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Ford to drop Dealerships?


Marshal Dan Troop 70448

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Seeing and hearing what new and used cars are being sold for at dealers is getting outrageous. Was looking to replace my 1999 Ford Ranger and was looking up inventory prices. One dealer was asking as much as 40,000.00 for a Ford Maverick, and 7500.00 above sticker for a F150. Friend said they traded in their KIA Optima, 2018 and got 16,750.00 for it and next day dealer had car listed at 29,000.00.

Hopefully Ford and other Manufacturers will drop Dealerships, only problem will be, were to get warranty work and other work done.

 

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They could start contracting out the warranty work , or just have repair stations. I think they still will need some way for people to test drive . I wouldn’t mind the traditional dealers going away. Price the vehicle what you think it’s worth and if it’s worth it , it will sell. 
Sadly I don’t see them going anywhere, they have to sell you financing and warranty upgrades. It’s my understanding GMAC is the most profitable part of GM. I would expect financing the vehicles is a big part of the profit for most manufacturers. 

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Legally, you can have warranty repairs performed at any shop you chose, provided that the manufacturer is willing to support those repairs and the shop is willing to deal with the manufacturer.

 

A shop that I worked for in the ‘80s did quite a bit of manufacturers’ warranty work! The shop owner said that it was great money!

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I could do without the salesman at the dealerships. Although you’ll still have them if Ford took over I hope they won’t be on commission!

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Regarding new car prices...

 

I plan on buying a 2023 model. In 2053.

 

:o

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I worked briefly for a Lincoln - Mercury - Mazda - Mercur (sp?) dealer in Montclair , Ca.  The old man who owned it.... for thirty six years in two locations....called himself a" tired old wop merchant who loves people, his family, and bocci ball.

 

In the four months I was these I watched him walk onto the lot and fire salesmen who had been selling cars for years because they has not treated customers with due respect or ignored them or tried to high pressure them into something they didn't want.

 

He had a lot of Dutch dairy farmers and Italian chicken farmers who had never bought a car from anyone else, some for the whole thirty six years he'd been in business, because if you bought a car from his  place you became family.

 

There aren't many left like Jan Silletto.

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Service departments are expected to "enhance" transactions with customers to the benefit of the dealership.  I've had two vehicles in service shops this year where the manager called and tried to convince me that the vehicle needed a new battery (over $250 each time).  I declined each time, and both cars are running fine on the same batteries that were in them when they went to the shop.  One of the shops also indicated I needed an oil change that would cost over $100.  I told them that the sticker in the window from another shop told them that the oil had been changed less than 2,000 miles previously, and that an oil change was not needed.  Practices like this make me detest even going near a shop.  

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If the dealerships go away, it will create new and different challenges for everyone. I'm hoping to purchase a new vehicle in the next six months or so, and have been test driving a couple to compare. I don't know quite how you accomplish that without a dealer model. There are good dealers out there, and good salespeople, just like there are bad. We've owned several Subarus from a local dealer because of their sales people, and we've have been fairly happy with their service department. I'm strongly considering adding another.

I don't do corporate law, but I don't see why Ford, or any other manufacturer, can't put into their contracts with their dealers that vehicles will only be sold for MSRP or below, or perhaps a certain percentage above.

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I was working on my inherited Ford Taurus. A radiator hose was leaking, and only the Ford dealership had a hose with a little nipple needed for some damn hose.

Compared to other parts shops, the hose should have been around $30.

When I bought it, the clerk told me $185. I paid for it, but explained my displeasure. The guy's boss came over, since I was speaking rather loudly, so I repeated my displeasure to him. Nothing he could do...

So, I walk through the showroom to leave, and a salesman asked if all was well. Well, I explained to him that the hose would have been too expensive at $85, but Ford charged me $185, and I was very displeased. I told him (and everyone else in the showroom) that I would never buy a Ford.

I finally got it running again, sold it, and bought a Jeep Patriot in 2013, and it has over 200k miles on it and is still running.

