3 ms·
In a lot of industries the dealership/distributor model smooths out cashflow and inventory. You build a bunch of something, the distributors buy it from you of
by joezydeco 4y ago
In a lot of industries the dealership/distributor model smooths out cashflow and inventory. You build a bunch of something, the distributors buy it from you off the dock (or, sometimes, they even pay in advance) and then the distributor sits on the inventory while it sells. It's off of the manufacturer's books and there is cash in hand to buy more supplies.
Ford's switchover makes sense if their factories are running 100% flat-out and every car has a waiting customer. Or if it's all made-to-order and the queue is full.
What happens if demand drops off? Is Ford going to stack up cars in Dearborn or will they just randomly shut down plants to take up slack? Will you need to prepay for a car so they have the money to make it?
- mertd 4y agoAs I understand, walking into a dealer and driving out with a car an hour later is an American thing. In many other countries, cars are made to order.
- throwayyy479087 4y agoThis is also why euro-spec Mercedes have so many more engine options compared to Americans. in the US 3 engines is a lot for a model, but some German VWs have like 7 choices. You pick the exact one for your needs.
- unethical_ban 4y agoWild. How am I supposed to impulse buy a new Bronco that I don't need if they aren't in stock at the dealer waiting for a signature? No, really. If Land Rover Discovery 2dr were in stock at MSRP there's a high chance I'd have been silly enough to buy it.