Ford Authority

About One Third Of New Ford Sales Now Coming From Customer Orders

As a number of global supply chain constraints continue to hamper automotive production, Ford has announced its intentions to move toward more of a build-to-order business model moving forward. The automaker will maintain a lower level of inventory on dealer lots as well, and those vehicles will be limited in terms of configurations. This will in turn cut down on incentive spending and improve profitability, which benefits the automaker tremendously. And thus far, it seems to be working, as the automaker’s February sales report revealed that around one-third of new Ford sales have come from customer orders over the past seven months.

In February, Ford took a grand total of 72,000 new vehicle orders, which is up from 54,000 one year ago, while 33 percent of new Ford sales came from previously-placed retail orders. As those numbers continue to grow, month after month, it’s only having a positive effect on profitability, while also driving Ford’s average transaction prices higher as well.

In fact, last month, Ford’s average transaction price hit yet another record high at $48,000, which is $4,100 more than one year ago. Across the entire industry, average new car transaction prices surpassed $47k for the very first time in January, while Ford’s average transaction prices rose 9 percent in 2021 and continue to climb.

The ongoing chip shortage and other supply chain issues have prompted Ford to make big changes to not only the way it does business but are also ushering in a new era for dealers. As Ford Authority reported earlier today, dealers will also be asked to specialize in the automaker’s new Model e EV division, the ICE-focused Ford Blue, or Ford Pro, the automaker’s commercial business moving forward.

We’ll have more on Ford’s customer order mix soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. John

    I have an F150 Lariat and love it but around here I get a feeling a lot of people will go to Ram. They have lots of trucks and advertising 10 to 15 thousand off. But of course I am a guy that still misses the sales brochures.

    1. Dave K

      Doubtful ! RAM is better than Silverado & Tundra but F150 is on another level.

  2. Victor

    New vehicle direct ordering is going to grow but the price is also? That’s not a good thing When cutting out the middleman and price grows you would think it would be less than getting a dealer prep and other costs when buying from dealers

  3. RICH

    They cant fill the orders they have. Customers are left in the dark after ordering. Then many have to fight with dealers not applying price protection and inflating prices above msrp.

  4. scott

    Ford needs to fix their chip issues and stop making excuses. People are only going to wait so long for their build, and then cancel and go somewhere else. Travel season is coming and they better get their act together.

  5. Robh

    I’m not sure this approach is good by expecting everyone to just order the car without seeing in in person and driving it. I would be leary of doing that. suppose you order it without driving it and you hate the way the seat feels or something you can’t tell by the online “build it now” feature? Also if they don’t keep an array of product on dealer lots, there is a group or class of people they will lose. My sister would be a good example of that. she may get up in the morning, with the intent to go to Macy’s but go by a car dealership and stop in just because she saw something on the lot that looked nice to her from the street. Well with her, she is impulsive and apt to just buy that car she saw and liked. If there was nothing to see from the road, she’d just continue on her way to Macy’s. In short, they need to carry inventory for the above reasons.

  6. SMH_Ford

    Our local Ford/Lincoln dealer doesn’t have any cars/trucks on their lots. My neighbor just had to order an Explorer to just drive it and then decide if they want it. This may be one reason why custom orders are growing. I for one want to get the feel for a vehicle and take a ride before I would consider ordering.

    1. Mike

      I was actually thinking about doing that as well. Now I just might.

  7. Jeffrey D. Sproul

    Ram will gain from this strategy. Those who need a truck now and not 6 months to a year later might not want to wait.

  8. Steven R. Francis

    Well, Y’all I ordered a new F350 dually on August 23rd, 2021 and the build date has been backed up 5 times. During the 7 months I’ve built to price 3500 GM and RAM trucks on their web sites. What I discovered is I cannot build and price either one of those trucks and get the options and features I’m getting on the Ford for the price I want to pay. They don’t have the Godzilla 7.3, the 10-speed transmission or the options I’m getting for the price $$$. They may have new trucks in inventory but trust me the Ford trucks are worth the wait. My new build date is the week of March 21st. I HOPE SO !!!

  9. James B.

    Good t read and get a solid to be in that category.Twysoon.Jpbesq

  10. William Adrian

    I ordered my truck September 2, 2021 and I’m still waiting with no word as to an estimated delivery date it was supposedly built at the end of January and there’s no one chip old so I’m told. I keep looking for something better at a better price with better incentives and I have found nothing.


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