Ford CEO Finally Confirms New "Agency Model"

Radioman

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They're not bidding on your business. You get to go online or to a dealer and price your vehicle. Then after you have your price you can chose any dealer you want to be your agent. They (the dealer) have no control over the pricing, Ford set this. Now there's no haggling backend forth and worrying about markups. You already know the set price.
That's the rub for Dave. The video said that price competition would be removed. In my mind, I don't want the price competition removed, I want to be able to obtain the lowest cost by competitive bidding, not by some set price that Ford determines that is what I should pay for a new vehicle.
 

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I realize that many are very angry at dealers for the huge markups of late which is part of the supply and demand but I firmly believe as the market returns to more normal supplies, the costs will also drop as competition for the purchasing buyer increases. I believe what we have been seeing for the last year or so is not sustainable as supplies return to a normal level.
 
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AzScorpion

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That's the rub for Dave. The video said that price competition would be removed. In my mind, I don't want the price competition removed, I want to be able to obtain the lowest cost by competitive bidding, not by some set price that Ford determines that is what I should pay for a new vehicle.
IDK so far I kind of like it. It saves time knowing what a vehicle will cost and as long as the manufacturers don't set the prices to something unrealistic than it's an easy transaction. They (the manufacturers) can only set the price to what the market will bear. So if it's a realistic MSRP and you don't have to deal with salesman it's a win.

They say this is already going on in Europe so it should be easy to look up and see how it's doing there. Those that have bought a Tesla swear by this model and if Tesla continues to charge realistic prices I can't see Ford setting their to high. At @dtech has been saying Ford wants to be like Tesla and they'd have to mirror them to do this. They'd shoot themselves in the foot if they went so high they'd be driving more customers away.
 

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I see the dealerships fighting this with every means possible. I feel that we are going to see shortages of vehicles for some time. Most OEMs have stated they are going to only build a limited number to control availability and therefor price. You will not see any markups but also no markdowns or incentives with this model. I think most of us on this forum, have been able to get a reduction on the price we paid and I don't believe that will happen if this policy goes into effect. Time will tell if or how this works.
 


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IDK so far I kind of like it. It saves time knowing what a vehicle will cost and as long as the manufacturers don't set the prices to something unrealistic than it's an easy transaction. They (the manufacturers) can only set the price to what the market will bear. So if it's a realistic MSRP and you don't have to deal with salesman it's a win.

They say this is already going on in Europe so it should be easy to look up and see how it's doing there. Those that have bought a Tesla swear by this model and if Tesla continues to charge realistic prices I can't see Ford setting their to high. At @dtech has been saying Ford wants to be like Tesla and they'd have to mirror them to do this. They'd shoot themselves in the foot if they went so high they'd be driving more customers away.
I guess we will just agree to disagree. I NEVER pay MSRP for a vehicle.
 
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AzScorpion

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Also, I'd need more details on how the trades are handled. At some point an appraiser with skin in the game has to evaluate your trade. I'd basically need to see the end to end process detailed out before I'll comment further on the proposed new sales approach.
All the logistics aren't in the video but you're right, trade in will have to be handled effectively. My guess is the blue book value seeing as dealers need to make a profit afterwards. If done right this could/would be a great way to buy vehicles.
 
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AzScorpion

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I guess we will just agree to disagree. I NEVER pay MSRP for a vehicle.
I never have either. But we'e not in normal times anymore and I don't see that ever returning. To much has changed (for the worse) and they know they can basically do what they want especially if all of them get on board with this.
 

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That's the rub for Dave. The video said that price competition would be removed. In my mind, I don't want the price competition removed, I want to be able to obtain the lowest cost by competitive bidding, not by some set price that Ford determines that is what I should pay for a new vehicle.
Too many people don't understand dealership haggling anymore. Haggling for prices is a thing of the past in USA. Example: most people now would go to a flea market or swap meet where haggling is expected and they would simply pay the price not knowing better. People don't like buying at dealerships because they don't get the game of haggling. Online pricing would remove haggling and make a lot of people happy.
 

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Ok, I watched the video. All I took away from that is Ford wants to ensure that they control who profits most off the vehicle sale. I also see the the article as deflecting from the larger supply chain issues at play and trying to lay the blame solely on the dealer network. At best, supply chain got an honorable mention.
 

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I realize that many are very angry at dealers for the huge markups of late which is part of the supply and demand but I firmly believe as the market returns to more normal supplies, the costs will also drop as competition for the purchasing buyer increases. I believe what we have been seeing for the last year or so is not sustainable as supplies return to a normal level.
We've been telling ourselves, "it'll go back to normal soon," for almost 3 years now.

While I'd like to agree, I really don't think it will, like EVER.
 

TXRangerTim

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I guess we will just agree to disagree. I NEVER pay MSRP for a vehicle.
The dealership I bought from refused to give x-plan on Rangers and Broncos. I did haggle them down to MSRP. In today's economy MSRP is considered a good buy. Pre-covid, MSRP was fair but not great price.
 

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We've been telling ourselves, "it'll go back to normal soon," for almost 3 years now.

While I'd like to agree, I really don't think it will, like EVER.
This is the new normal for the foreseeable future.
 
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AzScorpion

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We've been telling ourselves, "it'll go back to normal soon," for almost 3 years now.

While I'd like to agree, I really don't think it will, like EVER.
Sadly this is the new normal. Even if the supply chain went back to normal they now know they can keep inventory low to keep prices higher.
 

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