Ford Australia Confirms It Has No Plans to Shift to Online-Only or Fixed-Price Sales Models

A shift to online-only or fixed-price sales models would prevent customers from negotiating vehicle prices and could also be damaging to the brand in the country

Byrne Ford

As Ford pivots towards an all-electric future, the automotive company has announced a host of changes that will affect dealerships around the world, including splitting into two separate divisions. Ford Blue will continue to focus on petrol- and diesel-powered vehicles while Ford Model e will focus on electric vehicles. According to the leading new and used cars dealers Brisbane-wide Byrne Ford, as part of the reorganisation, dealers in some countries will be required to sell at fixed prices with zero physical inventory in scaled-down spaces. 

Ford Australia, however, has indicated there are no plans to follow suit. As Byrne Ford explains, the dealers in Australia are the public face of the company and play a key role in connecting customers and the Ford brand. 

Offering the best selection of used cars Brisbane-wide, Byrne Ford says local dealers are closely connected with both their customers and the communities they serve, giving the brand a competitive advantage and allowing dealers to focus on serving customer needs. 

The Kedron-based Ford dealer says a fixed-price direct sales model would likely lead to buyers paying more for new cars as they wouldn't be able to negotiate the final selling price. In contrast, under existing dealer agreements, showrooms buy stock from vehicle manufacturers and can negotiate the final selling price, which ultimately cuts into their own profit margin but means buyers can score a great deal. 

Byrne Ford explains the new business arrangement is known in the industry as an "agency model" as dealers are paid a flat fee by the manufacturer and prices are set by the car company, with no room for negotiation, resulting in higher transaction prices for consumers. The only time discounts may be available under this model is when car companies are overstocked. 

The Australian Automotive Dealers' Association (AADA) says most mainstream car companies in Australia are not considering a switch to fixed prices locally, a decision it flags as a win for new car buyers. 

To discover the best deals on cars for sale Brisbane-wide, contact Byrne Ford.

Source: Byrne Ford