Dealers asking for $5K - $30K ADM markup on 2022 F150 Lightning!

[Fordskeptic]

Gotta love it when the dealer writes a F' you letter and ends it with "have a great day"! Aaris Berry has some brass cojones.

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[F150ROD]

This is a great email to Tweet Out with the dealer tagged along with Farley and Levin maybe a couple of Tesla Stans

 

[MickeyAO]

One good reply: I guess you don't want my business in three years when my lease is up (doesn't matter if you really plan on leasing).

 

[Slick68]

I never knew that mahalo was Hawaiian for markup.

I think it’s Hawaiian for “Bend Over”

 

[BEMOH]

I'm headed to the dealer this evening to do final order sheet. No talk of ADM yet. If it comes up I'm pulling the pocket aces - knowing the owner. I'll leave out the part where I got his golf cart stuck in the snow at 2am one time back in high school....

Update: No ADM!

 

[Fordskeptic]

Just browsed an article on TheStreet that reported a hummer EV being advertised for $325k, private flip sale. There is dealer ADM and then there are flippers. Rough time to be buying.

 

[greenne]

I'm just gonna drop this right here for the crowd that thinks "direct sales" is such a great deal.

US: Tesla Substantially Increased Prices For All Models (insideevs.com)

Said it before, I'll say it again.. direct sales means we ALL pay more. Competition between dealers means that under most circumstances the consumer has some leverage depending upon the market supply(which is low right now, I'll admit). Direct pricing the consumer has ZERO leverage.

Now you might be asking yourself.. well what about Ford going to the Model E plan with set pricing? In that case yes the price is set, but dealers will still compete for your business so they can get their small kickback(I think its 8%?)

 

[EVben]

I'm just gonna drop this right here for the crowd that thinks "direct sales" is such a great deal.

US: Tesla Substantially Increased Prices For All Models (insideevs.com)

Said it before, I'll say it again.. direct sales means we ALL pay more. Competition between dealers means that under most circumstances the consumer has some leverage depending upon the market supply(which is low right now, I'll admit). Direct pricing the consumer has ZERO leverage.

Now you might be asking yourself.. well what about Ford going to the Model E plan with set pricing? In that case yes the price is set, but dealers will still compete for your business so they can get their small kickback(I think its 8%?)

100% Still believe direct sales are superior. I think I understand your angle (regarding 'deal'), just disagree that customer has zero leverage. Tell me what the thing costs, and I'll buy or not buy, same as I could walk or not walk when negotiating. No mystery, no skill, I'm not interested in wasting energy chasing some discount that may or may not even be attainable.

Disclaimer: I'm biased as I bought my car on my phone from Tesla with a clear price that didnt change from order to delivery.

 

[Ruination]

I'm just gonna drop this right here for the crowd that thinks "direct sales" is such a great deal.

US: Tesla Substantially Increased Prices For All Models (insideevs.com)

Said it before, I'll say it again.. direct sales means we ALL pay more. Competition between dealers means that under most circumstances the consumer has some leverage depending upon the market supply(which is low right now, I'll admit). Direct pricing the consumer has ZERO leverage.

Now you might be asking yourself.. well what about Ford going to the Model E plan with set pricing? In that case yes the price is set, but dealers will still compete for your business so they can get their small kickback(I think its 8%?)

You have Tesla's profit margins vs fords?

I think you're dead wrong. Ford only makes what they sell to the dealers for inventory whish is well below MSRP.

Their competition is other car companies.

 

[PungoteagueDave]

100% Still believe direct sales are superior. I think I understand your angle (regarding 'deal'), just disagree that customer has zero leverage. Tell me what the thing costs, and I'll buy or not buy, same as I could walk or not walk when negotiating. No mystery, no skill, I'm not interested in wasting energy chasing some discount that may or may not even be attainable.

Disclaimer: I'm biased as I bought my car on my phone from Tesla with a clear price that didnt change from order to delivery.

I've bought four from Tesla. Got totally bent over the barrel on the last two. Tesla has become beyond unethical in its dealings with customers. And unavailable, non communicative, demanding, and unhelpful, hiding behind "policy". Beyond that, great cars. Truly the best things I've ever owned. But sh*t company and business model.

 

[PungoteagueDave]

You have Tesla's profit margins vs fords?

