Transition to EV, why Ford/GM still need dealers to sell the trucks?

[SCandTC]

Most people would identify easily when you bend the doll over .

Just because for the first time in 10+ years it’s now a sellers market. Did you feel the same way when you bent the dealer over?

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[rydfree]

Just because for the first time in 10+ years it’s now a sellers market. Did you feel the same way when you bent the dealer over?

My father sold cars for 30 years so I know that nobody ever bends the dealer over. If you think you have then you are bent so far over you know where your head is ,lmao

 

[SCandTC]

My father sold cars for 30 years so I know that nobody ever bends the dealer over. If you think you have then you are bent so far over you know where your head is ,lmao

I’m sorry your secondhand knowledge of the business is affecting your brain

 

[rydfree]

I’m sorry your secondhand knowledge of the business is affecting your brain

Have a nice day. You are truly a remarkable individual

 

[techguydave]

lmfao, I guess those games they play work cause this guy clearly thought he was able to somehow one-up them in the past.

Even if you get a seemingly good deal, you still lost the game just by engaging them in the first place.

 

[Kev12345]

I’m sorry your secondhand knowledge of the business is affecting your brain

are you saying dealers struggle to make a profit under normal circumstances? LOL

 

[shutterbug]

Show me on the doll where the bad car salesman hurt you

As much as I think that the auto dealership system is a necessary evil, it is still evil. It does boggle the mind that some folks think that adding ADM on top of decent profit margin, is somehow a good thing.

 

[SCandTC]

are you saying dealers struggle to make a profit under normal circumstances? LOL

So it’s 2018, you’re buying a new F-150 Lariat at ABC Ford. You agreed to $800 below invoice with a $399 dealer handling fee, no add one. You’re paying cash. What’s the dealer making off you?

 

[rydfree]

So it’s 2018, you’re buying a new F-150 Lariat at ABC Ford. You agreed to $800 below invoice with a $399 dealer handling fee, no add one. You’re paying cash. What’s the dealer making off you?

Probably 3k from the kickback at the end of the year. That varies by dealer but some dealers can sell for a couple grand below "invoice" and still come out well.

BTW , what dealership do you work at ?

 

[Snakebitten]

I'm a Texan. So I'm a hillbilly regardless of.... Well, whatever.
Forums truly can be hilarious.

28 million people and we are all the same because of our address.

 

[SCandTC]

Probably 3k from the kickback at the end of the year. That varies by dealer but some dealers can sell for a couple grand below "invoice" and still come out well.

BTW , what dealership do you work at ?

Been out 6 years, just know the actual profit margins unlike so many arm chair experts here.
I’m talking the actual accounting on the specific truck. Plus Ford has got rid of all their stair step bonuses for the most part (region specific). Also holdback on a Lariat won’t be above $2,300 so $3,000 under invoice they’re losing money.
Sales guy you treated like shit gets $100 for spending 4 hours with you. Lot guy that cleans the truck for delivery is making $15-20/hour. Finance and management won’t make money since it’s a triple net loser.

 

[Kev12345]

So it’s 2018, you’re buying a new F-150 Lariat at ABC Ford. You agreed to $800 below invoice with a $399 dealer handling fee, no add one. You’re paying cash. What’s the dealer making off you?

It’s not the sale of the new vehicle. The dealer makes ample money on your trade in, warranties, dealer add-ons and service. also periodically the manufacturers offer a bonus if you move a certain number of units by specified dates. But you already know this. Dealers do well.

Nice try tho.

 

[SCandTC]

It’s not the sale of the new vehicle. The dealer makes ample money on your trade in, warranties, dealer add-ons and service. also periodically the manufacturers offer a bonus if you move a certain number of units by specified dates. But you already know this. Dealers do well.

Nice try tho.

reading comprehension.
Cash deal so no warranty purchase as usual. No adds as I said. You aren’t going to the dealer for service and deals aren’t made based off of that regardless. Pre-Covid many dealers will show a negative front end gross only to make a positive deal with holdback/d&h/etc.

But you’re sitting on your armchair, so you already know this.

Nice try though

 

[xtraman122]

When Tesla was fighting the Colorado legislature to open up their second location, Ford and Toyota had statements prepared on Tesla's behalf. In short, the legacy automakers are not too keen on the laws protecting the dealerships and how much power these dealerships have over their products. The only people opposing Tesla, Rivian and others from opening factory stores have been the Auto Dealers Association and their lobbied officials. So we no longer have all the restrictions here in regards to factory stores and direct sales. Many other states are progressing similarly. Some states (looking at you, Texas... And most of the South-Eastern seats) love to pretend they're all about freedom and personal rights and such, but they're all a bunch of ass-backward cronies and hillbillies that continuously sabotage their own self-interests.

I think the days of dealerships setting prices on new vehicles and charging ADM and all that are numbered. They're only accelerating their demise by the shenanigans some are playing with the Bronco and Lightning. In states like ours, there's absolutely nothing standing in the way of Ford simply selling directly to the customer. All you'd end up with is a few butt-hurt dealerships that would cry foul because they couldn't screw a customer who desperately needed a new car or something.

Ford can't dictate the price a dealership sells a car for when that dealership is the middle-man or reseller from Ford to the end customer. However, if Ford sells the vehicle directly to the customer and just uses the dealership as a delivery and service location, paying the dealership a pre-negotiated commission and service fee for delivery of the new vehicle, then suddenly all that AMD nonsense and differing fees all go away. Dealerships can focus their marketing efforts on their service departments and aftermarket sales.

In the near term, Ford or other automakers could set up their own factory stores in certain locations that would sell at MSRP and that would all but stop the price-gouging at other dealerships within a certain radius. Also what would really curb the price-gouging and shenanigans is if Ford would just go off time-stamps on their custom orders and not prioritize their bigger dealerships with more allocations. Not only is the current system, especially the way it's been handled with the Bronco, completely unfair to customers, but it makes it very hard for newer or smaller dealerships to find any traction in the market.

Makes me sick knowing I've never been able to convert my day-1 Bronco order and yet a local dealership I drive by almost daily is part of a national conglomerate who's getting tons of allocations. They routinely have 4 or 5 Broncos parked out front with $15K+ ADM added to the sticker price. I'm still not convinced that my first few minutes Lightning reservation won't turn out the same way.

We have the same situation here in MA. A few billionaires own literally dozens of dealerships each across the state and own all the advertising on TV/billboards and just make an absolutely killing on all their poor customers. Nice big flashy dealerships, tons of sleezy sales reps, and service departments doing more business than I care to imagine. One of them is even shamelessly admitting to their shady markups on their current ads, justifying it by saying it’s fine because trade in values are at an all time high.

 

[GarageMahal]

reading comprehension.
Cash deal so no warranty purchase as usual. No adds as I said. You aren’t going to the dealer for service and deals aren’t made based off of that regardless. Pre-Covid many dealers will show a negative front end gross only to make a positive deal with holdback/d&h/etc.

But you’re sitting on your armchair, so you already know this.

Nice try though

So money earned from holdback does not count toward profit? Short answer: dealers who don't sell cars for a profit don't exist for long.

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