Ford Shifting to Build-to-Order Model

[fordvideoguy]

Question is what does FordVideoGuy think of this since he's a dealer of a large Ford dealership. Does he think his dealership could survive on used cars alone.

Since May of this year, we have been surviving on a few stock units and ordering custom builds for customers since Ford wasn't building any stock units for dealers because of chip issues. Although there are some customers that like to get their vehicles this way (my father, brother, sister, myself), there are many customers that want to drive the vehicle first before committing to a special order.

And many customers that don't enjoy waiting 2-3 months to get their vehicles and let's not forget that their are customers that need a vehicle soon because of old cars breaking down and want it to be a new vehicle now. We have had a couple people cancel their Maverick builds because their current car isn't going to make it. Manufacturers need to allow dealers to stock lot units.

Sponsored

 

[flyjum]

Since May of this year, we have been surviving on a few stock units and ordering custom builds for customers since Ford wasn't building any stock units for dealers because of chip issues. Although there are some customers that like to get their vehicles this way (my father, brother, sister, myself), there are many customers that want to drive the vehicle first before committing to a special order.

And many customers that don't enjoy waiting 2-3 months to get their vehicles and let's not forget that their are customers that need a vehicle soon because of old cars breaking down and want it to be a new vehicle now. We have had a couple people cancel their Maverick builds because their current car isn't going to make it. Manufacturers need to allow dealers to stock lot units.

Ford should send out the training vehicles to each dealer and leave them with the dealer so customers can drive those around. If they like it then they can sit down and order the vehicle online with the dealership sales people helping with the options they want. There is only 3,000 or so Ford dealers in the US. The production capacity of most of the plants is near 1,000 vehicles a day.

Dealers do need stock lot vehicles but on a new unreleased vehicle the production should go to the vehicles are are essentially already sold to consumers. I understand a lot of dealers want to capitalize on the brand new vehicles as they can charge way above MSRP a lot of the time for them. A lot of younger buyers do not care about the dealership "experience" this is evident by the rise of buy online buy sight unseen type dealers IE Carvana. I think dealerships are going to have to adapt to a changing vehicle market and I think one of the many ways they can do that is by having the most up to date information on the vehicles.

 

[pointillistic]

Those test drive videos by the usual suspects are highly filtered. If for instance Alex on Autos would give a review on the Maverick, and he didn't like the way it drives, or didn't like the Hybrid powertrain, and has several less than perfect reviews in a short period of time. I wonder if he gets first review privilege's in the near future. I take drives by the big 5 reviewers with many grains fo salt. IMO YMMV

It will be quite the day when the driving impressions are posted.

I tru

Ford should send out the training vehicles to each dealer and leave them with the dealer so customers can drive those around. If they like it then they can sit down and order the vehicle online with the dealership sales people helping with the options they want. There is only 3,000 or so Ford dealers in the US. The production capacity of most of the plants is near 1,000 vehicles a day.

Dealers do need stock lot vehicles but on a new unreleased vehicle the production should go to the vehicles are are essentially already sold to consumers. I understand a lot of dealers want to capitalize on the brand new vehicles as they can charge way above MSRP a lot of the time for them. A lot of younger buyers do not care about the dealership "experience" this is evident by the rise of buy online buy sight unseen type dealers IE Carvana. I think dealerships are going to have to adapt to a changing vehicle market and I think one of the many ways they can do that is by having the most up to date information on the vehicles.

One would think that Ford, others will simplify options for bying online, but no they make it too complicated. Maverick is a hellscape of options and trims.

 

[kingdoms333]

Agreed, they make plenty on used car sales, though I suspect that is also the case for the higher volume/cost trucks being sold as well.

I have worked in the car industry for over 25 years. The average gross on used cars at a dealership runs on the average of about $ 1200 per unit. When you figure 25% + commission paid to salesmen, interest expense for holding the used car for sale an average of 45 days plus the administration/facility costs..etc....
The amount left for the dealer principal is probably around $ 300 per unit on a vehicle with an average cost of $ 18000 per unit in the inventory. Just information...only.....

 

[STARCOMMTREY1]

Not all of us prefer remote Amazon type transactions for everything we buy. Believe it or not some of us were buying cars before there was internet and cell phones! There is absolutely value added by physical dealerships when it comes to service, warranty/recall issues, obtaining parts, loaner cars, and having selection to choose from, test drives, to name a few things. I do understand younger generations don't prefer person-to-person interactions in their daily routines as much as previous generations, but many of us still do. Good to have choices!

I miss the days of serious haggling and getting the vehicle below cost.....

 

[MTMaverick]

I'm totally fine with this model. Last 3 cars I purchased all research was done online before buying, then it was just trying to find which dealer had the car in stock that I wanted and arranging to purchase it and pick it up.

