Ford Australia powerless to stop excessive dealer delivery fees

[Vesper Martini]

Ford Australia appears to be powerless to stop its showroom network from charging excessive dealer delivery fees on in-demand vehicles such as the new-generation Ford Ranger – even though head office in North America has taken steps to stamp out the behaviour there.

Australian buyers of the new-generation 2023 Ford Ranger ute have begun sharing on social media their invoice costs to compare excessive dealer delivery charges.

Due to the ongoing chronic stock shortages as a result of production and shipping slowdowns caused by the coronavirus pandemic, a number of showrooms across most major automotive brands have started to charge above-average fees for dealer delivery to boost their profits – even though they are already selling vehicles at full retail prices with no discounts.

Research by Drive has found most Ford dealers in Australia are quoting between $1200 and $1900 for the nominal dealer delivery charge, however a number of customers have posted on social media their invoices which show clearly excessive dealer delivery fees ranging from $3000 to $6000.

Some Ford dealers who participate on social media forums have attempted to defend the examples of price gouging – citing the forces of supply and demand – however customers stung with over-the-top charges have been encouraged by other members of online groups to shop around.

In North America, the Ford Motor Company issued a warning to its dealer network there advising showrooms who are busted charging excessive fees or "markups" would receive reduced allocation of in-demand vehicles.

However, Ford Australia has so far stopped short of issuing the same warning or taking similar action here.

In a statement to Drive, a spokesperson for Ford Australia said: "While dealer delivery fees are set independently by dealers, we are keen to remind customers that we have more than 180 dealers nationwide and they are welcome to work with a dealer of their choice.

"We also have a new online configurator at ford.com.au, so customers can put in their postcode, configure their vehicle, and get an estimated drive-away price, which includes an estimated dealer delivery charge.

The current spate of price gouging has sparked debate about the merits of a non-negotiable, fixed-price business model.

Detractors of dealer delivery fees say the cost to prepare a new motor vehicle for sale should be included in the profit margin already baked into the RRP of the car.

Contrary to the name "dealer delivery fee", this charge does not cover the cost of transporting a new motor vehicle to the dealership.

Instead, vehicle transport from shipping docks to showrooms – or dealer holding yards – are already covered in the dealer's invoice cost of each new motor vehicle.

Dealer delivery fees are in fact a separate source of profit and were largely eliminated in the lead-up to the COVID-19 pandemic because there was an over-supply of new cars and not enough customers.

At that time, often the first thing to disappear on a customer invoice when a discount was applied to a new car was the dealer delivery fee.

However, dealer delivery fees have been thrust back into the spotlight over the past two years as showrooms capitalise on chronic shortages of inventory and long waiting times.

One dealer, speaking to Drive on condition of anonymity, who was critical of excessive dealer delivery charges, said: "You can skin a sheep once, but you can shear it a hundred times."

New-car dealers who have taken a dim view of the recent spate of over-charging, told Drive the industry needs to consider the long-term impact excessive charges will have on each showroom's customer base.

https://www.drive.com.au/news/ford-a...delivery-fees/

[Franco Cozzo]

'Powerless' or it just doesn't overly care too much?

You could punish the dealer with stock allocations and other creative ways to send a message - your Ranger Raptor is coming in 36 months.

[BENT_8]

Fancy that, when I said they we're price gouging in the Ranger thread I got told I was wrong.

[hackney]

What Ford should be doing is going down the road of adopting Honda’s agency style model, fixed pricing, no ifs, no buts.It takes away the middle man issue.They cannot gouge the customer as the company owns all the stock & sets all the prices, issue fixed.

[Franco Cozzo]

Originally Posted by hackney

What Ford should be doing is going down the road of adopting Honda’s agency style model, fixed pricing, no ifs, no buts.It takes away the middle man issue.They cannot gouge the customer as the company owns all the stock & sets all the prices, issue fixed.

