Will Ford Follow?
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Lead Driver
Joined: Apr 2002
Posts: 7,746
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From: Tampa Bay, FL USA
Will Ford Follow?
I wish I could ask the question, "Will Ford Lead?," but that just doesn't seem to be the case when it comes to pricing or incentives. An interesting story in The Detroit News, I'm sure Ford will take their usual wait-and-see attitude.
http://www.detnews.com/apps/pbcs.dll...601060373/1148
http://www.detnews.com/apps/pbcs.dll...601060373/1148
New User
Joined: Jan 2008
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Post Fiend
Joined: Jun 2002
Posts: 13,873
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From: Atlanta GA
Probably not, as long as Ford can still sell 800,000 something F-series a year. If GM cuts to the bone, then what $4000 red tag sale can they give to still attract a person's attention to price cutting and lot clearing deals in down times?
I know from a marketing point, getting the build sheet for my 1971 Ford was a big bonus and made me feel better about Ford. I think making customers feel better about the product is better then cutting to the bone and blowing out product, for the long term.
I just helped someone replace a 1995 Ranger with a 2006 Ranger for almost the same price as what the 1995 Ranger cost her new. There were cheaper deals to be had, she just liked the Ranger and its hassle free ownership and value.
Most people do not pay MSRP at all, so instead of worrying about that, I would worry about improving customer care and quality and let GM slash itself to death.
I know from a marketing point, getting the build sheet for my 1971 Ford was a big bonus and made me feel better about Ford. I think making customers feel better about the product is better then cutting to the bone and blowing out product, for the long term.
I just helped someone replace a 1995 Ranger with a 2006 Ranger for almost the same price as what the 1995 Ranger cost her new. There were cheaper deals to be had, she just liked the Ranger and its hassle free ownership and value.
Most people do not pay MSRP at all, so instead of worrying about that, I would worry about improving customer care and quality and let GM slash itself to death.
Postmaster
Joined: Nov 2004
Posts: 2,511
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From: Marion, VA
I don't it will make any difference in the price actually paid for the vehicles. They will drop MSRP but the dealer will pay the same or almost the same. gives them less room to discount their product. Both dealer discounts and rebates will be smaller so the net will be the same. Some people may be fooled but most won't.
Post Fiend
Joined: Jun 2002
Posts: 13,873
Likes: 3
From: Atlanta GA
The biggest advantage (imo) about MSRP and dealer invoice is being able to use the difference to bury a trade that the customer owes money on when they want to buy something they can not afford.
GM wants to have all factory owned stores, so what they do probably will not be in the dealer's best interest for the long haul.
GM wants to have all factory owned stores, so what they do probably will not be in the dealer's best interest for the long haul.
Post Fiend
Joined: Feb 2004
Posts: 10,728
Likes: 1
From: Damascus-Boring, Ore
So much for dumb consumers- you guys have got it pegged pretty well. GM shrinks the markup, which will be passed along to the consumer in the form of lower trade-in values. GM is aiding and abetting the process by dropping MSRP's. Then Ford or DCX will unveil some sort of incentive program, and they'll follow along... 
Back in 1987 they were talking about how to wean consumers off of rebates. Done a great job so far, huh? 
Back in 1987 they were talking about how to wean consumers off of rebates. Done a great job so far, huh?
