Essentially every U.S. Ford dealership is in the midst of some major changes that began when the automaker rolled out its Model e Certified program some time ago, which asked those sellers to make big investments in return for the right to sell all-electric vehicles. However, FoMoCo recently decided to scrap that program altogether based on feedback gathered during meetings with its dealer council, and now, another Ford dealership program is being updated for the very same reason.
Those changes pertain to the Ford Dealership Floorplan Assistance Program, according to Automotive News, which hasn’t been updated in a little over two years. Starting July 1st, Ford will begin giving dealers an upfront credit that’s worth one percent of the sticker price on most of its retail vehicles, though there are some exceptions. Previously, dealers were paid 1.5 percent, but in 2022, Ford changed that to a reimbursement program with interest charges based on how many days a vehicle remained in stock, up to 75 days max. Floorplanning is a type of inventory financing used for big-ticket items, as dealers don’t purchase or own new vehicles on lots outright.
Those previous changes were made amid extremely low inventory levels, when vehicles were turning at rapid rates, meaning that dealers weren’t getting much in terms of credits. With these changes, Ford dealers will now be paid a set amount regardless of how quickly they turn inventory, which incentivizes them to do precisely that so they can rake in more money by selling more vehicles. This is notable because at the moment, Ford has one of the higher inventory levels of any automotive brand.
“This is really going to give our dealers greater flexibility in how they use those credits and their floorplan assistance for them to move their vehicles quicker,” Andrew Frick, president of Ford Blue, told Automotive News. “This was one of their key requests.”
We’ll have more on these changes soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.
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