Ford is done with car dealers video..

[phocion]

In my local area on Long Island, NY, auto brokers are popping up. Ford sells their vehicles to a dealer at a profit, who in turn sells their vehicles to a broker, who finally sells their vehicles to a customer, again at a profit. Some people will gladly over pay for a car, just to avoid going to a dealership. Pretty sad, but to each his own.

It's bad for Ford to have their customers coming out of a transaction happy with a vehicle, but feeling like they potentially got violated in the process. And that's how it feels with too many dealers. People will associate the negative experience with the Ford brand, not whatever group owns the local dealership. If people have a crappy experience at McDonald's, they blame McDonald's, not the franchisee. It's their logo out front.

I will admit that if a customer really enjoys and is skillful at negotiating, they might benefit more from a dealership system -- at least financially (maybe not in quality of service). But a lot of us don't want to haggle... just tell us the fucking take home price and we'll decide whether or not the car is worth it. This isn't a house buying situation where every individual Bronco has unique characteristics that people are bidding on.

Also just want to add that there are definitely good dealership owners, good managers, good salespeople, etc. I think those people can all flourish providing similar services in the auto industry even without the dealership model, whether working direct for manufacturers, for a contractor, for a service chain, etc.

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[Dino]

It's not just stereotypical. My experience with dealerships has been terrible, and I'm clearly not alone. The dealership model is antiquated, and I believe will be replaced.

As someone (unfortunately) sold cars (for wayy too long) I can tell you 90% of the salespeople hate it as bad as you do.

It's so frustrating when you have a deal you've worked on, that you know for a fact makes money and the customer is good with, and the manager is like 'go get more money'.

FFS, just make the deal, man! They try to retire on every customer that comes in, and it's like you have to sell every car twice, once to the customer and then to the manager.

It's definitely an antiquated system, and most managers didn't sell cars in the day of the internet. People come in with the invoice price they got online, and will offer a thousand over to make the deal right then, and the managers won't have it. "When I was a salesman" is all you hear, all day, ad nauseum.

It just doesn't have to be as hard as they make it.

I hated every single day I worked there.

I'll put it to you like this, I worked in the county jail for 2 years while I was in the police academy and trying to get hired on at a department. I got in physical altercations, I got spit on, and twice I literally had piss thrown on me.

And I'd take working in the county jail over selling cars ANY DAY.

A lot of the sales guys are rad people, and most of them I'm still friends with...but boy, those managers and the owners are something else.

 

[Tripodbruno]

Sorry in advance for lack of cited work. Wasn't there something awhile back where each ford dealer would be required to build and invest in charging infrastructure or risk losing their entire dealer franchise if they stubbornly did not want to sell electrics?

 

[indio22]

I work for an OEM without dealers and the guy is not wrong. Getting rid of dealers is insanely difficult. Your average millionaire in a small town is a car dealer owner, and there are also large, F500 companies that own chains of dealers. They are not going to let their investments go to nothing and both groups are extremely influential.

I think dealers have less good will than ever before, but even if the laws were changed tomorrow, it would be an uphill slog.

The dealers have customers tripping over themselves paying ADMs for Broncos. Wouldn't those same customers, end up driving up prices via direct buy? And then we'd all be stuck paying those higher prices, instead of just these ADM shmucks.

 

[stratego]

The dealers have customers tripping over themselves paying ADMs for Broncos. Wouldn't those same customers, end up driving up prices via direct buy? And then we'd all be stuck paying those higher prices, instead of just these ADM shmucks.

I think most people here would prefer a system like Tesla uses where the distribution is somewhat fair: a down payment reserves your place in a regional/national line at a given MSRP. The allocation system Ford uses locks vehicles to certain dealers that can abuse market position. In Europe the "traditional" OEMs are more like this, with over 50% of cars being custom orders. In the USA it's around 5%.

Also, generally it's better if a manufacturer raises MSRP than if a dealer does so from a valuation perspective.

 

[jon]

Calling out all of the awful dealerships!!!! Realtors are next!!!

 

[indio22]

I think most people here would prefer a system like Tesla uses where the distribution is somewhat fair: a down payment reserves your place in a regional/national line at a given MSRP. The allocation system Ford uses locks vehicles to certain dealers that can abuse market position. In Europe the "traditional" OEMs are more like this, with over 50% of cars being custom orders. In the USA it's around 5%.

Also, generally it's better if a manufacturer raises MSRP than if a dealer does so from a valuation perspective.

I'm open for some changes. But I'd be concerned if all these materialists unwilling to say no to a purchase, would effectively drive up the price for everyone else. The current system's price flexibility can accommodate those big spenders, without locking in higher prices for the rest of us.

Leaving COVID disruption aside, I paid a low price for my last new vehicle. Probably other customers paid thousands more. I would not want their willingness to pay higher prices, to drive the price up for me.

 

[stratego]

I'm open for some changes. But I'd be concerned if all these materialists unwilling to say no to a purchase, would effectively drive up the price for everyone else. The current system's price flexibility can accommodate those big spenders, without locking in higher prices for the rest of us.

Leaving COVID disruption aside, I paid a low price for my last new vehicle. Probably other customers paid thousands more. I would not want their willingness to pay higher prices, to drive the price up for me.

You paid a lower price because of the current auto model where OEMs fill lots and have to put cash on the hood (rebates + incentives) to move the cars. Those days are probably not coming back.

Customers strongly strongly dislike experiences where they pay more/less than other people for no good reason, I would bet that this is a driving trend for the next generation of auto retail.

 

[bigedizzle]

Ford has not and will not sell directly to customers. Jim Farley personally said it at the triple crown GM's meeting. They are not tesla and want to put tesla out of business.

 

[BaseSquatch]

Never had an issue with pricing at dealerships, because if I don’t like the price, I just walk out. And I won’t make an order without a signed price agreement.

It’s EVERYTHING ELSE at the dealership where I have problems. Sometimes, you’re forced to bring your vehicle to a Ford dealer for warranty work. And 90% of the time that’s an extremely painful process.

 

[bigedizzle]

The dealers have customers tripping over themselves paying ADMs for Broncos. Wouldn't those same customers, end up driving up prices via direct buy? And then we'd all be stuck paying those higher prices, instead of just these ADM shmucks.

That's why working at a reputable dealership that is honest and upfront with their customers is the way to go. My dealership is a jugeernaut and still honest

 

[UtahLars]

so...a hundred plus years of dealers buying politicians to set up laws protecting their franchises is going to be reveresed in the five to ten year range... per some guys on a youtube channel who are not in the business. Seems legit....

Yeah, you're right. That Uber thing is never gonna affect the licensed taxi cab business either.

 

[Happytown]

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