Ford' s Latest Move Spells The End For Dealerships As We Know Them CarBuzz News Features New Cars Used Cars Sell My Car Shopping Tools Car Reviews Car Finder Compare Cars Best Cars Car Dealerships Used Car Reviews Car Advice Home News Ford' s Latest Move Spells The End For Dealerships As We Know Them

Ford' s Latest Move Spells The End For Dealerships As We Know Them

May. 14, 2022 10:13 AM ET by Chase Bierenkoven Industry News / 26 Comments More customers are ordering right from the Blue Oval than ever. It's safe to say we've all (hopefully) learned something from the pandemic - whether that be about looking out for our fellow man or, in this case, about the auto industry. Ford has indeed learned something from the pandemic, realizing the dealership model is starting to feel pretty outdated. That's why Ford quietly began the transition to a "built-to-order" sales model last year. And it's working like a charm. Sales for popular models like the Ford F-150 Lightning and Ford Bronco certainly reflect that. Both are top-rated models that have suffered from dealer markups, though that's more true of the Bronco than the Lightning. That's what the new built-to-order model is seeking to circumvent. Ford CarBuzz CarBuzz CarBuzz As Ford's first-quarter numbers show, more than half of new sales for the Blue Oval are coming straight from customers without the middleman. In August last year, CEO Jim Farley commented on the new business plan. "We are really committed to going to an order-based system and keeping inventories at 50 to 60 days' supply," he said. Moreover, the 50% build-to-order sale rate from April alone is significantly more than in February 2022, wherein around a third of the Blue Oval's retail sales came directly from buyers rather than dealers. It appears that customers feel "safer" by ordering right from Ford. Given the markups we've seen on some models, it makes sense that customers would skip the dealer system and go straight to the source. You may have to wait longer than you would when purchasing a car from a dealer, but at least you know exactly how much you'll pay. Ford CarBuzz CarBuzz CarBuzz Still, this new data presents an interesting problem. Dealers are still necessary in the United States for legal and logistical reasons. It can be tough to sell straight to consumers, as Rivian has found out. And where exactly are customers supposed to take delivery of - and service - their new Ford cars if not at a dealer? Sure, there are independent shops, but folks are justifiably just as suspicious of those as they are of dealers. It's a conundrum Ford doesn't quite have an answer for yet. It's also a landscape that's still unraveling, and new laws will likely have to be passed to ensure protection for both the buyer and seller. Who's to say the build-to-order model doesn't fade away once the supply chain stabilizes and people feel safe going to dealerships again? One thing is for sure: how Ford chooses to handle the customer experience over the next few years has the potential to shape the entire automotive industry in the future. Ford Ford Ford Ford

Join The Discussion

Show Comments (26)

Gallery

12 Photos Tags: #Ford News #Electric Vehicles #Industry News #Pricing

Related Cars

Ford F-150 Lightning Ford Bronco Chase Bierenkoven Associate Editor Shortly before applying to law school, Chase decided to take a chance on pursuing his dream job: playing with cars and getting paid for it. Law school was just a means to an end, after all. His first writing job was freelance and barely paid his grocery bill. It quickly turned into a full-time position, eventually leading Chase to join CarBuzz in 2022. Chase now tests cars, and sits comfortably at the news desk when he's not in the driver's seat. In his spare time, Chase can be heard trying to play guitar, or out enjoying Colorado's natural splendor in his BMW M3. Contact Chase @bierenkoven @cbier823 LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top