Ford to Exert More Control Over EV Sales at Dealerships With Non-Negotiable Pricing

[Nick Gerteis]

To be fair, every single person on this forum would be classified as an "enthusiast". The "Tesla Process" is easy for "enthusiasts" -- because we do often know more about the car than the person selling it, are willing to wait for exactly what we want (or think many months ahead), and have the wherewithal to get the value out of our existing car without being dependent on a trade-in.

That process doesn't necessarily recognize a large, large proportion of how cars are sold though.

For every one of "people like us", there are probably multiple people who walk into a dealership, not knowing exactly what they want / need, but come in with a few parameters (seats? size? colour? down payment? monthly budget? etc.) and let the salesman guide them to that process.

Are you going to get the best deal doing it that way? probably not. But getting the best deal isn't everyone's #1 priority. It's also important to consider that this approach does line the dealers pockets more often than not, but lining the dealers pockets does help Ford.

Hard to believe that a majority of car buyers would be willing to plunk down $60K+ but too lazy to do any kind of homework first. Maybe a few.

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[RickLightning]

Hard to believe that a majority of car buyers would be willing to plunk down $60K+ but too lazy to do any kind of homework first. Maybe a few.

A lot more than a few.

 

[shutterbug]

For every one of "people like us", there are probably multiple people who walk into a dealership, not knowing exactly what they want / need, but come in with a few parameters (seats? size? colour? down payment? monthly budget? etc.) and let the salesman guide them to that process.

And 90% of them will get inaccurate or misleading information.

 

[jfried]

And 90% of them will get inaccurate or misleading information.

Certainly possible / likely, they get information that promotes them towards buying the car.

The reality is though, if Ford doesn't do that, there's a very good chance they'll go to Jeep or Chevy or Toyota, and get the information they need to hear to get the sale.

 

[jfried]

Hard to believe that a majority of car buyers would be willing to plunk down $60K+ but too lazy to do any kind of homework first. Maybe a few.

Personally, I'd believe that the "majority" of $60k car buyers are just that. How many cars do BMW, Mercedes, Audi, Lexus, Jaguar & Rover sell in a year?

The vast majority of their buyers are not "intense researchers". They may do a cursory look up of some 3rd party quality score or something like that, but ultimately, they're buying on emotion.

Ford doesn't sell a ton of vehicles in the $60k+ range.... but that doesn't mean all of their buyers are research-heavy. They sell a ton of "run of the mill" vehicles. Yes, some people will compete them hard on quality... but others are going to make the decision solely on other factors (such as around their budget).

A lot of customers, when they're making a commitment well into the "5 digits" want to feel like they got a deal, or at the very least, feel like the deal was "built for them", not by a computer for everyone.

 

[monsterlag]

A lot of customers, when they're making a commitment well into the "5 digits" want to feel like they got a deal, or at the very least, feel like the deal was "built for them", not by a computer for everyone.

Yea I am sure people paying $150k for a Model S or Model X really love the personal feel they get from Teslas website. This is more boomer shit that people keep spouting like it’s reality.

 

[jfried]

Yea I am sure people paying $150k for a Model S or Model X really love the personal feel they get from Teslas website. This is more boomer shit that people keep spouting like it’s reality.

With all due respect, the "approach" of your post demonstrates a clear lack of understanding.

Just because there is a segment (reasonably large) of the population that wants to, and goes through the "Tesla process"; doesn't mean everyone wants to do things that way, or that, even a majority want to do things that way.

Nobody buys a Tesla Plaid because they need to. They buy a Tesla plaid because of the way it makes them feel. In that case, the "feel" comes from the car itself, but not every car (especially ones that Ford produces) can evoke that type of emotion.

 

[JBinFla]

I want to test drive a car first. Maybe not same one but one darn close to it in trim, same engine, etc. that requires a lot. This Tesla is awesome jive I hear is crazy talk. Where do you take your car to fix? So many inconsistent things. And a Tesla isn’t cheap, quality has been questioned a lot on both internet and the couple people I’ve know. Who have had one. Nice idea but the implementation is t what I would call the holy grail. I’d hate to think I didn’t have a local dealer who can fix my car, give me a loaner while they do it, and this whole “beta test to the public” thing I don’t like. Dumb idiots have killed themselves and others with this “autopilot” crap that was oversold. Ugh.

Sorry to rant I will stop now I didn’t mean to just that I see so many Tesla fanboys it makes my blood boil. Do I like what musk is doing? Yes. Is is better. I’m not sure, but I give it to him that he is trying. I just think he has applied a software development model to vehicles and recently ford has done this. How are your first batch F150 Poweboost guys loving that? Features you should have but don’t. Not sure exact cause (does anyone know) but I’d guess something different in the hardware that can’t be easily fixed or replaced and they’re trying to figure it out. The point is the Tesla model isn’t superior in my mind. The old tried and tried “it just works because we spent the money to test” not the “let’s see how this works” model is what I want. Where I live there some homes built with these flexible plastic pipes that were supposed to be the latest and greatest. Now? They’re forking out tens of thousands to homes because it turns out these things aren’t so great.

to the original topic? I like the idea flat rate and competitive pricing. But I still want a dealer with inventory to look at and touch. I would probably like the salesmen more when it wasn’t an adversarial arrangement. I bet most who have bought their car sight unseen at least looked at one similar on the lot. Or test drive one. These things are too expensive to just buy and hope it’s what I thought it was.

edit: i Typed this on my phone. Yeah it’s got some typos. Please excuse. Thanks.

