Ford is offering new car buyers a $2,000 incentive to switch from custom orders to buying cars dealerships already have in stock. The company won’t advertise the offer. But a Ford spokesperson confirmed to Kelley Blue Book that dealers will offer the discount to buyers with an order already on the books.
It comes as Ford has built a backlog of orders, leaving some customers with longer-than-usual wait times.
Custom Orders Becoming Common
Car dealers are low on vehicles nationwide. At the end of August, America’s car dealers held about 57% fewer cars than they had one year before, according to Kelley Blue Book parent company Cox Automotive.
That has pushed some buyers to custom order new cars directly from the factory. That approach often means a long wait for your new car but can help you get precisely the vehicle you want even when cars are in short supply.
Related: Ordering a Car From the Factory: Everything You Need to Know
Part of a Long-Term Strategy
Ford would like to move to a sales model where most customers order the car they want and wait for delivery. This summer, Ford CEO Jim Farley told reporters the company is “really committed to going to an order-based system.” The model is common in Europe but new to many Americans, who are accustomed to driving home in a new vehicle the day they set aside to shop for one.
Earlier this summer, Ford offered an incentive to encourage the practice, giving buyers a $1,000 discount off custom orders on many vehicles.
Ford’s Order Books Are Filling Up
The move may have worked too well. On a recent conference call to discuss the company’s financial performance, Ford Vice President of Sales Andrew Frick noted, “our retail order bank has increased over 70,000 units, excluding our Bronco and Maverick retail orders, which is 10 times higher than we were a year ago.”
That means longer and longer wait times for those who place an order.
Wait Times Could Drive Some Away
A Ford spokesperson tells us, “We understand that some customers may not be able to wait to take delivery of a vehicle. So, if they have a verified 2021 model year retail order in the system, they can do one of two things: get the $2,000 to buy something out of existing dealer stock,” or switch their 2021 model year order to a 2022 model year car. The spokesman characterized these as “private offers,” explaining that dealers will reach out to eligible buyers. Those switching from a 2021 order to a 2022 order may be eligible for other incentives that differ from model to model.
That emphasis on wait times is no coincidence – the move is likely designed to keep buyers from canceling their order and buying from another brand.
Some Models Excluded
The offer doesn’t apply to those awaiting a Bronco, Maverick, F-150 Lightning, F-150 Tremor, or E-Transit – all models in high demand. It does apply to the 2021 Mustang Mach-E, but dealers have few of those in stock.
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September 30, 2021 at 09:41PM
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Ford Offers $2k Discount to Buy In-Stock Car Instead of Custom Order - Kelley Blue Book
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