Is Ford Killing the Mustang Mach-E?
The Mustang Mach-E forums are blowing up about the prices being charged by dealers for the Mach-E. Those who placed advanced orders don’t know what price the dealer they go through will charge. Some dealers are tacking on $15,000 and even more over MSRP. Ford is telling customers that complain about the unexpected increase they can change dealers after ordering online. But ordering online does not give you what the final price will be unless you already have an agreement with a dealer beforehand. Ford is taking a decidedly hands-off approach to these dealers gouging customers. Is Ford killing the Mustang Mach-E by turning off potential customers? We think yes.
Tesla’s one-price selling policy is just another reason legacy dealers could ruin sales of Mach-Es
Is this one reason why Tesla’s one-price selling policy is just another reason legacy dealers could ruin sales of Mach-Es? If a First Edition Mach-E is going for $78,000 with the dealer gouge doesn’t that make a Tesla Model Y with the top performance package at $60,000 a more attractive alternative? Or does the Mach-E hold some magic that we just aren’t seeing?
Some forums are aiding potential buyers by putting together lists of non-Additional Dealer Markup or ADM Ford dealerships. That way you can find non-ADM dealers nearest you and order your Mach-E from them. In most cases in life, there is always a workaround.
When the Mach-E originally debuted Ford held a press conference. It explained the ordering procedure as nearly identical to Tesla. Ford said with a $500 deposit your Mach-E was reserved. So you specify the Mach-E you want, place your order, and even pay for it online if you wish.
Some potential buyers have been discouraged by dealers from ordering a Mach-E online
But franchise tax laws vary from state to state. Most states require vehicles to be purchased by independently owned dealerships. Ford is paying a set amount to dealers for handling the transaction. Some potential buyers have been discouraged by dealers from ordering a Mach-E online. Many remain skeptical that Ford’s original intent to have similar purchasing procedures to Tesla’s will work under the current franchise dealer arrangement.
Ford dealer transactions Ford has what it calls an “e-Invoice.” The MSRP and invoice will have the same price. Dealerships will receive three allowances from Ford. The first allowance is for the Mach-E holdback which is roughly 3-5% of the invoice to the dealer. The next one is for complying with Ford’s advertising rules, the main one being you can’t advertise Mach-Es below MSRP. The final allowance is continued certification to service Mach-Es.
It is part of a larger argument for restructuring how vehicles are sold in the US
We know that this practice has been ongoing for decades. Especially with Shelby Mustangs, some dealers are charging $50,000 ADM. Usually, those Mustangs are sold the minute they hit the dealership lot. So, for those paying dearly to be the first or have the most exclusive the AMD persists. It is part of a larger argument for restructuring how vehicles are sold in the US. That’s another discussion for another time.
If you have questions or concerns it is best to check with Ford customer support: 800-392-3673