Found On Road Dead.

 

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I have been considering buying a new truck for a while now. 
Ford is outright price gouging. The Maverick MSRP is $19K. Many dealerships are pricing them around $40K. I don’t even bother with looking or talking about the F150’s they are $60k plus for $30k trucks. 
Jeep: Gouging - screw Jeep. I will never own one unless someone gives me one. Then I’ll trade it. 

Dodge: Wasn’t gouging, now they are. 

Chevy: prices are high but not gouging high. 
 

I was darn tempted to buy a Hyundai Santa Cruz and say “screw the big 3”, but I found that Chevy still makes standard cab trucks with real beds. Not the pansy weekend camper beds. That may be the route I go. I like Chevy’s better anyway. 
 

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17 hours ago, Rye Miles #13621 said:

I could do without the salesman at the dealerships. Although you’ll still have them if Ford took over I hope they won’t be on commission!

I buy direct on the internet now. I hope to never walk into a dealership again. Aways felt I needed a bath afterwards.

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I never understood the concept of going into a store that has a new off the shelf product, and having to negotiate the price.

New car dealerships are about the only throwback to the old "horse traders", left.      

I want to go to a store and if I see a product I want at a price I want, then I'll buy it.   I don't want it to be an hours long trial just to get it.

 

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2 minutes ago, Utah Bob #35998 said:

I buy direct on the internet now. I hope to never walk into a dealership again. Aways felt I needed a bath afterwards.

I wanted to test drive for my last two vehicles. So I went to local dealers and told them I would give them the final shot. My wife determined she wanted a Subaru, so I just got on the phone and started emailing. I had dealers from Michigan, Indiana and Ohio. Many of which were willing to deliver the car to my door. I talked to the local dealer last and they beat the best price. It’s amazing how much they can actually come down “I realize that doesn’t currently apply” “hopefully the current situation will end soon” 
I wasn’t buying off the lot I was ordering what I wanted so they were are all pricing the exact same vehicle. I may have been able to get a better deal if I took something they already had on the lot but I look at it like if I’m going to drive this for the next 12-15 years, maybe longer, I’ll be more likely to keep it if it’s what I want . We’re on 10 years on the Subaru now with no plans to get rid of it anytime soon . Did the same with my Ram truck , I really wanted the optional 32 gal gas tank and there were almost none on the lot. 
The only way I’ve found currently to get any leverage on the dealers is to get them bidding against each other. 

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2 hours ago, Pat Riot, SASS #13748 said:

I have been considering buying a new truck for a while now. 
Ford is outright price gouging. The Maverick MSRP is $19K. Many dealerships are pricing them around $40K. I don’t even bother with looking or talking about the F150’s they are $60k plus for $30k trucks. 
Jeep: Gouging - screw Jeep. I will never own one unless someone gives me one. Then I’ll trade it. 

Dodge: Wasn’t gouging, now they are. 

Chevy: prices are high but not gouging high. 
 

I was darn tempted to buy a Hyundai Santa Cruz and say “screw the big 3”, but I found that Chevy still makes standard cab trucks with real beds. Not the pansy weekend camper beds. That may be the route I go. I like Chevy’s better anyway. 
 

 

Just wait a while. Repo's are at an all time high. 

 

 

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Right out of college I applied to work for a GM car dealership.  The man the owned it was the father of a friend I went to school with.  Part of the hiring process was, I had to take a personality profile test.  I was turned down because I was too empathetic and too nice to people.  I wouldn't be able to sell them something they didn't want or need just to make a buck.  In retrospect, I'm glad I didn't go to work there.  In later years, the owner sold the dealership right out from under his SIL.  Nice people.

A take off Irish Ike's post.  Corvette dealers are auctioning off order slots for the new Corvette.  You have to pay just for the privilege to place the order.  Then you have to pay full price for the car on top of it.  The price you pay for the slot does not get applied to the price of the car.  GM is saying they don't approve of this but are not doing much to stop the practice.

