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Lincoln Dealers Sternly Reminded Not To Abuse Vehicle Allocation System

Aside from consumers, automakers and even dealers have faced quite a bit of adversity over the past couple of years as numerous supply chain shortages and the skyrocketing prices of goods have made the act of purchasing a new vehicle rather difficult and expensive. In light of markups and other forms of retail abuse, Ford and Lincoln dealers have faced their fair share of warnings and new policies designed to prevent such nefarious behavior, some of which were designed to ensure the automaker’s reservation system wasn’t abused. Now, FoMoCo has also warned Lincoln dealers, specifically, about abusing the vehicle allocation system, according to a letter recently seen by Cars Direct.

“The Sales and Service Agreement strictly prohibits abuse, fraud, and/or circumvention of the company’s retail allocation process. Retailers must factually represent orders, sales, and availability as it relates to all new vehicle reporting,” the letter reads. It goes on to specify what the automaker considers “allocation abuse,” a list that includes “falsifying client orders” to circumvent the company’s name-matching policy, “manipulating retailer sales,” the “trading of inventory between retailers,” and allocating orders to fleet customers.

Ultimately, the letter states that Lincoln dealers who choose to participate in such actives face a variety of repercussions, including a “clawback” of allocations, and “chargebacks” of any incentives for “improperly obtained units.” However, “persistent” and “uncorrected” abuse of this policy could result in the termination of a dealership’s sales agreement, too.

This letter is all the more important given the fact that more shoppers are willing to order a new vehicle than ever before, while hotter models like the 2022 Lincoln Navigator are currently available for customer orders only. Lincoln customers are also embracing that method of purchasing a new vehicle at an impressive clip, as the luxury brand’s retail orders have increased by a significant margin in recent months.

We’ll have more insights like this to share soon, so be sure and subscribe to Ford Authority for non-stop Lincoln news and 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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Comments

  1. Crabbymilton

    I didn’t think that there were very many stand alone LINCOLN dealers anymore.

    Reply
  2. Michael

    Ford is trying to reduce the number of Lincoln dealers, just like Cadillac reduced their dealer numbers, and they have to make up penalties to get rid of some of them, with their re-organization, and none of the dealers are going voluntarily, so need to find ways to kick them out.

    Reply
    1. crabbymilton

      There was a time back when JAGUAR was part of FORD. The old LINCOLN MERCURY dealer where I took my former GRAND MARQUIS for service actually had JAGUAR in the showroom. This was back in the early to mid’ 00’s. Perhaps they were trying to get a reaction to the idea to sell them both under one roof. Perhaps it’s best just to sell all FORD built products under one roof. Why would a customer care anyway? FWIW.

      Reply
      1. Crabbymilton

        Well MERCURY really only existed so the LINCOLN dealer could have a brand to give customers a lower cost choice and not run down the block to the FORD dealer. My GRAND MARQUIS was the same car as the CROWN VICTORIA except for some cosmetic differences. When I was looking back in ‘04, the FORD dealer only stocked the premium version of the CROWN VICTORIA but the LINCOLN MERCURY dealer did have the entry level standard version of the GRAND MARQUIS and prices were pretty much identical.

        Reply
  3. Mike

    If Lincoln does not devest itself from their Russian doll, cooker cutter, design and SUV models, they will be eliminated as well, because Land Rover, Jag, etc., are out designing and selling them.

    Reply
  4. Crabbymilton

    I’ve learned to take a generic approach now. Don’t be so concerned about one builder just because. If by some remote chance FORD ceases to exist, no problem since there’s others out there. I would have bought a FORD built sedan last year but FORD stopped building them. No problem since I love my ‘21 NISSAN ALTIMA.

    Reply
  5. BADIH JOHN MAJDALANI

    So Ford considers the Lincoln Navigator a hot seller and is a customer orders only vehicle. The facts are Navigator sales are only 4,251 units in 2022, down 46.82% from 2021, and Lincoln sales are 35,999 units in 2022, down 20.04% from 2021. Customer orders only for the Navigator is a bad idea. Since the Navigator is subject to a fire recall, means sales could only get worse.

    Reply
  6. YahKnots

    All of the negative articles about dealerships I’ve been reading lately just makes me cringe at having to ever deal with a dealership, ever again. Why do so many of them insist on destroying the brand, and making it SO MISERABLE for consumers?!? I bought a Tesla Model Y and the ordering and purchase process was SO stress free; I didn’t have a salesman going back and forth with a sales manager making me stress out over finding a manageable payment, I didn’t have to wonder if the price I’d be paying would be more than what I originally thought (hence the stupid adjusted dealer mark up crap we’ve been seeing), I knew where I was at in the process (ordering, building, registering, insurance, and final signing of paperwork) at all times and wasn’t held hostage by a salesman/sales manager/finance manager at all, and oh, did I mention it was stress free!? So yeah, anyone other than Tesla just ruins the entire experience it seems. I have a Lightning on order and I’m VERY GRATEFUL the dealership I ordered though has been AMAZING and aren’t charging an ADM….but if I had to deal with someone else, I don’t think I’d jump from Tesla to Ford. It’s just not worth the stress. Ford needs to get control of the out of control dealerships before they ruin the brand, because their greed is disgustingly obvious. Or else go direct sales and get rid of the garbage dealerships who refuse to keep the brand in good standing.

    Reply

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