Ford foreshadows no more Ford dealerships

[jinjuku]

First of many announcements from manufacturers I'm betting:

Ford's Recent Moves Could Mean Big Changes At The Dealer Level

Ford's recent decision to internally split its ICE and EV businesses promises big changes in the way that the company handled various aspects of its business. That includes an experience that some customers might not realize, the dealership.

www.torquenews.com

So as more models swing over to BEV platforms dealers will be S.O.L When Ford is at 100% electrification dealers will be no more.

 

[highfigh]

First of many announcements from manufacturers I'm betting:

Ford's Recent Moves Could Mean Big Changes At The Dealer Level

Ford's recent decision to internally split its ICE and EV businesses promises big changes in the way that the company handled various aspects of its business. That includes an experience that some customers might not realize, the dealership.

www.torquenews.com

So as more models swing over to BEV platforms dealers will be S.O.L When Ford is at 100% electrification dealers will be no more.

Who will make the repairs and who will train the service techs? Each brand does things a bit differently and they WILL want to sell parts- they may want to transition into a 'no dealer' model, but it will take a long time because they still sell a lot of vehicles, subject to the availability of specific components like the ICs that are so hard to get now. Also, salespeople will need to learn about EV and alternative fuel or they won't have a job- what they will sell isn't their choice.

 

[jinjuku]

Who will make the repairs and who will train the service techs?

I think you will see an auxiliary services model were as a repair shop you have say a Ford / BMW / Honda badge.

 

[SithZedi]

Ford seeing the inevitable. Every dealership I drive by in the last couple of years is an empty parking lot with lack of inventory to be displayed. Sedans are gone, unless they are electric.

If they ever remake Caddyshack, Al Czervik would joke "Cemetaries, golf courses, and auto dealerships, biggest wastes of real estate"

 

[Hetfield]

It doesn't help that the dealership buying experience is absolutely painful. I like the salesperson, they are really just the lot guy that helps you find the vehicle you want. They kinda make the payment and financial deal. They work their butts off and they are usually relatable. What I mother F-ing HATE is the financial guy at the end, I forget the actual title. They are the guy that tries to sell you all types of snake oil! I lease a new vehicle every 3 years so I go through this quite often and have to do it again this July when my lease is up.
The dam finance manager literally makes me sick. They talk fast, they are slick little A-holes and they try to add 70-100 bucks to the payment you just agreed to. They look at me like a total asshole because all I say is NO. I look right in their eyes and say NO to absolutely everything. They put pressure on you but don't fall for it and I hate it. The dealerships themselves are doing this to themselves.

 

[SithZedi]

It doesn't help that the dealership buying experience is absolutely painful. I like the salesperson, they are really just the lot guy that helps you find the vehicle you want. They kinda make the payment and financial deal. They work their butts off and they are usually relatable. What I mother F-ing HATE is the financial guy at the end, I forget the actual title. They are the guy that tries to sell you all types of snake oil! I lease a new vehicle every 3 years so I go through this quite often and have to do it again this July when my lease is up.
The dam finance manager literally makes me sick. They talk fast, they are slick little A-holes and they try to add 70-100 bucks to the payment you just agreed to. They look at me like a total asshole because all I say is NO. I look right in their eyes and say NO to absolutely everything. They put pressure on you but don't fall for it and I hate it. The dealerships themselves are doing this to themselves.

Absolutely right on here. Dealerships make a better ROE selling those additional services plus incentives(kickbacks) they get from the finance cos versus what they get from selling the actual vehicle.
Just keep saying no.

Another tactic, going into the deal, say you can pay in full (a bluff) and get their lowest price. Once there, say you might be interested in financing depending on their credit terms. 9 times out of 10, they will knock some price off their previous "lowest" price if you finance versus paying in full. Why? The financial cos pay them on the back end.

If it's a high interest rate, then pay the loan off after 6 months in full (or use a Home Equity loan).
If they give you a low interest rate or zero % financing then all the better.

Of course, with the current inventories their postion is stronger but it's something to think about.

 

[Hetfield]

Absolutely right on here. Dealerships make a better ROE selling those additional services plus incentives(kickbacks) they get from the finance cos versus what they get from selling the actual vehicle.
Just keep saying no.

Another tactic, going into the deal, say you can pay in full (a bluff) and get their lowest price. Once there, say you might be interested in financing depending on their credit terms. 9 times out of 10, they will knock some price off their previous "lowest" price if you finance versus paying in full. Why? The financial cos pay them on the back end.

If it's a high interest rate, then pay the loan off after 6 months in full (or use a Home Equity loan).
If they give you a low interest rate or zero % financing then all the better.

Of course, with the current inventories their postion is stronger but it's something to think about.

