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re: Ford CEO is going to kill his own Company.

Posted on 6/4/22 at 11:51 pm to
Posted by DiamondDog
Louisiana
Member since Nov 2019
13234 posts
Posted on 6/4/22 at 11:51 pm to
Maybe so but they were all ordered. I don't think normal rules apply here. Guy wasn't exactly trying to sell me anything and a pretty bad tactic if so.
Posted by Hurricane Mike
Member since Jun 2008
20059 posts
Posted on 6/4/22 at 11:52 pm to
Well they did get bailed out by the government before GM contrary to popular opinion
Posted by 3nOut
I don't really care, Margaret
Member since Jan 2013
32391 posts
Posted on 6/4/22 at 11:54 pm to
quote:

Although leases might not be bad


I used to be completely opposed to leases but after thinking of the concept of buying (having a car payment a fair amount above a loan payment) a premium vehicle that you can bail on in a few years, avoiding the maintenance as the car ages, is not the worst idea. My boss was a BMW lover and I was prepared to lecture him about leasing but he explained it as a work expense to ride more comfortably (we travel all over TX) in a way that he could offload when the mileage got high.

I wouldn’t do it for a Ford Focus, but for a BMW or Benz, I get the concept. No plan of ever doing it, but I’m not opposed if a luxury car is your thing. I just don’t value my ride enough for a high car payment.
This post was edited on 6/4/22 at 11:58 pm
Posted by EA6B
TX
Member since Dec 2012
14754 posts
Posted on 6/5/22 at 12:01 am to

“In the United States, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers.”

“Tesla on the other hand has not granted any franchises anywhere.

They choose to keep service centers, galleries, and stores. This new method of selling cars without the need of a dealer is supported by a few states as they consider the process beneficial to consumers because it removes the dealership markup and encourages better business practices.”


This post was edited on 6/5/22 at 12:05 am
Posted by DiamondDog
Louisiana
Member since Nov 2019
13234 posts
Posted on 6/5/22 at 12:03 am to
BMW has some of the worst lease terms imaginable. But get it I guess...
Posted by BuckyCheese
Member since Jan 2015
57778 posts
Posted on 6/5/22 at 12:03 am to
quote:

Maybe so but they were all ordered. I don't think normal rules apply here. Guy wasn't exactly trying to sell me anything and a pretty bad tactic if so.




Normal rules do not apply at all right now and salesmen are essentially order takers. Very well paid order takers as they are seeing commissions like never before.

If you don't order/buy an inbound, someone else will before it shows up. The dealer has an allocation so there is no incentive to give a deal when they can sell every one at sticker. Or above.
Posted by Penrod
Member since Jan 2011
55439 posts
Posted on 6/5/22 at 5:19 am to
quote:

at you actually believing that.

That the savings will be passed on? Of course I believe it. That’s what has happened with all innovation throughout history of capitalism. They will try to increase their margins, giving only some of the savings to the consumers, but eventually competitors will join in and the race to the pricing bottom will be on.
Posted by johnnyrocket
Ghetto once known as Baton Rouge
Member since Apr 2013
9790 posts
Posted on 6/5/22 at 5:59 am to
The only issue is how they mfg.
They mfg in volumes to reduce price.
Who going to buy, store, and deliver the product to the consumer.

I just don’t see independent dealers going for this.

Then service aspect who gking to service their vehicles and store parts of you piss off the dealers.
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
138779 posts
Posted on 6/5/22 at 6:06 am to
quote:

So he gonna cut out the dealership and pass the savings on to consumers?
So right now, and for the past century +, dealers immediately buy every car Ford produces. Dealers are then left to handle inventory issues, warranty repair, local marketing, customer relations, etc.

This guy thinks Ford can outperform dealerships in that regard? Good luck with that!
Posted by Swazla
Member since Jul 2016
1925 posts
Posted on 6/5/22 at 6:40 am to
quote:

I like it. Screw those dealer markup prices. They're fricken ridiculous. Let me buy at cost without all the haggling.



This who thing was part of the plan to increase profits, especially for the OEMs.

I have had dealers and OEM professionals tell me that the chip shortage was not unwanted or um planned.

The average price paid by consumers has risen dramatically and they plan on keeping it that way.

By by passing the dealer the OEMs are eliminating competition.

Just bend over people. Just part of the plan.

Posted by Asharad
Tiamat
Member since Dec 2010
6343 posts
Posted on 6/5/22 at 6:42 am to
quote:

Up until the inventory shortage most dealers lost money when they sold a new car. Inventory levels will get back to normal then it will be like before where the dealerships are undercutting each other Just to get the money from the lender.


Dealerships NEVER lose money on a sale. It's purely a matter of how much you are willing to over pay.
This post was edited on 6/5/22 at 6:44 am
Posted by MaDeuce
Member since Jun 2019
52 posts
Posted on 6/5/22 at 7:21 am to
You’re wrong. Up until the inventory shortage most non-luxury dealerships lost money in their new car department every year, even with mfg incentives. It was that competitive since the buyer could just drive to the next town over and get the same car.

Until the inventory shortage there was no “dealership mark-up”. It was MSRP. Virtually no one paid it, unless he just didn’t check another dealership.

Posted by concrete_tiger
Member since May 2020
7477 posts
Posted on 6/5/22 at 7:24 am to
Is the Ford CEO giving his company an EcoBoost?
Posted by Asharad
Tiamat
Member since Dec 2010
6343 posts
Posted on 6/5/22 at 7:26 am to
quote:

You’re wrong


lol
Posted by Jake88
Member since Apr 2005
79907 posts
Posted on 6/5/22 at 7:30 am to
quote:

You never get a good deal. You just haggle with them to get fricked a little less
You think you're going to get a better deal with no haggle pricing? If I get a really good deal they can make it up on the dufus who comes in and is willing to pay invoice, the shipping cost, the ad fees, the Vin etching and crap like that.
Posted by dewster
Chicago
Member since Aug 2006
26608 posts
Posted on 6/5/22 at 8:48 am to
Without dealerships, how do Ford customers get all those repairs done?
Posted by LSU316
Rice and Easy Baby!!!
Member since Nov 2007
30278 posts
Posted on 6/5/22 at 8:55 am to
Non-negotiated pricing is sorely needed in the auto industry….put the real price on the damn sticker not some magical inflated number the dealer pulled out of their arse.
Posted by Jake88
Member since Apr 2005
79907 posts
Posted on 6/5/22 at 9:11 am to
quote:

put the real price on the damn sticker not some magical inflated number the dealer pulled out of their arse
Prior to COVID, the MSRP was on the window. Unless you were going for an extremely popular model you never paid MSRP. In fact, you should have never paid invoice price either. So what was this "magical inflated number?"
Posted by boudinman
Member since Nov 2019
6101 posts
Posted on 6/5/22 at 9:11 am to
So where would customers go for service and warranty work once the Ford dealerships are put out of business?
Posted by partsman103
Member since Sep 2008
8726 posts
Posted on 6/5/22 at 10:12 am to
quote:

quote:
Ford CEO Wants Vehicles Sold Online Only With Non-Negotiable Pricing


Tesla has proven this model works.


Only issue I experienced with Tesla was trying to find a Tesla dealer with an actual Parts Department. Our Body Shop needed a door for a Tesla involved in an accident. Googled "Tesla Dealers" and called the stores that were listed. Pretty much all are automated answers with "touch 1 for...touch 2 for..." and nothing for Parts.

Ended buying a used door off ebay.
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