zzdcar
Home
/
Reviews
/
Buying
/
Ford Wants To Compete With Tesla, But Its Dealers Are Getting In The Way
Ford Wants To Compete With Tesla, But Its Dealers Are Getting In The Way-March 2024
2024-02-19 EST 22:09:29

Image for article titled Ford Wants To Compete With Tesla, But Its Dealers Are Getting In The Way

Ford Motor Company is serious about offering more electric cars in its lineup. The and the upcoming are impressive products. However, the company’s approach to actually selling these products is leaving some customers frustrated and looking elsewhere. While short-term sales seem good right now, the long-term impact may not be.

The first issue is that on these EVs Ford has moved to what it calls “e-invoice” pricing; this means that the invoice price (or dealer cost) and MSRP are identical. Usually dealer invoice pricing is lower, allowing dealers to offer deals below MSRP, which just isn’t as clean or simple to a consumer, who may rather want to just pay what the car costs instead of worrying about getting the best deal. Whether Ford will admit it or not, with this “e-invoice” pricing, it seems to be taking a page from Tesla’s playbook where everyone pays the same price for a car. If you buy a Tesla, the price online is what you pay. No games, no dealer nonsense. Except, despite Ford’s “e-invoice” pricing, dealers can play games and markup cars well over the MSRP.

recently reported that Ford is implementing a program where dealers can “snitch” on each other if a dealer advertises the upcoming Lighting below MSRP. Advertising well over sticker price is perfectly okay, though; the “voluntary” program says a dealer can sell a car for whatever they decide, but it is only attempting to discourage advertisements that indicate any level of savings.

I have assisted with several Mach-E deals for various customers in different areas of the country, and though there are some vehicles for sale at MSRP, I’ve seen upwards of $10,000 over sticker. There are even dealers putting a markup of over $33,000 on these cars.

Image for article titled Ford Wants To Compete With Tesla, But Its Dealers Are Getting In The Way

Image for article titled Ford Wants To Compete With Tesla, But Its Dealers Are Getting In The Way

There is a lot of demand and not enough supply. When those factors come together, sellers can charge whatever they like. However, earlier in the summer Ford’s Manager of Communications Mike Levine sent out a tweet responding to a customer’s frustration regarding dealer markups.

Image for article titled Ford Wants To Compete With Tesla, But Its Dealers Are Getting In The Way

I was curious as to exactly how Mr. Levine, or Ford corporate for that matter, planned on enforcing any type of “policy” that would disincentivize dealers from selling these cars over MSRP. I reached out to him on a few occasions to get clarity on the matter but did not get a response. I did get a response from Emma Berg who is the director of Ford’s communications for EVs:

“If a customer isn’t happy with their dealer, our team can help them find a different dealer that’s a better match. Dealers are independent franchises and ultimately the final price a customer will pay for any vehicle is agreed between themselves and a dealer.”

I totally understand the franchise agreement and that dealers can sell for whatever they want. While I think it’s great that Mr. Levine was personally active in communicating with dealers on behalf of customers, it’s also not a great look for the brand when your PR representative has to be an intermediary between the customer and the retailer.

There are ways to limit these practices if an automaker was actually serious about it. While Ford cannot dictate what a dealer can sell a car for, it could perhaps tie future allocations for other in-demand cars based on how many vehicles a dealer sells at or below MSRP.

The other issue is that when it comes to leasing Ford’s EVs, lessees cannot take advantage of the tax credits as part of a cost reduction on the car. Several brands use the Federal EV tax credit as essentially an upfront discount on leases. For example, if you lease VW’s ID4, which like the Mach-E, has no margin between the invoice and MSRP, you get the $7,500 rebate which makes the VW lease much more competitive than a similarly priced Mach-E.

Right now demand is far outpacing supply, which creates a market where the sellers have the leverage, but that won’t always be the case. Tesla has been drawing customers not just due to a compelling product, but because people don’t want to buy cars with typical dealer hassles. If Ford, and other mainstream automakers want to compete in that space, offering electrified vehicles alone is not enough. Automakers are going to have to figure out a way to work with their dealerships so that the sales process isn’t sending EV clients to competitors.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Buying
Booty Call 500E for $7,500
Booty Call 500E for $7,500
Nineteen years before the Panamera, another 4-door sport sedan growled its way out of the Porsche factory. Today, has a 500E at a price that broaches the question; Rectum? Damn-near killed ‘em. Mercedes Benz has a long history of shoving honkin'-big V8s into their sedans, creating locomotive-like power delivery, and...
Mar 30, 2026
Adults-Only 914 Asks $20,000, Requires Warning Label
Adults-Only 914 Asks $20,000, Requires Warning Label
The seller of this V8-powered 914 suggests that it's way too powerful for younger drivers. thinks it's pretty safe to say a 300+ HP romper-stomper like this would bring out the kid in anybody. Bad memories came yesterday, causing a volaré-fied 66% of you to squeal in terror "Crack Pipe"...
Mar 30, 2026
Ain’t No Sunshine When She’s Gone — for $26,500
Ain’t No Sunshine When She’s Gone — for $26,500
With deals out there for the taking, now may be the best time to snap up some of the last of the cool Pontiacs. Today, wants to know if you'd shine-on a 2009 Solstice Coupe. Last Friday's stuck a chord in many of you, and it fact 56% of you...
Mar 30, 2026
Learn to Play Golf for $22,000!
Learn to Play Golf for $22,000!
Dubbed Stevie's Wonder by EuroTuner magazine, this rare VW Rallye proves that Golf is a sport, and not just a pastime. Today, wants to know if its twenty-two grand price will make you say fore! Crazy doesn't overcome crappy, and, in a wicked 75% Crack Pipe drubbing, yesterday's dropped like...
Mar 30, 2026
Join the Boxer Rebellion for $115,000!
Join the Boxer Rebellion for $115,000!
Mike Tyson's career is notable for his unapologetic brutality and, later, his Alcoholic's Anonymous advertisement-worthy facial tattoo. Today, has a Boxer that's almost as ferocious as Mikey, but is as beautiful as Tyson is fugly. From the comments yesterday, I take it not everybody knew just exactly what a was....
Mar 30, 2026
Plymouth Rocks for $8,975!
Plymouth Rocks for $8,975!
Back in the day, ads for the Plymouth Volaré advised buyers to "Don't Give Up, Get a Volaré!" Today, wonders if you'd give up nearly nine grand for this slant-six '76? Typically, the relation of a joke concerning the recently deceased is immediately followed with the question too soon? which...
Mar 30, 2026
Copyright 2023-2026 - www.zzdcar.com All Rights Reserved