I think you're dead wrong. Ford only makes what they sell to the dealers for inventory whish is well below MSRP.

Their competition is other car companies.

Tesla's margins are off the charts compared to any car manufacturer in history, blowing away Porsche, which is #2. Varies by quarter, but never below 15% gross sales margin in their worst quarter, which was an anomaly related to the initial M3 roll-out, and historically 25-28%. They are not in this for changing the world. They are in this for wealth creation and profits.

 

[EVben]

I've bought four from Tesla. Got totally bent over the barrel on the last two. Tesla has become beyond unethical in its dealings with customers. And unavailable, non communicative, demanding, and unhelpful, hiding behind "policy". Beyond that, great cars. Truly the best things I've ever owned. But sh*t company and business model.

Yeah I think I got lucky and have a good service center. How did you get bent over the barrel? Was it regarding service or defects? Never heard of price getting surprise increased after order.

 

[HJP]

I'm just gonna drop this right here for the crowd that thinks "direct sales" is such a great deal.

US: Tesla Substantially Increased Prices For All Models (insideevs.com)

Said it before, I'll say it again.. direct sales means we ALL pay more. Competition between dealers means that under most circumstances the consumer has some leverage depending upon the market supply(which is low right now, I'll admit). Direct pricing the consumer has ZERO leverage.

Now you might be asking yourself.. well what about Ford going to the Model E plan with set pricing? In that case yes the price is set, but dealers will still compete for your business so they can get their small kickback(I think its 8%?)

Small kickback of 8%? This is for an essentially no inventory you prep the car for pickup and get the contract ready (which was on an IPAD) sales model? Bought a Mach-E and that is literally all that was required off the dealer. On a 70k$ car that would approach 6k plus any commissions from the financing. Don't feel bad.

 

[greenne]

Small kickback of 8%? This is for an essentially no inventory you prep the car for pickup and get the contract ready (which was on an IPAD) sales model? Bought a Mach-E and that is literally all that was required off the dealer. On a 70k$ car that would approach 6k plus any commissions from the financing. Don't feel bad.

Oh I don't feel bad. If you are ordering from the internet and the "dealer" is focusing solely on delivery that's not a bad payback to the dealer..pretty easy money if you ask me.

- No time spent by the trying to make the sale, test drives, etc. No need to constantly communicate with customer to convince them to buy
- No time spent by dealer trying to contact potential sales leads..cold calls, email lists, etc
- no money spent on newspaper ads, tv ads, etc
- No time spent by dealer trying to acquire inventory at appropriate trim level, or assist customer through order process. No time haggling or losing sales to the dealer in the next town who gave customer a lower quote
etc.

Basically they get a decent payday for receiving a car from the transport, prepping the car, and paperwork.

Probably what..a days worth of work for $6k or more? Not a bad deal for the dealer.

With all that said...that's why the dealers will be on top Ford to not screw this up with pricing games or gimmicks like Tesla. Since its an easy money train they will not want Ford to do anything to discourage sales on which they can profit. Check and balances.

 

[PungoteagueDave]

Yeah I think I got lucky and have a good service center. How did you get bent over the barrel? Was it regarding service or defects? Never heard of price getting surprise increased after order.

delivery process was abusive. Ordered my last Tesla MX, received delivery date target of 10/19. While sailing offshore from Key West to Chesapeake Bay in late Sept 2019, I received a sat phone call indicating the car would be delivered in a three day window starting three days from then. I was two days from nearest port, five days from my target arrival in Maryland. It was an ultimatum - take it or leave it, the car would go to the next buyer and I could reorder. So I had to turn to land, come ashore in S Carolina, rent a car, drive to Owings Mills, take delivery, pick up my wife in Virginia, drive back to my waiting crew in S. Carolina, and head back to sea.

Tesla refused to wait THREE days despite the early delivery timing being on them. They claimed it was due to limited parking, yet there was plenty of space at the delivery center. They also retraded the WRITTEN lifetime free vehicle-level Supercharging, switching it from life of vehicle to my term of ownership between the order date and the delivery. Zero recourse, no option but to take delivery or walk - DS blamed on "policy change". There are many other stories of folks who ordered MX and MS in 2020 being refunded and price not honored due to 2021 refresh. The latest is that they have eliminated the option to purchase extended warranties at 50K miles or four years - AFTER THE FACT of purchase. I could write a book about the service issues.

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