I love build-to-order, but if this becomes a trend probably not good for discounting and LHers.
Someoneās copying Tesla.
Iād say copying the Europeans on configurability. Tesla barely has any configurability, but youāre right about doing online order to avoid discounting.
This is just to combat the shortage tbh, as soon as production isnāt the limiting reagent they will somehow some way find their way back to packed dealer lots.
Ford wonāt be able to compete in the luxury truck market when ram and gm throw rebates out like candy and those trucks are about 10-15k cheaper than the ford counterpart.
They make a killing off margins on trucks, this is the one segment I doubt they go to a profit per unit basis versus volume basis if they arenāt painted into a corner.
My guess is theyāll make a desirable truck trim or two online-only. Maybe the Raptor and one of the Canadian Tuxedo models.
This is like when Lexus said theyāre moving to no haggle pricing modelā¦.that lasted 30 days.
Reason #51223414 for why Ford sucks
Raptor was always rare, it will definitely go over msrp initially and then wane down to msrp then Slight discount.
But why? Because they are more interested in their own profit margins than giving away lh deals? Thereās a reason ford does what it wants, because itās f series are the top ranking trucks almost every year.
I mean, yes. From my perspective which is one of a consumer who likes to find good deals (such is the explicit purpose of this site), the fact that they will limit supply to drive prices up, they suck. But it is their prerogative to do so and mine to hate them for it. And as a current Ford customer, I can assure you I have more than one reason to believe that they suck.
Welcome to capitalism my friend, as a business owner would you sell a home for less if you knew you could make more money? Definitely not.
It is your prerogative but itās quite a selfish and stupid one.
This is a better argument, my experience with ford so far has been great although it has been limited to just one model and trim (f-150 platinum). They may have issues elsewhere and those are solid gripes, I know the freezing door latch was a HUGE one but we somehow got lucky, knock on wood.
You used to be able to get a G wagon for a slight discountā¦
I mean you can still get a G63 at MSRP but the shortest waiting list I know of is a clear year long.
Used to be able to get the c8 slightly below msrp if you hit the right dealer, now lot units are 25k over and orders are a while out.
This shortage really f*cked up the rare/exotic market.
Damn fca dealers marking up charger redeyes
I would sell my home for as much money as possible, but that wouldnāt stop the prospective buyer from thinking I suck when I reject their offer.
Selfish and stupid for wanting a good deal and hating on companies who make that more difficult? No, just like most others here, I am interested in getting the best possible deal for myself and I worry not about Fordās profit margins - sorry. I take it you go into the dealer and offer to pay them MSRP+ then.
You do realize that they are doing this because of a chip shortage and not for fun right?
Thatās what everyone is here for, Iām not interested in anybodys profit margins either, I just understand the market better than you I guess.
I have deals that sh*t all over the best deal you have ever gotten, you just donāt seem to understand the market lol.
Thereās a difference between blindly paying for something and understanding the market.
Iāll give you an example.
3 years ago you could negotiate like crazy on trucks, I ended up getting 20% off two f-150 leases.
Fast forward to this year, essentially that same truck in a new body style and a hybrid motor was going for msrp at 75k, you either pay msrp or you donāt get a new truck.
I bypassed fordās lease lockout stage and sold both trucks and grabbed 2 for msrp.
Itās all timing, two months earlier and my equity would be lower but I would be able to get those trucks 2-4k below msrp.
Today? Those trucks are going 5-10k over msrp and my equity was the same as May.
I just feel bad for people who are forced to lease a new car at crazy prices because their current lease expired.
Literally the first bullet in the article
Ford thinks that a build-to-order process is the right way to go moving forward.
The chip shortage will eventually be gone, but according to this, Build-to-Order will remain in place. Will that be good for the consumer? No. Will it be good for Ford? Maybe.
Congrats? Not sure about the relevance but if you want to flex your leasehacking muscles, by all means go for it bud. I couldnāt care less about your deals. Not entirely sure why you are taking my opinion so personally. Maybe you work for Ford or have stock in them or something.
Save it. The current market is largely irrelevant to the future permanent business model which will adversely affect the consumer who will be looking for a deal once this microchip crisis ends.
Read my first post, ford will make more money off multiple units with a few K in incentives than they will off one unit with no incentives.
Dealerships on the other hand love this current model. Like I said, why buy a ford f-150 platinum at 75k when a ram limit is 60k or a sierra denali at 60k.
The margins are already huge on these high-end trims. High end trims and flagships are what draws in buyers, people buy a charger sxt because of the hellcat, people buy mustangs because of the shelby, etc etc
Because I pay msrp, you throw the first strike I only respond lol⦠anyway back to the topic, we can throw insults all day but letās get back to the topic at hand.
The example was to show you how the market is ever changing and how important it is to understand the market.
This āpermanentā business model only lasts until dealers want to get into the manufacturers good graces and start selling volume instead of margin.
The consumer is always sh*t on, the prices of inflation often outpace msrp increases, Things such as leasing, financing with longer terms, etc etc cause msrpās to get inflated not to mention government mandates and new safety and security features that all cost money.
Itās entertaining to see that people have āmisbeliefā of manufacturing company like Ford would want higher profit per units by sacrificing sales volume. Clearly donāt have any understandings of corporate accounting/finance. itās not a small business lol
The intention of Ford moving toward build-to-order is not about making more profit than current dealership sales model. Any automaker will take more sales volumes than more profit per sales units any day.
I hope other car manufacturers will take notice and do the same.
Get the exact specs buyer wants and I am sure people will flock to it.
A lot (most?) brands have allowed for special ordering any car you want for a long time. I wouldnāt say that people have ever flocked to purchasing like that, unless theyāre forced to.
I donāt know that we disagree on any of this. I understand the market and realize why things are the way they are today. That doesnāt change the fact that I dislike the notion of any manufacturer attempting to permanently change their business model to my detriment as a consumer. Again, I get the need for build to order today in the midst of a microchip shortage, etc. But Fordās intent for the future after we come out of this crisis, whether it will materialize and be fruitful or not, is bad for the customer, and therefore I am not a fan of such a decision. That is all.
Why?
Are you aware that most, if not all, manufacturers already allow people to order the exact car they want?