Should Ford Reimburse ADMs?

[CoolTech]

How many times have GT350, GT350R, Focus RS, and Raptor prospective buyers been told that Ford cannot control the prices set by dealerships? Allegedly contractual relationships between Ford Corporate and dealerships expressly forbid Ford from meddling in pricing issues. Really?

OK, so tell me how Ford IS fixing prices on the new Ford GT - essentially promising their buyers that they will pay no more than MSRP. Frankly something seems really amiss. The GT, after all is just another Ford product (albeit an expensive one) and it WILL be sold through Ford Dealerships - at least the transactions will take place at the dealership level.

One "trick".... although I don't know if it is "the" trick, is that Ford is saying that the vehicle allocation is to the BUYER and not to the dealer. As such, the BUYER is free to select any dealer they want for delivery. So, yes, Mr. Dealership, you are free to set the price at whatever you want (per our contract).... but if you set it at a penny above MSRP, them maybe you will not "earn" the BUYER's business.

I guess my first question is really the legality of what Ford is doing. I guess the people with a beef will be the dealerships - not the consumer. But I guess my bigger question/beef with all of this is why Ford is looking out for their uber-rich clients but allegedly don't give a rat's ass about the ADM practices on their cars for mere mortals. Finally, if the GT practice works (i.e. is legally sound), why can't that practice be extended to other "specialty" cars?

I don't know... the bottom line is that I feel like this practice is very discriminatory and shows that if Ford IS really interested in protecting consumer prices, they DO know how to do it..... but I guess only for their wealthy clients.

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[stanglife]

How many times have GT350, GT350R, Focus RS, and Raptor prospective buyers been told that Ford cannot control the prices set by dealerships? Allegedly contractual relationships between Ford Corporate and dealerships expressly forbid Ford from meddling in pricing issues. Really?

OK, so tell me how Ford IS fixing prices on the new Ford GT - essentially promising their buyers that they will pay no more than MSRP. Frankly something seems really amiss. The GT, after all is just another Ford product (albeit an expensive one) and it WILL be sold through Ford Dealerships - at least the transactions will take place at the dealership level.

One "trick".... although I don't know if it is "the" trick, is that Ford is saying that the vehicle allocation is to the BUYER and not to the dealer. As such, the BUYER is free to select any dealer they want for delivery. So, yes, Mr. Dealership, you are free to set the price at whatever you want (per our contract).... but if you set it at a penny above MSRP, them maybe you will not "earn" the BUYER's business.

I guess my first question is really the legality of what Ford is doing. I guess the people with a beef will be the dealerships - not the consumer. But I guess my bigger question/beef with all of this is why Ford is looking out for their uber-rich clients but allegedly don't give a rat's ass about the ADM practices on their cars for mere mortals. Finally, if the GT practice works (i.e. is legally sound), why can't that practice be extended to other "specialty" cars?

I don't know... the bottom line is that I feel like this practice is very discriminatory and shows that if Ford IS really interested in protecting consumer prices, they DO know how to do it..... but I guess only for their wealthy clients.

Ford is going through a lot of effort to try to see these GTs land in real enthusiasts hands, not sit on a dealer showroom to attract people into the dealership...and not to the dealers friend who will just store it away for later sale.

I don't think it's about protecting their rich customers or anyone else. It's a $400k+ supercar, I don't know if I'd call that protecting anyone ;) It's arguably a much different car than the ones sold through dealerships and if Ford says up front (as they did) that this will not go through normal channels - I don't see how dealers could demand to be in the middle and I don't see why Ford should feel obligated to sell it through them,.

 

[Bender]

They will claim its consequences of a free market. Supply and demand. They did well at hyping this up. Ford will never do such a thing in refunding customers willfully spent money at their discretion, and the odds of winning a claim in court would be slim and not worth the legal battle from a consumer stand point.

The GT has more special stipulations than just a set dealer and price. I don't know what the legal mumbo jumbo is around that.

Best way to do is just resist buying until the market cools as much as it sucks to wait. I did pay some ADM on my R, and my 17 raptor was ordered at MSRP. I made a conscientious decision to spend the money on the GT350R and whether people agree with it or not, I am happy with the car I now own. I've had offers for more than I paid. Not really a justification, but I am still not too upset.

my .02

 

[Epiphany]

A valid question OP.

