Price Protection - New Vehicle orders

[zach@granger]

There's been some questions on new Vehicle price protection, with the delay on vehicles because of microchips and an increase in retail ordered vehicles because of the lack of dealer supply this has become a bigger issue.

I did some research on this and have a definitive answer on Ford's price protection policy.

Example:
Customer Orders a Lariat with $73,000 MSRP and agreed to selling price of $73,000 on 1/01/22.
Ford implements price increase on 02/15/22.
Dealer is invoiced for Lariat on 03/01/22 with a $75,000 MSRP.
Customer takes delivery on 03/31/22 with the $73,000 agreed to price.
Ford reimburses the selling dealership with an adjustment invoice on 05/15/22 automatically for price difference as long as it is sold to the customer who it was ordered for.


I have seen this happen a handful of times, but wasn't aware 100% of the process. This is done automatically and at the dealership level is something that isn't communicated all that well. I had to do some digging to find this policy. But if you have an agreed to price with your selling dealership on a retail order, they should honor that price. (I will say, that most dealerships will probably not be aware of this policy, I wasn't). Then Ford after processing the transaction and verifying that it was delivered to the customer who the car was ordered for will then send an adjustment invoice to the dealership reimbursing them for the price difference.

I have attached the Price protection policy here for your reference if your dealership isn't aware of the policy. The good news is that this is automatic and the dealership won't need to jump through any hoops to get it. The bad news is that most Ford's dealerships probably aren't aware. So don't think that they are crooks if they try to charge you the adjusted price, they most likely just aren't aware of the program. Just present this price protection flyer I have attached and I believe most store's will honor the price for you.

Again, the dealer has received an invoice for the full price. I'm sure most sales manager's are under the assumption their pricing has raised so they will pass it along and aren't aware of this program.

Hope that helps.

 

[Bannerman]

But if you have an agreed to price with your selling dealership on a retail order, they should honor that price.

Thanks for the info and transparency Zach. One question, that PDF is dated 2016, that is still the most current data though?

 

[hotrodmex]

Example:
Customer Orders a Lariat with $73,000 MSRP and agreed to selling price of $73,000 on 1/01/22.
Ford implements price increase on 02/15/22.
Dealer is invoiced for Lariat on 03/01/22 with a $75,000 MSRP.
Customer takes delivery on 03/31/22 with the $73,000 agreed to price.
Ford reimburses the selling dealership with an adjustment invoice on 05/15/22 automatically for price difference as long as it is sold to the customer who it was ordered for.

I postulated this on another board, and glad to see I was correct. Dealers and customers were talking past each other. This should really be re-named by Ford to "Price Protection Rebate" or "Dealer Invoice Rebate" or something else to better describe the process.

 

[jmarshall828]

Thanks for the info and transparency Zach. One question, that PDF is dated 2016, that is still the most current data though?

Did we find out if this 2016 is the most current version? I am in the situation right now...

Thanks.

 

[jmarshall828]

There's been some questions on new Vehicle price protection, with the delay on vehicles because of microchips and an increase in retail ordered vehicles because of the lack of dealer supply this has become a bigger issue.

I did some research on this and have a definitive answer on Ford's price protection policy.

Example:
Customer Orders a Lariat with $73,000 MSRP and agreed to selling price of $73,000 on 1/01/22.
Ford implements price increase on 02/15/22.
Dealer is invoiced for Lariat on 03/01/22 with a $75,000 MSRP.
Customer takes delivery on 03/31/22 with the $73,000 agreed to price.
Ford reimburses the selling dealership with an adjustment invoice on 05/15/22 automatically for price difference as long as it is sold to the customer who it was ordered for.


I have seen this happen a handful of times, but wasn't aware 100% of the process. This is done automatically and at the dealership level is something that isn't communicated all that well. I had to do some digging to find this policy. But if you have an agreed to price with your selling dealership on a retail order, they should honor that price. (I will say, that most dealerships will probably not be aware of this policy, I wasn't). Then Ford after processing the transaction and verifying that it was delivered to the customer who the car was ordered for will then send an adjustment invoice to the dealership reimbursing them for the price difference.

I have attached the Price protection policy here for your reference if your dealership isn't aware of the policy. The good news is that this is automatic and the dealership won't need to jump through any hoops to get it. The bad news is that most Ford's dealerships probably aren't aware. So don't think that they are crooks if they try to charge you the adjusted price, they most likely just aren't aware of the program. Just present this price protection flyer I have attached and I believe most store's will honor the price for you.

Again, the dealer has received an invoice for the full price. I'm sure most sales manager's are under the assumption their pricing has raised so they will pass it along and aren't aware of this program.

Hope that helps.

Thanks alot. I ordered on X Plan 12/31/21 and now there are several price increases, so not sure how this would apply..

AXZD-Plans If a vehicle was ordered prior to the announcement of a price increase, it may be eligible for Price Protection. Dealers may mail a reimbursement check to customer or decrease the vehicle’s selling price. If the dealer decreases the price, it must be documented on the AXZD-Plans Pricing Agreement Form. If the customer was reimbursed via check, the dealer must keep a copy of the reimbursement in the deal jacket.

 

[zach@granger]

Thanks for the info and transparency Zach. One question, that PDF is dated 2016, that is still the most current data though?

Here is another price protected document I had found that explains the same information published 04/04/22

 

[zach@granger]

Did we find out if this 2016 is the most current version? I am in the situation right now...

Thanks.

Here is a more updated document.

 

[Bannerman]

Here is another price protected document I had found that explains the same information published 04/04/22

Cool, I had no doubt it was correct as I imagine you are currently getting trucks in customers hands who ordered before the last two price hikes.

 

[SoCalTremor]

There's been some questions on new Vehicle price protection, with the delay on vehicles because of microchips and an increase in retail ordered vehicles because of the lack of dealer supply this has become a bigger issue.

I did some research on this and have a definitive answer on Ford's price protection policy.

Example:
Customer Orders a Lariat with $73,000 MSRP and agreed to selling price of $73,000 on 1/01/22.
Ford implements price increase on 02/15/22.
Dealer is invoiced for Lariat on 03/01/22 with a $75,000 MSRP.
Customer takes delivery on 03/31/22 with the $73,000 agreed to price.
Ford reimburses the selling dealership with an adjustment invoice on 05/15/22 automatically for price difference as long as it is sold to the customer who it was ordered for.


I have seen this happen a handful of times, but wasn't aware 100% of the process. This is done automatically and at the dealership level is something that isn't communicated all that well. I had to do some digging to find this policy. But if you have an agreed to price with your selling dealership on a retail order, they should honor that price. (I will say, that most dealerships will probably not be aware of this policy, I wasn't). Then Ford after processing the transaction and verifying that it was delivered to the customer who the car was ordered for will then send an adjustment invoice to the dealership reimbursing them for the price difference.

I have attached the Price protection policy here for your reference if your dealership isn't aware of the policy. The good news is that this is automatic and the dealership won't need to jump through any hoops to get it. The bad news is that most Ford's dealerships probably aren't aware. So don't think that they are crooks if they try to charge you the adjusted price, they most likely just aren't aware of the program. Just present this price protection flyer I have attached and I believe most store's will honor the price for you.

Again, the dealer has received an invoice for the full price. I'm sure most sales manager's are under the assumption their pricing has raised so they will pass it along and aren't aware of this program.

Hope that helps.

Thank you for the honest tranparency.