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Why is Dealer Allocation even a thing?

John Auer

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So from now on, for your new car purchases, you are going to buy every future car sight unseen?
The factory can't have showrooms?
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Paul Gagnon

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Most people would rather have root canal than going to a car dealership.
Well, those people must have never had a root canal before.
 

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John Auer

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Sure they can. Expensive trip to make.
Expensive? How? OEM’s could open showroom/test drive centers all across the country. This would allow them to control the customer experience from start to finish. Same thing with service centers.
 

Efthreeoh

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Expensive? How? OEM’s could open showroom/test drive centers all across the country. This would allow them to control the customer experience from start to finish. Same thing with service centers.
The OEM does (pay to) open showrooms all across the country... they are called "Dealerships"...
 

John Auer

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Efthreeoh

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No, it doesn’t.
Dealer council... mostly LARGE dealers... cried about SMALL dealers taking advantage... discounts...
so Ford screwed small dealers.... Efthreeoh gets order into production thru small dealer... i.e. small dealer is not screwed...

indicates implied statement about screwed small dealers did not get screwed...
 

WCP-82

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Dealer council... mostly LARGE dealers... cried about SMALL dealers taking advantage... discounts...
so Ford screwed small dealers.... Efthreeoh gets order into production thru small dealer... i.e. small dealer is not screwed...

indicates implied statement about screwed small dealers did not get screwed...
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.
 

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Monster1926

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Dealer council... mostly LARGE dealers... cried about SMALL dealers taking advantage... discounts...
so Ford screwed small dealers.... Efthreeoh gets order into production thru small dealer... i.e. small dealer is not screwed...

indicates implied statement about screwed small dealers did not get screwed...
I answered the OPs question of “why is dealer allocation a thing”. I never went into the allocation formula or how to get your order built at a small dealer. I do not care about your order, thus your reply has nothing to do with what I said.
 

BigFootie

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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.
Correct. It wasn’t the size that hurt Granger, it was the fact they had 1300 reservations. The allocation plan then changed. This is the issue, not specifically the size of the dealership. 1300 reservations represents less than 1% of the current order Intake. I’m sure Ford isn’t concerned that a few percent of reservationists are pissed at them.
 

fergthulhu

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Well, those people must have never had a root canal before.
I dunno man...I've had several and maybe I've just had good endodontists/dentists. Even the worst root canal was still better than 90% of my interactions buying cars at the local dealerships. And I've got a pretty low bar for satisfaction.
 

sgraing1

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Ford has/had to go with the allocation system to serve dealers with overall Ford sales volumes.
It has to do with overhead costs of being a large volume dealer and Ford recognizing this fact.

Their first instinct was to serve the order holders first.That's all fine and dandy...... if they have the capability to produce.

They didn't and don't. Reasons being......high demand, Covid can of worms, production under capacity due to sharing production with the Ranger in one single plant.
They also have an employment problem .Currently there are many jobs available that are less demanding that pay equivalent wages.This problem affects Ford and also their suppliers.

As a long term employee and recent retiree I could go on and on about the problems and challenges that Ford and their customers face............but hey, I am only me.
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