Agree completely

[hackney]

I really hope this hurts Fords bottom line in sales etc..They could fix this quite easily I am sure if they wanted to.

[Bossxr8]

Originally Posted by hackney

What Ford should be doing is going down the road of adopting Honda’s agency style model, fixed pricing, no ifs, no buts.It takes away the middle man issue.They cannot gouge the customer as the company owns all the stock & sets all the prices, issue fixed.

Not if they jack up prices to utter ridiculous levels like Honda did. 30k for a base model Civic

[Big_Daz]

Originally Posted by Bossxr8

Not if they jack up prices to utter ridiculous levels like Honda did. 30k for a base model Civic

Not any more mate, you can only buy 1 grade of Civic currently, the fully loaded VTI LX....... for $47k D/a. Thanks to Honda's fixed price promise.. Insane $$$ for a Civic.

As for Ford and their ****ty rip of tactics, Ford doesnt control the dealers, all they can do is hold back stock allocation to those dealers who are doing it, maybe they will get the message. Apparently thats what Ford USA are doing to dealers who are charging huge mark ups on F150 Lightning...

I dealt with it on my new Ranger order.. Original dealer tried screwing me on DD and therefore pricing.. I voted with my feet and went elswhere...

[sexyxe]

I saw dealer mark ups of 30-50k in the States. Now that is a rip off.

[BENT_8]

Dealers are only going to get away with it if gullible customers allow them too.
They're currently using supply limitations and the FOMO of the first batches of new product to leveredge their position.
Astute customers should call their bluff, discuss cancelling their orders unless the price reflects the fair costs of delivering the vehicle.
With new Ranger the pre delivered unit price is already available, its easy to find out government fees so that equation is straight forward, all you need to do is add to that what you think a wash, vac, windows and check of fluids and fasteners is worth and add it to the registered unit price, hit them with it and tell them to get back to you when they're ready to sell at that price.
Theres a boat load of Rangers on their way that they dont want sitting around in holding yards very soon, nows the time.

Problem is theres no good one or two or even 20 customers doing that as they'll soon find another sucker to sign up but through modern communication channels that movement can reach much further the same as the story and admission in the OP.

We've just seen what can happen when the collective speak in the way the Liberal Federal Government we're ousted in landslide swings against.
Anything can be changed if enough people stick to the cause.

[kypez]

I like the new Everest and Ranger but if they charge any more than $1695 dealer delivery, I won't buy it. Not that invested. I'm sure they'll fill the order just fine though. Speaking of which, I should finalise the pricing on that Raptor to see if its a go or not. Else we wait for the F150. If that is priced stupidly as well, I'll just take my business to one of those with a fixed price that release a model that I like.

[Smoke Pursuit]

Originally Posted by kypez

I like the new Everest and Ranger but if they charge any more than $1695 dealer delivery, I won't buy it. Not that invested. I'm sure they'll fill the order just fine though. Speaking of which, I should finalise the pricing on that Raptor to see if its a go or not. Else we wait for the F150. If that is priced stupidly as well, I'll just take my business to one of those with a fixed price that release a model that I like.

You will be waiting a while for a raptor.

[kypez]

Originally Posted by Smoke Pursuit

You will be waiting a while for a raptor.

I'd have been interest in the Everest platinum but they don't offer it in blue

Sent from my Pixel 5 using Tapatalk

[Vesper Martini]

Originally Posted by kypez

I'd have been interest in the Everest platinum but they don't offer it in blue

Sent from my Pixel 5 using Tapatalk

Im wondering if that's because of the colour coded bolt on accessories like wing mirrors

[kypez]

Originally Posted by Vesper Martini

Im wondering if that's because of the colour coded bolt on accessories like wing mirrors

Surely something that small shouldn't play such a big role. I just can't understand their thinking. Just offer the colours. BMW even let you pick whatever colour you want for your car. Sure, we are no BMW but it would be nice all the same.

