Ford is done with car dealers video..

[Ice_GopherFC]

so...a hundred plus years of dealers buying politicians to set up laws protecting their franchises is going to be reveresed in the five to ten year range... per some guys on a youtube channel who are not in the business. Seems legit....

Maybe you should go back to getting worked up over people complaining about e-brakes?

You need a hobby to eat up some of your free time, seriously.

Found the triggered dealer...

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[Daktari]

to make them really go away you need to change the laws the dealer lobby bought and paid for, not gonna be easy.

And many people will still want a dealer to compare different (used and new) models, test drive, etc.

That being said, I bought my Bronco basically fully online. Reservation night one, order was done via e-mail, dealer just asked me for a my build and price and saying I authorize them to order it like that for me. Never talked to anyone in person. Never set foot onto their grounds until the two show Broncos came through town, that's also the first time I met and talked to "my" sales man. About the Bronco, not my order at all.
First time I set foot into the dealership was to sign papers and pick up my ordered online Bronco. I had test driven their mannequin a while before (only met with my sales man outside and he gave me the key), so skipped the test drive on mine, figured there won't be any glaring issues by going around the block. Only gave it a quick once over visually and sat in it, went in, signed papers, out the door with key in less than an hour and we had to wait for the finance lady to be done with an other customer. Otherwise we'd have left within 30 min. This is by the way exactly how I bought my Tacoma 19 years ago, same process. Just that the "invoice price" published online back then was actually the price the dealer paid, I offered $500 over that and got my truck. Don't remember what website I used back then, probably long gone. Using Netscape with a dial up modem from at home.

I know I'm lucky, dealer also gave me xplan for reasons I don't understand but also didn't question. And service has been outstanding so far, so there are good dealers out there. I never bought a Ford before and just picked them since they're in my town and maybe a mile from my house.

Ford needs to reign in the ADM bullshit, not sure how far they can punish dealers under the current laws and those vary state by state. That and idiotic stuff like nitrogen in tires is I think really all that most are pissed off about. It's possible to buy online, a couple more steps (e-mails) than a 'buy now' button, but easy. Fix that nonsense of robbing customers, I think that's really all that needs to be done? Teslas mobile in your driveway service is neat, but really not feasible for ALL cars that are out there. And I don't think you can bring your Tesla to "Joe's Garage" even if you wanted to. Locked into their system - and prices - for ever. Meh.

 

[ed_Rocket]

One might argue that if you can buy a car in a vending machine like a candy bar, its become a commodity or very close to one.

 

[John Auer]

It's not just stereotypical. My experience with dealerships has been terrible, and I'm clearly not alone. The dealership model is antiquated, and I believe will be replaced.

Most people would rather have a colonoscopy than go to a car dealership.

 

[John Auer]

Ask an airline CEO where the 'secret sauce' is in their business. There isn't one; its all commoditized.

Unthinkable 50-60 years ago...my relatives wore their Sunday-Best, long white gloves included, to board a plane. Today its a cattle-car.

Years ago, plane ticket prices were controlled by the government. Once the industry was deregulated, prices dropped like a rock.

 

[pfbz]

Interesting speculation...

Two thoughts:

1. With a direct-to-consumer model like this, innovation and execution is everything. Ford cant seem to do either very well... Will creating a new sub-entity resolve this? I wouldn't bet on it...

2 If Ford tries to circumvent their existing franchise agreements by claiming 'model e' is a completely separate business, it really better be a 100% different company (which Ford will struggle with, see #1) , and expect BIG litigation to arise.

But challenges aside, I'd be happy to see the transaction. Auto dealers offer extremely little added value these days in either sales or service.

 

[ocbucks1]

To all the price gouging dealers. You should feel responsible for part of this. Everything comes full circle.

Soon they will be done with all stealerships. Broken model. Not needed. Middleman waste.

 

[ROKBRNC]

 

[Markpf189]

Dealerships did this to themselves, with their ridiculous markups and predatory behavior to consumers when trying to sell them on finance add-ons.

 

[Carolina Jim]

Once the industry was deregulated, prices dropped like a rock.

