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

cbdallas

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They've already begun the marketing for ordering vs. inventory. Just watched an ad on Youtube encouraging people who can't find their ideal Ford, to order it and be given some sort of "priority".

Gonna be weird seeing all those big empty lots.

 

Ock

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i would assume they will still have demo models at least.
 

ICU812

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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?).
Ford can say whatever they want, Dealers can order whatever they want, all this means is ford telling the dealers the rebates and other "deals" to move old stock are going away. Nothing more.
Ford does not care if a dealer orders 15 S650 mustangs and parks them on a lot, And walk in customers buy them later.
They just don't want to have to bail out the out going model year stock, by offering factory rebates ,etc.
All this really means, is Ford telling dealers, you ordered it, you own it, if you can't move it, that is no longer our(Fords) problem.
Ford can NOT goto an all customer ordered sales .
For a few reasons, but mostly that most people when they get an itch, they want it scratched now, not 2-10 weeks from now, And no way Ford is going to allow buyers to have to go to Toyo,G.m., Dodge/ram to buy a truck or suv because of a market sales move to "we build it your way, then you wait"
never going to happen. Even if they try with a niche car like the mustang, dealers will have stock on the lot , it be more bellybutton to fit the mold of most buyers. And they might thin out the stock on lot as the M.Y. moves along to not get stuck with any. But It is a Ford, not a lotus
 
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nrc

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Ford can NOT goto an all customer ordered sales .
Right. Ford is feeling froggy with supply chain as an excuse for the sellers market right now. They're *love* to keep inventories lower than they have been historically. They'd love to shift the cost burden of buffering that inventory more toward the dealers. But dealers already operate on thin margins. They can't carry dead stock and they can't afford to give up those impulse buys.

Oh and by the way, Ford's order and delivery process are still garbage. Not an experience the average consumer wants to deal with for their cookie cutter Explorer.
 


ICU812

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they've got 9-15% margin by my reckon. Talk to me when margin is 3% to call it 'thin'.
Right, now start paying the bills, and see how thin that margin is. You can always tell those that never owned or ran a business.
 

94gt

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they've got 9-15% margin by my reckon. Talk to me when margin is 3% to call it 'thin'.
Dealer margin is right about 5-6% (dealer cost is also shown on Z plan invoices) depending on how the vehicle is optioned, still a good chunk of change based on the price of current vehicles, plus their "doc fee" of course. The real profit for a dealership is service (non-warranty) and insurance claims (body shop). I have been buying new Fords since I was 19, and over the last 30 years have purchased close to 30 new vehicles for myself and my wife, and have a pretty decent repore with my dealership (same dealer 4 sales people in that 30 years)...and I was told the current "shortage" of cars on lots is Ford is putting everything into the F150 line at the moment, as they are terrible afraid to lose to Dodge this model year for the best selling vehicle, as the Ram is somewhat close to taking that title and Ford has laser focus on keeping that for the 45th year in a row...they know they are going to lose money this year, but they don't want to lose that title. They have dropped FM Credit interest on the F150 series to 0% for 72 months (which is a first, while the Mustang remains at 3.9 for the same term), and has gone as far as to incentivise dealers to sell the current stock, or threaten them...which everway you want to look at it, but if an F150 is sitting on a dealers lot for more than 3 weeks, Ford is reaching out to them asking why it has not sold and do they need buy it back and send it to a different dealership. I think using the JIT model at this point Ford is really just hiding the fact that they can't keep up with production, and that sounds better than "sorry, we just can't build enough cars" on paper, but I would suspect that once the shortages end, and supply chain is back up, Ford will have a change of heart and allow dealers to stock as much as they want. Model year end rebates and incentives are built into their marketing strategy and budget planning, and they know that, and they also know that impulse car buyers make up a large portion of their new car sales, and removing those "incentive sales" will cost them a lot of market share. Their only real hope to keep a JIT model is if every other manufacturer does this also, or they drop their standard pricing on all vehicles to make the wait worth the inconvenience of a normal market 6-8 week lead time worth it.
 

cactus_kid

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They've already begun the marketing for ordering vs. inventory. Just watched an ad on Youtube encouraging people who can't find their ideal Ford, to order it and be given some sort of "priority".

Gonna be weird seeing all those big empty lots.
Heh .................. Wanna see empty ? Go take a look at McDavid out on the west side of Ft Worth. :facepalm: The majority of vehicles at 5 Star in N Richland Hills are used. They took in a gorgeous low milage '19 GT350 the other week. It lasted a whole day ! 😄
 

shogun32

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talked to one of @Granger Ford neighbors (Caddy, Chevy) because I'm wondering if the competitive pressure might cause the others in the market to sell Camaro or CT4V-Blackwing for better than typical prices. Apparently the neighbors don't like it none but bitching doesn't change the fact that he's selling vehicles like hotcakes. I think his model will catch on. We'll see.
 

Mr. Met

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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.
My grandfather used to tell me when he bought his first Ford you had to order the car and wait a couple of weeks. He preferred being able to order it the exact way you wanted it though.
 

Rock&Roll

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All dealer lots for all cars are very low in my area. Nobody is making money. It’s all pretty strange and scary stuff.
 

cactus_kid

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My grandfather used to tell me when he bought his first Ford you had to order the car and wait a couple of weeks. He preferred being able to order it the exact way you wanted it though.
What my dad did. Dealer was in an old quonset hut type building. :crackup: Flip books with color swatches. Back then, there were no packages. It was like ordering Chinese food .............. :rockon:
 

ICU812

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All dealer lots for all cars are very low in my area. Nobody is making money. It’s all pretty strange and scary stuff.
Yup, many dealers are not going to make it pass this quarter when they miss paying the bills.
 

ICU812

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My grandfather used to tell me when he bought his first Ford you had to order the car and wait a couple of weeks. He preferred being able to order it the exact way you wanted it though.
And most worked near their home, so if they had no wheels, they could walk or ride a bike. Today, many have jobs 10-50+ miles from home or more, if your vehicle gets wrecked or tosses it's cookies, you can't wait weeks or months for a replacement.
I can see it now,
Me: hello boss
boss: hello
me: I just ordered a replacement vehicle for my totaled one The build date id mid march '22 see you then.
Boss: ????? Be here tomorrow or risk being fired.

Somehow I don't think how things were done in the 50's will fly today.
 

LOL WUT

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And most worked near their home, so if they had no wheels, they could walk or ride a bike. Today, many have jobs 10-50+ miles from home or more, if your vehicle gets wrecked or tosses it's cookies, you can't wait weeks or months for a replacement.
I can see it now,
Me: hello boss
boss: hello
me: I just ordered a replacement vehicle for my totaled one The build date id mid march '22 see you then.
Boss: ????? Be here tomorrow or risk being fired.

Somehow I don't think how things were done in the 50's will fly today.
Rental, Uber, Lyft, taxi, bus, carpool. Problem solved. 😁
 

 
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