Sent from my Pixel 5 using Tapatalk

[jpd80]

The other side of this thing with dealer markups is that they know that more than a few buyers purchasing at RRP will go out and try to flip the thing for $20k or $30k profit so it might as well be them getting the cash…

[hackney]

@ the end of the day, just cross shop & go to the opposition.I certainly would.

[jpd80]

Originally Posted by hackney

@ the end of the day, just cross shop & go to the opposition.I certainly would.

Normally that would work but what do you do when all companies start lifting prices?
See, cross shopping only works when people will gladly settle for another brand, many of the devout won’t, they pyss and moan and just end up finance or lease, swallow the premium and shut up……that’s what those brands count on.

[hackney]

Originally Posted by jpd80

Normally that would work but what do you do when all companies start lifting prices?
See, cross shopping only works when people will gladly settle for another brand, many of the devout won’t, they pyss and moan and just end up finance or lease, swallow the premium and shut up……that’s what those brands count on.

That is why ‘fixed’ pricing is better.You have surety on the price.

[hayseed]

I quite Frankly Don't care how Much the Dealer Charges to Wash it & screw the Number Plates on..!!
Whenever I buy something from a Dealer I only need to know One Thing.
The Driveaway Price with whatever Options & accessories I want. Or if I'm trading Something in. The Change over Figure..!

[BENT_8]

Originally Posted by hayseed

I quite Frankly Don't care how Much the Dealer Charges to Wash it & screw the Number Plates on..!!
Whenever I buy something from a Dealer I only need to know One Thing.
The Driveaway Price with whatever Options & accessories I want. Or if I'm trading Something in. The Change over Figure..!

And if that driveaway or change over figure has an additional $2,3,5k over an above what the vehicle should cost without the brand acknowledged price gouging you still sign?

[xr6turboford]

What people don’t realise is that Ford Australia is powerless to stop the dealers from charging whatever they like. It’s called price fixing and is law in this country. So it’s up to the consumer to shop around for the best price.
One thing Ford could do is advertise R.R.P drive away so when you go to a dealership you know if their ripping you off.

[Dr Terry]

Originally Posted by xr6turboford

What people don’t realise is that Ford Australia is powerless to stop the dealers from charging whatever they like. It’s called price fixing and is law in this country.

That's the thing right there. It might not be a popular view but it is a 'free' country & dealers can charge what they like.

The only law that they must obey is the consumer law which says any retail price 'quoted' must be all inclusive. They can't just say, oh by the way there are a a few more fees & charges on top of that price.

Any price quoted much include all oncosts. In the old days they quotes an RRP, then added rego, ctp, delivery etc. etc. No longer allowed.

Dr Terry

[Dr Smith]

Originally Posted by xr6turboford

What people don’t realise is that Ford Australia is powerless to stop the dealers from charging whatever they like. It’s called price fixing and is law in this country. So it’s up to the consumer to shop around for the best price.
One thing Ford could do is advertise R.R.P drive away so when you go to a dealership you know if their ripping you off.

They do....with a slight disclaimer:
Straight off the website:

WILDTRAK
Estimated Drive Away Price From $72,089*
2.0L Bi-Turbo Diesel 10AT Part-Time 4x4 Double Pick-up
Optional upgrade to 3.0L V6 Turbo Diesel with Full-Time 4WD

*This is an estimated drive away price only and is not intended as a formal quotation or offer. For a confirmed drive away price quotation and to check stock availability, please contact your Ford Dealer. The estimated drive away price is based on a vehicle being garaged in the postcode listed and on the owner being a 'rating one' driver aged 40 with a good driving record. The estimated drive away price includes, 12 months registration, 12 months compulsory third party insurance (CTP), an estimated Dealer delivery charge, stamp duty and other applicable statutory charges. Your actual drive away price may differ depending on your individual circumstances or choice of insurer. Statutory charges are current on the day you are using this build and price tool. Please consult with an authorised Ford dealer for the most up to date information about features, specifications, prices, optional equipment and availability before you decide to place an order.

