ADM is now a Ford problem

[Mrpenn46]

I do not agree that dealers are customers of Ford in a way that Ford has no control over them. Ford undoubtedly has extensive control over its dealerships. As for a contract, there are many ways to establish a contract. At its core, you need consideration. When a dealer sends me an order form with pricing and I authorize them to use my unique reservation to place that order, that is arguable a contract.

The reason this is a Ford problem is that they have production issues. They also have customer issue (end buyer). They want brand loyalty and brand excitement. Their production challenges are already creating issues. Those issues are exasperated when dealers take advantage by unforeseen demand due to production issues.

This isn’t a “Class Action”. This isn’t even a threat of a lawsuit against Ford. I could pursue a claim against the dealer and may do it. (I am an attorney so not a big lift on my part). In the meantime, it shouldn’t have to come to that. Just do what is right.

I'm not a lawyer but I'd absolutely consider going after the dealership for breaking contract. If for no other reason than to prove a point and make them and every other dealer think twice about doing that to others. Doubly so if I was a lawyer.

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[mcalpal]

I know this topic has been discussed a few times. However, the ability for dealers to hold reservation holders hostage at purchase by forcing the buyer to accept ADM up charges or forgo the order is wrong. We made the reservation for the Bronco. We spec’d it out and placed the order. We anticipated Ford delivering to us our Bronco. Pricing was established at the order. Granted, there are dealer fees associated with delivery, tax, title, etc. But a pure mark up based on demand is wrong. The challenges with delivering Broncos has added to the demand. Dealers know it and are using it to their advantage. I purchased my Badlands yesterday. There was a $5K markup. When I balked at it, they said that is the going rate right now. I pushed back. I was basically left with either buying my bronco with a markup or watch it be sold to someone else and have to wait another year plus for a replacement. Ford has talked about holding pricing but that is meaningless when dealers are permitted to mark up the Bronco.

I love this Bronco. It is really an awesome Truck. Ford has done an excellent job. It sucks that the experience is tainted by BS practices of dealers. The worst part, I moved my early reservation from one dealer (that was non-response) to this dealer. So they would not have had my early reservation but for me. They Would have to wait on their other MIC top, constraint laden orders.

Hoping @FordMotorCompany can find a way to deal with this.

I'm in MD too and wondering if you'd be okay with sharing who the dealer is?

 

[SpeedTwin]

I thought at roll out Ford said dealers were not allowed to add markup on customer order Broncos? Did I miss remberer? That was a decade ago

 

[Tonka1]

No - I didn't sign a contract for a $53k vehicle, sight unseen, never driven and no idea when it will arrive.

I did sign a build sheet with them that authorized my order to be placed in Ford's system based on the options that I have selected. I confirmed via e-mail that my price matched my dealer's build sheet and I got them to state in the e-mail that was the agreed upon price and there would be no add ons.

If you had it in writing, then the dealer was wrong. You should've held your ground.

 

[mds5917]

The transaction is between the end customer and the dealer. Ford cannot dictate price to the dealer. They can hold back certain things like advertising or some marketing funds in some occasions, but generally cannot tell a dealer at what price to sell. If I dealer wanted to sell at a loss, that is their prerogative. If they want to mark up products, the customers vote by 'walking'.

That is why you have to have an agreement in place for your price - it was reiterated time and again back on this form to get everything in writing. If you have that, then you have a legal case for breach of contract with your dealer. If not, you get hosed and your dealer gets away with it. You can take to social media and shout their business practices in ways to make them rethink this, but it sounds like you paid the ransom. Sorry to hear as that sucks. It was your order and I would see if there are exceptions around custom orders that fall outside the general guidance I am giving on 'retail transactions'.


Edit: If you want more info on the legalities on pricing and manufacturers, here is some reference material from the Federal Trade Commission:

https://www.ftc.gov/tips-advice/com...ws/dealings-supply-chain/manufacturer-imposed

 

[jay-rod427]

It's not a Ford problem. It's a dealership and today's society problem.

