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

[AcesandEights]

I think some people will cancel after the order is placed.

I've talked to my dealer about that. They aren't taking a deposit, and I believe part of that thought process is someone can walk away at any time, even after delivery. The customer can easily "refuse" to accept the vehicle and then the dealer has one on the lot without an owner. The dealer didn't play any games to get it, but they have a vehicle without an owner sitting on their lot taking up space. What are they going to do with it, but mark it up (ADM) and sell it.

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[noahr]

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 as ford has stated several times it is decided by them not the dealers it is based on reservation time stamp

 

[Gamecock]

The concern I have is a reservation being converted to an order and the person backs out for one reason or another.

The penalties don’t kick in until you pass 20% delivered to people other than those who ordered...to me that’s a pretty big cushion to avoid penalties.

I think some people will cancel after the order is placed.

I've talked to my dealer about that. They aren't taking a deposit, and I believe part of that thought process is someone can walk away at any time, even after delivery. The customer can easily "refuse" to accept the vehicle and then the dealer has one on the lot without an owner. The dealer didn't play any games to get it, but they have a vehicle without an owner sitting on their lot taking up space. What are they going to do with it, but mark it up (ADM) and sell it.

Yeah, a smart dealer in a big market should pile up as many converted orders as possible at just over break even...and make a lot banking on cancellations after the trucks are built. If they can get right up to the 20% threshold without going over, they can sell a bunch of Broncos with ADM, and also have a ton go below invoice to those that do pick up.

 

[Efthreeoh]

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.

So this is where I'm stuck a bit. I have a late September reservation, my dealership is a small family-owned single-store franchise. I've not yet converted my reservation to an order. I'm well outside the dealer's allocation and will be a MY '22 build. The dealer has eight (8) MY'21 allocations and less than 30 reservations in total. I'm not in a rush to get my Bronco, so MY'22 build and delivery is fine with me; I expected nothing different TBH.

My issue is, however, the dealer requires a $500 non-refundable deposit upon ordering. When I inquired why the deposit is non-refundable, with my thought being I may not like the Bronco once I see and drive it, the salesman explained that Ford is driving the requirement. The reason Ford is driving the requirement is because if an Orderor's* Bronco is not sold to the Orderor, then dealership cannot move the unsold Bronco to their stock and sell it off the lot. In other words, the dealer essentially has to hold onto the unsold Bronco until Ford allows dealers to sell stock off the lot. He said this protocol was to prevent unscrupulous dealers from having dealership employees order Broncos that they will not buy and thus buildup dealership stock of Broncos that they can sell with ADM . while I understand this logic, I just wonder if it is actually true.

* Orderor being the person who reserved then converted to a Bronco order.

 

[AcesandEights]

Dealer employees can't order vehicles unless they have a reservation. Orders are based on converted reservations. So, it would be almost impossible for that to happen.

 

[sjp]

The penalties don’t kick in until you pass 20% delivered to people other than those who ordered...to me that’s a pretty big cushion to avoid penalties.

Yeah, a smart dealer in a big market should pile up as many converted orders as possible at just over break even...and make a lot banking on cancellations after the trucks are built. If they can get right up to the 20% threshold without going over, they can sell a bunch of Broncos with ADM, and also have a ton go below invoice to those that do pick up.

This is exactly what I see happening. Dealers will have stock from people who order and don't do the deal after it's delivered. Dealers will also have stock from people who "cancelled," dealer offered to take care of the cancellation for them, then went ahead and placed the order anyway to boost their allocation and have retail trucks on their lots. As long as 80 percent of their sales match the names on the reservations, there is no penalty. And they are going to be marking those stock units wayyyy up.

 

[Rednek]

I'm a dealership employee,and if someone trys to take my BD a fistfight will insue!!

 

[KJR50]

Dealer employees can't order vehicles unless they have a reservation. Orders are based on converted reservations. So, it would be almost impossible for that to happen.

Who is going to prevent so call “reservation” sell in the second hand market with delivery miles?

 

[Squatch]

The penalties don’t kick in until you pass 20% delivered to people other than those who ordered...to me that’s a pretty big cushion to avoid penalties.

