Reservations vs. dealer allocation

NonfatWombat

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A couple of questions for Ford insiders:
It's my understanding that factory allocation will ultimately determine how many Broncos orders are awarded to each dealer - not the number of reservations. Allocation will be determined by the dealer's sales history of existing SUV/Truck lines.
Is this correct?
And if so, how is Ford likely to address instances where a dealer has far more reservations than the allocation to fill them?





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BroncoHooves

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TLDR: Allocations are the customer's, not the dealer's.

Neither you, nor many dealers, appear to be understanding the reservation system. Please read the original posting to this thread again. The reservations are transferable between dealerships. Assuming you are a normal non-FE reservation you will be contacted by or in December to finalize your actual order. You will be given a date by which you have to close the deal or you lose your place in line (if I had to guess I'd say December 31st for accounting purposes). If the dealership you initially were assigned screws with you, you can call around and switch to a different dealership. In other words a reservation isn't an allocation and dealerships can't treat them as allocations because it's not theirs, it's the customers.

It's a fantastic business model for Ford and the customers, not so much the dealers who are use to gouging customers with markups on in demand vehicles. It essentially makes the customers the "owners" of the allocations and since they can move between dealers it forces the dealerships to compete on price, keeping the cost down for the reservation holders. It's as close to the tesla sales model as ford can get while still maintaining the dealership network.
 

SpursFan

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allocations will be above and beyond reservations, there is no limitation between the two.
 
OP
NonfatWombat

NonfatWombat

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Thanks for the clarification! Obviously I'm not accustomed to auto reservations.
 

Jhuff

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Thanks for the clarification! Obviously I'm not accustomed to auto reservations.
You aren't alone. I was concerned with this wording as well because Toyota's "allocation" system is not customer friendly... and made it nearly impossible to get the exact TRD Pro that I have been wanting (which is why I am ending up with a Bronco).
 

tonyxit

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allocation is a different deal....that is a dealer issue.....reservation is yours....just passes through a dealer
 

Bayou_Bronco

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You aren't alone. I was concerned with this wording as well because Toyota's "allocation" system is not customer friendly... and made it nearly impossible to get the exact TRD Pro that I have been wanting (which is why I am ending up with a Bronco).
That's because Toyota doesn't actually get their vehicles from Toyota Corporate. The buy their units from a 3rd party vendor, commonly referred to as "the Port". So technically they can never truly custom order a vehicle. Dealers are limited to what the Port can supply them, are highly based on allocation assigned to them. They can only customize a unit with what the Port can add, and only if they catch it early in the allocation process. It's a very strange arrangement.
 

mtap

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Any info if dealers will get any "test" vehicles for customers prior to allocation and customer fulfillment?
 

KozMQZ

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Yeah this is not based on allocations like Focus RS, Gt 350 and 17 Raptors, etc.... but it is based on your reservation number... more importantly it is based on the dealer and the games they play. I know with the allocations dealers were putting in any name on an allocation to keep it as a stock vehicle to then use a real vehicle for a bidding war... I have been through this with my Raptor and RS... unfortunately Ford wants a real customer now instead of unsold fake name allocations... so the dealers will find ways to mark up due to demand... but the reservation should secure your vehicle as long as your playing their game, if any, on how they decide to price, finance and trade around your purchase... sad thing is they make plenty of money on msrp and whatever incentives ford offers them for quick turn around
 

Granger Ford

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Yeah this is not based on allocations like Focus RS, Gt 350 and 17 Raptors, etc.... but it is based on your reservation number... more importantly it is based on the dealer and the games they play. I know with the allocations dealers were putting in any name on an allocation to keep it as a stock vehicle to then use a real vehicle for a bidding war... I have been through this with my Raptor and RS... unfortunately Ford wants a real customer now instead of unsold fake name allocations... so the dealers will find ways to mark up due to demand... but the reservation should secure your vehicle as long as your playing their game, if any, on how they decide to price, finance and trade around your purchase... sad thing is they make plenty of money on msrp and whatever incentives ford offers them for quick turn around
Well put!

There does not have to be any games played if you go in with great information...

This Forum has that in spades...
 

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