Why would dealers offer discount off MSRP?

[matt]

I think it's just wonderful that after my local dealer tells me to pound sand and is going to charge me full MSRP plus a few fees to order, Chapman Ford offers me 4% off, a $400 fee and then has it shipped to my area and that dealer only charges me $250 to get it ready. Overall, I saved about $1,200 off my 8/20 order of a hybrid Lariat.

I also think it's wonderful that a dealer can put an ADM of $5K on any car on their lot as they struggle to survive a lack of cars to sell and even MORE wonderful that I can just drive right past their lot and elect not to buy.

Isn't free market America fantastic? It got us the Maverick!!!!!

This. Local dealer told me the same thing when I showed them the Grainger price. I would have been happy to split the difference with them but when they know I'm going somewhere else and won't come off sticker at all it is what it is. On the same note my truck is scheduled to be built next month and so far Grainger has been great to work with.

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[dalola]

Why would dealers offer discount off MSRP?

I would say dealers who have more repeat customers, and focus more on the long-term sustainability, are more prone to ethical and fair business practices. Just because you can, doesn't mean you should.

My small local rural dealer ordered my Mav on x-plan. Even tho I am a repeat customer, they would do the same with anyone. They were upfront about models they would order on x-plan (most), those that would be MSRP (Bronco, Lightning), and those that would be price adjusted (GT500). Lot inventory is priced to the market. They are still offering small discounts on F150 inventory.

In the end, we consumers dictate who thrives, and who loses, with our purchasing dollars.

 

[Davis]

In a perfect world I think Ford should have more control over what dealers are asking for vehicles. Also if Ford wants to do the ordering system then builds should be done by time stamps.

 

[athertonbt]

I think you'll see automakers go to a Carvana/Carmax model down the road. You order a vehicle, choose your options and pay for it online and it's shipped to the dealer or shipped to you directly, or you shop a lot where the price is the price with no negotiation. It's hard to believe that in a day and age where online reputation is disproportionately important to companies and shareholders that they will forever let the few sketchy dealers that are out there tarnish their brand name.

 

[sseiler]

I think it's just wonderful that after my local dealer tells me to pound sand and is going to charge me full MSRP plus a few fees to order, Chapman Ford offers me 4% off, a $400 fee and then has it shipped to my area and that dealer only charges me $250 to get it ready. Overall, I saved about $1,200 off my 8/20 order of a hybrid Lariat.

I also think it's wonderful that a dealer can put an ADM of $5K on any car on their lot as they struggle to survive a lack of cars to sell and even MORE wonderful that I can just drive right past their lot and elect not to buy.

Isn't free market America fantastic? It got us the Maverick!!!!!

Yeah, I agree with FriscoTXJoe here!

I mean, look, back in August when dealers from Iowa, PA, and KS we’re offering sub-MSRP, low fees, et cetera, I reached out to my local dealer. I told them these guys have the right strategy, and you all should jump on board. Your allocations would go through the roof. What did they do? . When I went up there, I told them face-to-face that they’d be wise to jump on that train. What’d they do? “Hmmm, thanks, Steve….” and then they did nothing. You know what? That’s on them. It’s a free market, and if dealers don’t get in the game, they lose out. Not to go all Hunger Games, but it’s basically survival of the fittest. Those who adapt, rise to the top. They’re not abusing the allocation system; they are using it to their advantage. What they lose on a single truck by going sub-MSRP, they make up for in sheer volume and quicker delivery.

Don’t hate the players, hate the game. And if you want to be pissed at somebody, be pissed at your local dealer for not stepping up and fighting for customers. It brings them money and it gets you a truck cheaper and faster.

What pisses me off is that my dealer decided to be lazy and not focus on customer acquisition outside this zip code. Consequently, I get to wait much longer for my truck than those who order from the dealers who hustled to bring in a nationwide customer base.

My mistake was not ordering from one of those places early. My reluctance was that I am fiercely in support of local businesses - even the ones that make poor business decisions like my Ford dealer. But, I dug my grave, and now I have to lay in it.

 

[dgnx6]

These dealers were abusing the allocation system, getting so many bulk orders from customers not in their primary area of business that they could receive more vehicles than they normally would on a weekly basis. The volume of sales offsets the small hit to profit on each vehicle.

That's great and all for people who can manage to deal with the barriers of access to a distant dealership. Not so much for people buying their trucks from small local dealers that didn't get their first Mavericks until Mid January because allocations got so borked.

We have a bunch of dealers in my area, larger city. They are all colluding and jacking up the price. So I went to a smaller dealer further away. It goes both ways here.

 

[huunvubu]

Anybody else wonder about this when so many dealers are charging premiums?

I think they are the smartest dealers If you want to talk about profit! All Maverick orders have now been cut off, dealers were not able to order inventory, Mavericks have turned into one of the hottest selling vehicles and the percentage of customers who don’t buy the Mavericks they order after waiting for months and months is probably greater than we realize! When there are no Mavericks at any other dealers you should be able to find them at those dealers that offered the discounts! It will be very interesting to see if those dealers add premiums when the trucks arrive.

