Ford Warns Dealers Against Additional Deposit / Payment Requirements For Lightning Orders. Supports No-Resale Provisions in Purchase Contracts

[Nick Gerteis]

I would be ok with tying the tax credit to a one year no sale clause. Easy to do, just make it so one could only collect if they still own the vehicle in the subsequent tax year, delaying the tex credit to year 2.

Makes sense, to keep people from racking up the credit over and over again. Or, limit it to only being able to take the credit once every x years.

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[Kevv]

How do you figure that won’t stop the dealership ADM?? If ya ain’t got the truck to sell ya can’t mark it up? And it’s Ford product to profit from, not mine, not yours or anybody else. Don’t buy it if you don’t want to ride it!

The Ford internal bulletin that was posted forbid dealers from charging an extra deposit
and no sale clause for a year if dealer wants they will support it
Bulletin does not mention/forbid ADM

 

[Whiskey]

The Ford internal bulletin that was posted forbid dealers from charging an extra deposit
and no sale clause for a year if dealer wants they will support it
Bulletin does not mention/forbid ADM

I hate that when that happens, I read a document and I think it says one thing, then, someone else reads it and understands it a totally different way. I’m sure Ford told all dealers to basically “Play fair OR we WILL pull your Lightning allocations for the entire MY22.

 

[Royalist]

Glad I screenshotted it. Ya know its funny how Ford tells the dealers "Don't be deceptive." Yet, they're engaged in shady work by telling them to remove it.

 

[broncojohn]

This type of scumbaggery is usually solved with a quick call to your local news station who will typically love to do a story on how a car dealer is playing with its customers and trying to swap prices on them last minute to reap extra profit during trying times. First call from the reporter to the GM of the dealership asking for comment will likely get that fixed.

Good tips, I thought about doing something of that nature...

 

[jfried]

I'm not sure I understand this memo.

I paid $100 to Ford for a reservation -- which basically means nothing other than an opportunity to order.

At some point (hopefully soon), I will get to actually order the truck, spec it out how I want it, lock in price, and "secure" a dealer's allocation for that truck.

To me it seems perfectly reasonable that I'd pay a deposit (much larger than $100) at that time, so that the dealer isn't stuck with a truck they potentially didn't want, and that they have received consideration making our purchase agreement legally binding.

 

[shutterbug]

I'm not sure I understand this memo.

I paid $100 to Ford for a reservation -- which basically means nothing other than an opportunity to order.

At some point (hopefully soon), I will get to actually order the truck, spec it out how I want it, lock in price, and "secure" a dealer's allocation for that truck.

To me it seems perfectly reasonable that I'd pay a deposit (much larger than $100) at that time, so that the dealer isn't stuck with a truck they potentially didn't want, and that they have received consideration making our purchase agreement legally binding.

In most cases the deposit is refundable. Also, at least for the time being, there is little danger that the dealers will get "stuck" with Lightning, regardless of the options being selected.

 

[jfried]

In most cases the deposit is refundable. Also, at least for the time being, there is little danger that the dealers will get "stuck" with Lightning, regardless of the options being selected.

Forsure, but if you're going to factory order any vehicle from any manufacturer, a deposit ($1000 to $2000?) is generally required. It solidifies the sales agreement from both dealer and customer side. I'm not sure why the lightning would be any different.

Requiring a deposit placed direclty with the dealer generally entails a sales agreement as well -- which would in turn prevent a dealer from doing an ADM when the vehicle arrives.

If Ford wanted to ensure "reputability" -- it seems that they should not have given dealers "priority slots".

This coming from somebody with a Bronco on order that is supposed to be built this month, having driven by a dealership with 7 broncos sitting out front waiting for sale.

 

[GarageMahal]

Forsure, but if you're going to factory order any vehicle from any manufacturer, a deposit ($1000 to $2000?) is generally required. It solidifies the sales agreement from both dealer and customer side. I'm not sure why the lightning would be any different.

If Ford wanted to ensure "reputability" -- it seems that they should not have given dealers "priority slots".

This coming from somebody with a Bronco on order that is supposed to be built this month, having driven by a dealership with 7 broncos sitting out front waiting for sale.

The fact the ford caved and enabled some dealers to get stock before all reservations were delivered is really sad. Truly hoping they do better this time and I think they might since Ford has more rules on EV dealers.

 

[Nick Gerteis]

The fact the ford caved and enabled some dealers to get stock before all reservations were delivered is really sad. Truly hoping they do better this time and I think they might since Ford has more rules on EV dealers.

Yeah, this time they can learn to deliver reservations first. Then, next time, they can learn to deliver all these reservations….wait for it….in the order customers actually made them! Oh wow, baby steps. Ok ok easy for me to sit here and criticize, but I guess it’s kinda like trying to turn around a supertanker…..

 

[Maquis]

I'm not sure I understand this memo.

I paid $100 to Ford for a reservation -- which basically means nothing other than an opportunity to order.

At some point (hopefully soon), I will get to actually order the truck, spec it out how I want it, lock in price, and "secure" a dealer's allocation for that truck.

To me it seems perfectly reasonable that I'd pay a deposit (much larger than $100) at that time, so that the dealer isn't stuck with a truck they potentially didn't want, and that they have received consideration making our purchase agreement legally binding.

Ford is trying to prevent dealers from charging you $10K (or some value) just to convert your reservation to an order. It’s not a deposit, it extortion (sort of). The amount paid doesn’t apply to the purchase price.

 

[rdr854]

The fact the ford caved and enabled some dealers to get stock before all reservations were delivered is really sad. Truly hoping they do better this time and I think they might since Ford has more rules on EV dealers.

Remember that dealers received one or more mannequins that they may now be permitted to sell. I’ve seen the same spec Bronco for sale at two of my area dealerships. And one of the dealers had three or four others on display that were actually sold units awaiting delivery rather than retail units that were for sale.

 

[Mike G]

Forsure, but if you're going to factory order any vehicle from any manufacturer, a deposit ($1000 to $2000?) is generally required. It solidifies the sales agreement from both dealer and customer side. I'm not sure why the lightning would be any different.

Requiring a deposit placed direclty with the dealer generally entails a sales agreement as well -- which would in turn prevent a dealer from doing an ADM when the vehicle arrives.

If Ford wanted to ensure "reputability" -- it seems that they should not have given dealers "priority slots".

This coming from somebody with a Bronco on order that is supposed to be built this month, having driven by a dealership with 7 broncos sitting out front waiting for sale.

I guess it depends on your relationship with that dealer really. I didn't pay a deposit for my Mach-E and haven't paid one for the Lightning order either. And my dealer has expressed that ADMs only hurt them in the long run when dealing with repeat longtime customers like me. So they don't do that either.

Mike

 

[Mike G]

Ford is trying to prevent dealers from charging you $10K (or some value) just to convert your reservation to an order. It’s not a deposit, it extortion (sort of). The amount paid doesn’t apply to the purchase price.

So are you suggesting that after last week's epiphany at the dealerships where there was only one invite from the dealer's priority list that they suddenly realized they could monetize bumping somebody to the top of the list in exchange for a significant financial remuneration?

Say it's not so!

M.

 

[dpatt711]

Wow, that's.... that's something. Maybe Ford is serious about trying to keep excessive price gouging under control.

This will do nothing in terms of price gouging.

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