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Message
re: Ford CEO: We’ll Move to Fixed Prices
Posted on 5/28/23 at 10:42 am to stout
Posted on 5/28/23 at 10:42 am to stout
Manufacturers save money by cutting out the dealerships so the near future for automobile sales is through direct purchase through online portals.
The longer view is self driving vehicles that people will rent rather than own.
Posted on 5/28/23 at 12:00 pm to stout
quote:
Guess dealers will no longer be able to mark up the Raptor $40K unless they put $5K worth of after-market parts and wheels on it first and name it something stupid then call it a dealer special.
Just more:
Destination fee
Clear coat protectant
Lot fee
Security fee
UV protectant fee
Posted on 5/28/23 at 12:27 pm to stout
Probably want a tip when you buy one also.
Posted on 5/28/23 at 12:31 pm to stout
That would be so awesome. Dealers and scumbag sales people unnecessarily suck so much wealth out of that supply chain that it's amazing that it's lasted so long.
Posted on 5/28/23 at 2:03 pm to stout
Hollow promise. The CEO wad supposed to do this 2 years ago. Now their brand has been marginalized by greedy dealerships.
Posted on 5/28/23 at 4:06 pm to stout
Ford relationship with it dealers is interesting
Posted on 5/28/23 at 4:12 pm to stout
Maybe not relevant to the car industry, but a lot of industries use a distribution model because it is easier to have credit terms with a select amount of distributors as opposed to establishing credit terms with every consumer.
Posted on 5/28/23 at 4:50 pm to SlimTigerSlap
Tesla will sue them claiming the Commerce Clause prevents Virginia from forbidding it.
Not that I like the Commerce Clause’s broad interpretation but, as of now, precedent is that anything which is grown, sold, and used all in state is still considered subject to it.
A suit either forces Tesla’s model in or hobbles the Commerce Clause. And I am good with either.
Not that I like the Commerce Clause’s broad interpretation but, as of now, precedent is that anything which is grown, sold, and used all in state is still considered subject to it.
A suit either forces Tesla’s model in or hobbles the Commerce Clause. And I am good with either.
Posted on 5/28/23 at 5:03 pm to stout
So I can finally buy a ford maverick for $19,999?
Posted on 5/28/23 at 5:14 pm to stout
quote:
No other retail industry has a protected model
Firearms.
Drugs.
The entire medical industry.
Contractors.
Utilities.
Tons of protections to maintain government sponsored business.
Posted on 5/28/23 at 6:50 pm to stout
Hey, I have a great idea.
How about doing the damned warranty repair on a new $60k vehicle that has less than 3k miles.
How about doing the damned warranty repair on a new $60k vehicle that has less than 3k miles.
Posted on 5/28/23 at 7:07 pm to tigerinthebueche
quote:
Well now hold on. Can’t Ford sell direct to the end user via a “national account”? I thought one of the reasons manufacturers didn’t sell direct is because they can’t provide service on a local level? (And they really don’t want to. They just want to manufacture.) .Seems you’re complaining about a preference not a “protection”.
It is 100% a protection. The NADA is constantly lobbying to keep dealership laws on the books, using a number of questionable justifications.
It depends on the state but in most states, car manufacturers cannot legally sell directly to consumers. Some states have added exceptions for EV’s, largely to allow Tesla sales.
I have no problem with manufacturers selling through dealers if that’s the business model they would prefer. Right now we don’t know whether the market actually supports that business model, though, because it’s mandated by state governments.
Posted on 5/28/23 at 8:58 pm to stout
I have heard stories from a few different individuals in the last year who have purchased brand new Ford trucks from ford dealers and almost immediately had major issues with engine, technology, etc.
Each of them had awful experiences with Ford dealers in trying to resolve the issues as well. Brand new trucks sitting in shops for weeks and awful customer service. I was considering making a move on a lariat this year but the stories that I’ve heard separately from different guys have been enough for me to never want to purchase a ford
Each of them had awful experiences with Ford dealers in trying to resolve the issues as well. Brand new trucks sitting in shops for weeks and awful customer service. I was considering making a move on a lariat this year but the stories that I’ve heard separately from different guys have been enough for me to never want to purchase a ford
Posted on 5/29/23 at 6:36 am to Swamp Goat
I think the Ford family is gonna axe this guy sooner or later.