When I canceled my eco boost order after locating a Lariat hybrid that had been turned down by someone and already shipped I keep getting notices on the one I canceled. When I asked the salesman he told me they did not cancel the order so they will have one available to sell. Smart!

I think I’m probably spending too much time reading all the threads on this forum and looking at all the accessories that everyone is buying LOL

Why would dealers offer discount off MSRP?

$3,000 OFF - DEAL CLOSED - Fight OFF the Price Increase with Granger Ford

The reason is right there in the opening paragraph:

The Details:

$3,000 OFF MSRP on any new Retail Maverick order placed from December 27th through January 24th.
$100 Non-Refundable Deposit Required
Only 2.0L Orders are being taken currently by Ford
As always $180 Doc Fee, $45 In-transit fee.
No drop-shipping, no other hidden fees.

Why? This is going to be a dual benefit. First, it will help our allocation for our early reservation holders. Second, it will be a great offering for anyone looking to purchase a Maverick and is willing to wait.

 

[Dun4791]

So, the end game is to piss the customer off, so the dealer has inventory to sell?

Actually if a dealer doesn’t deliver 90% of the customer orders to that customer, future allocation to that dealer will be affected. Ford wants the customers to get what they ordered while trying to prevent the ridiculous market adjustments by hopefully not allowing the dealers to have a lot of stock vehicles.

 

[Redneck Garage]

It was my understanding that dealerships did not get any allocations and the only way they would have any inventory was through customers canceling orders or backing out once the truck arrived

The allocation system is what Ford has in place to reward dealers with the most volume with the most vehicles and the fastest ship date. It is totally unfair with a customer order system due to the fact it matters WHICH dealership you order from - you could be waiting 2,4,6, months longer to get a vehicle if your local dealer is low volume. You would think that it would go by order date who gets their truck first ( taking into account supply chain shortages ) however that aint how Ford does it and hopefully will change that one day.

 

[Redneck Garage]

Won't argue with your statement. But....when local dealers treat their customers like crap, they go elsewhere.

Im confused by your statement - local lower volume Ford dealers will wait MONTHS longer to get their orders over Long McArthur or Granger - it isnt how they "treat people " it is the rigged system Ford has in place to reward the high volume dealers over locals.

 

[GreenLady]

I think someone should start a poll here to find out how many people have ACTUALLY EXPERIENCED this when they went to pick up their truck at the dealer. There's been a ton of people worried about it, scared it "might" happen, making rash judgements to bail out before their trucks get here, etc. But I don't see actual evidence this happening on a wide scale at dealers coast to coast? Just guessing here, but I'd guess it happens less than 10% of the time in ACTUAL transactions? Of course I could be certainly wrong, but curious to know how many times it ACTUALLY happened to people here?

It would be interesting to see! I’ve talked to several people who have ordered two or three Mavericks and I can’t believe everybody’s buying multiples so time will tell!

 

[GreenLady]

Actually if a dealer doesn’t deliver 90% of the customer orders to that customer, future allocation to that dealer will be affected. Ford wants the customers to get what they ordered while trying to prevent the ridiculous market adjustments by hopefully not allowing the dealers to have a lot of stock vehicles.

That’s interesting! I had not heard that before.

 

[Chris_G]

Im confused by your statement - local lower volume Ford dealers will wait MONTHS longer to get their orders over Long McArthur or Granger - it isnt how they "treat people " it is the rigged system Ford has in place to reward the high volume dealers over locals.

I said nothing about waiting. When the dealer doesn't respect a customer, the customer can find another dealer. The dealer can also find another customer.

 

[NJ Pinelands]

For the dealers like Chapman/Long, do the high sales give them a better chance at getting Lightnings and Broncos? Are they offering lower prices on those too? Around here, one charges $10,000 over and one charges MSRP. I wonder how many Maverick sales Ford loses because not everybody thinks about driving to another dealer?

 

[Redneck Garage]

I said nothing about waiting. When the dealer doesn't respect a customer, the customer can find another dealer. The dealer can also find another customer.

OK - thats even more confusing. The thread was :

bombast said:
These dealers were abusing the allocation system, getting so many bulk orders from customers not in their primary area of business that they could receive more vehicles than they normally would on a weekly basis. The volume of sales offsets the small hit to profit on each vehicle.

That's great and all for people who can manage to deal with the barriers of access to a distant dealership. Not so much for people buying their trucks from small local dealers that didn't get their first Mavericks until Mid January because allocations got so borked.

Your reply was :
Won't argue with your statement. But....when local dealers treat their customers like crap, they go elsewhere.

Are you just making a random statement Not related to what bombast said ? There was a "But" in your response which indicates a rebuttal of something he said. If thats not the case, then really you could insert anything in there like - But...... the aftermarket SIBL company shouldn't had drilled holes in the gas tank or But...... Ford should offer more color choices on the Super Duty line .....

Im just trying to figure out how a statement about the allocation system made by bombast relates to customer service from local dealerships.

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