Why is Dealer Allocation even a thing?

[Deputy909]

General question. Why is Dealer Allocation even a thing?
If a hundred thousand people walked in over the next month and ordered a thousand Ford vehicles Ford would build them without regard to the dealer that they were purchased at, right? So why are Bronco orders being handled differently?

 

[TXBoy79]

Good question…it’s really disheartening having an early reservation, shopping around dealerships to get the best deal only to find out that the reservation means nothing.
I could probably build one today and go through a big dealership and get it before my July 16th 2020 reservation.

 

[Ksjrb03]

General question. Why is Dealer Allocation even a thing?
If a hundred thousand people walked in over the next month and ordered a thousand Ford vehicles Ford would build them without regard to the dealer that they were purchased at, right? So why are Bronco orders being handled differently?

No, your totally wrong. Dealer allocation is used by every manufacturer and every vehicle. Especially high demand. When you understand that the dealers are Fords customers and not you, it makes more sense.

 

[swooshdave]

General question. Why is Dealer Allocation even a thing?
If a hundred thousand people walked in over the next month and ordered a thousand Ford vehicles Ford would build them without regard to the dealer that they were purchased at, right? So why are Bronco orders being handled differently?

It rewards dealer who give Ford the most business the most Broncos. Allocations are nothing new and is a standard practice in a lot of industries. You want to give the dealer who sells the most the most product. Because they will sell the most product.

 

[Blitzjb]

General question. Why is Dealer Allocation even a thing?
If a hundred thousand people walked in over the next month and ordered a thousand Ford vehicles Ford would build them without regard to the dealer that they were purchased at, right? So why are Bronco orders being handled differently?

It is common in many industries, not just automotive

 

[FloatingMoat]

No, your totally wrong. Dealer allocation is used by every manufacturer and every vehicle. Especially high demand. When you understand that the dealers are Fords customers and not you, it makes more sense.

You are correct in the whole dealers are fords customers, and yes, that is why allocation makes sense. The whole High Vehicle demand is removing the need for dealerships New auto manufacturers are going without dealers and instead going direct to consumer. As an example, Tesla has no dealers, and you are Tesla's customer if you purchase a Tesla - dealer model is gone, and my friends who have purchased this route have very little bad to say about the purchasing and service model sans dealers.

 

[RenoBronco]

When you understand that the dealers are Fords customers and not you, it makes more sense.

The lack of understanding this represents the majority of the frustration I read in comments on here.

That said, it's refreshing to see companies like Tesla and Rivian start to eliminate a very unnecessary and frustrating part of the auto industry and this point.

 

[timstrong20]

It is common in many industries, not just automotive

I concur, it just sucks...

 

[Paul Gagnon]

That said, it's refreshing to see companies like Tesla and Rivian start to eliminate a very unnecessary and frustrating part of the auto industry and this point.

I disagree that dealerships are unnecessary. They are no different than a hardware store, grocery store or drug store, with the exception that they usually only carry the products of one manufacturer. If manufacturers only sold direct to the consumer they would only service major centres and that would leave millions of people without access to new vehicles. Tesla is an outlier because they are a boutique manufacturer who do not cater to the general public; and their customer base is in major urban centres.

 

[RenoBronco]

I disagree that dealerships are unnecessary. They are no different than a hardware store, grocery store or drug store, with the exception that they usually only carry the products of one manufacturer. If manufacturers only sold direct to the consumer they would only service major centres and that would leave millions of people without access to new vehicles. Tesla is an outlier because they are a boutique manufacturer who do not cater to the general public; and their customer base is in major urban centres.

Fair point

 

[CobraKaiSG]

because as much as ford tried to replicate an element of tesla's model, at the end of the day they still are going through their dealerships- i personally would be ok with the whole industry going direct to consumer like tesla. tired of this dealership model with all the haggling and the BS scams

 

[Compta38]

It's stupid bullshit that we have people who never reserved going in and ordering constraint filled Broncos, getting scheduled while we have folks that have waited 500+ days.

Ford is the CEO of screwing up a good thing.

 

[okbob]

I disagree that dealerships are unnecessary. They are no different than a hardware store, grocery store or drug store, with the exception that they usually only carry the products of one manufacturer. If manufacturers only sold direct to the consumer they would only service major centres and that would leave millions of people without access to new vehicles. Tesla is an outlier because they are a boutique manufacturer who do not cater to the general public; and their customer base is in major urban centres.

They are only alike in the fact that they serve as a middle man. Otherwise my vehicle buying experiences have no resemblance to my hardware or grocery purchases...none whatsoever fortunately lol

 

[Blue's B6G]

When you understand that the dealers are Fords customers and not you, it makes more sense.

You are correct in the whole dealers are fords customers

The lack of understanding this represents the majority of the frustration I read in comments on here.

Instead of parroting what you heard, maybe step back and think about this one for a second.

Without actual customers like me, do you think Ford keeps building vehicles?

 

[FloatingMoat]

Instead of parroting what you heard, maybe step back and think about this one for a second.

Without actual customers like me, do you think Ford keeps building vehicles?

Completely agreed - which is why in the rest of my comment I stated that the dealer model is outdated and needs to change.

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