Dealerships are huge profit centers for manufacturers. They carry the load of the inventory. Once ford sells a truck to a dealer it’s considered a sold unit. Ford is looking at a lot of lawsuits from dealers. When you open a franchise car store you build what the manufacturers tell you to based on sales forecast and expected market share. Dealers are forced to buy dogs along with the hot cars. “You want those Raptors, well you gotta take these beige Fusions as well” Can’t pay for them that’s ok we’ll floor plan them to you” People on the OT think of ourselves as astute car buyers but most car purchases are pretty much impulse buys. Lots of new cars are sold through the service dept. as well. “Oh your car needs a new $6k trans that you can’t afford, come on over to the new side and we can get you rolling today. Negative equity don’t worry we can roll that in at 15 percent interest” The manufacturers don’t want the backlash and can be insulted from that. Yes the markups sucked for sure but I think a lot of this was caused by tight supply and cheap/easy credit. It’s starting to normalize now. Like I said the manufacturers tell you what to build by what you’re expected to sell. Many dealers are mortgaged to the limit and they couldn’t get the cars to sell hence a good bit of the markup.
I don’t see this resulting in lower prices for the consumer. I like the game and pitting dealers against each other.
Dealerships are huge profit centers for manufacturers. They carry the load of the inventory. Once ford sells a truck to a dealer it’s considered a sold unit. Ford is looking at a lot of lawsuits from dealers. When you open a franchise car store you build what the manufacturers tell you to based on sales forecast and expected market share. Dealers are forced to buy dogs along with the hot cars. “You want those Raptors, well you gotta take these beige Fusions as well” Can’t pay for them that’s ok we’ll floor plan them to you” People on the OT think of ourselves as astute car buyers but most car purchases are pretty much impulse buys. Lots of new cars are sold through the service dept. as well. “Oh your car needs a new $6k trans that you can’t afford, come on over to the new side and we can get you rolling today. Negative equity don’t worry we can roll that in at 15 percent interest” The manufacturers don’t want the backlash and can be insulted from that. Yes the markups sucked for sure but I think a lot of this was caused by tight supply and cheap/easy credit. It’s starting to normalize now. Like I said the manufacturers tell you what to build by what you’re expected to sell. Many dealers are mortgaged to the limit and they couldn’t get the cars to sell hence a good bit of the markup.
I don’t see this resulting in lower prices for the consumer. I like the game and pitting dealers against each other.
Posted on 5/29/23 at 6:39 am to stout
Just bought a new car this week. It’s time to end this nonsense. I went to three different dealers and all of them play stupid games with the numbers.
Posted on 5/29/23 at 7:04 am to stout
quote:
If Tesla lawsuits are successful you will no longer see locally-owned dealerships eventually. Only used car lots may exist soon
Good thing Ronnie Lamarque had his singing career to fall back on.
Posted on 5/29/23 at 7:23 am to stout
After just taking advantage of consumers during and after Covid, with shortages of vehicles and charging a premium to buy a new car, now they want to fix the price when the tables can be turned to the consumers’ favor?
Laughable to go to the lengths to protect the dealers. Lucky for me I would never buy a Fors due to prior experience with ownership.
Posted on 5/29/23 at 7:31 am to stout
You can buy straight from any brewery/distillery but in order to buy their product from a store, they have to go through a wholesaler.
Posted on 5/29/23 at 7:36 am to achenator
quote:
I don’t see this resulting in lower prices for the consumer. I like the game and pitting dealers against each other.
yes exactly. the people that cry and complain about going to the dealer are gonna pay the same or more anyway. its gonna hurt those that like playing the game to get a better deal. Not only will it hurt them, but also all of the communities where dealers are located with fewer jobs. the finance guy is now gonna be in an indian call center.
This post was edited on 5/29/23 at 7:36 am
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