Ford Moving toward Build-to-Order, Away from Packed Dealer Lots

[Kingratt]

Just a couple of quick thoughts. Turn around is going to be one of the biggest issues and the only way to do that is limit options where package A gets you certain things, package B if you want something else, package C etc. Otherwise it will get pretty costly to go full custom and extend delivery lead times. What happens to resale value on a one off truck built for a particular customer? Just because I might value and spend money on certain options does not mean somebody else does. I think of Carvin/Kiesel guitars. Great semi custom guitars but very limited resale. Other products have pretty liberal return policies so what happens to when a customer doesn't like their one off truck? Does Ford sell it off as a "reconditioned" model at a discount? Or does Ford make them keep a truck they're not happy with, won't buy their next vehicle from Ford, and bash the company on social media, with all their friends and family?

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[Rviator]

Hopefully this new sales model will go back to the way it used to be and allow for more customization of the order vs having to get a package that includes some items you want and some you don't.
I've special ordered almost every vehicle I ever purchased from the first one, a 1980 Firebird Turbo Formula, to the Ranger. I was happy with each as I knew what I wanted and what I was getting. I always received whatever incentives were available at either the time of ordering or when delivered. I test drove some form of all of them except for the Firebird, no turbo's on the lot, and a '99 F-450 Crewcab Diesel with the 6 sp manual, none like it either as it was ordered very early in the production cycle. The only vehicles I bought off the lot were imports an 84 Nissan pickup, an '86 RX-7 and 2009 RX-8 as they were built to only a few different model specs.

 

[towpro]

there is a lot of impolse buying out there. I bet it adds up to 75% of the dealer sales. If your only option is to order a car its going to stop this impulse buying for new cars. Plus what happens if your car is totaled or dies, etc? your stuck weighting for an order or buying used?

 

[JeffWoodall]

I am not sure how this will work. Just under 50% trade in their used vehicle on a new one. So, you go to the lot, get a quote for your new build/ordered vehicle, they give you a price minus what they give you for your vehicle, then you leave without a vehicle for 2 months or so? I don't see this working on a large scale. Also, when your order one, I am guessing you start paying for it before you get it. I don't see Americans as a whole getting on board with paying for something now and getting it a couple of months from now.
Covid has jacked up everything and I just want things to get back to normal. I sure hope we don't have a new normal.
Seriously, who wants to buy a vehicle and you can't drive it, get under it, kick the tires? This won't ever work in our society, not as a whole. You always have your different groups of people that like it this way or that way, and that is the American way, but in my opinion, for the majority, no way.

 

[AzScorpion]

I am not sure how this will work. Just under 50% trade in their used vehicle on a new one. So, you go to the lot, get a quote for your new build/ordered vehicle, they give you a price minus what they give you for your vehicle, then you leave without a vehicle for 2 months or so? I don't see this working on a large scale. Also, when your order one, I am guessing you start paying for it before you get it. I don't see Americans as a whole getting on board with paying for something now and getting it a couple of months from now.
Covid has jacked up everything and I just want things to get back to normal. I sure hope we don't have a new normal.
Seriously, who wants to buy a vehicle and you can't drive it, get under it, kick the tires? This won't ever work in our society, not as a whole. You always have your different groups of people that like it this way or that way, and that is the American way, but in my opinion, for the majority, no way.

If you have a trade in they give you a price on yours when you order your new vehicle. When I bought my 2016 Tacoma it was in September of 2015 and took delivery in January 2016 and they gave me a price on my 2013 F150 then. As long as there's no damage to yours or excessive mileage that's the trade in price. I've done this many times with different dealers in different states and have never had any problems. All the negotiations are done pre order so there's no surprises once your order comes in.

You don't make any payments until your new vehicle is delivered and you inspect it and test drive it. If you don't like it you walk away with your deposit fully refunded. This last part you really need to make sure you get in writing as I've seen some dealers try to keep the deposit.

