Dealership w/o markups, allocation & deposit

[rosh]

Please explain the dealer allocation process and the dealer use of the waiting list please. I think it would be helpful. Also why some dealers get more allocations than others.
Thank you

To be honest, it's all up to the dealership itself. Ours is just a simple hand written list of people to call once we get word we can order them. Allocations are up to Ford and probably wont know until it comes time to order. So right now, I have 3 on my list. If we only are allocated for 2, then we plan on keeping the 3rd guy on the list for when we get allocated more. It could be updated quarterly, or possibly wont see another allocation until next year. I'm trying to keep my list simple, just for that reason. I would hate to promise a bunch of people Raptors when i'm unsure of when they will be able to take delivery. Once i learn how many allocations i get, and if i have any open spots, then i plan on heavily spreading the word on this forum, because we usually advertise a pretty fair price on our inventory.

 

[Gdog]

To be honest, it's all up to the dealership itself. Ours is just a simple hand written list of people to call once we get word we can order them. Allocations are up to Ford and probably wont know until it comes time to order. So right now, I have 3 on my list. If we only are allocated for 2, then we plan on keeping the 3rd guy on the list for when we get allocated more. It could be updated quarterly, or possibly wont see another allocation until next year. I'm trying to keep my list simple, just for that reason. I would hate to promise a bunch of people Raptors when i'm unsure of when they will be able to take delivery. Once i learn how many allocations i get, and if i have any open spots, then i plan on heavily spreading the word on this forum, because we usually advertise a pretty fair price on our inventory.

My understanding is Ford provides allocations to dealers based on previous years sales volumes. Larger dealers that move more vechiles get more allocations. Ford performance and speciality vechiles are all provided to dealers on a allocation basis.

 

[rosh]

My understanding is Ford provides allocations to dealers based on previous years sales volumes. Larger dealers that move more vechiles get more allocations. Ford performance and speciality vechiles are all provided to dealers on a allocation basis.

yep, and they can give more or take away as well. if dealerships don't follow fords guidelines, they can take allocations away as well. I'm sure the dealership in florida that sold the demo bronco sport too early was penalized in such a way.

and since i'm in an upper midwest state, we don't sell many mustangs and in turn don't get allocated as much as southern states.

 

[Gdog]

I think its important for the folks wanting to order a gen 3 to know these type of things. Some guys think they can just walk into a dealer and order a gen 3 just like that . clearly its not that simple.

 

[K223]

I think its important for the folks wanting to order a gen 3 to know these type of things. Some guys think they can just walk into a dealer and order a gen 3 just like that . clearly its not that simple.

If you heard about or shopped even more recently Gen 2’s not that long ago. Exactly you wanted didn’t grow on trees and pricing greatly varied.

Now consider a new model Gen 3, a semi conductor shortage, pandemic, Ford busy trying to get the Bronco out the door, trying to maintain F-150 production, new EV’s. I wonder when and how many Raptors will be produced this year. This all smells like high priced Raptors to me.

 

[melvimbe]

yep, and they can give more or take away as well. if dealerships don't follow fords guidelines, they can take allocations away as well. I'm sure the dealership in florida that sold the demo bronco sport too early was penalized in such a way.

and since i'm in an upper midwest state, we don't sell many mustangs and in turn don't get allocated as much as southern states.

Is an allocation the volume of a model a dealership will get over a set period of time, or is it more of a max inventory level. Meaning that if dealership A and B both get 10 Raptors, dealer A sells 2 and dealer B sells 8...will the both get 10 at the next window of allocations, or will dealer A get 2 while B gets 8?

Also, is there a difference in allocation for customers who have specifically requested a vehicle vs an allocation for general inventory.

As a customer, not really a fan of this system. I much prefer customers, when not buying from dealer inventory, make preorders directly to Ford, with the customer choosing which dealer to take delivery from. Also be nice if dealers were not allowed to charge anything by MSRP on this, so dealers win business based on convenience and service. Leave the negotations for buy from dealer inventory.

 

[Frank N]

As I understand it, Based on Fords internal formula, a dealer is allocated a certain amount of Raptors. The dealers can order their allocations for their inventory or if they have customers who are ready to order, take a customer specific order or sit on an allocation for a short time and wait for a customer order.

I wont get into the dealers ordering the allocations and selling to other dealers when delivered...scumbags.

 

[gobluejd]

If you heard about or shopped even more recently Gen 2’s not that long ago. Exactly you wanted didn’t grow on trees and pricing greatly varied.

Now consider a new model Gen 3, a semi conductor shortage, pandemic, Ford busy trying to get the Bronco out the door, trying to maintain F-150 production, new EV’s. I wonder when and how many Raptors will be produced this year. This all smells like high priced Raptors to me.

Getting Bronco out the door and maintaining F150 production really do not have anything to do with the Raptor. I can tell you I am a supplier for Ford and I can assure you things are not slowing down based on in-house orders. Ford spent plenty of money to upgrade the F150 line at Rouge will be more than capable of producing what they need. If anything the chip issue will cause some slow down for the next 2-3 months (shifts in Claycomo and Louisville have been cut)

 

[K223]

Getting Bronco out the door and maintaining F150 production really do not have anything to do with the Raptor. I can tell you I am a supplier for Ford and I can assure you things are not slowing down based on in-house orders. Ford spent plenty of money to upgrade the F150 line at Rouge will be more than capable of producing what they need. If anything the chip issue will cause some slow down for the next 2-3 months (shifts in Claycomo and Louisville have been cut)

How much inventory do they order from you to typical produce so many builds or days they expect your supply to last on hand? Obviously this type of shortage is far from the norm. But will your orders come to a stop at some point if they cannot build or they will still allocate enough of your parts regardless to future build so many units? I’m just curious how it may work. I can only imagine they will go full steam until something runs out. Interesting times indeed.

 

[nmp1]

Is an allocation the volume of a model a dealership will get over a set period of time, or is it more of a max inventory level. Meaning that if dealership A and B both get 10 Raptors, dealer A sells 2 and dealer B sells 8...will the both get 10 at the next window of allocations, or will dealer A get 2 while B gets 8?

Also, is there a difference in allocation for customers who have specifically requested a vehicle vs an allocation for general inventory.

As a customer, not really a fan of this system. I much prefer customers, when not buying from dealer inventory, make preorders directly to Ford, with the customer choosing which dealer to take delivery from. Also be nice if dealers were not allowed to charge anything by MSRP on this, so dealers win business based on convenience and service. Leave the negotations for buy from dealer inventory.

Allocations are total number whether it’s for inventory or a special order. My dealer only orders a couple of raptor for inventory and holds the remaining allocation for special orders as they know most people are picky with speciality vehicles. The X factor with allocations is that if you are on Fords nice list they will throw you some extra allocations later in the year if they plan to build more than what they originally allocated.

I agree that this system is crap. It punishes loyal Ford customers and forces them to go to dealers they aren’t familiar or comfortable with if their regular doesn’t have an allocation.

I ran into this issue when hunting for my gt350r. My dealer in the north east is naturally at a disadvantage with mustang sales compared to dealers in warmer climates. They couldn’t get an allocation so I had to go with a dealer far away that I wasn’t a regular with.