Dealer penalty?

[chownd]

I've long been wondering what the penalty was for selling an order to someone else.

I've heard it's severe but no idea what it is.

I doubt many would take an order from Alice and sell it to Bob directly. But what's to stop a dealer doing a price gouge at delivery via ADM or some other made up fees? Or intentionally massively under pricing trade in? And price Alice out of completing the transaction? Dealer could just sheepishly be like "Alice didn't want it" and now it's their 's to sell?

For a while, a bronco sold on a dealer floor would be able to command a huge premium I'd assume. You'd have a furious would be customer, but a happy new bronco owner plus a fat stack for the dealer.

Edit: what recourse would Alice have? Could flame the dealer in reviews obviously but that is the equivalent of doing nothing

Anyone have specifics on what ford is threatening so this doesn't happen?

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[Hey19]

Actually a good point. When you go in to place your order the price should be agreed upon then and paperwork signed. If they deviate from that then you may have some recourse.

 

[Taco_Sexual]

It's a valid point but I can't imagine a dealership would want to take the blow to their reputation and lose long-term customers for parts/service. I'm sure there will be some cases like this with behind-closed-doors deals being made with customers (that don't have a reservation) that approach a dealer and tell them, "I'll give you 'x' amount above MSRP if you can get me a MY21 Bronco." Everyone has their price...

 

[JesseS]

the good faith contract you sign when you order, Ford takes a dim view of bait and switch.

 

[Firefly]

One is already compromising the value of a trade-in simply by not selling it for retail. The fact that the trade value will be negotiated later than the bronco price and final dealer selection further dissempowers the customer. Nothing can be done about it except taking the trade out of the equation.

 

[Toccoa]

Anyone have specifics on what ford is threatening so this doesn't happen?

 

[Mac n Nevada]

Be hard for that dealer to sell that Bronco that mysteriously caught on fire in the middle of the night...?

 

[chownd]

It's a valid point but I can't imagine a dealership would want to take the blow to their reputation and lose long-term customers for parts/service. I'm sure there will be some cases like this with behind-closed-doors deals being made with customers (that don't have a reservation) that approach a dealer and tell them, "I'll give you 'x' amount above MSRP if you can get me a MY21 Bronco." Everyone has their price...

With so many people bopping around to different dealers then their normal one price hunting, there's not much risk of losing a loyal customer.

There'd be zero legal recourse for this and I can't imagine the would be customer wanting to fight that fight.

Ford or other manufacturers must have some sort of function discouraging this (or maybe incentivizing not doing this, carrot vs stick). Really curious what it'd be.

Some people are traveling hundreds of miles to pick up their product. I don't think any of the dealers on here would do this at all fwiw but if the dealer pisses someone off out of state, why would they care? Go to any dealers reviews and there are a couple all caps, one star reviews for every one of them. A few bad reviews online isn't going to hurt their bottom line one bit.

There's got to be something

 

[NonfatWombat]

Although the details are still a little murky as to what situations Ford deems worthy of penalizing a dealership - my understanding is the penalty will likely be reductions to their future Bronco stock allocation. I don't think "savvy" dealers are prepared to risk that.

 

[Toccoa]

Although the details are still a little murky as to what situations Ford deems worthy of penalizing a dealership - my understanding is the penalty will likely be reductions to their future Bronco stock allocation. I don't think "savvy" dealers are prepared to risk that.

I don't think Bronco allocations would bother them. However, F-Series allocations would get their complete and undivided attention.

 

[chownd]

Although the details are still a little murky as to what situations Ford deems worthy of penalizing a dealership - my understanding is the penalty will likely be reductions to their future Bronco stock allocation. I don't think "savvy" dealers are prepared to risk that.

I get that but if they do bait and switch on price, how would ford know?

"Hey you ordered a bronco for Bob? Why'd you sell it to Alice?"

"Oh .... Yeah they didn't want it ?"

Basically what's the number for the bat phone to call Mama Ford and report a unscrupulous dealer? And what would they do?

 

[NonfatWombat]

I don't think Bronco allocations would bother them. However, F-Series allocations would get their complete and undivided attention.

Valid point!

 

[Wanted33]

Dealers like Granger along with Zach, and Albert @Granger Ford are putting their reputations on the line. And that reputation runs all the way from their loyal customers, to other Ford dealers all the way up to Ford corporate. I can't see them running a scam just to get one Bronco to one buyer for a quick buck. Once ones reputation is ruined it never recovers to the fullest. Myself, and I highly suspect Zach, and Albert hold that reputation dearly, and do not want to screw it up for a little money.

 

[NonfatWombat]

I get that but if they do bait and switch on price, how would ford know?

"Hey you ordered a bronco for Bob? Why'd you sell it to Alice?"

"Oh .... Yeah they didn't want it ?"

Basically what's the number for the bat phone to call Mama Ford and report a unscrupulous dealer? And what would they do?

Like I said, it's murky. I imagine Ford will be monitoring deliveries closely for this very thing. I'm sure they'll have an algorithm in place to flag customer name changes that are above a certain threshold. All speculation on my part.

 

[Bigmoose]

Don't know how your dealer operates but when I've ordered vehicles in the past we both sign a purchase and sales agreement which is a legally binding contract. All the costs are layed out in the contract. If they choose to not sell it to me there are legal recourses.

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