my dealer decides to jack up pricing at delivery (could even be completely different management by then), am I back to waiting another 2.5 years? A few bad dealers and you are looking at a decade to get a new vehicle at MSRP and still no promises that you can get one.

Hopefully the supply chain fixes itself at some point and the lead times come back down, but I suspect that EVs will be in this situation for years to come. Not many can afford to wait years (or decades) for a car.

 

[ossied316]

If waiting was a way to ensure getting MSRP, It think there would be far less concern. Unfortunately there have been cases of people ordering, getting an agreed to price, waiting, and then getting an ADM slapped on last minute at delivery. This is my biggest concern. So far my dealer has been saying and writing all of the right things, but they could always decide to add tens of thousands to the purchase price at the last minute and we have no recourse other than to walk away and get to the back of the line at another dealer that hopefully will be better (but could do the exact same thing).

At that point I'm just getting a Tesla...

 

[Davedough]

The dealer I'm getting my GT from has a Maverick on their lot. Blue one, base model as noted by the steel wheels on it. I configured a base model on Ford's site just to see what it comes out to. Base model, yet fully decked with all the options that make sense, came out to about $22k. They have that base model listed on their website currently for $42k. Almost double the price of the entire truck.

All that said, as much as I despise the ADM, if that thing sells, that fault is on the consumer. The only way you can change market abuse like that is with your wallets, but as long as people will pay that price, retailers will charge it. Look at lumber at Home Depot. It's literally triple what it was 2 years ago. You think when the pandemic is over, they're going to magically reduce that price? Nope, because people still pay it.

 

[Caramel]

I have an email saying that my dealer won’t charge more than msrp but that’s not a binding contract. I have the order form with a total but while I signed it, a representative of the dealer didn’t. I have no idea what interest rates or incentives for Ford options might be in 6 months. All of this makes me very nervous. And the last two times I bought a car, well before supply chain issues, the experience was still hours long and unnecessarily stressful, despite coming to a price agreement fairly painlessly. It’s just not a good experience even when they don’t have me over a barrel because of how much I want the car.

 

[sotek2345]

At that point I'm just getting a Tesla...

May go non-ford, but my wife (the Mach-e is for her) has already vetoed the Tesla - too ugly. Thankfully we don't have any urgent need for a new vehicle, but we will both be very upset if we have to walk away.

 

[Mach1E]

If waiting was a way to ensure getting MSRP, It think there would be far less concern. Unfortunately there have been cases of people ordering, getting an agreed to price, waiting, and then getting an ADM slapped on last minute at delivery. This is my biggest concern. So far my dealer has been saying and writing all of the right things, but they could always decide to add tens of thousands to the purchase price at the last minute and we have no recourse other than to walk away and get to the back of the line at another dealer that hopefully will be better (but could do the exact same thing).

I have heard stories of dealers TRYING to slap ADM at the last minute.

Haven’t read stories of people actually paying it though.

I wouldn’t let that shy you away from ordering one.

And in the “manufacturers direct” pricing model like Tesla, it is much more simple. They just keep raising the price for everyone like they just did again.

Just saying the grass isn’t necessary greener….

 

[yngwenli]

All we can do is protect ourselves as much as we can...If they flat out lie what they replied in an email, get that Ford Exec involved and shame them here and everywhere. That's about all we can do.

Like someone else said, it's very true that they get away with it because people are willing to pay way over MSRP. Similar to drug users, until people stop taking said drug, it'll never go away as a problem. Add in any 'vice' here (gambling, drinking, video games, cars, travel, rentals, etc).

I've noticed my dealer has sold at MSRP here with no ADM for ordered cars to quite a few folks so not including orders that people don't post about, some dealers do work that way without the crap. Just make sure it's clear and it's a newly ordered car. For cancellation, yeah, they're jacking them up as well.

People talk about Tesla like a gold standard of honestly when ordering/delivery...but look at Tesla Solar where they reneged on signed contracts until a class action was building before they backed off.

My point is Tesla is honestly probably no better. They'd do shady stuff as well IMO if they could. It's just you eliminated a middle man that Ford can't due to existing laws.

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