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5 minutes ago, Cypress Sun said:

 

Just wait a while. Repo's are at an all time high. 

 

 

 

No kidding.  I know a guy that is a salesman for a local Ford dealer.  When my son raced cars, this guy was a competitor.  Basically a decent guy but really into himself.  He admitted that he was selling vehicles to people that had no business buying them.  He could put them in the vehicle, do the financing and out the door full knowing that the vehicle would be reposed in two years or less.  He was doing it because that was his job and he was making really good money doing it.

My son's MIL got a call from her dealer saying that they would take in trade her pickup and put her in a new one with payments for 7 years at the same payment as she had for her current truck.  Her current truck was almost paid for but this was a deal too good to be true.  There was nothing wrong with her truck but she got a new shiney one at the same price as the old one.  She isn't very smart to begin with.  I have heard numbers of stories like these from folks doing stuff like this.  Some of them are people I would consider pretty smart but doing really strange things.

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5 hours ago, Pat Riot, SASS #13748 said:

I have been considering buying a new truck for a while now. 
Ford is outright price gouging. The Maverick MSRP is $19K. Many dealerships are pricing them around $40K. I don’t even bother with looking or talking about the F150’s they are $60k plus for $30k trucks. 
 

Its not Ford, rather the Dealers. Went to St Augustine to look at some trucks and they had a 2022 Maverick. Ford sticker on window with all added factory specials was at 31,990.00. The salesman came up and told me that Mavericks were hard to come by and a 4 to 6 months wait but I could drive that one out for 40,000.00 and less if I had a trade in.

For several years now, Dealers been adding additional charges on final sales, some I heard of, but would never ever pay. Like, advertisement charges, preparation fees (these are already paid for by the factory), transportation fees (these are already on factory invoice). Then the one I can't stand and one they tried to put on last vehicle I looked at and walked out was the bookkeeping, or paperwork fees. They said everyone has to pay this fee, I told them I wasn't everyone and walked out. Next day they called and said if I was still interested in vehicle they would drop the fee. I bought it minus all the added fees they tried to press on me.

 

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I’m not looking for a car right now so I’ve never checked into it , but I get emails all the time about The Costco auto program. They lay it out like the Costco price is fixed . Maybe fixed high anymore but it might be worth checking out. 

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My sons neighbor sold his Lexus which was about 4-5 yrs old, low mileage to Carvana for 24k. He bought a Tacoma for 30k from them. So he gave them 6k and they picked up his car and delivered the truck. He is super happy and did it all online.
He could refuse the truck after a while not sure how long and there’s a used car warranty with it. 
New way to purchase cars is coming !!

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My local offered to buy my 2019 F250 diesel at well over what I paid for it new in an effort to get me to buy a 2023 model. I asked about delivery timeframes and was told sometime in late 24’ :lol: Meanwhile, their service shop is booked at a month on an oil change.

 

I was on the road this summer and asked the dealership in Rapid City to change a headlight bulb for me as it involved essentially taking the front end apart and they told me it was likely to be 4 weeks before they could “help” me. :angry:
 

Small independent truck shop down the road did it same same morning and on 20 minute notice as they knew I was traveling.
 

Support your local businesses, screw the stealership, as always. 

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4 hours ago, Marshal Dan Troop 70448 said:

Its not Ford, rather the Dealers

Yep, you’re right. I should have been clearer. 
 

Honestly, I am all for Ford going with factory direct sales. My one concern is service and warranty. If Ford PO’s the dealers service and warranty on factory direct vehicles might be a problem. 

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I was going to buy a brand new Ford after I sold my house. The prices are ridiculous. I decided to take that money and make my old 71 F100 into something I could drive every day and enjoy. Worth every penny. Fun, fun ,fun!! I have to add 15 to 20 minutes a drive just to talk to folks that stop and ask me about it. Still would like a new one someday but when you can see them from a space satellite collecting dust and rotting in mass I'll pass for now. 

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