Ford Truck Incentives May Have Met Their End
Brand loyalty generally gives people incentives to stick with the brand. For example, if you get a great deal and perks with a Ford F-150, you may be inclined to return for a new Ford F-150 later. But the Ford truck incentives might be ending.
Say goodbye to Ford truck incentives for the Ford F-150, Ranger, etc
Customers have loved Ford truck incentives for years. It’s allowed people to access tremendous savings at the dealership lots for Ford f-150, Ranger, and Heavy-Duty models. But Ford CEO, Jim Farley, has hinted that this practice may come to an end.
While participating in an interview with Reuters, Jim Farley mentioned that the automaker that’s based in Dearborn, Michigan, is losing money through the incentive campaigns. He shared that he knows Ford is wasting money on the incentives, but he doesn’t know where.
But incentives are an essential part of the truck buying process. Brands typically offer $1,000 here and there to move trucks off the lot. This makes the customer happy because they get a good deal, and the dealerships and manufacturers are satisfied with making the sale.
But sometimes, these incentives aren’t as good as they seem. Raising the price of a Ford F-150 can be used as a way to quietly bring the price back down to its starting point. Meaning the customer doesn’t actually get a deal at all.
The F-150 might be built to order
Chris Farley also mentioned that Ford is really committed to switching to an order-based system for popular models like the Ford F-150 and Mustang Mach-E. This could keep inventories at a 50 to 60 days supply.
Traditionally, it’s been common to stockpile trucks at dealership lots. This helps automakers show investors that they are shipping new vehicles. Also, it allows dealers to provide a large selection for customers to consider.
This approach allows dealers to search for the perfect Ford F-150 model to match a customer’s needs. Plus, they can offer customers different models with fewer features with more incentives to purchase.
Building to order would reduce inventory and create a significant change for the way things are done. An initial slow down in volume could generate more savings because there wouldn’t be an excessive amount of trucks to discount and move.
Will build-to-order Ford trucks hurt customers?
Changing to a build-to-order system could potentially be frustrating for buyers. Instead of heading to the dealership and picking the Ford F-150 model they want. They might have to spend more time online.
They will have to be patient and select the features that they want. Then they will have to wait for their truck to be manufactured and shipped. This takes the thrill of driving off in a brand new vehicle the same day away.
But for dealerships, this could reduce the number of people coming in to discuss what features they want. Less time will be spent testing different models and options. Then the dealerships would have more free time to sell more used options and make an incredible profit.