Ford Dealers Got Greedy

[VAMike]

Not everyone moves. I have friends and family back in Ma that have been there their whole life. Besides even though I moved away from there I still have friends ask me for referrals. Referrals are the lifeline of every business.

did I say everyone moves? I said not enough people stay in one place and buy enough cars for it to matter. If what you're suggesting were true, all the shitty dealers would be out of business...but instead they're going strong. A certain percentage of buyers are such die hard brand loyalists that the dealer could throw a bag of poo on the driver's seat at delivery and they'll still come back. Of the remaining buyers, the low-probability chance that they'll come back in a few years for another car is worth much less than the profit on the sale today. (Especially for the salesperson, who probably won't be there more than a year anyway.) Every time we have a thread like this we get a few people with dealership stories right out of Mayberry ("I've been buying cars from the same dealer as my grandpappy, yeah he's working from a nursing home but he's been in business since Henry Ford Sr came for the ribbon cutting and he's the best, yada yada") but if that was the norm we wouldn't have threads like this.

Sponsored

 

[mtbikernate]

I wish I hadn't sold my 98 Ranger.

I loved that little truck, but had a really frustrating issue with the parking brake that I couldn't get truly fixed. Every time I had it "fixed" it would just be a patch until the thing failed again in the same way about a year later. And I was in no place to be able to dive in and deal with it myself, either. I lived in apartments back then where I wasn't allowed to work on my own vehicle in the parking lot.

I paid $5500 for it. I actually looked at older used compact/midsize pickups when I was shopping, and the prices were just stupid for something with 100k-200k mi on it. My 98 Ranger would probably list for over 20k right now.

I have a feeling that my current Ranger will probably be the last pickup I buy. If the vehicle market doesn't chill out, I'll probably be that dude doing a complete rebuild on it in the future.

My next vehicle purchase might be a little electric econobox for city driving while I keep the Ranger around for long drives, going into the woods, and towing/hauling.

 

[jsphlynch]

For sure it's true and people will remember this. If he's selling all his units before they even arrive that means he literally has zero carrying cost. The dealer marking them up and having them sit for months is eating away at his profits because they're paying for these vehicles months. Sure they might still sell for a good profit but they won't be selling as many units as the one selling for MSRP. So in the end the Kia dealer will make a lot more.

I've used a similar business strategy my whole career. I've always kept my prices reasonable and was always the one in the middle when customers were getting estimates. Yes there wee times when I raised them (building booms) but never to the point where I felt like I was intentionally screwing someone. I guess it worked well because I've worked through the recessions. Even the '08 one I made it through and while things slowed considerably we still went to work while many lost their business.

I would think that it also cuts down on personnel costs, since they don't need people around putting much effort into selling the vehicles.

It's a bit of a bummer for me just because I can't test drive a Carnival here in town to see if I like it. If we get more serious about upgrading to the minivan, I guess I'll have to go out of town for a test drive at another dealership, then if we decide it's the right vehicle for us, come back here to purchase (or see if the other dealership will match).

 

[9zero1790]

I think we may have an opportunity here my 5g friends. All of us here are using a form of media now (online forum) all of us are more or less car/ truck people. I would bet most of us have other forms of media we have access to utilize. Facebook, Instagram, tiktok and whatever else. So if as many of us as possible start a ongoing and growing conversation about this and share, it actually could make a difference. Most folks I know do not have extra money to throw at 35,000 dollar car or truck that is now "adjusted" to a ridiculous price. Even the ones that do have higher income do not really want to pay six figures for a 60000 dollar car or truck. If we complain long enough loud enough on all the platforms we have use of - it will catch on and even strangers will add in. i see it as pointing out and drawing attention to a handful of points. 1. unethical business practices by dealers 2. price gouging 3. any info supporting the first two like you tube videos, articles, our own experiences etc.
we do not have to change the business or manufactures. they are not gonna change. our aim is to change the customer. when money goes to other brands and other dealers things could change. look how many political issues and grass roots clown movements have gained huge attention and traction simply by bringing awareness to whatever the issue or agendas were they pushed. I know lots of negative nancy types will say it cant work. cool dont join in. we could at least try though ? our options are do nothing and keep bending over, try to do something or just be pissy about it and stay stuck.

 

[Langwilliams]

I doubt that's actually true--people don't live in one place and buy cars frequently enough for repeat customers to be a major factor in sales revenue.

Every time we have a thread like this we get a few people with dealership stories right out of Mayberry ("I've been buying cars from the same dealer as my grandpappy, yeah he's working from a nursing home but he's been in business since Henry Ford Sr came for the ribbon cutting and he's the best, yada yada") but if that was the norm we wouldn't have threads like this.

My guess is it's hard starting out but if you're fair an treat people well you will build a client base that is very profitable. I sold cars briefly an they called walk on customers "ups". Who ever didn't have a customer they were working with was standing in the ups line to get the next customer. I have bought around 20 vehicles from various dealerships an every one seems to have a guy that has repeat customers or referrals coming in an doesn't take ups. When I bought my 2016 fusion from "Norm" at the local ford dealership there were 3 people there to sign paperwork with him. A few young guys were hanging by the doors waiting for a shot at a customer an he had 3 buys waiting on him. My area has had multiple ford plants in the area so maybe that's why there's always a referral model to work but it seems to be alive here.

Seems like we had a thread going on the auto industry going to a order model. The incentive was every vehicle would be sold before it was built an would sell at msrp. This eliminated inventory cost an excess inventory at the end of the model year prompting costly incentives like rebates an special financing.

 

[TXRangerTim]

Before I bought the Ranger, I checked out the Hyundai Palisade. The dealer said they don't mark up. They sell for sticker price. Even if they had to do a dealer trade to get the right vehicle and the other dealer already put aftermarket addons they would sell it at sticker price.

