The very first wave of 2022 Ford F-150 Lightning order conversion invitations went out just yesterday, but as Ford Authority reported earlier this week, it seems that not all of the 200,000 or so reservation holders will be able to order a 2022 model, due to production constraints. And even before the very first order invitations were emailed to customers, many were surprised by some pretty substantial dealer markups on the forthcoming all-electric pickup. While this is nothing new in the automotive world, it appears that Ford isn’t very happy about it, according to a dealer memo seen by Ford Authority from Andrew Frick, Ford’s vice president of sales, U.S. and Canada.
“It has come to my attention that a limited number of dealerships are interacting with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation,” Frick said in the memo. “Examples of these negative interactions include demanding that customers who are already on the reservation list for the 22 MY F-150 Lightning make additional deposits or payments. These actions are perceived as threatening customers by withholding their opportunity to convert reservations to orders.”
Frick goes on to say that this type of behavior isn’t allowable per the automaker’s sales and service agreement with dealers, though it’s worth noting that markups aren’t part of this agreement. However. as Ford Authority previously reported, some dealers aren’t just slapping markups on 2022 Ford F-150 Lightning orders, and are taking things a bit further.
One dealer in Virginia is reportedly asking for a whopping $30,000 on top of the pickup’s MSRP for anyone that wants to be among the first 25 customers to bring home an F-150 Lightning, while others have been informed that they will have to put down an additional $5,000 deposit to secure their place in line, which will at least go toward the Lightning’s purchase price. However, those that choose to cancel their order, later on, will not get that money back, all of which is precisely the sort of behavior that Ford is trying to prevent.
We’ll have more on the F-150 Lightning soon, so be sure and subscribe to Ford Authority for the latest Ford F-Series news, Ford F-150 news, F-150 Lightning news, and continuous Ford news coverage.
Comments
Than Ford should sell direct and establish service only dealerships
That’s the model for the future anyway
Agreed! Pull their franchise licenses.
They should feel the same way about the Bronco. They are pushing away a lot a customers. I seen this first hand. I went and saw a Bronco for 51k. They came out saying this truck is now 66k! I ordered mine for 49. They should be pissed.
Ford’s invoice price is the same as it’s MSRP. The markup is there to pay the dealership and it’s employee’s. Literally no one makes money by selling your electric green vehicle unless there’s an upcharge. Maybe Ford should’ve taken care of the people who sell their vehicles and the front line for customer service. Instead they want to sell a 97K truck and make 100 dollars. Death of a business.
Ken, I would estimate that about 50% of domestic dealer sales people are stupid, lazy or both. That is not so for import dealers.
You can spend a day on line and walk into a dealership and know 10X what the sales people know.
I have found dealers that are very good but they are the exception. Ditto for GM and FOC dealers
Their invoice is certainly not their MSRP..
There’s not much room between them but it’s certainly not equal.
It’s true and the more expensive the model the bigger the spread. The last 2 vehicles I bought was on the Ford Z plan that’s used by retirees. They were bought on true invoice. The difference with the Focus base model was $1200. The F150 I bought 11 yrs ago stickered at 44K and change. I drove it off for $32,200. True story.
Ken,
Invoice definitely is not the same as MSRP. Not sure if that was typo??
In South Florida they are marking up any special edition Trucks like the Raptor or Tremor 10,000 over sticker price. This happened to me at Ford of Kendall in Miami. I think it’s price gouging and very unfair that they can away with it!!
MSRP clearly has the word – suggested in it!! I don’t think it should be a requirement, if the dealers can add mark ups and still sell the vehicle the fair play to them (supply and demand). Obviously the people paying $5-$10k over list have the money to blow. If Ford doesn’t like the system then they should follow Mr. Musk, seems like everyone else is.
Direct sales are prohibited by law in most states. This was done in the mid-20th century to “protect consumers” from unscrupulous manufacturers. Now the unintended consequences are that unscrupulous “independent” dealers are the ones taking advantage when they are able.
Bottom line: It’s how a free market system works …
If one orders a Ford vehicle, do they ship it to a dealer or can one pick it up.? Can one choose the dealer or does Ford decide where?
When I ordered my Maverick, I had to pick a dealer of my choice. Ordered in June, still waiting!
The dealer practice of large markups above MSRP is likely to quicken the move to direct sales. Any sympathy that one might have toward dealers not having enough new product to survive is lost especially when dealers markup is 30k.
The same people who complained about a $10,000 mark up on a Ford Bronco are the same people who turn around and auction their Bronco and end up selling it for $50,000 over MSRP. Is that also not greed or “price gouging”? In that case, there should be a clause to prohibit consumers from re-selling their vehicles for profit within the first 24 months of ownership.
I see no problem at all with people selling their vehicle or any other property for more than they paid. If you can find someone willing to give $50k more, that’s the American way. If you allow companies to tell you what to do with your property after it is no longer their property then what’s next? Do lumber yards tell you you can’t sell your house after you build it with their lumber? It’s silly and those companies should feel the wrath of the customers that put money in their pockets everyday. Ford can go to hell.
That’s what Ford tried to do with the new Gt and look how far that went! These IDIOT dealers are just cutting their own throats.. Give them enough rope and they will all hang there own DUMB ARSES! Screw all those GREEDY a$$holes.. They can all go to HELL!!
If Ford truly disliked this practice, they would do something about it. Hence why price markups are not managed thru their contractual relationships with dealers. Another step Ford could take is to include X-Plan pricing on the model which, as I understand it, does not allow dealer markups above the X-Plan price.
You have to know that Ford, by not allowing you to sell your Lightning before 1 year, are stopping the dealers from selling a Lightning, repurchasing it, then selling it used at 10, 20 30 thousand dollars over MSRP, to get around Ford stopping them from selling it new over MSRP.
Ford dealerships are not in the business of selling, repurchasing, and then selling again. I have no doubts that has happened but stopping dealerships from selling above MSRP is also wrong. The dealership owns that vehicle and they can sell it for whatever price they want. Just like when a customer buys from a dealership, Ford should have no say on when and for how much the customer can resell it. It will turn people against Ford, including me, but to put restrictions on customers or dealerships after they purchase a vehicle should not be allowed. I certainly hope this is contested in court, lawyers win again.
So it’s right to pre- order a vehicle for x dollars then when you go to pick it up the dealer can add whatever? That’s not right
Back when I was a dealer moves like this resulted in SERIOUS restrictions to allocation.
Dealer told me their first Lightning sold for $140,000 Canadian!
Dealer in San Antonio is calling folks who have actually gotten to order the Lightning and telling them “Ford only gives us a few at a time so you have no idea when you’ll get it; some dealers are asking $25K but, for you, for $10K we can get you a Lightning very soon.”
I hear what folks are saying about invoice/MSRP and that all’s fair in America. Still, why screw someone out of more of their money?
And the website clearly reads: Dealer Selling Price. It then in fine print, that is not otherwise referenced, states this is MRSP. The national phone people say they can’t control the dealers, but “$10K is excessive,” and also, “we will be doing direct sales soon.”
But in the meantime, an R1T is potentially cheaper for a more customer focused product and experience, as far as I can tell. Open to any arguments for why I should continue trying to switch to Ford.