 

[Begeorgy]

Very interesting how MSRP existed for many many years and no one ever paid it. And now so many people defend MSRP when prices are above. So that means MSRP means nothing, it’s market price. When inventory is in abundance you expect to pay less and when inventory is shot then you should expect to pay more. Very basic rule of supply/demand.
MSRP just like gas mileage on window sticker is meant to compare one car to another.
Also want to add on economy, since we love to made in America but don’t like to pay for it. Delivery fee on sticker doesn’t go to dealer. It goes towards transportation people(trains, car carriers, people in the yard sorting it out). By flying out and picking your car from the plant you save your self money and kill american jobs. And then we are all surprised why there are no american jobs. Everyone thinks only about themselves.

 

[DEEPDOWN]

Via WSJ (Wall Street Journal) -- Market Talk Mentioned: F 1003 ET -

Ford said part of the corporate overhaul to create distinct divisions for EVs and gas-engine vehicles will include big changes in the way dealers sell cars. Ford envisions a new process that will result in a non-negotiable price for EVs and rely on customer orders, rather than dealer inventories, said Kumar Galhotra, Ford's president of the Americas and international markets. Ford will work out details with its dealers over the next few months, he said. Dealerships charging above the sticker price has caused tensions between Ford and its dealers in recent months. ([email protected]; @MikeColias)

I’ve been watching this dealer gouging, with interest, and agree it’s awful. I’m fortunate to live in Windsor, ON (home of 5.0L V8 Coyote), and all our local dealers (7) are A/Z/X participants, which implies, that you either comply with pricing rules, on ALL ELIGIBLE VEHICLES, or you drop participation, and risk boycotting by the vast numbers of active/retired employees. The only caveat is(currently), only factory orders, and no stock purchases. I currently have a 2022 (2023?) Tremor 402A High fully loaded, on order, which may or may not get built before my current 21 Lariat Sport lease ends?
Any FYI for those unfamiliar with employee pricing, it’s invoice LESS 2% and only govt mandated taxes and fees (Licensing/lien reg on loans). NO ADMIN FEES ALLOWED!

 

[Begeorgy]

That’s incorrect for Lightning pricing. A-plan is $1000 off and not 2%

 

[Kev12345]

I want to test drive a car first. Maybe not same one but one darn close to it in trim, same engine, etc. that requires a lot. This Tesla is awesome jive I hear is crazy talk. Where do you take your car to fix? So many inconsistent things.

i walked into a tesla store just to check it out. sales person convinced me to do a test drive. within minutes they handed me a keycard and i was test driving the vehicle by myself. no sales person sitting next to me. i had no intention on test driving anything when i walked in. zero sales pressure. i ordered one on my computer later at home. best car buying experience ever. can't wait for ford to start selling direct.

 

[Begeorgy]

i walked into a tesla store just to check it out. sales person convinced me to do a test drive. within minutes they handed me a keycard and i was test driving the vehicle by myself. no sales person sitting next to me. i had no intention on test driving anything when i walked in. zero sales pressure. i ordered one on my computer later at home. best car buying experience ever. can't wait for ford to start selling direct.

That’s good for people that can decisions. Only 10-15% of people are like that. Most people will drive 25 cars and still don’t know what they want. Comes from a salesperson.

 

[monsterlag]

With all due respect, the "approach" of your post demonstrates a clear lack of understanding.

Just because there is a segment (reasonably large) of the population that wants to, and goes through the "Tesla process"; doesn't mean everyone wants to do things that way, or that, even a majority want to do things that way.

Nobody buys a Tesla Plaid because they need to. They buy a Tesla plaid because of the way it makes them feel. In that case, the "feel" comes from the car itself, but not every car (especially ones that Ford produces) can evoke that type of emotion.

You can’t be serious. Ford has pared down its portfolio so much that the only thing they sell are bangers, except the Ranger maybe. Most people don’t “want to do Tesla” makes no sense when most people can’t afford a Tesla. Ford has options at almost every price point and is one of the best candidates for a direct to consumer model.

 

[monsterlag]

Very interesting how MSRP existed for many many years and no one ever paid it. And now so many people defend MSRP when prices are above. So that means MSRP means nothing, it’s market price. When inventory is in abundance you expect to pay less and when inventory is shot then you should expect to pay more. Very basic rule of supply/demand.
MSRP just like gas mileage on window sticker is meant to compare one car to another.
Also want to add on economy, since we love to made in America but don’t like to pay for it. Delivery fee on sticker doesn’t go to dealer. It goes towards transportation people(trains, car carriers, people in the yard sorting it out). By flying out and picking your car from the plant you save your self money and kill american jobs. And then we are all surprised why there are no american jobs. Everyone thinks only about themselves.

What an idiotic rant. Unemployment is at some of the lowest it has ever been and you are out here ranting on a Ford enthusiasts forum that there are “no jobs”. Maybe reanalyze your media diet and get out from whatever basement you are living in.

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