If people back out of reservations, are dealers free to sell their unused allocation to anyone ?

[mdepll]

If people back out of reservations, are dealers free to sell their unused allocation to anyone ?

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[JRHEXP]

If people back out of reservations, are dealers free to sell their unused allocation to anyone ?

Do you mean reservation or order?

 

[Used2jeep]

Not a frequent visitor?

 

[guzie]

If people back out of reservations, are dealers free to sell their unused allocation to anyone ?

Dealers have a certain allocation number they are given for MY21. Most dealers have well over their allocation number in reservations so every allocation is already spoken for with a reservation unless they get a bunch of people who don’t lock in their reservation. I was seeing Ford is expecting 50% to turn to actual orders. Given that for example my dealer has 55 allocations and 190 reservations. So even with 50% only turning to an order they won’t all get filled in MY21

 

[Newbie]

If people back out of reservations, are dealers free to sell their unused allocation to anyone ?

 

[mdepll]

Yes. That’s what I mean. If a dealer is allocated more than they are able to convert can they sell to anyone before March deadline ?

 

[Gamecock]

Dealers have a certain allocation number they are given for MY21. Most dealers have well over their allocation number in reservations so every allocation is already spoken for with a reservation unless they get a bunch of people who don’t lock in their reservation. I was seeing Ford is expecting 50% to turn to actual orders. Given that for example my dealer has 55 allocations and 190 reservations. So even with 50% only turning to an order they won’t all get filled in MY21

Ford projected 70% conversions into orders....but I haven’t seen a single dealer say it was lower then 80% conversion So far.

 

[tritonx100]

Dealers have a certain allocation number they are given for MY21. Most dealers have well over their allocation number in reservations so every allocation is already spoken for with a reservation unless they get a bunch of people who don’t lock in their reservation. I was seeing Ford is expecting 50% to turn to actual orders. Given that for example my dealer has 55 allocations and 190 reservations. So even with 50% only turning to an order they won’t all get filled in MY21

My dealer says 20% going to my22. So allocations gets a little hosed there as it’s unclear how many are doing this. But as you said, they have more than enough people for their allocation. I moved up 20 slots for people deferring to my22. Still not within there allocation of 50

 

[flip]

The concern I have is a reservation being converted to an order and the person backs out for one reason or another. Probably why some dealers are asking for $$ down as a way of reinforcing the commitment to take delivery. Ford will probably have some sort of process we will have to go through so it doesn't penalize us. How long do we have to hold a vehicle before it becomes obvious the reservationist isn't going to take the order? What if they don't take, we retail it to someone else, they come back a month later and want their vehicle?

I don't see that being an issue at my store but this is going to come up somewhere and I hope they come up with a fair way to deal with it. The potential penalties are too great to not have a fair process to deal with these cases.

 

[Judge Rufus]

Yes. That’s what I mean. If a dealer is allocated more than they are able to convert can they sell to anyone before March deadline ?

No. There will be no dealer stock until all converted reservations, MY21 and MY22 are fulfilled. And Ford is still taking reservations. You probably won't see a stock unit on a dealer lot for sale until 2023. Ford will shuffle allocations around until all convert reservations are fulfilled.

 

[bjellefs]

No. There will be no dealer stock until all converted reservations, MY21 and MY22 are fulfilled. And Ford is still taking reservations. You probably won't see a stock unit on a dealer lot for sale until 2023. Ford will shuffle allocations around until all convert reservations are fulfilled.

That is correct. Ford has stated that no dealership will get more allocations than they have orders. For example. Let’s say a dealer has 20 allocations and 50 pre orders. If In a wild turn of events the dealer only converted 1 order, their allocation number would reduce to 1. The remaining allocations will go to other dealerships that didn’t have enough.

The thing that is not very clear is what happens if someone orders a vehicle and refuses to take the vehicle upon delivery for whatever reason.

 

[Studawg]

The concern I have is a reservation being converted to an order and the person backs out for one reason or another. Probably why some dealers are asking for $$ down as a way of reinforcing the commitment to take delivery. Ford will probably have some sort of process we will have to go through so it doesn't penalize us. How long do we have to hold a vehicle before it becomes obvious the reservationist isn't going to take the order? What if they don't take, we retail it to someone else, they come back a month later and want their vehicle?

I don't see that being an issue at my store but this is going to come up somewhere and I hope they come up with a fair way to deal with it. The potential penalties are too great to not have a fair process to deal with these cases.

Yeah, thats a situation that is destined to arise. And so when it does, technically, that store will have "inventory" that they can then sell to anyone who wants it right?

 

[flip]

Yeah, thats a situation that is destined to arise. And so when it does, technically, that store will have "inventory" that they can then sell to anyone who wants it right?

I would think that's how it would work but haven't seen any guidance from Ford. Last thing that needs to happen is making an assumption someone has abandoned their order and we sell to another customer. I would say Ford would side with the customer and penalize the dealer. Very little out there right now beside the stepped up penalties for dealers who are knowingly playing games and get caught.

 

[Fly by Nite]

Dealers only know their estimated allocation at this time.
Final allocation is determined after reservations are converted to orders. (After March 19)

Unfortunately, it appears some dealers are converting into orders without customer consent..... this will artificially inflate their # of orders (and final allocation).

Ford does require at least 80% of orders be sold to the person named on the reservation, otherwise dealers will be penalized.

As far as how long does a customer have to pick up their vehicle before losing it to the dealer? There is a thread on that (I haven't read it). There may be state laws which detail that scenario.

 

[Rednek]

The only ones I can see being used for retail sales are the display models dealers are getting after the time hold comes off(7months I think)

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