Will we ever again see a Mustang on a dealer lot FS?

[95CobraR]

Ford said that the new business model does not include inventory on the dealer lot.

Basically, you need to order it. It may a long time to drive it even then (maybe 6-12 months with the chip shortage?).

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[Chef jpd]

Dealers will save a fortune on real estate and storage parking.

 

[I Bleed Ford Blue]

And sales floor personnel. You don't need 30 salesmen when every new car sale is a built to order sale.

 

[TXGTPig]

So I'm a very "touchy-feely" guy. I'm not fond of this newer online car shopping experience. Sure I enjoy looking up inventory online. However, I enjoy actual interaction with people and being able to physically see and touch what I'm about to spend my hard earned money on. I also like to test drive vehicles before purchase. However, I feel within the coming years the majority of dealerships will have gone to the online method. With that I believe they (car manufactures) will close the majority of physical dealers and only keep a few dealers open with some inventory for "old people" such as myself and others. But I bet it will be say one dealer for a populous of every 250K people, or something along those lines.

 

[The Demon]

I don't see how this could work. For some who have many cars it is okay to wait. For me who has mine as a daily driver it doesn't work.

When my Challenger got totaled I needed a car in a week to get to work. I usually don't buy used only new so I can't wait for them.

This could really keep the used car market booming.

 

[TXGTPig]

I don't see how this could work. For some who have many cars it is okay to wait. For me who has mine as a daily driver it doesn't work.

When my Challenger got totaled I needed a car in a week to get to work. I usually don't buy used only new so I can't wait for them.

This could really keep the used car market booming.

I'd be willing to bet they will still have some inventory, however I would imagine it'd be more along the lines of base model "family" sedans/suv or whatever their most popular seller maybe that quarter.

 

[shogun32]

Dealers will save a fortune on real estate and storage parking.

the actuality is, a car dealership is a real-estate play. They sell cars just to have something to do.

What's the market value of the dealership network? A few billion? It's not going anywhere. Even if it devolves to a glorified demo-fleet and a place to unbox your car, physical presence will always be necessary.

 

[Smunczen]

They will save on the loans for floor planning vehicles. It’s going to cost them less and you more.

 

[Interceptor]

History will repeat itself.
The foreign car manufacturers will get on top again.

 

[LOL WUT]

There is a reason Tesla has this model of sales….

 

[shogun32]

There is a reason Tesla has this model of sales….

they haven't made a dime of profit in 10+ years and they can't make them fast enough to stock a dealer's parking lot, and with 'direct' sales they can control the price.

 

[LOL WUT]

they haven't made a dime of profit in 10+ years and they can't make them fast enough to stock a dealer's parking lot, and with 'direct' sales they can control the price.

Tesla posted a 1.1 Billion dollar profit in quarter 2 of 2021. 354 million came from credit sales. So sure, take that chunk out. Still a profit .

 

[cactus_kid]

When I was a kid there was no such thing as today's mega dealer lots. Of course, the lineups weren't as extensive. Dealers kept a couple of floor samples and 15 to 20 on the back lot. There was none of this needing a golf cart to view stock or waiting till a runner brought the car to the dealer front door.

 

[nrc]

Ford hasn't been able to effectively manage their inventory or supply chain even on the rare occasions when they've had good management. But they're going to start now with this crew? I'll believe it when I see it.

Until then it's just a story they're telling Wall Street to make investors believe they can continue to jack up price per transaction.

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