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SVTPerformance's Chain of Restaurants
Road Side Pub
Q & A Session... - Ask a Ford Dealer
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<blockquote data-quote="13COBRA" data-source="post: 16764992" data-attributes="member: 138337"><p>1. I think there are pros and cons. I'm really not 100% sure why manufacturers have gone down this road in the automobile industry. There are plenty of other industries that have done this for years, but it's typically not in a tangible product like a vehicle.</p><p>2. This has been a common practice for years. It started 7 or 8 years ago when prices were at all-time lows compared to MSRP. Dealers were going this route in order to still be profitable, especially on new vehicles. There are TONS of dealerships that as soon as the vehicle gets delivered it gets a bedliner, windows tinted, security etching, etc etc. Dealer groups have made the decision at a high level and each store just follows it out as mandatory. I don't have a problem with it, as long as the value is there. Nitrogen tires is a prime example of it being worthless to bake into the price of a vehicle.</p><p>3. Dealers have no say in this. MSRPs on vehicles haven't increased as much as other day-to-day household goods, so it is what it is.</p><p>4. That's up to the dealer. I don't charge ADMs, unless I am ask to purchase a vehicle for a customer from another dealer, who charges me over MSRP to purchase it. At the end of the day, dealers can charge ADMs as long as the market allows. If you start seeing a ton of inventory stacking up, the ADMs will cease to exist. Previous to the pandemic sales atmosphere dealers were taking losses on new vehicles because of an over supplied market...so why wouldn't some take advantage of the undersupplied market and use the same theory of economics to their advantage this time.</p><p></p><p>5. Happens all the time. Same answer as number 2 and 4.</p></blockquote><p></p>
[QUOTE="13COBRA, post: 16764992, member: 138337"] 1. I think there are pros and cons. I'm really not 100% sure why manufacturers have gone down this road in the automobile industry. There are plenty of other industries that have done this for years, but it's typically not in a tangible product like a vehicle. 2. This has been a common practice for years. It started 7 or 8 years ago when prices were at all-time lows compared to MSRP. Dealers were going this route in order to still be profitable, especially on new vehicles. There are TONS of dealerships that as soon as the vehicle gets delivered it gets a bedliner, windows tinted, security etching, etc etc. Dealer groups have made the decision at a high level and each store just follows it out as mandatory. I don't have a problem with it, as long as the value is there. Nitrogen tires is a prime example of it being worthless to bake into the price of a vehicle. 3. Dealers have no say in this. MSRPs on vehicles haven't increased as much as other day-to-day household goods, so it is what it is. 4. That's up to the dealer. I don't charge ADMs, unless I am ask to purchase a vehicle for a customer from another dealer, who charges me over MSRP to purchase it. At the end of the day, dealers can charge ADMs as long as the market allows. If you start seeing a ton of inventory stacking up, the ADMs will cease to exist. Previous to the pandemic sales atmosphere dealers were taking losses on new vehicles because of an over supplied market...so why wouldn't some take advantage of the undersupplied market and use the same theory of economics to their advantage this time. 5. Happens all the time. Same answer as number 2 and 4. [/QUOTE]
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Q & A Session... - Ask a Ford Dealer
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