[Cowherd.J]

CarsDirect is reporting that Ford sent a bulletin to their dealers that told them not to advertise the Mach-E below the MSRP, unlike other new Ford vehicles.

According to the bulletin, Ford says the decision is meant to "be competitive in the battery electric vehicle space by transacting in the way customers want to transact."

One thing that CarsDirect points out is that the rules apply for advertising prices, not selling prices. So in theory you could get a better deal if you have strong negotiating skills.

On paper, "transacting in the way customers want to transact" seems to make a lot of sense. However, the new rules involve advertised prices, not selling prices. Once you reach out to a dealer and start negotiating, the door opens to potentially buy the Mach-E at a lower price. That's not the case with Tesla.

While the concept of a minimum allowable advertised price (or MAAP) is nothing new, the Mach-E has a unique policy in place that will reward dealers for playing by the rules. Ford says the policy will protect the Mach-E's brand image as well as dealer margins.

To achieve that, the brand has instituted a new concept called an "e-Invoice" that will actually result in the Mach-E's invoice and MSRP prices being identical. Behind the scenes, Ford plans to compensate its dealers using 3 different types of allowances.

The first one involves an allowance for every vehicle delivered. The second rewards the dealer for remaining compliant with the model's advertising rules. The last one is meant to ensure the dealer remains properly certified to handle electric vehicles.

So what does this all mean for consumers?

On the surface, showing one price for a Mach-E on TV and online may make the model more approachable. However, knowing that dealers can sell the vehicle at, below, or even above MSRP could create confusion once we learn more about what (if any) sort of premium the Mach-E manages to command.

For now, the importance of the Mach-E appears to not be lost on those in Ford's marketing department. Leveraging the Mustang name and boasting specs like a 0-60 time as fast as the mid-3 seconds and a range of up to 300 miles, the Mach-E promises to deliver an exciting new choice for consumers.

But will the buying experience really be any different from any other vehicle? That remains to be seen.

 

[ReturnOfTheMack]

I love that they're doing this to get rid of bait and switch tactics. The e-invoice is a great idea to show customers that the invoice and MSRP prices are the same. Hopefully there's more information on that soon and it's something that can't be fudged with.

 

[TheSteelRider]

Hmmm ... there were rumors that Ford would allow X-plan pricing on the Mach E, but X-plan is based on invoice. If the "invoice" is the same as MSRP, then I assume either the rumors were wrong about X-plan for this vehicle, or that I mis-understand how X-plan works

 

[rboardman]

I’m willing to pay MSRP on this car but if they try to charge a premium, I’m out.

 

[TheSteelRider]

I’m willing to pay MSRP on this car but if they try to charge a premium, I’m out.

Second that! Really hope there are not those kinds of shenanigans.

 

[Cowherd.J]

I’m willing to pay MSRP on this car but if they try to charge a premium, I’m out.

Second that! Really hope there are not those kinds of shenanigans.

I'm in the same boat as you guys. I'm not that eager or crazy enough to pay marked up prices.

 

[Mp71323]

Hmmm ... there were rumors that Ford would allow X-plan pricing on the Mach E, but X-plan is based on invoice. If the "invoice" is the same as MSRP, then I assume either the rumors were wrong about X-plan for this vehicle, or that I mis-understand how X-plan works

I sent an email to Ford asking that similar question. Never received a response. I asked my car
dealer and he said it's too early yet to know if they will have X plan pricing. He warned me that the advertised price of the Mach-E was just a suggestion and it may change. I'm really not liking this part. Get you on the trade in and the sale of the new vehicle. I'm not good at negotiations.

 

[pew]

How about banning sales of the dealer installed $1000 "desert protection package" (actually just a spray on wax job)?

 

[Cowherd.J]

I sent an email to Ford asking that similar question. Never received a response. I asked my car
dealer and he said it's too early yet to know if they will have X plan pricing. He warned me that the advertised price of the Mach-E was just a suggestion and it may change. I'm really not liking this part. Get you on the trade in and the sale of the new vehicle. I'm not good at negotiations.

I don't like the sound of that either, I hope they're just saying that to cover their bases instead of suggesting that the price will change.