Excellent advice, thanks. My lease is up on my Ford Ranger that I actually love. I want to go with the Ford Mach-E but it's just a bit more than I want to spend at this time and again the inventory issues don't make that easy either. I believe you have to order the Mach-E. They don't have them on the lot. By the way I want to go with the Mach-E for a whole host of reasons, price of fuel is just one and it isn't the top of the list.
I'm gonna end up with another Ranger but I vow this will be, WILL BE my last internal combustion gas vehicle I buy. I figure in 3 years of this lease the options of electric vehicles will skyrocket.
Maybe by the the Ranger will be electric! That's what I really want.

 

[mtrycrafts]

Well, dealerships of some kind will be around as long as ICE are around. Someone has to repair them even when they are older. Some customers prefer a dealer to change oil and keep up with the maintenance periods, etc.
EVs will need other maintenance when things go haywire. But, interesting developments coming.

 

[jinjuku]

Some customers prefer a dealer to change oil and keep up with the maintenance period

If you can have a manufacturer blessed 100,000 sq ft building with show room and service bays in the back, you can have a manufacturer blessed 25,000 sq ft building with a waiting room and 6 - 8 service bays

 

[lovinthehd]

Just another transition to modern buying habits. I never cared for the dealership sales efforts (let alone the financial guy ). My brother has worked as a dealership service guy for much of his career with car ICEs. Will have to get his take on this....

 

[keepr88]

I work at Ford Lincoln Hyundai dealership. I have held many positions in our dealer group (3 Ford stores 1 Chevy store), sales Mgr., service Mgr, and yes annoying guy finance Mgr. Not all finance guys are like the ones you describe. I have wished for years something would change the dynamic between customer and dealerships. I would suspect that if customers paid msrp for cars like 98% of everything else they buy the experience would be more enjoyable. As for dealerships going away I suppose all things must end eventually. Look at blockbuster. Lol. If dealers can adapt they will survive. The ones that cling to methods used in the 80s won't.

 

[lovinthehd]

 

[keepr88]

Lol. Look up the badger commercials. We call them training videos

 

[lovinthehd]

Lol. Look up the badger commercials. We call them training videos

LOL never saw those before....that a Wisconsin thing or something?

 

[keepr88]

LOL never saw those before....that a Wisconsin thing or something?

No I believe a Kia dealership made them some years ago. Absolutely classic tho. Johnson Kia I believe

 

[lovinthehd]

No I believe a Kia dealership made them some years ago. Absolutely classic tho. Johnson Kia I believe

Yeah it mentioned Johnson Automotive. Seems that's from Raleigh NC

 

[Hetfield]

I work at Ford Lincoln Hyundai dealership. I have held many positions in our dealer group (3 Ford stores 1 Chevy store), sales Mgr., service Mgr, and yes annoying guy finance Mgr. Not all finance guys are like the ones you describe. I have wished for years something would change the dynamic between customer and dealerships. I would suspect that if customers paid msrp for cars like 98% of everything else they buy the experience would be more enjoyable. As for dealerships going away I suppose all things must end eventually. Look at blockbuster. Lol. If dealers can adapt they will survive. The ones that cling to methods used in the 80s won't.

Yes, I should have clarified I only have experience at Ford dealers as I only buy Ford vehicles. I always wondered if it was different at others dealerships. The ones at the 3-4 Ford dealers were pretty much the same and my preferred Ford dealership is the worst! Fast talking, slick and a bit intimidating or tries to be.

 

[Kvn_Walker]

It doesn't help that the dealership buying experience is absolutely painful. I like the salesperson, they are really just the lot guy that helps you find the vehicle you want. They kinda make the payment and financial deal. They work their butts off and they are usually relatable. What I mother F-ing HATE is the financial guy at the end, I forget the actual title. They are the guy that tries to sell you all types of snake oil! I lease a new vehicle every 3 years so I go through this quite often and have to do it again this July when my lease is up.
The dam finance manager literally makes me sick. They talk fast, they are slick little A-holes and they try to add 70-100 bucks to the payment you just agreed to. They look at me like a total asshole because all I say is NO. I look right in their eyes and say NO to absolutely everything. They put pressure on you but don't fall for it and I hate it. The dealerships themselves are doing this to themselves.

Hilariously, the majority of finance mangers I've ever dealt with were hot 30-something females. And more than one of them had the 2nd blouse button open.

I guess the dealerships learned from bars what it takes to get that extra dollar.

 

[Hetfield]

Hilariously, the majority of finance mangers I've ever dealt with were hot 30-something females. And more than one of them had the 2nd blouse button open.

I guess the dealerships learned from bars what it takes to get that extra dollar.

I always get fat old dudes. I like your experience better. If I'm gonna get taken for a ride I'd like to take that ride with a hot chick with their blouse unbuttoned. [emoji1787]

 

[David696969]

Sounds like another plan to destroy America what happens when the power plants go down because of a EMP no one gets to drive at that point there will be no more gas cars so everyone will have to walk even motorcycles are turning over to electricity and bicycles so did anyone think about an EMP that Russia had already threatened to put on the United States I think this whole thing is a plan to destroy our way of life created by our own government.