Compared the Kia Telluride next. They had a $3,000 markup and not willing to negotiate. The Kia dealership is right next to and owned by the Ford dealership.

Looked at the Ranger. It also had a $3,000 markup and they would not negotiate. Fast forward just over a month, I went to check out the Ranger again. This time I told them my price, which was MSRP, and nothing else or I'd walk. They basically didn't even try to haggle. I got my price. I'm sure my Ranger was the same one I saw previously and it had 100 miles on when I bought it.

Recently the Ford dealership bought both the Chevy and Nissan dealerships. So much for competition.

 

[ArchitectThom]

First off I don’t like the title of the video and this isn’t meant to be a Ford bashing thread. But this is a very worth while watch that points out what’s going on in the auto industry now in regards to pricing. I’m still not sure why they singled out Ford in the headline and in the video because ALL the manufacturers prices have got way out of control these past few years. Also take a few minutes to read some of the comments as many (long time loyal customers) are not happy with Ford especially the dealers right now and have walked and went to other manufacturers. I really hope Ford takes this serious and can correct this soon.

Now, like him or not Elon is a very smart business man! He lowered the prices of Tesla and now is capturing a huge chunk of market sales all around the world because of it. For most (especially lower income families) it’s now making new car buying very hard. Compound this with the cost of inflation and higher interest rates and most can’t even afford to buy a new vehicle now.

The video shows the average price of trucks now and they’re now priced like luxury cars were just a few years ago.The average cost of a new truck was over $59K which is crazy when you think about it. I remember buying my F150’s brand new factory ordered for right around $31K. They were usually the STX or XLT models and all were 4wd with the Fx4 off road packages. Hopefully Musk's price lowering forces the others to start lowering theirs too. If not they’ll eventually have way to much inventory sitting on their lots like pre 2020 and be forced to add discounts/incentives to move them. Not a bad thing for us consumers.

I'll never understand why anyone would hate Elon Musk. The dude is almost single-handedly saving free speech online. He builds rocket ships and electric cars. If anything, the left should be canonizing him. Instead, they're trying to cancel him. I just don't get it.

 

[TJC]

Elon is different. Dare I say exceptional! You can't be coloring outside the lines!

 

[AzScorpion]

I'll never understand why anyone would hate Elon Musk. The dude is almost single-handedly saving free speech online. He builds rocket ships and electric cars. If anything, the left should be canonizing him. Instead, they're trying to cancel him. I just don't get it.

I have no problem with Elon either. I wish more were like him and had the balls to stand up for what's right today!

 

[RedlandRanger]

I have no problem with Elon either. I wish more were like him and had the balls to stand up for what's right today!

I personally think the guy has gotten a little weird in the last few years. I think all the "Elon worship" has gone to his head. I've heard others say some of it might be due to him being surrounded by "yes men" who just parrot everything he says. The guy is smart and visionary, and done some really good/cool things, but everyone has their faults and no one is perfect.

 

[AzScorpion]

I personally think the guy has gotten a little weird in the last few years. I think all the "Elon worship" has gone to his head. I've heard others say some of it might be due to him being surrounded by "yes men" who just parrot everything he says. The guy is smart and visionary, and done some really good/cool things, but everyone has their faults and no one is perfect.

100% true! But being the richest man in the world I can see where it would go to his (or anyones head) having that much status. I mean there are some who have much less and their egos are overinflated. ?

 

[RedlandRanger]

100% true! But being the richest man in the world I can see where it would go to his (or anyones head) having that much status. I mean there are some who have much less and their egos are overinflated. ?

I've said it before and I'll repeat it here - humility is a rare commodity these days.....

Years ago, my dad was in fund raising and I went on some calls with him. I met some very wealthy people (not Elon Wealthy, but VERY well off - multiple houses, etc). Many of them were some of the most humble people I'd ever met and very unassuming. One guy bought a Rolls Royce and drove it himself - he just enjoyed driving it. It seems like a lot of that is gone these days unfortunately - but now I'm sounding like a grumpy old fart.....

 

[Msfitoy]

Who else can pull this off...a whole lot of very smart YES men/women...

 

[AzScorpion]

I've said it before and I'll repeat it here - humility is a rare commodity these days.....

Years ago, my dad was in fund raising and I went on some calls with him. I met some very wealthy people (not Elon Wealthy, but VERY well off - multiple houses, etc). Many of them were some of the most humble people I'd ever met and very unassuming. One guy bought a Rolls Royce and drove it himself - he just enjoyed driving it. It seems like a lot of that is gone these days unfortunately - but now I'm sounding like a grumpy old fart.....

My dad was the VP for a very large machine shop and I know the owner well and have spent a lot of time with him. You would never know this guy had money as he drove a station wagon and his wife a nice SUV. When they traveled he just wore a windbreaker with the shop logo, nothing fancy at all. I just found out he sold the company for $200M. He did have a huge house in CT and in FL on the Gulf of Mexico but was very humble.

 

[TJC]

My dad was the VP for a very large machine shop and I know the owner well and have spent a lot of time with him. You would never know this guy had money as he drove a station wagon and his wife a nice SUV. When they traveled he just wore a windbreaker with the shop logo, nothing fancy at all. I just found out he sold the company for $200M. He did have a huge house in CT and in FL on the Gulf of Mexico but was very humble.

It is impossible to tell who is wealthy and who is not by appearance. I know many people who are just normal everyday folk who succeeded in amassing substantial wealth, but live modestly, some extremely so. In those cases, the men and women own the wealth... the wealth does not own them.

Sponsored