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Ford dangles $10,000 discounts on redesigned aluminum F-150 pickup


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Two dealerships near me (actually, the same parent dealer) have a total of 270 between the two of them. Spot checking looks like about 80% +/- are actually in stock (judging by pics). Compare that to 110 Super Duty trucks. Seems to be pretty well stocked with '15 F150's here. Of course, we're only 2 hours from KCAP.

 

KCAP builds F-150s predominately for fleets. DTP handles a vast majority of the retail orders.

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KCAP builds F-150s predominately for fleets. DTP handles a vast majority of the retail orders.

 

What? Is that the case? I think the DTP is the only plant that built the Raptor. Also KCAP was the only one with the SuperCab and 8' box, but I think that is no longer the case. Both plants produce all models now I think.

 

Oh, and this just came in my email: post-22073-0-95909500-1437165622_thumb.png

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What? Is that the case? I think the DTP is the only plant that built the Raptor. Also KCAP was the only one with the SuperCab and 8' box, but I think that is no longer the case. Both plants produce all models now I think.

 

Oh, and this just came in my email: Untitled.png

Yeah, that's pretty much the case. There be some minor things that I don't know about.

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Simple: They overbuilt XLTs. You don't need to read too far into this.

That's the only reason I can see for offering big "incentives" which supplies are still low. My local dealer has 61 F150s in stock, which is about half of what they normally have. It looks like they're way heavy on XLTs, too--there are almost 30 XLTs in stock, and none of the other models are in the double digits. In fact, they have more XLTs than they have Platinums, King Ranches, and Lariats combined (26).

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what is the point of a $10,000 rebate on an all new product?

 

The only *national* and *vehicle specific* components of that $10k are $1k for all XLTs, $2k for the XLT chrome package, and $300(?) for the 2.7L EB.

 

If you look at the fine print, you'll find a region specific dealer allowance, and a host of "everybody gets one" incentives that can be had on most Fords (e.g. $750 if you qualify for Ford financing)

Edited by RichardJensen
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KCAP builds F-150s predominately for fleets. DTP handles a vast majority of the retail orders.

That's not true. Only difference between the two is KCAP builds all 8ft beds, DTP builds all Raptors.

 

Lots of retail orders araare filled by KCAP.

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That's the only reason I can see for offering big "incentives" which supplies are still low. My local dealer has 61 F150s in stock, which is about half of what they normally have. It looks like they're way heavy on XLTs, too--there are almost 30 XLTs in stock, and none of the other models are in the double digits. In fact, they have more XLTs than they have Platinums, King Ranches, and Lariats combined (26).

Ok. Supplies are still tight. You put the XLT's on sale. You sell a lot of them at a discount, but now your low on all models and your residuals are lower because of it.

 

Smart move?

 

I still say they are protecting market share and sales crowns.

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Ok. Supplies are still tight. You put the XLT's on sale. You sell a lot of them at a discount, but now your low on all models and your residuals are lower because of it.

 

Smart move?

 

I still say they are protecting market share and sales crowns.

 

That makes too much sense.

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Harley Lover.....this wouldn't go down in California....quote "All pricing and details are BELIEVED to be accurate, but we do NOT warrant or guarantee such accuracy"..........wowzers,

 

AFAIK, the dealership has a good rep, so I regard that language as standard legaleeze.

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Are the frame supply issues resolved?

Yes and no. Both assembly plants are working every available hour of production because they are receiving enough frames, but in order to do that the frame supplier changed the allocation. They were having problems changing the lines over to produce all the wheelbases and it was costing them units. That is why the regular cab models are few and far between.

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Yes and no. Both assembly plants are working every available hour of production because they are receiving enough frames, but in order to do that the frame supplier changed the allocation. They were having problems changing the lines over to produce all the wheelbases and it was costing them units. That is why the regular cab models are few and far between.

 

Which would explain why Dean's work truck he has had on order since January still hasn't been scheduled.

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Harley..."YES Mr customer...I believe our payments ith no money down on the $50000 truck will be around $350 a month....but I cant guarantee that"....must start using tat...sadly dealing with some peoples grasp of arithmetic, some could believe that's actually legit.

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You sell a lot of them at a discount, but now your low on all models and your residuals are lower because of it.

 

Residuals aren't a problem on trucks.

 

Also, you've freed up inventory spots for better selling models.

 

If dealership A has 100 slots for trucks, and they currently have 50 trucks, and 35 of those are XLTs, and Ford has 30 more XLTs in the pipeline, then they're looking at 65 XLTs total, which leaves 35 slots for other trucks.

 

Now if the turn rate for the XLTs is 60 days, and 30 for the other trims, then yes, you can build more of the other trims, but they're not going to get onto the lot (more or less) until the XLTs are sold, freeing up space. That means waiting an additional 30 days before the proportions start to tilt.

 

If Ford is ramping up production of different variants, they can't change the proportions on the lot before the XLT inventory turns unless the XLTs on the lot and the XLTs in the pipeline are drawn down faster than the draw for all other models.

 

So even if you're looking at skimpy local inventory, it still behooves Ford to draw down the XLT inventory faster. You can't just build more of some other variant, you also have to draw down your current product mix.

 

Granted, this is a somewhat simplistic picture, but it does reflect the fact that dealers are *somewhat* restricted regarding product mix on the lot. Here are a few of their limitations:

- Cost of financing: They can't add 15 trucks wholesaling at ~$35k per, unless they've got $525k in available credit.

- Lot space: They can't add, say, 15 trucks to the lot if they physically don't have room

- Product mix: They can't add 15 trucks and subtract 15 other vehicles of various types, unless they want to potentially cause other inventory shortages.

Edited by RichardJensen
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