[Dr Smith]

Who would have thought back in 2019/2020 that the threat of a pandemic would lead to so much turmoil in so many different areas of our lives apart from just the pure health aspect.

[Franco Cozzo]

Originally Posted by Dr Smith

Who would have thought back in 2019/2020 that the threat of a pandemic would lead to so much turmoil in so many different areas of our lives apart from just the pure health aspect.

The pandemic is just an excuse for everyone dropping the ball these days, its the go to for 'we actually ****ed up but we're blaming COVID'.

It'll be the year 2122 and people will still be like yeah the reason it took 15 minutes to get your Big Mac to you in the drivethru is because COVID.

When all else fails, blame COVID or couriers.

[jpd80]

Originally Posted by Franco Cozzo

The pandemic is just an excuse for everyone dropping the ball these days, its the go to for 'we actually ****ed up but we're blaming COVID'.

It'll be the year 2122 and people will still be like yeah the reason it took 15 minutes to get your Big Mac to you in the drivethru is because COVID.

When all else fails, blame COVID or couriers.

I’ve noticed something with trades and service industry, they seem to be working slower, like about three quarter pace. A building company fell over here in Brisbane today, basically blamed tradies scalping with ridiculous prices that weren’t sustainable. Maybe overstated but I think everyone sees with their own eyes what going on with their own experiences.

Another one I notice is McDonalds and drive throughs. I remember back twenty odd years ago, it was like push push in those industries, now there’s no older manager driving the kids that just seem to roll along in a dream….

[Dr Smith]

Originally Posted by jpd80

I’ve noticed something with trades and service industry, they seem to be working slower, like about three quarter pace. A building company fell over here in Brisbane today, basically blamed tradies scalping with ridiculous prices that weren’t sustainable. Maybe overstated but I think everyone sees with their own eyes what going on with their own experiences.

Another one I notice is McDonalds and drive throughs. I remember back twenty odd years ago, it was like push push in those industries, now there’s no older manager driving the kids that just seem to roll along in a dream….

On a similar theme, I think some industries where lockdowns led to redundancies and as often happens in such situations, your better skilled/experienced staff leave because they have a good chance of getting another job. This leaves a company understaffed and under-skilled.

I remember when one company offered their employees voluntary redundancies, in the background specific staff were told if they applied it wouldn't be granted.

Back on topic, if a dealer that I had bought 4-5 vehicles from in the last 5 years applied a DD that I considered over the top it would end my relationship which remember is also 4-5 vehicles of servicing and options over this period as well...could be around $10K of business to the service department...in fact .... if you say $500 avg per service x 4cars x 5yr it is actually $10K.

[BENT_8]

Originally Posted by Dr Smith

Who would have thought back in 2019/2020 that the threat of a pandemic would lead to so much turmoil in so many different areas of our lives apart from just the pure health aspect.

Well that's an interesting topic DS because you can bet when things we're looking ugly in the dark days, when everyone was locked down and no one could go to work, these same dealers probably put their workforce on Jobkeeper, yet now we've come out the other side they're having another bite of the cherry by screwing over the customers who let them.

[jpd80]

Originally Posted by BENT_8

Well that's an interesting topic DS because you can bet when things we're looking ugly in the dark days, when everyone was locked down and no one could go to work, these same dealers probably put their workforce on Jobkeeper, yet now we've come out the other side they're having another bite of the cherry by screwing over the customers who let them.

All carmakers are taking advantage of their inability to source sufficient chips and produce
as much as they normally would. All of them have witnessed a situation that none would
have ever entertained, deep cuts in production by all at the same time to drive up prices.
It’s like collusion with former rivals increases profit and that the real target has always been
getting buyers to pay more, not a Dutch auction to the bottom….

they are all relying on people’s brand loyalty to squeeze more money and its working.