You're right...dereg accelerated the decline. But what Really commoditized airlines - and will likely do the same to autos - is the end of the good-better-best marketplace. Your pic looks like you might remember the old Sears catalog days, the epitome of that 3-tiered market.

You were lucky if your "good" product lasted through the weekend. The Japanese quality revolution ended all that.

 

[JaxGtc]

Ford has the logistics of moving cars in large quantities down pat. All they need is last mile. They could partner with someone like Amazon and deliver them to the customer's door by appointment, with trained and expert prep and delivery staff. Recall that $1500 delivery fee is already baked into the equation. All of the paperwork and finance can be done though local banking partners (already present). Probably a lot more that would have to be worked out, but it is likely closer to possible than anyone thinks.

 

[phocion]

Dealerships did this to themselves, with their ridiculous markups and predatory behavior to consumers when trying to sell them on finance add-ons.

I view this as simply a natural evolution of the car-buying marketplace.

In the past, the manufacturers really needed local franchisees. They didn't have the ability to understand local markets across the country and maintain direct relationships with millions of customers. The territories of the dealerships overlapped slightly to provide enough competition that the customer didn't get completely hosed. I think the dealership model was the best they could do, in 1960.

With computers and the Internet, that all changed. Now it is commonplace for large companies to sell expensive products direct to millions of customers. There are ways for customers to communicate with one another and keep the manufacturer accountable. It's way easier for Ford to give people a uniform purchasing experience no matter where they are. The complex logistics of nationwide shipping to individual customers is a solved issue. There are firms that would be willing to step in to provide third-party inspections and service, if the customer isn't comfortable dealing directly with Ford.

The dealership model survives because of inertia and legal protection. Without those things, I think it's gone, and the people who think they will miss it for some reason, actually won't.

 

[stratego]

Found the triggered dealer...

I work for an OEM without dealers and the guy is not wrong. Getting rid of dealers is insanely difficult. Your average millionaire in a small town is a car dealer owner, and there are also large, F500 companies that own chains of dealers. They are not going to let their investments go to nothing and both groups are extremely influential.

I think dealers have less good will than ever before, but even if the laws were changed tomorrow, it would be an uphill slog.

 

[John Auer]

You're right...dereg accelerated the decline. But what Really commoditized airlines - and will likely do the same to autos - is the end of the good-better-best marketplace. Your pic looks like you might remember the old Sears catalog days, the epitome of that 3-tiered market.

You were lucky if your "good" product lasted through the weekend. The Japanese quality revolution ended all that.

I don't know if I should take your picture comment as an insult or a compliment, LOL, but I do remember the Sears catalog days. I think the good-better-best marketplace still exists today. The deregulation of the airline industry has broadened the market to more people. True, flying a budget airline can be like a cattle car, but my 3 hour flight from Long Island, NY to Florida, routinely costs me less that $100. If I fly one of the legacy airlines, it's probably 3 times the price. The ultimate is flying private, for about $12,000. Good-better-best lives on.

 

[John Auer]

I view this as simply a natural evolution of the car-buying marketplace.

In the past, the manufacturers really needed local franchisees. They didn't have the ability to understand local markets across the country and maintain direct relationships with millions of customers. The territories of the dealerships overlapped slightly to provide enough competition that the customer didn't get completely hosed. I think the dealership model was the best they could do, in 1960.

With computers and the Internet, that all changed. Now it is commonplace for large companies to sell expensive products direct to millions of customers. There are ways for customers to communicate with one another and keep the manufacturer accountable. It's way easier for Ford to give people a uniform purchasing experience no matter where they are. The complex logistics of nationwide shipping to individual customers is a solved issue. There are firms that would be willing to step in to provide third-party inspections and service, if the customer isn't comfortable dealing directly with Ford.

The dealership model survives because of inertia and legal protection. Without those things, I think it's gone, and the people who think they will miss it for some reason, actually won't.

In my local area on Long Island, NY, auto brokers are popping up. Ford sells their vehicles to a dealer at a profit, who in turn sells their vehicles to a broker, who finally sells their vehicles to a customer, again at a profit. Some people will gladly over pay for a car, just to avoid going to a dealership. Pretty sad, but to each his own.

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