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Ford Has A New Plan To Stop Dealer Markups
May. 18, 2022 6:16 AM ET by Chase Bierenkoven Pricing / 33 Comments Ford is trying its hardest to make sure we pay MSRP for our cars. If anyone is having a tough time with markups right now, it's Ford. The brand's models, like the Ford Bronco, have long suffered from unreasonable markups from dealers. It's a story we've all heard before, and it's starting to repeat itself with the Ford F-150 Lightning. Platinum trim models are already marked up past $100,000. Ford tried to do something about it, with CEO Jim Farley telling dealers that they'd best cut it out or their inventory would be affected. Evidently, that warning wasn't heeded by some. So, Ford is trying another approach. The brand is implementing a more strict name-match policy across the board, per a dealer bulletin sent out this week. CarBuzz CarBuzz CarBuzz CarBuzz For those unfamiliar with the term, a name-match policy effectively states that when a person orders a car through a dealer, they must be the sole recipient of said vehicle. Example: you order a Ford F-150 Lightning. A dealer then tells Ford what you want, and you must then be the person who gets the car. That sounds like exactly how dealers are supposed to work, but sometimes dealers use these systems to create spare inventory where there is none, telling Ford that someone has ordered a car who hasn't. The new policy says that 75% of cars ordered by dealers must be name-matched to a customer. Previously, the policy said that number had to be 70% of cars ordered. Ford is also closing a loophole. Previously, a provision allowed dealers a 120-day period from the order receipt date to the dealer delivery date, after which that 70% name-match policy was voided. Now, dealers will be held accountable for every violation of the name-match policy, regardless of circumstance. CarBuzz CarBuzz CarBuzz CarBuzz Punishment for breaking the name-match now means that dealers will forfeit a month's worth of allocations, and at three violations, dealers will be kicked out of the Ford Name Match and Integrity Policy entirely. That means it'll be extremely difficult for repeat-offending dealers to do business. Basically, it's "toe the line or get out" for Ford dealers now. Finally, the memo also states that the 75% name-match policy will rise again to 80% of orders for 2023 model year vehicles. Critically, that includes the F-150 Lightning. Of course, that means fewer spare cars sitting on dealer lots, and more orders right to Ford itself. The new policy for dealers mirrors stats at Ford, which shows an increasing number of online customer orders. CarBuzz CarBuzz CarBuzz CarBuzz Join The Discussion
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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