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This seems good for Ford not necessarily good for prices. A customer order is lower cost to the manufacturer and dealer as the vehicle doesn't need to be in inv
by dpweb 5y ago
This seems good for Ford not necessarily good for prices. A customer order is lower cost to the manufacturer and dealer as the vehicle doesn't need to be in inventory.
Thus, you can sometimes get a lower price by ordering from the factory (dealer is passing along this savings) than buying from inventory. Not to mention this also eliminates price competition amongst dealers.
Some dealers take a loss on sales to earn manufacturer incentives.
Service however is where they make money, and as time progresses and cars are more software based and self-repair becomes impossible - total cost of ownership goes up.
- Gareth321 5y agoThis is a good point. Service costs for Teslas are outrageous. Though, to be fair, Teslas appear to require far less servicing. Because of this, I've seen estimates that they actually end up costing around the same as gas cars, annualised. People are going to have to think very hard about the servicing costs when they purchase cars in future, because that cost is often extremely opaque. I don't have much faith that the average consumer will consider this at all. If so, it's very easy to imagine a future in which the upfront cost of EVs is below manufacturing cost, but the ongoing subscriptions and servicing are where manufacturers make their profit.