Ford CEO Farley Says Dealers Who Gouge Could Get Fewer Vehicles

[funkified]

So true, years ago when I was young & naive, I bought a used ranger from a Toyota dealer. The loan they got me (I had good credit) turned out to be a rule of 78 loan type where they get all the interest up front, it does not matter if you pay it off early or not.
So, I learned some valuable lessons,
1. Always read what you are signing,
2. Never trust a Dealers Finance person
3. Never buy a Toyota (yup, I blamed the mfg. since that dealer represents them as far as I'm concerned.) Never bought a Toyota, won't even look at them, I guess I'm a spiteful SOB when it comes to getting screwed...

Thats crazy, never heard of that type of loan screw job. Terrible that it happened. Did you end up seeing that loan the whole way through?

 

[Broken Wrench]

Thats crazy, never heard of that type of loan screw job. Terrible that it happened. Did you end up seeing that loan the whole way through?

It was a long time ago, I think I did pay it off early, but they got almost all of the 3 yrs of interest in the first few payments. I believe that type of loan is no longer legal.

 

[WISHiHADaRAPTOR]

Love it. If they keep it up it could result in changes to allow direct purchasing from manufactures.

I would be ok with this, at least we would get it at MSRP

 

[CoronaRaptor]

So true, years ago when I was young & naive, I bought a used ranger from a Toyota dealer. The loan they got me (I had good credit) turned out to be a rule of 78 loan type where they get all the interest up front, it does not matter if you pay it off early or not.
So, I learned some valuable lessons,
1. Always read what you are signing,
2. Never trust a Dealers Finance person
3. Never buy a Toyota (yup, I blamed the mfg. since that dealer represents them as far as I'm concerned.) Never bought a Toyota, won't even look at them, I guess I'm a spiteful SOB when it comes to getting screwed...

I'm the same way, no second chances bitc hes!!

 

[Muchmore]

They would need to start another company for direct sales I think

Ford has tried this before. They bought a bunch of dealerships in the early 2000's and tried selling things themselves. They also bought a bunch of salvage yards and tried doing used parts, body panels in auto crashes themselves. Owning dealers and owning salvage yards just didn't work out. From our point of view as a customer, it didn't seem to change anything in day-to-day operations so I'm not for sure why they abandon it. I think at the time the dealerships Ford owned directly were all called Republic Ford's, if I remember right.

 

[Muchmore]

Here is a story about when Ford tried direct sales to customers. It was supposed to tackle the upcoming threat from Saturn and its business model of "no-haggle" pricing. Aftermarket companies were coming on strong with aftermarket parts and there was a BIG public row over shops using aftermarket parts in auto repairs. Ford tried buying salvage yards to better control the flow of OEM vs aftermarket parts being used in auto repairs. Mostly, body shops in wreck repair.

https://www.wardsauto.com/news-analysis/ford-gets-out-dealership-game-leaves-dealerships-dealers

 

[Gsteve]

there is a guy on the FB page that agreed to buy at 25 over and they wouldn't sell unless he financed !!!

 

[funkified]

there is a guy on the FB page that agreed to buy at 25 over and they wouldn't sell unless he financed !!!

not surprised, they dont make another dime if he pays cash or has his own financing. Ultra greed on display there.

 

[smurfslayer]

there is a guy on the FB page that agreed to buy at 25 over and they wouldn't sell unless he financed !!!

a fool and their money are soon parted.

Not sure how much truth there is to this, but I read on a Raptor FB group that west coast dealers are buying trucks from out of state dealers for markup and then selling those trucks for an even higher markup. Pretty wild if true

This was happening in the 2017-2018 era as well or at least alleged to have happened. I don’t think anyone has ever actually posted tangible proof of it other than ‘the dealer said’. So it could be true. Or it could be internet rumor.

 

[RaptorWhoSaysNI]

That will never happen, If dealers disappear then why would you even go there for warranty work, you'll start to see people taking their cars to Walmart for service, lol. It's bad enough already out there, still need a place to go that Ford can represent for service.

Delete the sales floor and keep the service department, easy peasy.