Dealer just requested another $400 to advance my reservation.

[sirdude]

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

That is what I thought as well. I verified that my place in line had not been shifted with Ford customer service when I moved it. Go Figure?

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[sirdude]

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

Customer service said I did. That said, I will check.

 

[GetWild]

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.

I forsee the opposite. Its rare in normal vehicles that people special order anymore unless its something like this with the Bronco.

 

[Bronco4lyfe85]

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

???

This killed me lol.

 

[ColonelAngus]

It looks like they want you to do a buyers order which is essentially locking in your purchase. If this is to complete the full deposit for your order its not necessarily wrong. They can require more than the $100 to place an order for you. I would just call and confirm that this will satisfy all requirements for your order. My guess is they are just trying to get all of their ducks in a row. I haven't looked in WBDO (our ordering system) but if they now have the option to build your order and prep for submission... this isn't that crazy. I wouldn't flip out over it, unless they won't give you a commitment on their final pricing.

 

[GetWild]

Yes sir, I believe that you would see two things happen with American cars.
One - The MFG would lock in MSRP to a low growth or flat trajectory for 2-4 years to diminish the delta between a value with no real meaning and their invoice amount. No dealers means no need to hide profit in separate buckets.
Two - Competition will create regional rebate programs to gain market share based on geo wallet spend. The net result would be close to the same as what you see now where FMC will give you $1,000 to finance with them, and anywhere from $500-$10k off based on multiple success factors for the corporate bottom line.
* This would not help the Bronco now as a key metric is days of inventory, and they will not have any for 18 months.

Except that invoiced amount becomes much higher due to required overhead, staffing, ect. If this was a phone with only a few options, sure. With vehicles, that's not the case. There is no situation where getting rid of dealers suddenly drops pricing for consumers. Manufactures will 1000% incure additional costs, and those costs aren't going to just go away. There will still be brick and mortar locations that will have to be out there.

 

[Harv83]

Except that invoiced amount becomes much higher due to required overhead, staffing, ect. If this was a phone with only a few options, sure. With vehicles, that's not the case. There is no situation where getting rid of dealers suddenly drops pricing for consumers. Manufactures will 1000% incure additional costs, and those costs aren't going to just go away. There will still be brick and mortar locations that will have to be out there.

The overhead will always be there, however the second helping of profit that the dealer adds on for his business will not.

 

[GetWild]

The overhead will always be there, however the second helping of profit that the dealer adds on for his business will not.

Your argument is as if dealerships wouldn't exist. They would still exist, just not privately owned. Instead they would be owned by manufacturers. So all liability ect, would be the cost on the manufacturer. Locations will have to exist. Even carvana understands that and has actual locations. The Tesla model? They have dealerships. The problem is the premise that its wrong for dealers to make a profit. Tell me, how much product do you buy directly from the manufacturer, and how much markup % is in the average product you buy from a retailer? Just because its a higher priced product, doesn't mean the business model is any different.

 

[WadeWolf76]

 

[jaspercasidino]

I like the part of the instant gratification where you spend all day at the dealership and the salesman has to keep going back to the manager. “I don’t think the manager is going to go for that, but I’ll see if that’s something we can do.“. Then after all those games, you get to go sit with the finance guy who tries to up sell you on interior protection warranty and whatever else they try have going on.

When I buy pineapple pizza, I know there is profit baked into (see what I did there) the price, but I don’t have to negotiate with the pizza place to get a good deal.

I love cars, but hate buying them. Dealerships are part of the process. I wish there was more clarity in the process and I wish there was a good deal for fixed pricing with no negotiation required. That would be an eXceptional plan!

 

[TexAg13]

Hello,
Brand new to the forum, recently placed a reservation with Ravenel Ford in Ravenel SC. Just received an email from them requesting another $400 to continue the reservation process. They also say they can't commit to X plan pricing. Thinking of moving my reservation. Has anyone else experienced this yet? Thanks in advance.

In the Upstate here. I just moved my reservation to Two Rivers just outside of Nashville. They are offering Invoice pricing, 25% off accessories, will give us all rebate money available, and will honor X-plan pricing at pickup to cut fees down to $100. Matt Barker, the contact I have been working with, has been very transparent. Family owned business. Very much seem true to their word and no haggling process. There will be no surprises. Highly recommend. Beats going to West Virginia in my opinion.

Not to mention, when I changed my reservation to Two Rivers from my local Upstate dealer, I did not have to put another Ben Franklin down with Two Rivers. Respect this as well.

 

[TexAg13]

I live in Greenville SC and have since 1997. I have had zero luck with any dealership negotiating a below MSRP deal. I’ve bought six mustangs and two GT350’s. I have always bought out of state due to this. Dealing with dealers here is impossible. I had a deal done on a GT for 4 grand under MSRP from a dealer in GA. Fairway Ford said it would be a bait and switch and refused to match. I drove just outside of Atlanta and signed and drove out about hour and half later. I am sure there is a good dealership out there but I have yet to find them. I’m flying to Granger to pick mine up. I have had no bad experiences buying out of state. Knock on wood.

Sam experience, I am in Greenville. Called of them and they told me to take a hike basically. I am going with Two Rivers in Nashville area. Just put a post on this below, Invoice pricing, 25% off retail prices for accessories, all rebate money, and will honor X-plan to cut fees to $100.

 

[DC9atnight]

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.

???

This killed me lol.

Right?! I actually like my Bronco dealership a lot and ones like Granger prove that there are really good ones out there and I could even make two or three convincing arguments why we should keep the dealership model in place but to argue that "eliminating the dealership model will cost the consumer more money" was not on my Bingo card.

 

[GetWild]

Right?! I actually like my Bronco dealership a lot and ones like Granger prove that there are really good ones out there and I could even make two or three convincing arguments why we should keep the dealership model in place but to argue that "eliminating the dealership model will cost the consumer more money" was not on my Bingo card.

May not be on your bingo card, but in some markets, thats a harsh reality. There's markets out there that advertise deals that are ridiculously good and in favor of the buyer if the buyer is willing to play the game (finance for a few payments). Theres dealers out there more than willing to work the system some to benefit the customer as long as the dealer can get a win. Our goal is always a win win situation. So if there weren't dealers in our area, yeah it could easily cost consumers more in some markets.

Are there bad dealers out there? Sure. Are there good dealers out there who get treated like they are bad dealers? Sure. It goes both ways though. There plenty of situations of customers coming in saying "I know you need to make a profit, it just won't be on me." How about those "thats not the real invoice, show me the real one" guys? Were in the internet age. Theres fewer dealers than people think practicing shady old school ways than people think.

 

[Jpeyer]

There are a lot of good dealerships out there. Unfortunately I don’t know how many people these below invoice dealers are going to attract. With the 50/50 model it we’ll definitely affect there allocation number on the back 50. That is, if they are a smaller dealership. I think truck/suv sales are going to drive the back 50 for allocation. Just because they are reserved doesn’t mean they will all be allocated on that model with these smaller dealerships.

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