My thoughts on the Mach-E pre-reservation system

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interestedinEV

Well-Known Member
I was not very impressed by their reservation system. It does not guarantee you will be the first to get it, your price is dealer specific and you need to configure your car right now, even though delivery is may be a year away. I will wait till the model comes out.

  1. You pay deposit, but that does not guarantee anything including if you get preference over people you have not ordered earlier. In other words, someone can come at the last moment and take away your order.
  2. Also the $500 you pay will be kept by Ford and returned to you by Ford, after purchase the car from the Ford Dealer. It is not applied to the price of the car. So you pay the full price agreed to the dealer and then Ford will send you the deposit money back later
  3. The price is what you negotiate with the dealer, it is not fixed or the same for everyone. You may be forced to pay more than MSRP if the dealer has other buyers, even though you have the reservation. So I may reserve one today, configure it, but if someone offers to pay more, dealer can give it away to the other person.
  4. You have to select trim and other choices including color right now, but that may not be what the dealer can offer you when want to buy it.

From their FAQ

What is a reservation?


The reservation is the opportunity for customers to configure and be among one of the first to order the Ford Mustang Mach-E all-electric SUV with a $500 refundable Reservation Deposit. It is not an actual order and does not guarantee delivery.

When can I order my Mustang Mach-E?


You will be notified prior to the ordering window opening to finalize and confirm your configuration, confirm your dealer and agree on pricing with your dealer. Tentative ordering should begin in late spring 2020.

Am I buying this vehicle directly from Ford?


No. The Purchase Agreement shall be between you and the Dealer, not you and Ford. Your Reservation Deposit will not be applied towards the purchase price of the Vehicle. Instead, once you have entered into a Purchase Agreement, your Reservation Deposit will be returned to you.


To get your reservation you have to

1. You have to select your exact model

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2. Then the trim

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3. Chose the exterior color
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4. Then the interior
upload_2019-11-19_13-55-51.webp


Then chose your dealer and create an Ford account.
 

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Looks like you can update your configuration when the order banks open up next year. The $500 is for Ford to gauge interest and set production schedules for the initial run. Ford said last night at the LA Auto Show they are battery limited to 50,000 units for this run.

Whomever comes out with a battery capable of being put in these cars and does not need rare earths is going to make a fortune!

My main complaint is the lack of "Mustang inspired" exterior colors. I was hoping for an Orange, a Green and a Light and Dark Blue. The Blue they have looks more gray but probably better in person.
 
SThomas219 said:
Ford said last night at the LA Auto Show they are battery limited to 50,000 units for this run.
Click to expand...
While 50,000 units over 2100 dealers over 1 year is a little more than an average of 2 units per dealer per month. I doubt if they can ramp production and sales to complete 50,000 units in less than 1 year and the initial assignment might be 1 per dealer per month. If the car is as popular as Ford expects, these units will be sold at premium at least for the first few months.
SThomas219 said:
Looks like you can update your configuration when the order banks open up next year. The $500 is for Ford to gauge interest and set production schedules for the initial run.
Click to expand...


My concern is that this an interest free loan to Ford that does not guarantee you anything. It does not guarantee that you will be the first to be offered the car, it does not guarantee the price, and even does not guarantee the configuration at this time. In case of Tesla, and Rivian for example, they had confirmed that when cars were/are sold in a particular area (or state), pre-orders would be satisfied before new orders are. So that was the motivation for people to give Tesla an interest free loan, that you would get a car ahead of others. (It is true that in the end it did not matter much as many of the pre-orders did not turn into sales and people could get cars without pre-orders early on).

For Ford, I could wait till about a week before the order banks are open and then configure my order and possibly jump ahead of others. Or I could have a private agreement with the dealer to get the first car on the lot.

I may be reading more than I should into this, but Ford has not given me a reason right now to put the $500 down. Bollinger for example allowed no money down pre-orders, then told the people who had pre-ordered that they could put the money down with a weeks time frame and they would be offered cars before others. Bollinger is going to have dealers, but those who put the money down would get the first chance to go to the dealer.

I guess this a problem you have, whenever you have to buy from a dealer, and the dealer has the right to set the price. The dealer could manipulate the system to favor chosen ones initially. Even with that, Ford could have made it more appetizing.
 
If my dealer manipulates the price, I will not be buying one from them.

Yes, putting a dealer in the mix adds to the complication which is why in many states, car dealer organizations fight to keep Tesla's showrooms out. In NY, for example, Tesla is only allowed to have showrooms in and around NYC. They are not allowed upstate where I live.

Now, the advantage of many dealers is if you need a repair or have an issue with the car, they are usually close by. EV certified dealers will have a charger station(s), too. Which could come in handy when traveling with the Mach-e.

In my case, I have purchased/leased many vehicles from my Ford dealer over the last three decades and have a very good relationship with them.
 
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SThomas219 said:
Whomever comes out with a battery capable of being put in these cars and does not need rare earths is going to make a fortune!
Click to expand...
Just a small correction. Lithium batteries don't use rare earth minerals. They are found in permanent magnet motors, though.
 
SThomas219 said:
If my dealer manipulates the price, I will not be buying one from them.
Click to expand...

Again it may not be every dealer and to be fair, it is not illegal. Dealers have the right to set their own price. And so if a dealer can find extra profit due to a supply and demand situation, there is no reason why a dealer should not take advantage of the situation. So I anticipate the first few months may result in a "no haggle, this is my price and it is over MSRP" for many of the sales. Once supply increases, then how the car is perceived by the general public and how it stacks up vis a vis the competition, will influence the dealer price and attitude.
 
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