 

[Cowherd.J]

Hmmm ... there were rumors that Ford would allow X-plan pricing on the Mach E, but X-plan is based on invoice. If the "invoice" is the same as MSRP, then I assume either the rumors were wrong about X-plan for this vehicle, or that I mis-understand how X-plan works

It looks like the Mach-E is going to be eligible for Ford Plan Pricing!

A-Plan (Ford Employees): 4% below MSRP plus $275 administrative fee and 0.25% advertising fee

Z-Plan (Ford Retirees): Same as A-Plan

D-Plan (Dealer Employees): A-Plan plus $100

X-Plan (Ford Partners, Friends & Neighbors): 2% below MSRP plus $275 administrative fee

Mustang Mach-E Eligible For Ford Plan Pricing Discount

Great news everyone! The Mach-E is going to be eligible for Ford Plan Pricing! Cars Direct was able to get their hands on a bulletin that Ford sent to dealers. Here's what the plan pricing looks like for Ford: A-Plan (Ford Employees): 4% below MSRP plus $275 administrative fee and 0.25%...

www.macheclub.com

 

[dbsb3233]

What do y'all think will be the extra charges beyond MSRP that are fair and reasonable vs a rip-off?

As I understand it, a Destination & Delivery charge will be right on the sticker. I see that's running from $1095 to $1595 at a sampling of window stickers at my nearest dealership (CO). Then there's the Dealer Handling charge, which appears to be $479 for all new vehicles at the same dealership. And of course the applicable sales tax rate. In this state there's a nominal paperwork fee for state registration (~$30). That's separate from the actual license plate/registration fee that we do later with the county clerk.

Is that it? I know sometimes they try to stick you with an "advertising fee", or other crap we should watch out for.

 

[Mp71323]

Anyone know when it will be official that the incentive plans will show on the Ford website that you can use them on the Mach-E?

 

[ted99]

I'll look for the USAA discounts.

 

[StarWarsFan]

I hope there is some way for Ford to limit dealer mark-ups ... for these first year models, a bigger issues is mark-ups rather than mark-downs.

 

[pew]

I hope there is some way for Ford to limit dealer mark-ups ... for these first year models, a bigger issues is mark-ups rather than mark-downs.

Seems Ford is more worried about dealer mark-downs.

 

[ted99]

gonna be some competition, and Detroit dealers have a genius for screwing things up. Haven't owned a Detroit vehicle for 30 years and I'm spring-loaded to walk away from my Mach-e reservation if they start their old tricks.

 

[ReturnOfTheMack]

gonna be some competition, and Detroit dealers have a genius for screwing things up. Haven't owned a Detroit vehicle for 30 years and I'm spring-loaded to walk away from my Mach-e reservation if they start their old tricks.

What kinds of tricks are you referring to? anything specific?

 

[UW2]

What do y'all think will be the extra charges beyond MSRP that are fair and reasonable vs a rip-off?

As I understand it, a Destination & Delivery charge will be right on the sticker. I see that's running from $1095 to $1595 at a sampling of window stickers at my nearest dealership (CO). Then there's the Dealer Handling charge, which appears to be $479 for all new vehicles at the same dealership. And of course the applicable sales tax rate. In this state there's a nominal paperwork fee for state registration (~$30). That's separate from the actual license plate/registration fee that we do later with the county clerk.

Is that it? I know sometimes they try to stick you with an "advertising fee", or other crap we should watch out for.

I hope that is it. Remember the "Ford X discount" if you join the Mustang Club (or get it otherwise e.g. from your employer)

 

[Stickboy46]

Bet this is preempt dealers from advertising on their websites and such with the 7500 credit baked in. Ford trying to keep it transparent and fair.

Run into this before at a Dodge dealer looking for my wifes charger. They advertised a price. The ONLY way you could get the price was:

• Former Military AND
• Former Dodge owner AND
• Had a credit union account AND
• Over 55 AND
• Had a Sam's Club account

If you didn't have all those items the price was like 4k higher than what they advertised.

 

[JTK44]

Just my $.02:

The Tesla Model Y, long range AWD is at $52,900. The model Y has longer range, faster charging time, more advanced technology and slightly more interior space. Styling is subjective. I believe it will be very difficult if not impossible for the Mustang to be sold over MSRP: I have reserved the First Edition which is $60,000. With the Federal tax credit of $7,500 plus NY State credit it will be more or less the same price as the Model Y.