Yeah, a smart dealer in a big market should pile up as many converted orders as possible at just over break even...and make a lot banking on cancellations after the trucks are built. If they can get right up to the 20% threshold without going over, they can sell a bunch of Broncos with ADM, and also have a ton go below invoice to those that do pick up.

It is an insane cushion!

After caving to big dealers who were already screwing Ford buyers, they come and give us a second swift kick in the fuzzy dice at 20%!

Ford should have required a $1000 deposit for order conversion with signed commitment from the reservation holder including the WBDO build (even do it all electronically). Then, they could set the penalties starting at 5% without a signed affidavit from the customer about why they backed out.

Dealers who complained about so many reserving with a competing dealer who has promised better service and pricing aren't going to magically offer better customer service.

On Topic:
Yes, but they will be penalized if it goes over 20% of the dealer's finalized--post March 19th--allocation.

So... 70,000 MY21s and 20% or 14,000 of them will be marked up and go to someone who didn't reserve one. Thanks Ford!

 

[AcesandEights]

Who is going to prevent so call “reservation” sell in the second hand market with delivery miles?

I don't know. You?

 

[sjp]

It is an insane cushion!

After caving to big dealers who were already screwing Ford buyers, they come and give us a second swift kick in the fuzzy dice at 20%!

Ford should have required a $1000 deposit for order conversion with signed commitment from the reservation holder including the WBDO build (even do it all electronically). Then, they could set the penalties starting at 5% without a signed affidavit from the customer about why they backed out.

Dealers who complained about so many reserving with a competing dealer who has promised better service and pricing aren't going to magically offer better customer service.

On Topic:
Yes, but they will be penalized if it goes over 20% of the dealer's finalized--post March 19th--allocation.

So... 70,000 MY21s and 20% or 14,000 of them will be marked up and go to someone who didn't reserve one. Thanks Ford!

If it's any consolation, I expect many of those dealer orders to be Oxford White (easy to sell) 4-door Big Bends with 2.3s and no leather, no lux, and no sas (better chance of an early build).

It's not going to be pretty.

 

[KJR50]

I don't know. You?

no not me. I’m referring to the unethical SoCal dealers charging 10k+ markup.

 

[Garemlin]

I can see this whole thing turning into a complete cluster f*** once Broncos start rolling into dealers. Other than with the people who actually buy what they ordered.

 

[sjp]

I can see this whole thing turning into a complete cluster f*** once Broncos start rolling into dealers. Other than with the people who actually buy what they ordered.

It'll be just like the 1980s Cabbage Patch and 1990s Beanie Baby riots all over again. I can see it already:

Soccer Mom Squats in Big Bend at Local Dealership while Prospective Buyers Bang on Hood, Windshield - Refuses to Move Claiming "I Saw It First."

Crazed 6g Members Block Freeway, Halt Ford Deliveries Charging "Stolen Bronco Reservations."

Mass Hysteria at Local Ford Dealership as First Broncos Enter the Corral, Ford Sales Manager Barricades Self in Showroom, Says, "I'm Not Going Out There and You Can't Make Me."

Meanwhile In Iowa, Westbound Tractor Trailer Car-Jacked - Five Broncos Held at Gunpoint While Colorado Buyers Plea for Their Release.

Well maybe not quite that bad.

 

[Wanted33]

It'll be just like the 1980s Cabbage Patch and 1990s Beanie Baby riots all over again. I can see it already:

Soccer Mom Squats in Big Bend at Local Dealership while Prospective Buyers Bang on Hood, Windshield - Refuses to Move Claiming "I Saw It First."

Crazed 6g Members Block Freeway, Halt Ford Deliveries Charging "Stolen Bronco Reservations."

Mass Hysteria at Local Ford Dealership as First Broncos Enter the Corral, Ford Sales Manager Barricades Self in Showroom, Says, "I'm Not Going Out There and You Can't Make Me."

Meanwhile In Iowa, Westbound Tractor Trailer Car-Jacked - Five Broncos Held at Gunpoint While Colorado Buyers Plea for Their Release.

Well maybe not quite that bad.

You may not be to far off Susan. There's going to be a chitstorm on some dealers lot somewhere when all is said and done. But I will say this, "as long as I get my Bronco I'll be just fine".

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