Just another example of The Man, keeping us down.:hail:

 

[nastang87xx]

Nope. ADM's are done by dealerships, not FoMoCo. Once the cars leave Ford, its out of their hands except for support like warranty work. It's just how it is between the dealership and the manf'er. I don't like it either but it is what it is.

 

[nastang87xx]

Ford is going through a lot of effort to try to see these GTs land in real enthusiasts hands, not sit on a dealer showroom to attract people into the dealership...and not to the dealers friend who will just store it away for later sale.

Definitely helps that Ford is being the actual medium for most of the logistics too for those cars as the dealers are merely platforms.

 

[mattlqx]

Well, the thought of *reimbursing* previously paid ADMs is ludicrous. I don't see any company, a public one especially, writing off tens to hundreds of millions of dollars when they don't have to. Especially when it's money they didn't even receive in the first place. I don't really want to beat the dead horse any further on this. It's kinda tired and they're definitely subsiding to begin with. If the GT350 continues production for another year (or however many), I can't see ADMs continuing (for non-R models anyway).

 

[Colleton]

A valid question OP.

Just another example of The Man, keeping us down.:hail:

:lol:

 

[CoolTech]

Nope. ADM's are done by dealerships, not FoMoCo. Once the cars leave Ford, its out of their hands except for support like warranty work. It's just how it is between the dealership and the manf'er. I don't like it either but it is what it is.

Did you read the original Post? The GT is also a car just like the GT350/GT350R, etc... and dealers would LOVE to have an ADM..... but it ain't gonna happen!

 

[Steve68]

"The GT is also a car just like the GT350/GT350R"

Oh man, where to start...

 

[PP0001]

How many times have GT350, GT350R, Focus RS, and Raptor prospective buyers been told that Ford cannot control the prices set by dealerships? Allegedly contractual relationships between Ford Corporate and dealerships expressly forbid Ford from meddling in pricing issues. Really?

OK, so tell me how Ford IS fixing prices on the new Ford GT - essentially promising their buyers that they will pay no more than MSRP. Frankly something seems really amiss. The GT, after all is just another Ford product (albeit an expensive one) and it WILL be sold through Ford Dealerships - at least the transactions will take place at the dealership level.

One "trick".... although I don't know if it is "the" trick, is that Ford is saying that the vehicle allocation is to the BUYER and not to the dealer. As such, the BUYER is free to select any dealer they want for delivery. So, yes, Mr. Dealership, you are free to set the price at whatever you want (per our contract).... but if you set it at a penny above MSRP, them maybe you will not "earn" the BUYER's business.

I guess my first question is really the legality of what Ford is doing. I guess the people with a beef will be the dealerships - not the consumer. But I guess my bigger question/beef with all of this is why Ford is looking out for their uber-rich clients but allegedly don't give a rat's ass about the ADM practices on their cars for mere mortals. Finally, if the GT practice works (i.e. is legally sound), why can't that practice be extended to other "specialty" cars?

I don't know... the bottom line is that I feel like this practice is very discriminatory and shows that if Ford IS really interested in protecting consumer prices, they DO know how to do it..... but I guess only for their wealthy clients.

Not you where you have been but this is not a new practice by Ford and has been put in place on previous Ford models without issue so why do you now have a problem with this process on the new 2017 Ford GT?

 

[GT_Dave]

Based on the investment required by a dealer to service the Ford GT for a sale of 1 car, plus the special arrangements for service, and the fact that no more than 7% of the Ford dealers in the US may ever see one of these cars, I would think most dealers don't want to get involved in the sale of a GT. This GT situation is nothing like a Shelby GT350.

 

[krt22]

Did you read the original Post? The GT is also a car just like the GT350/GT350R, etc... and dealers would LOVE to have an ADM..... but it ain't gonna happen!

The GT is nearly 8x the price and only a fraction of the volume of the GT350/R model. Big difference in terms of Ford managing the buyers list vs pushing it to dealers. And there are in fact a handful of buyers of the GT350/R who are treated just like the GT buyers. They don't pay over MSRP and they get to pick the dealer who finalizes the transaction.

 

[CoolTech]

Not you where you have been but this is not a new practice by Ford and has been put in place on previous Ford models without issue so why do you now have a problem with this process on the new 2017 Ford GT?

Been done before? Do tell.

 

[CoolTech]

Based on the investment required by a dealer to service the Ford GT for a sale of 1 car, plus the special arrangements for service

Selling dealerships and Servicing dealerships are two different things. Almost any dealership can be a selling dealership - but Servicing dealership DO have a lot of costs, etc.

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