- First Name
- Bob
- Joined
- Dec 25, 2021
- Threads
- 108
- Messages
- 1,997
- Reaction score
- 1,271
- Location
- New Jersey
- Vehicle(s)
- 2022 Maverick, 2003 MR2, 2019 Forrester, 1969 Z/28
- Engine
- 2.0L EcoBoost
Yes but Ford has said if dealers exceed a certain number of retail orders that do not go to the person that ordered it. Their allocations will be cut. Do not know if this actually happens. But one poster said his dealer gets one a year? Dealer must run out of a 7-11.Well, this actually makes sense. You see, the assembly plant can only make so many vehicles so fast. So, lets you use simple numbers. Lets say they can make 10,000 vehicles a year, that's about 192 a week. (completely made up numbers.) But every dealership should be able to get some.
There are "stock" orders and "retail" orders. "stock" orders are what a dealership orders for their lot, which they can add any markup they want. Used Mavericks on lots now are going for well over 10K over MSRP. "Retail" orders are for costumers that have paid a deposit and goes to them by-name. Some dealerships don't charge markups on retail orders. Mine doesn't.
So, Dealers generally prefer stock orders, as they can charge more for the vehicles. If their allocations are only limited to stock orders, then they could order as many retail orders as they wanted. They could have "Friends" order them, then say the customer "Backed Out" once it's delivered to the dealership. If it's a first-order-first-deliver model, then this would lead to a situation where some dealerships could order 5,000 Retail orders first thing in the morning. (TOTALLY made up and exaggerated to make my point), If that was the case, then the first 5,000 vehicles off the line would go to that dealership. This would, in turn, make it so other dealerships would have to wait forever to have an order delivered. Whoever orders the most first is the early bird and gets the worm.
Allocations are meant to help the smaller dealerships and spread the Ford product throughout all dealerships. This is so the large mega-dealerships can't hoard all the vehicles, run the smaller ones out of business and the product can get disseminated to all parts of the country.
So, with retail orders counting against their allocations, this creates a " Production Dam" so to speak, where the can control the flow of vehicles coming out of the assembly line and make sure they are equally dispersed throughout the country. Lets say a dealership has 5 allotments and there are 20 people in line to order. The dealership will have to order 5 a week, for 4 weeks. All retail and no stock orders.
Jim Farley has said he hates that dealership are charging 10K+ over MSRP and has addressed this through By-Name ordering, but the allocation process also helps to stem this.
It's not a perfect system, but I feel it's understandable, especially considering the overwhelming demand for the Maverick combined with limited production capability.
The only thing I can say is be the first in line at your dealership tomorrow morning.
Be the early bird and go get your worm!
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