Plus as stated in the article there will be a 50-60 day supply on their lots.

 

[Doctorfong]

That's how I got my Ranger. I didn't want what the dealer ordered or pay the high markup. I got just what I wanted.

 

[TremorPNW]

I'm not the kind of person that would order anything and wait months to see if I like it. I knew exactly what I wanted went to the closest ford dealer about 25 miles away pulled into the lot looked around the side of the building there it was a Carbonized gray lariat tremor with exactly the options I wanted nothing more. A short time later I drove it home with my wife following me. Maybe that was my last ford purchase if they don't stock vehicles in the future.

 

[Gibber]

I can see a lot of incentives going away if/when they do this. You might now only see some smaller ones like if you finance through Ford credit or some end of the year ones if there's some dealer stock leftover. I would guess all the other manufacturers will get on board with this or I can see this backfiring on Ford. Why wait months for yours to be built when you can go over and buy directly off the lot somewhere else. Of course this is if you like the others product but for some not so fussy folks I can see them doing this.


https://autos.yahoo.com/ford-moving-toward-build-order-180000140.html

I ordered a Tremor 8 weeks ago. Still not being built. This is what the dealership told me. Ford is not prioritizing customer builds. One came in to another dealership in town and I bought it. At least the first dealer gave my down payment back.

 

[towpro]

but what hypothetically happens say, when i roll up my ranger in a ditch while goofing off and it's wrecked....and I need a new one...is the insurance going to be happy paying for a rental for the wait times to order a new vehicle?
having a dealer lot full of inventory is like going to walmart and grabbing something off the shelf. Imagine if we had to pre-order from the meat department for the BBQ this weekend?

I agree.
I don't think the foreign manufactures (that build in asia) can even think of switching to this model when they have the same build times, PLUS 2 months shipping. So they will have the inventory they do now (or more) and supply and demand will drive more buyers to their showrooms.

Ford can suggest this model but that don't mean the dealers are going to have to accept it. they can still order inventory. I know my dealer is a very large volume dealer with sales staff that has years of experience: experience getting a person who walks through the door to buy a car they have on the lot

 

[MountainGoat]

Friend of a friend said the Ford plant in Kansas city is shutting down again. They were scaling back due to chip shortage but now say it's due to Covid.

 

[JohnnyO]

Technology is better than it was in the 80's when I was a car salesman. Should be able to more customize things and not rely on option packages if they want to. 20 years ago my dad ordered a new BMW. Biggest POS he ever owned but that's another story. The order went from Pittsburgh to Germany, car got built, put on a boat, and arrived at the dealer in Pittsburgh literally 4 weeks to the day after he ordered it.

I had every intention of ordering a Ranger when I went to the dealer in April, I have an X-Plan through my employer, mostly to save money versus the loaded units on their lot plus my last three trucks were silver and almost everything the dealers had was grey or silver. I wanted a red or blue STX 4x4. Lo and behold, they had a blue 2020 STX with 5000 miles that with two exceptions was exactly what I would have ordered anyway. Would have got the rear locker and passed on the bedliner. Original owner leased it from the same dealer, it turned out not to be big enough so he traded it on an Eff One Fiddy and JohnnyO saved $2000.

 

[Caliope]

My last 5 vehicles have been orders and they came exactly as ordered. I have paid a fair price for the vehicle and don't mind waiting. My '19 Ranger was the longest I had to wait at 12 weeks. All of the previous vehicles were 4-6 weeks. Prices might be lower because the dealers will have less overhead in having vehicles on the lot. The dealers buy the vehicles from the manufacturer using what the banking industry calls a "floor plan" loan. As long as the vehicle is sitting on the dealer lot, they are paying interest on the loan for that vehicle and pay off the loan when the vehicle sells. That's why dealers with large inventories on their lots tell you that they can make a better deal on one sitting there then ordering one out. Which isn't entirely true, but they want out from under the interest payments.

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