Ford Doesn't Want Mach-E Dealer Markups
- Thread starter ZeeOSix
- Start date
Zee09
$200 Site Donor 2023
Great idea.
Leaves a sour taste when they mark up vehicles.
Leaves a sour taste when they mark up vehicles.
Zee09
$200 Site Donor 2023
Ford is great. Two years ago dealers In my area where scamming customers by taking the MSRP which includes the freight cost and discounting the car and reintroducing freight again back into the price. Then that was $1595. on a truck.
One call to Ford and that practice ended very quickly. They do listen.
One call to Ford and that practice ended very quickly. They do listen.
The dealer is not shy about lowering the trade in value to make up for sales price. it’s actually amazing how brazen they can be with the numbers. If you want the hot model, thats where they nail you. They have a sixth sense about how much you want to do the deal. My Honda dealer still marks up over msrp as if they are selling to do you a favor. They have enough people agreeing I suppose.
Zee09
$200 Site Donor 2023
Honda was always good for that...
Just walk.
That strategy makes people with no game or skill, or knowledge feel ok about paying MSRP and feeling like they got a deal.
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Gotta put on my Cost Account hat for a minute...
The "mfg to dealer to customer" sales model is inferior to the "mfg to customer" sales model in many respects.
The added cost of that big beautiful dealership and the inventory carrying costs add to the cost of the vehicle.
Tesla takes the dealership cost savings and uses it for development or profit.
Ford's margin is reduced by the addition COGS.
Yes, the Ford dealership network is built, but they need to be maintained and manned. And carrying costs add no value.
I believe most retail sales are holding reduced inventory nowadays.
The "mfg to dealer to customer" sales model is inferior to the "mfg to customer" sales model in many respects.
The added cost of that big beautiful dealership and the inventory carrying costs add to the cost of the vehicle.
Tesla takes the dealership cost savings and uses it for development or profit.
Ford's margin is reduced by the addition COGS.
Yes, the Ford dealership network is built, but they need to be maintained and manned. And carrying costs add no value.
I believe most retail sales are holding reduced inventory nowadays.
jagdriver727
Site Donor 2021
I still find it hard to believe anybody would actually consider buying one to begin with...
How much power does the manufacturer actually have over the dealerships who do that ? Not much based upon the added markup on the new Corvettes or what I have seen on other manufacturers. They add an additional window sticker with some B.S. about "market conditions adjustment " and that the factory sticker is just a "suggested" retail price.
If Ford has a legal agreement with their dealers not to add additional markup I suppose they have some clout. Otherwise the dealers will do whatever they can get away with. And not just Ford. It's the old supply & demand routine, and while one customer may balk at the added markup, another one who thinks nothing of dropping a couple thousand dollars going out to dinner and drinks with some friends will buy the car that they want.
If Ford has a legal agreement with their dealers not to add additional markup I suppose they have some clout. Otherwise the dealers will do whatever they can get away with. And not just Ford. It's the old supply & demand routine, and while one customer may balk at the added markup, another one who thinks nothing of dropping a couple thousand dollars going out to dinner and drinks with some friends will buy the car that they want.
Allocation. Dealers want cars, as they are in the business of selling cars.
Ford does not want a black eye for customer's first impression in this important new EV market.
Saw a black one on Tuesday, it looks really nice.
They do not want to deal directly with the customers though. The absurd warranty requests alone would eat them alive. Now the dealership is either the bad guy because they won't cover the broken dvd player your kid stuck a jelly bean in or they just write it off out of service department profit in hopes the customer is satisfied and returns for more business. Tesla is dealing with a fraction of the vehicles on the road that say Ford, GM or Toyota is.
But who's going to pay for those little league baseball games and all the warm fuzzies locally owned dealerships provide?
Why? People buy what they want not what they actually need.
I believe you will find car manufacturers moving towards the direct sales model. There is too much overhead with the dealership middle man.
The Internet has changed everything.
According to this CNN article the Mach E is digging into Tesla sales. 3700 Mach E sold in Feb is a pretty good number.
www.cnn.com
Ford's Mustang Mach-E is eating into Tesla's US sales | CNN Business
Tesla is starting to lose market share among US buyers of electric vehicles, and Ford's Mustang Mach-E appears to be the beneficiary.
www.cnn.com
The legal fights over franchising will be interesting. The national (Penske, Sonic, etc) and regional dealer networks have a lot of political influence. About 20 yrs ago I read where BMW unsuccessfully tried to shed some dealerships when they said the current franchise agreements didn't cover trucks or something to that effect.
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