Dealer just requested another $400 to advance my reservation.

[sirdude]

I changed my reservation last week from one local dealer to another. In order to do that I had to cancel my existing reservation and make another one for the new dealer. The Ford rep said they would send me the reservation back in 7 days and would not require another 100 for the new reservation? I'm a little befuddled and he wasn't sure why they were doing it like that. After we got off the phone, about 10 minutes later the new dealer call and said they had the reservation.

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[DC9atnight]

ah yes, eliminate the dealers..... so everyone just pays MSRP. You think the manufacturer would discount anything beyond the rebates at that point? You think getting rid of dealerships would make anything cheaper or create a better deal?

yes

 

[GetWild]

yes

yes you think getting rid of dealers would lower the cost?

 

[Orf]

yes you think getting rid of dealers would lower the cost?

It likely would. Ford sets Invoice price, minus holdback, as the price they can live with. MSRP is created to make dealers happy.

 

[Johnny Mo]

I changed my reservation last week from one local dealer to another. In order to do that I had to cancel my existing reservation and make another one for the new dealer. The Ford rep said they would send me the reservation back in 7 days and would not require another 100 for the new reservation? I'm a little befuddled and he wasn't sure why they were doing it like that. After we got off the phone, about 10 minutes later the new dealer call and said they had the reservation.

It's NOT supposed to be cancel and rebook - it is just transfer, so you don't lose your place in line.

 

[DC9atnight]

yes you think getting rid of dealers would lower the cost?

Now that you put it that way, let me think about it a little longer. Hmmm. An extra layer of business overhead and expenses, a traditionally not very transparent business model, no fixed price for everyone where less informed customers pay more. Give me a second here...

yes

 

[Musicalfisherman]

I changed my reservation last week from one local dealer to another. In order to do that I had to cancel my existing reservation and make another one for the new dealer. The Ford rep said they would send me the reservation back in 7 days and would not require another 100 for the new reservation? I'm a little befuddled and he wasn't sure why they were doing it like that. After we got off the phone, about 10 minutes later the new dealer call and said they had the reservation.

I'd verify that you still have the date & time of your original reservation. I don't think you're supposed to cancel and make a new reservation - should just be a transfer between dealers

 

[GetWild]

It likely would. Ford sets Invoice price, minus holdback, as the price they can live with. MSRP is created to make dealers happy.

highly doubtful. MSRP is the Manufacturers Suggested Retail Price. i.e. what the manufacturer suggests the retail price should be. not sure why you think a manufacturer, without a dealer to appease, would settle with the minimum profit margin they are willing to settle with. that of course being your "invoice minus holdback." Having dealers takes cost away from manufacturers. if you remove the dealer, the manufacturers cost goes up. the idea that dealers are the end all screw over of consumers is a bit laughable if you actually break it down, but ok.

 

[GetWild]

Now that you put it that way, let me think about it a little longer. Hmmm. An extra layer of business overhead and expenses, a traditionally not very transparent business model, no fixed price for everyone where less informed customers pay more. Give me a second here...

yes

by overhead, you mean overhead that the manufacturer would then have to cover? gotta store those vehicles somewhere right? gotta have locations that people can go out and test drive and pick out a car. people live in a society where they seek instant gratification. there would still have to be dealerships no matter what, even if solely owned by the manufacturer. at that point, yes you would get your set price. MSRP minus rebates. no negotiations, no discussions.

 

[Orf]

highly doubtful. MSRP is the Manufacturers Suggested Retail Price. i.e. what the manufacturer suggests the retail price should be.

‘You missed a little something. What the manufacturer suggests the retail price should be, so the dealers can make money, too. Ford does not see any of the extra money beyond Invoice, minus holdback.

Edited to add:

I am only talking about factory ordered vehicles like the Bronco now. The dealer has no inventory cost on these, and will be able to sit on the money for up to 30 days before paying for converted orders.

The old dealership model will change in the future.

 

[GetWild]

‘You missed a little something. What the manufacturer suggests the retail price should be, so the dealers can make money, too. Ford does not see any of the extra money beyond Invoice, minus holdback.

they also dont handle the overhead of storage of the vehicles, staff for people to test drive, sell, paperwork, showcase, insure, title, ect. getting rid of the dealer doesnt magically make a major aspect of the whole thing go away. it simply passes it on to the manufacturer. so if that increases the general cost of each vehicle to the manufacturer, what happens to the price? Goes up right?

 

[GetWild]

‘You missed a little something. What the manufacturer suggests the retail price should be, so the dealers can make money, too. Ford does not see any of the extra money beyond Invoice, minus holdback.

Edited to add:

I am only talking about factory ordered vehicles like the Bronco now. The dealer has no inventory cost on these, and will be able to sit on the money for up to 30 days before paying for converted orders.

The old dealership model will change in the future.

I get your idea on ordered vehicles, but the model of only ordered vehicles will never work. there has to be inventory out and available. we live in a society of instant gratification.

 

[Orf]

I get your idea on ordered vehicles, but the model of only ordered vehicles will never work. there has to be inventory out and available. we live in a society of instant gratification.

‘And I agree with your take when the vehicle comes from your inventory. Converted Reservations don’t fall in to that category. Neither does any other model that the customer orders from the factory.

 

[GetWild]

‘And I agree with your take when the vehicle comes from your inventory. Converted Reservations don’t fall in to that category. Neither does any other model that the customer orders from the factory.

correct, but outside of this bronco, thats not a realistic conversation as 99.9999999% (i could keep going lol) are vehicles that are already on lots. not custom orders. changing the whole model because of the bronco is a joke.

 

[Orf]

correct, but outside of this bronco, thats not a realistic conversation as 99.9999999% (i could keep going lol) are vehicles that are already on lots. not custom orders. changing the whole model because of the bronco is a joke.

I think you’ll see the business model change. I believe, in the future, more And more vehicle sales will be built to order. That, or the Carvana model will be more prevalent in the new car market.

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