Ford CEO Finally Confirms New "Agency Model"

[AzScorpion]

I'll believe it when I see it but it's a step in the right direction. Ordering a vehicle online or off-line then you pick your preferred dealer. You already having a set price so the dealer it's delivered to is only an agent. There you can inspect and test drive then proceed with the sale without any worry about markups and added costs. I think Ford has seen A LOT of backlash especially with the crazy markups on Broncos and this will hopefully put an end to most of the problems we have buying a new vehicle. Judging from the comments on YouTube many love this idea too.

Sponsored

 

[DukeCanBuildit]

This is very welcome news. Once they establish this purchasing model, they can easily change “agents” if dealers get up to any shenanigans. ?

 

[AzScorpion]

This is very welcome news. Once they establish this purchasing model, they can easily change “agents” if dealers get up to any shenanigans. ?

That's what's nice is you can chose your dealer with a price already set in place. If this goes through it should weed out these slimy dealers and their games. BUT like I saw with my Bronco order Ford was the one who changed the rules to the advantage of larger dealers with an allocation system. Here's hoping all that backlash didn't fall on deaf ears and they really want to start helping their customers.

 

[dtech]

Let's give credit where credit is due - where is that Tesla symbol when I need it ?

Mr Farley (aka mini Musk) is not afraid to make waves, good for him and Ford customers. Now the big question is will he be around to implement this.

 

[dtech]

If CEO Farley successfully implements this ahead of competitors , it could well result in increased sales for Ford from people who are brand agnostic and like a good many loathe the dealer procurement experience.
But I suspect competitors may also quickly adopt this model is some form.

 

[AzScorpion]

Let's give credit where credit is due - where is that Tesla symbol when I need it ?

Mr Farley (aka mini Musk) is not afraid to make waves, good for him and Ford customers.

Now the big question is will he be around have the balls to implement this.

Had to fix that last line.

Actions speak louder than words. While I really hope he does this I think putting money in SVB might be a safer bet right now.

This is going to make every large volume dealer hit the roof. That's exactly what happened with the Bronco launch as the smaller dealers got way more orders because they were selling for MSRP and even some at invoice. So the larger dealers complained and they (Ford) changed for your timestamp being your place in line to an allocation system which screwed the smaller dealers.

 

[AzScorpion]

If CEO Farley successfully implements this ahead of competitors , it could well result in increased sales for Ford from people who are brand agnostic and like a good many loathe the dealer procurement experience.
But I suspect competitors may also quickly adopt this model is some form.

You're right he's chasing Tesla which isn't really a bad thing. Ford needs to do something because many are jumping to their competitors and it showing. This could really boost their sales and gain their trust that they're actually listening to their customers for once.

 

[dtech]

You're right he's chasing Tesla which isn't really a bad thing. Ford needs to do something because many are jumping to their competitors and it showing. This could really boost their sales and gain their trust that they're actually listening to their customers for once.

Some dealers will make up for potential lost vehicle sales profits by finding new ways to gouge the customer on services , then Ford will have to address that.

 

[TXRangerTim]

Sixteen states have laws in place to protect dealerships from direct sales. It can be done but it's not as easy is dealership buys. Mostly aimed at Teslas but it will cover others as well the same way.

https://texasview.org/why-you-cant-buy-a-tesla-in-texas/
You can't directly purchase a Tesla in the Texas because Texas has a law that prohibits manufacturers from selling directly to consumers. You are, however, able to own and operate a Tesla in the state. Texas created the law to protect and encourage car dealerships.

 

[AzScorpion]

Sixteen states have laws in place to protect dealerships from direct sales. It can be done but it's not as easy is dealership buys. Mostly aimed at Teslas but it will cover others as well the same way.

https://texasview.org/why-you-cant-buy-a-tesla-in-texas/
You can't directly purchase a Tesla in the Texas because Texas has a law that prohibits manufacturers from selling directly to consumers. You are, however, able to own and operate a Tesla in the state. Texas created the law to protect and encourage car dealerships.

But it's not direct sales. You get to pick your dealer after you chose your vehicle and agreed price. This way the dealer has no influence over anything but the prep and paperwork. SO you still have to go to the dealership but all the financials have already been worked out omitting them.

 

[mtbikernate]

Some dealers will make up for potential lost vehicle sales profits by finding new ways to gouge the customer on services , then Ford will have to address that.

Very true.

Welcome to the age of dealer add-ons!

I welcome a move to a more straightforward model, but there will definitely be some hiccups and slimy dealers WILL be slimy. Farley is going to have to adapt to some of these challenges and he's going to have to be willing to put the hammer down on the slimy f*ckers.

 

[TXRangerTim]

But it's not direct sales. You get to pick your dealer after you chose your vehicle and agreed price. This way the dealer has no influence over anything but the prep and paperwork.

Did you read the article?

Purchase the car through the website
The only way to purchase a Tesla is through the company’s website, as they do not operate any dealerships, and you cannot buy cars from their showrooms. It will be an out-of-state purchase.

When purchasing from Tesla, the site will allow you to pick the nearest service where you can pick it up. The service center will be in the state nearest to you which is not Texas. There is also an option to have the car delivered directly to your residence in Texas.

 

[Msfitoy]

No more dealing lol...I like "Ford Agency" better than "Ford Dealership"...

 

[AzScorpion]

Did you read the article?

Purchase the car through the website
The only way to purchase a Tesla is through the company’s website, as they do not operate any dealerships, and you cannot buy cars from their showrooms. It will be an out-of-state purchase.

When purchasing from Tesla, the site will allow you to pick the nearest service where you can pick it up. The service center will be in the state nearest to you which is not Texas. There is also an option to have the car delivered directly to your residence in Texas.

And did you watch the video? It say EITHER purchased online or offline sales. So you go on Fords website, pick your vehicle then chose your desired dealer AFTER you priced it. This way the dealer has NO SAY in the pricing.

 

[TXRangerTim]

Eventually everything will go to an online sales model. Younger generations interact with phones more than people. Laws will change, dealerships will be shuttered. Surviving dealerships will be mostly for service centers and the few people that still prefer in person sales.

Sponsored