Why is Dealer Allocation even a thing?

[Winni Made]

100% disagree. Dealerships have destroyed the process. Mark up on a vehicle that I ordered? They only reason they have an order is because I chose them? Screw that. Direct to consumer is the only model that makes any sense. One set of rules. Ford, please get me my vehicle. I’ll deal directly with you if I have an issue. Direct to consumer is the future.

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.

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[PaulBrownSr]

There’s a place for dealers, just not the one they currently occupy. They’re protected by non-competitive franchise laws that protects their business model. I don’t expect any radical changes anytime soon.

This is true… then when there are complaints about a dealership charging 20k MSRP someone always chimes in with a “capitalism bro, why do you hate the free market?”

No… in a free market these dealerships wouldn’t even exist to pull that bullshit.

 

[Baddie64]

This is true… then when there are complaints about a dealership charging 20k MSRP someone always chimes in with a “capitalism bro, why do you hate the free market?”

No… in a free market these dealerships wouldn’t even exist to pull that bullshit.

In a true free market, the Grangers of the world get rewarded by satisfied customers telling other potential customers. The current stealership model is absolutely anti-consumer.

 

[PaulBrownSr]

In a true free market, the Grangers of the world get rewarded by satisfied customers telling other potential customers. The current stealership model is absolutely anti-consumer.

Totally agree and I’m not a Granger orderer. Granger did what I presume Ford should want any dealership to do: sell a shitload of product. And Ford shit on them for it.

 

[JHawk]

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.

I think that your analysis is very concise and on point. I would elaborate but it would be off topic.
Let me summarize (love the movie), different needs and different solutions. There is room for all.

 

[hemiblas]

I filled out the survey. I hope that Ford does the right thing and builds our Broncos as close to reservation as possible. The allocation system is affecting a lot of people using small dealerships, not just the few dealerships that provided good deals.

 

[JHawk]

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?

Yes, I do. Sorry to burst your bubble. I am not poking you for a response but they have a huge loyal customer base and produce many different kinds of products for a wide range of customers and applications.

 

[Efthreeoh]

Indicates that allocations trump reservations. It was reservations first up until about December 2020. At this point a couple of small dealers had eaten up a lot of reservations. Ford introduced allocations being a bigger factor.

What he said was small dealerships got screwed. He probably should have said some that offered the great deals got screwed.

His point stands and you are a good example. You reserved much later than me and most on here yet you get a Bronco. Why? Because your dealer had an allocation for you and your reservation time didn't mean a freaking thing.

So I'll ask... Do you think Grainger or any other dealership is sticking to their original order sequence based on reservation time stamp as set at the March 19th order deadline?

Nope! The holier than thou, tiny little Grainger is going to process whomever's order is available first from MAP, just like every other dealership will do.

 

[NC_Pinz]

So I'll ask... Do you think Grainger or any other dealership is sticking to their original order sequence based on reservation time stamp as set at the March 19th order deadline?

Nope! The holier than thou, tiny little Grainger is going to process whomever's order is available first from MAP, just like every other dealership will do.

The dealerships don't determine whos order gets built. That is Ford.

 

[Heffe66413]

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.

Dealers are useless if your not buying a manufactures brand!

 

[Heffe66413]

So explain what Ford is doing to Granger’s customers ?

Granger has more Bronco customers than any other Ford dealer. So using your logic, Granger should get more Broncos. But they aren’t.

This situation is completely f-ed up. By Ford Corporate. This “allocation “ deal is screwing Ford’s customers, and Ford does not seem to care.

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If Ford did business like Granger, Fords stock would be twice what it is now. Quality and leadership starts at the top!

 

[John Auer]

This is true… then when there are complaints about a dealership charging 20k MSRP someone always chimes in with a “capitalism bro, why do you hate the free market?”

No… in a free market these dealerships wouldn’t even exist to pull that bullshit.

Crony capitalism at its best.

 

[Efthreeoh]

The dealerships don't determine whos order gets built. That is Ford.

Precisely, but Ford takes into the dealership's allocation situation. So, consider if Ford builds one of Grainger's customer's order before another customer's order whose reservation date precedes the customer who Bronco is getting built first. Is Grainger going to hold off accepting that build from Ford so that Grainger preserves the reservation date order of the customer whose reservation date came first?

No Grainger won't, it's going to take whatever customer builds Ford can produce and sell them to the order holder connected to the build. That is what the dealership I have my order with is doing. That is what every dealership is going to do. Grainger is not going to pass on the receipt of revenue from an order just to be righteous and preserve reservation timestamps. Yet everyone is bitching at Ford for doing the same thing.

 

[NC_Pinz]

Precisely, but Ford takes into the dealership's allocation situation. So, consider if Ford builds one of Grainger's customer's order before another customer's order whose reservation date precedes the customer who Bronco is getting built first. Is Grainger going to hold off accepting that build from Ford so that Grainger preserves the reservation date order of the customer whose reservation date came first?

No Grainger won't, it's going to take whatever customer builds Ford can produce and sell them to the order holder connected to the build. That is what the dealership I have my order with is doing. That is what every dealership is going to do. Grainger is not going to pass on the receipt of revenue from an order just to be righteous and preserve reservation timestamps. Yet everyone is bitching at Ford for doing the same thing.

I'm sorry I don't really follow what you're saying. Once the order is in, it's not in the dealer's hands any longer. So I don't understand 'holding off accepting'. The dealer is notified of a vehicle being built or not. I'm probably a bit dense but I don't follow the train of thought.

 

[Efthreeoh]

In a true free market, the Grangers of the world get rewarded by satisfied customers telling other potential customers. The current stealership model is absolutely anti-consumer.

I think it is completely pro-consumer. If there was no franchise dealership system, the auto manufacturers would have complete control over the end-consumer sales price of their product. The dealership system works great when a customer is shopping for a high availability vehicle like an F150, where several local dealerships have hundreds on their lots (non-covid of course) to choose from and dealers discount the sales price to gain the customer's business. No one on here will bitch that a dealership gave them a discount on an F150 - LOL.

But as soon as a hot product in high demand and at low-rate producibility (at the moment) comes into play and dealerships, who are actually people too, try to get the highest price for the product, all of a sudden the dealership model is "anti-consumer" and "crony capitalism".

GMFB.

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