With that said Ford could if they wanted solve the problem with a dual contract Minimum advertised pricing which is very common, and MSRP as a maximum selling price. Would require massive buttplug verbiage and thousands of pages of legal crap. And absurd $$$ spent on more corporate legal horseshit.

Or just remove dealers from the selling process all together, but that would greatly anger every dealership in existence.

 

[stratego]

I'm glad I work at an automaker that is trying to ruthlessly crush dealers out of existence. I'm generally against having pointless middlemen involved with expensive purchases for the purpose of job creation.

 

[St27964]

Go straight to Mike Levine on Twitter. Tagging FMC on this website won't get you very far. Mike has been really good about reaching out to customers with issues like this on twitter and following up with the dealers. Not sure you'll get anywhere, but he has taken on these situations over the last couple months. Good luck.

edit: This is another reason the long game with Granger, Chapman of Horsham and Stephens Auto Center was the right play for me and many others. I'm with Granger, but this situation is eliminated for buyers at these 3 locations. I should throw in the Texas Group Buy dealership as well, but I'm not sure what dealership that is. Again, good luck to you in getting some traction with Mike Levine or Ford on this.

Amen… glad to have connected with John at @StephensAutoCenter! They have been a class act and I know they aren’t going to screw us over at the last minute…

 

[GoTigersGoBronco]

The way Ford can fight ADM is by chucking out 100k units of Bronco. If you restrict ADM, they’ll just register the vehicles to themselves and sell as used.

 

[Bikeric]

I have my deal in writing with my Dealer regarding final out-the-door price. If I did not have that, would the signed Preview Order hold any sway?? Asking for others that might have had to sign the Preview Order letter as I did. Since it doesn't show ADM there I would think it's safe to assume no ADM later, but I'm not a Lawyer so....

 

[Tadel001]

I have ordered new cars before and have never seen this problem. yes, the customer can walk but that means they don‘t have the car they need/want. It is not as if Ford has more Broncos on the way. If the customer walks, the dealer post for sale, the truck is sold and the original customer is screwed. Ford cannot want that behavior. I haven‘t seen the Ford dealership contract but I have seen many other dealer agreements. Ford could easily address this through its contract.

The reason this is a Ford problem is that the dealer do represent Ford. It is Ford’s brand. When I said it is Ford’s problem, I am not saying Ford is in breach. What I am saying is that Ford is losing ground on an already challenging PR situation. It does have the power to limit this activity. If a dealer wants to spec order a car and mark it up, I have no problem with that. But when a customer orders a specific car that only the dealer could place the order through the reservation of the customer, there should be no ADM.

 

[Kevin W]

I had to go out of town to get a quoted price for my Bronco order. All my local Ford dealer would say is the price would be “fair”. Even now this dealership has a Wildtrak mannequin with a sticker price around 58k I think. But they won’t presell it to anyone for that price. They will only say when it’s available to buy the price will be “fair”. The salesman who went on my test drive with the Wildtrak asked me why didn’t I reserve with them. I told him because you wouldn’t give me a solid price quote. He said “we still can’t. The value of Broncos just keeps going up.”

 

[2021badlands bronco bob]

I do not agree that dealers are customers of Ford in a way that Ford has no control over them. Ford undoubtedly has extensive control over its dealerships. As for a contract, there are many ways to establish a contract. At its core, you need consideration. When a dealer sends me an order form with pricing and I authorize them to use my unique reservation to place that order, that is arguable a contract.

The reason this is a Ford problem is that they have production issues. They also have customer issue (end buyer). They want brand loyalty and brand excitement. Their production challenges are already creating issues. Those issues are exasperated when dealers take advantage by unforeseen demand due to production issues.

This isn’t a “Class Action”. This isn’t even a threat of a lawsuit against Ford. I could pursue a claim against the dealer and may do it. (I am an attorney so not a big lift on my part). In the meantime, it shouldn’t have to come to that. Just do what is right.

No sarcasm intended. I do hope you carry-on with your thoughts in regards to the dealership. Please keep us posted if you take the next step and how things go and be careful you’ll not be banned on this forum. Anytime the moderators see the word lawsuit I think they get all shook up. I‘m noticing some post disappear quickly . Again..good luck!

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