Ford cracks down on F-150 Lightning dealer mark-ups

Ford has warned US dealers they will have their allocation of Ford F-150 Lightning electric pick-ups suspended for a year if they are caught overcharging customers.

The Ford F-150 Lightning – the US car giant’s first electric pick-up – has become an instant sales success before the first examples have been delivered to showrooms.

But some dealers have been caught attempting to charge customers huge mark-ups to jump the queue and secure a vehicle.

A confidential bulletin to all Ford dealers in the US was obtained by enthusiast online forum F150gen14.com.

While the blog has since removed the Ford bulletin, the details had already been picked up by other media outlets.

The Detroit Free Press was among those who reported excerpts from the Ford bulletin.

“It has come to our attention that a limited number of dealerships are interacting with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and dealer body reputation,” the confidential Ford notice to US dealers said.

“Examples of these negative interactions include demanding that customers who are already on the reservation list for the 22 MY F-150 Lightning make additional deposits or payments. These actions are perceived as threatening customers by withholding their opportunity to convert reservations to orders,” the Ford notice continued.

“This behaviour is not allowable under Paragraph 6 of the sales and service agreement (which) states that the dealer shall conduct dealership operations in a manner that will reflect favourably at all times on the reputation of the dealer, other company authorised dealers, the company, company products and trademarks and trade names used or claimed by the company or any of its subsidiaries.

“The dealer shall avoid in every way any ‘bait’, deceptive, misleading confusing, or illegal advertising or business practices,” said Ford.

Any Ford US dealers found to have overcharged customers for the Ford F-150 Lightning now risk losing their first annual allocation of vehicles.

“If it is determined that your dealership is engaging in such practices, Ford Motor Company reserves the right to redirect that dealership’s allocation of the F-150 Lightning for the entirety of the 2022 (model year).”

Ford also used the same bulletin to ask customers to sign a contract that would preclude buyers from selling their Ford F-150 Lightning within the first 12 months of taking delivery.

An example of the contract wording provided by Ford and sent to its US dealers said: “Purchaser hereby agrees that it will not sell, offer to sell, or otherwise transfer any ownership interest in the vehicle prior to the first anniversary of the date hereof.

“Purchaser further agrees that seller may seek injunctive relief to prevent the transfer of title of the vehicle or demand payment from purchaser of all value received as consideration for the sale or transfer.”

In other words, if the customer sells their Ford F-150 Lightning to make a quick profit, the financial gain would need to be handed over to the original selling dealer.

It is unclear if such a contract or agreement would be legally binding.

The issue of dealer mark-ups and overcharging for the Ford F-150 Lightning in the US comes as General Motors dealers in Australia have been accused of price-gouging on the new Chevrolet Corvette sports car.

Some customers in Australia claim they are being quoted between $30,000 and $40,000 above retail for the new Chevrolet Corvette – with the price premium disguised as an inflated dealer delivery charge.

Drive has seen evidence of contracts with $25,000 dealer delivery fees for a new Chevrolet Corvette in Australia, compared to the usual $1800 fee.

To combat dealers overcharging for the Chevrolet Corvette in Australia, customers have begun sharing invoices – and dealer delivery fees – via a Facebook group.

Chevrolet Corvette customers identify dealers with normal delivery fees – or who have chosen not to overcharge due the limited vehicle availability – and endeavour to reward the showrooms with the fairest prices.