MY 2023 Raptor R’s vs MY 2023 Raptors listed on AT Nationwide

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robl3577

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I ordered my bronco directly through Ford when the order banks opened. They assigned a local dealer a few months later. Don't know why they couldn't do it with the Raptor. Only my experience.
 

RCorsa

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Close family friend who owns several VERY large dealerships in Los Angeles and is in regular meetings with ford top corporate. Ford is already trialing this with the lightning and bronco and many of the majors are looking into this or starting already. Of course there is push back from the dealers but ultimately this WILL happen. Some of the small dealers will sell to big corporate (ie auto nation) but many will stay independent. They will simply reduce sales staff significantly and increase their service departments.
 

New recaros

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How does this benefit Ford. They still pay the dealer, the dealers will have to agree to the change and they will not agree to do it for less money. There are current agreements/contracts in place that everyone must agree to modify.
 

RCorsa

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It's really quite simple. Invoice pricing dealers pay is on average 6-14% lower than MSRP depending on model. Dealers are ignoring the MSRP anyway and tacking on 10-50% extra. It's better for Ford to just sell cars/tucks direct and keep the 6-14%. Again, if you know any dealer owners, which I do, pre-covid/crazy ADMs, they make the lions share in service.

The dealership model is outdated. No one needs to go to a dealer to build a car look at brochures/ color palate and trim as this can all be done online now. Of course these contracts will be modified/changed which is why I stated 2025 as thats when old 2020 contracts lapse for most of the existing dealers. New dealerships started in the last 3 years had clauses about redoing these based on "market condition changes." Ford may seem stupid sometimes with all the supply chain issues but they are smart enough to make this work. the dealers will have no choice or just go out of business which few will do (some will sell as mentioned above)

It similar to them bringing in the computer systems all in house rather than depending on the 1400 suppliers and trying to make everything work together. CEO talked about this publicly 2 weeks ago on CNBC
 

New recaros

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You may be right, but I don’t think the dealers are going to give up their sales revenue that easy.
I also don’t think Ford can just yank the franchise agreement and not sell them vehicles without reimbursement. Most all agreements, that have a renegotiation clause, also have a good faith clause which will make Ford be fair. So if a dealer makes a million selling vehicles, Ford has to make that up somehow or they are not negotiating in good faith.
 

jeanco

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a lot of states is illegals to sell car directly.
n the United States, however, direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers. These bans on direct manufacturer sales are part of a broad array of state laws that bar manufacturer ownership of dealers and regulate entry and exit of dealers through territorial restrictions and provisions on dealer termination. Analysis of the economic effects of these laws has led some to conclude that they harm consumers and should be eliminated.(5) The focus here is more narrow – state laws banning direct manufacturer sales, since they may be curtailing development of a more cost-effective method of auto distribution.
for Tesla:
going to be a long time before u can buy your car on line.
 

GordoJay

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Close family friend who owns several VERY large dealerships in Los Angeles and is in regular meetings with ford top corporate. Ford is already trialing this with the lightning and bronco and many of the majors are looking into this or starting already.
As I understand it, you may order your Bronco from Ford, but you pick it up at the dealer and you pay the dealer. Do I have that wrong? Maybe Ford is trying to exert more control, and maybe there's a clause in their contract that allows this, but dealers in all 50 states own legislators in those states. They aren't giving up their cartel without a fight. I'd expect new laws making whatever Ford is trying to push illegal.
 

Jonesky

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I wonder if just one state could get direct sales going and then begin the process of breaking the cartel. I would happily travel to pick up 3 R’s at msrp with 2 buddies. And then watch the dominoes fall. Yes, I know hyperbole and wishful thinking but hey I bet Ford would dig it, too.
 
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