Ford No Haggle Pricing Set to Compete with Tesla
The Ford F150 Lightning is Coming to a Website Near You Thanks to Ford No Haggle Pricing
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Ford announced its new Ford no-haggle sales model to compete with Tesla, which has taken the EV industry by storm.
This means the dealerships they’ve previously partnered with to sell their vehicles must commit to the falt-pricing model to retail new Ford EVs.
Dealers Must Commit to Ford No Haggle Pricing Model
To sell Ford EVs, dealerships must commit to the Ford No Haggle pricing model and put up to $1.2 million into dealership upgrades (this includes EV/charging infrastructure).
“Changes in the market have compelled Ford and our dealers to revisit how customers shop, buy, and own, and how they will do this going forward,” said Ford Chief Executive Jim Farley in a July earnings call.
These upgrades are likely already in the plans for dealerships already selling EVs, but for many, it will be a financial squeeze.
Dealerships have until 2024 to opt in.
The New Ford EV
Earlier this year, Ford announced it would split into two distinct operations — separating its electric and internal combustion engine businesses within the legacy auto brand.
The split freed EV operations to make big decisions faster to compete with Tesla for the growing market share.
This new Ford no haggle pricing, along with direct online sales, is one of the first big shakeups we’ve seen due to the strategic brand split.
What Ford No Haggle Pricing Means For You?
The most significant difference you’ll see is a uniform price on most Ford EVs and the option to buy one online.
If you don’t live near a participating dealership, you may not get to test drive one. And it also means you may be unable to find a lower price. But you don’t have to negotiate.
For dealerships, this is a pretty significant change in the landscape. However, we could see many used car dealers find a good resale margin similar to Tesla. Since Ford’s EV models are still so new, there will likely be more s supply than demand.