How are auto makers going to handle tariffs?

[Mach1E]

Problem is I don't think a buyer ordering a new car actually has a contractual purchase agreement/price. When a customer orders a new vehicle, it's really an order by the dealer to purchase from Ford, and the dealer is simply reserving it for the buyer that requested it. The buyer can always turn it down after it arrives, and the dealer can change the price they're selling it for. That's been known to happen, especially when there's a long time between the customer "order" and the market changes significant in between.

If nothing significant happens to their cost from Ford or the market, they usually leave the price alone. It can certainly create ill will if they try to raise it after the car arrives. But it's not a contractually locked-in price unless they somehow got the dealer to agree to do that (not sure if that ever happens). A normal vehicle "order" doesn't do that. It's really more of a reservation with the first right to buy it when it arrives.

That’s fair if it’s an order. Price doesn’t have to be figured out until the end. Even so I wouldn’t recommend doing it that way. Even when I ordered my 2021 GTPE in April 2021, we had an agreed and negotiated price.

But, my post was in response to someone who said another dealer raised their prices to MSRP. That would mean it’s not an order, but something either on the lot or in route.

And I think that’s dealership BS and taking advantage of the headlines on tariffs.

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[highland58]

That’s fair if it’s an order. Price doesn’t have to be figured out until the end. Even so I wouldn’t recommend doing it that way. Even when I ordered my 2021 GTPE in April 2021, we had an agreed and negotiated price.

But, my post was in response to someone who said another dealer raised their prices to MSRP. That would mean it’s not an order, but something either on the lot or in route.

And I think that’s dealership BS and taking advantage of the headlines on tariffs.

Google bot sez:

A "Ford invoice protection policy" typically refers to a program offered by Ford dealerships that protects a customer from price increases on a new vehicle they order, essentially guaranteeing they will pay the price listed on their invoice even if the manufacturer's suggested retail price (MSRP) goes up before delivery, essentially safeguarding them against price fluctuations during the ordering process; this is sometimes called the "Ford Price Protection Program" or "Ford Incentive Protection.".

Key points about Ford invoice protection:

• Purpose:
  To give customers peace of mind by ensuring they won't have to pay more for their new Ford vehicle than the price listed on their purchase order, even if the price increases before delivery.
• How it works:
  When you order a Ford vehicle, the dealership will typically offer you the option to enroll in invoice protection, which locks in the price on your invoice, protecting you from any future price hikes.
• Conditions:
  Specific terms and conditions may apply, such as a time limit on when the vehicle needs to be delivered after the order is placed to benefit from the price protection.

My dealer mentioned this, but nothing about enrolling, just that Ford has had this policy in general for years. Somewhere was a mention that the policy may have exemptions for tariffs.

 

[Jimrpa]

Since conjecture is allowed, I wouldn't be surprised if all a manufacturer had to do is make a formal agreement to move manufacturering with some future target date, accompanied with milestones for verification tracking, and have tarrif exceptions given.

It's all about business dealings vs the public posturing.

I would normally agree. In this case though, I don’t think “business dealings” are any factor. I think it is all about the “performance”. All the government is looking for is sensationalistic red meat to throw to their base. I’m pretty sure they don’t care how rancid and diseased that meat is.

 

[Sikkun]

I would normally agree. In this case though, I don’t think “business dealings” are any factor. I think it is all about the “performance”. All the government is looking for is sensationalistic red meat to throw to their base. I’m pretty sure they don’t care how rancid and diseased that meat is.

It’s about revenge.

Can’t be about increasing US competition and manufacturing. Literally want to reverse the CHIPs act, bipartisanship passed by the way. Policy that actually increases US manufacturing and US competitiveness.

But that makes non orange man look good. So torpedo that crap, everyone else be damned.

And that’s the logic on it all.

Give me what I want, everyone else be damned.

80 years of progress down the drain…for nothing. Literally nothing.

The fact that vehicles are going to cost more is the least of our worries…..

 

[4sallypat]

Some people have an unreasoning fear of snakes. In my case, I have an unreasonable fear of horses. I literally will go the other way if I see a horse and am not in a vehicle.

Wow, opposite for me - I love horses.

Even trained to become a British Horse Society Assistant Instructor back when equestrian events were popular.

Horses are very smart creatures, very similar to dogs which I also love.

 

[Snakebitten]

I would normally agree. In this case though, I don’t think “business dealings” are any factor. I think it is all about the “performance”. All the government is looking for is sensationalistic red meat to throw to their base. I’m pretty sure they don’t care how rancid and diseased that meat is.