 

[Red Ryder]

FWIW, I've been negotiating with car dealers since the early 80's. I used to have negative impressions of sales tactics and experiences, but honestly, they have gotten much better in the past few years.
My last three new purchases have been pleasant experiences.

 

[Shecster]

I can see this question from both ways. Yes, I'm old. But it's hard for me to make a $25,000 commitment for a car I haven't seen in the flesh. (I've sent $10 t-shirts back to Amazon 'cos the medium was really a small.) So, what does it REALLY look like? What's it like to get in and out of? What's it feel like in the driver's seat? (I loved my early 90s Tacoma. My 95 Ranger? Not so much.) What's the hybrid engine feel like? (I've never had one.)

So I will order a Maverick and wait for it. Because I've wanted a good, small pickup since I sold my Tacoma and 40 MPG in the city is impressive. And at $25k, which is the current price for a 5-7 year old F-150 or Tacoma, which are still too big, it looks like a bargain.

It's a new world and I'm trying to roll with the times.

Amen brother. I’m with you on many points. We can pick and choose from a number of purchase points and perhaps big business will take note and improve the options all around.
All cars both new and used ( oops previously driven by others ) , need a butt test. Does my body fit in this rig and do I want to spend time in it and be seen in it? From what I have seen so far online - Fords Maverick has a splendid chance of hitting at least a triple and end up in our garage. I will check it out in person first, drive one hopefully and then go to the net and do my homework on carving out a reasonable deal. Dealers need to make a profit, yes of course, but I will always enjoy the “ dickering and dollaring “ side of car/ truck buying. Yes I am older - but utilize a hybrid mind set when it comes to purchasing blending tech and in person visits.

Look we are gathered here on a website discussing a vehicle that many have yet to lay eyes on. But it works and we are engaged.
Have fun.....

 

[KeinoDoggy]

Yeah, by all accounts, not a great guy. But that 1930 season! Babe who?

 

[rclee]

If this Maverick is not what we all expect, Ford will be in a world of shit. Almost all of us have a refundable deposit. If we walk away and the vehicle is bad, they will have a bunch of Edsels on their lots and all their capitol will have already been spent. That is why they really need to get Mavericks to dealers so we can DRIVE them, before they make all of these trucks.

I really hope this will not be the case.

Hell, I was sold on this concept before it was even on their website.

Just food for thought.

 

[wyouger]

I miss the days of serious haggling and getting the vehicle below cost.....

Below cost??

 

[STARCOMMTREY1]

Below cost??

Yup. Catch them just right when that one vehicle means a huge bonus from Ford. Lose 1k make 15k

 

[pxpaulx]

Lots of interesting ideas in this thread!

What I think we see in the Maverick is the first real test by Ford of the build to order model. The Bronco will be wait-list for a while (year, two...three?), but the Maverick will likely subside into retail orders being fulfilled at some point next year (maybe a year max).

After that, I think the dealer stock will largely be mid-range XLTs with 2.0 engines (Which are still priced great FWIW), and the occasional hybrid (lariat and XLT).

Dealer stock aside, here is where I really think this is Ford's first true build to order test - pricing. Most of us have the impression that the price is a solid value. For that reason, I don't expect any of the periodic rebates/cashback deals that are common among any given vehicle being sold. The Maverick to me is priced at a point where most people will simply look at it and say yeah that is well priced - this way, the build to order makes sense because pricing is good enough that people don't feel the need to wait for additional incentives.

What would we be doing if the pricing were similar to the Santa Cruz? Probably not plopping down money and getting a car built, but waiting for them to hit dealer lots, and looking/waiting for additional incentives before buying. When I look at the Santa Cruz (which I don't think it awful, it is nice, though a little confusing on the interior/exterior in terms of design), I see a vehicle that is priced too high, and I would wait for it to be discounted.

Finally a thought on the whole waiting component of built to order. Once that settles and it is 8-10 weeks instead of an undetermined amount of time (as it is for many of us), most people that can afford to buy new, probably have the time to wait. People that need a new vehicle now are unfortunately likely in that situation due to other financial factors, and affordability of even a reasonably priced new vehicle is more likely not in reach.

 

[Falcon first]

My last 5-6 BMW’s I ordered, my last one an X3 I ordered out of Charlotte in Jan 2020 and got a quote on my trade in on line as well as negotiated a discount without every visiting the dealer (Hendricks). Only had to take about 10 pictures of the trade in. From the day I ordered to delivery was 30 days, yes 30 days. X3 was built in South Carolina and shipped 90 miles to Charlotte. I’ve bought ones produced in Germany and a Mini produced in England and 12 weeks was the longest time it ever took to deliver to the dealer. Just because you order on line doesn’t change recalls, service, loaner cars, negotiating or anything else.

 

[Red Ryder]

If this "build to order" model is truly Ford's future, then there might be lot of missed opportunities unless the whole industry follows suit.

I

Sponsored