I'm a dinosaur, admittedly, so not really against the desired outcome. I mean I own 3 vehicles that were put together by American auto workers. (2 pickups and a passenger van)
So if the Mach-E has been assembled in Cleveland or Dearborn or South Carolina...... I'd have still purchased it likely.

I'm just not convinced about the best way of going about accomplishing such a feat. And it's obvious that it would draw the ire of some regardless of the approach.

Like I said earlier, I've survived a lot of American political drama. I was old enough to remember my mom being so upset the day that Dallas presidential ride broke over the radio and she rushed to turn the B&W TV we had on.

We get through these things.

 

[MonkeyNutz]

I was responding to what you said about the “other dealer” charging MSRP in response to the tariffs. I think that dealer is taking advantage as their costs likely didn’t change a penny.

Nothing to do with tariffs. They’re charging MSRP because that’s the going rate around here. I haven’t seen any dealership raise prices in anticipation of tariffs. The dealership I’ve ordered through is a good but under MSRP, but I had to go out of state to get the deal. Have to pass like 6 Ford dealers to get to one that will cut a deal.. too many people around here willing to pay full price. SMH…

 

[DennisD]

Nothing to do with tariffs. They’re charging MSRP because that’s the going rate around here. I haven’t seen any dealership raise prices in anticipation of tariffs. The dealership I’ve ordered through is a good but under MSRP, but I had to go out of state to get the deal. Have to pass like 6 Ford dealers to get to one that will cut a deal.. too many people around here willing to pay full price. SMH…

Normally, I don't have any sympathy for Dealerships. With that being said, the "game" of one day tariffs are on and the next day they are not is just simply terrible policy.

Can you imagine a Referee at a game who called a foul and then said wait, they didn't..............oh wait, I guess they did? The fans would go Monkey Nutz on both sides (pun intended)

Welcome to the next 4 years.

 

[Jimrpa]

Normally, I don't have any sympathy for Dealerships. With that being said, the "game" of one day tariffs are on and the next day they are not is just simply terrible policy.

Can you imagine a Referee at a game who called a foul and then said wait, they didn't..............oh wait, I guess they did? The fans would go Monkey Nutz on both sides (pun intended)

Welcome to the next 4 years.

Actually, there is some speculation that these continual policy changes are deliberate and part of a larger plan. ?‍

 

[Teslaeata]

Actually, there is some speculation that these continual policy changes are deliberate and part of a larger plan. ?‍

Plan?

There’s a plan?

 

[dbsb3233]

Normally, I don't have any sympathy for Dealerships. With that being said, the "game" of one day tariffs are on and the next day they are not is just simply terrible policy.

Can you imagine a Referee at a game who called a foul and then said wait, they didn't..............oh wait, I guess they did? The fans would go Monkey Nutz on both sides (pun intended)

Welcome to the next 4 years.

Definitely creates chaos for the automakers involved. But it's not the first time. Just a couple of years ago the government created chaos for the EV industry by jacking around the tax credits. It was bad enough that models planned for market viability under the previous (more logical) tax credit law suddenly lost their credits while others (like Teslas) regained them after they'd already max'd theirs out, but we also had a period similar to this where everything was up in the air for months for which vehicles would qualify and which wouldn't, and when.

Government is the puppetmaster and we're all puppets when it comes to taxes (tariffs) and tax credits.

 

[Kamuelaflyer]

Actually, there is some speculation that these continual policy changes are deliberate and part of a larger plan. ?‍

 

[StevenC56]

Their plan is to create mass chaos and division every day so we won't notice the things they are doing behind the curtain.

 

[load97]

Their plan is to create mass chaos and division every day so we won't notice the things they are doing behind the curtain.

Yep.

 

[DennisD]

Definitely creates chaos for the automakers involved. But it's not the first time. Just a couple of years ago the government created chaos for the EV industry by jacking around the tax credits. It was bad enough that models planned for market viability under the previous (more logical) tax credit law suddenly lost their credits while others (like Teslas) regained them after they'd already max'd theirs out, but we also had a period similar to this where everything was up in the air for months for which vehicles would qualify and which wouldn't, and when.

Government is the puppetmaster and we're all puppets when it comes to taxes (tariffs) and tax credits.

There is one guy, that one party is following and not questioning that is creating the current chaos. The Reason is only known by him and I am not sure if he even knows but the others are following blindly and with the highest form of loyalty.

The tax credits were manipulated (cancelled) under one party (other than Manchin), thus creating chaos.

See a pattern?

You get what you vote for. If you want chaos, continue down the current path.

We will see how well this goes for all of the masses here within a year or two. I don't think it will play out well.

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