Fathom top trim model will be priced @ high $30K range

[Snakebitten]

Currently, MSRP is just under $30k WITH destination included.

 

[paneubert]

Currently, MSRP is just under $30k WITH destination included.

But....but....but.....taxes! This is the first vehicle ever sold that did not somehow magically include local/state taxes in their national advertising campaign. Add in the fact that many states will credit you the value of a trade-in against the taxes charged on the new vehicle. Trade something in that is worth 30k? Might only pay 10 bucks in tax on your Fathom. But sure, Ford is being so slimy with this one. Hard sarcasm.

 

[Snakebitten]

I kinda can't blame the folks that are jaded by past history and experiences with the slimy side of the automotive industry.

But the consumer is winning a few battles these days too and now there are dealerships of most brands that have established themselves as no nonsense and gathered public following for such.

I don't think it a stretch to think it will absolutely be possible to acquire a Fathom for "less than $30k, +TTL, as long as you don't mind taking delivery some distance from home.

And while it's true that once you break the $40K barrier, there are a lot more EV options, there's nothing currently at $30k that is pure EV, and a truck, and can carry more than 2 people. Even at $40k there isn't.

Now used, it's a different story of course

 

[mark]

I have 15 dealerships in a 50 mile trade radius. Two within 5 miles are dropping fees and one an hour away used an independent valuation for a trade in on my 2015 Renegade Trailhawk. The local dealer came in several thousand lower. When callenged with the other valuation, they indiacted they would match. What I surmise from that and the promotions I have been receiving is sales are soft, and a simple order would be well received by a dealership when the preorders are open.

 

[TRU-BOOST]

I have 15 dealerships in a 50 mile trade radius. Two within 5 miles are dropping fees and one an hour away used an independent valuation for a trade in on my 2015 Renegade Trailhawk. The local dealer came in several thousand lower. When callenged with the other valuation, they indiacted they would match. What I surmise from that and the promotions I have been receiving is sales are soft, and a simple order would be well received by a dealership when the preorders are open.

It seems like it would be that simple, but it never is. When a new highly anticipated model comes out all of a sudden a full MSRP sale is not good enough for many dealers. Supply\demand is a real thing. Many people dont know that a dealership cannot just as many if whatever car they want. They are allowed only so many allocations of certain models based on their normal volume, geographic location, etc. So if a dealership has a list of 50 people showing interest in a fathom but they are only allowed 6 allocations for the first model year thats when the markups come in. In a perfect world they would all just operate on a 1st come 1st serve basis, but they dont. They slap a crazy high markup on top of the price and see who wants it bad enough to make a horrible decision. It wont be me. I will get one early, but it will be at MSRP or less. In the Chicago area market its a battle, but I always manage.

 

[Snakebitten]

I don't think we, the consumer, will ever KNOW all the ins/outs of the allocation process.

Or to put it another way, the dealerships that have successfully built a reputation for no-nonsense selling, also seem to get a lot of allocations.

If buyers are savvy, and willing to do the due diligence, they do NOT have to put up with the shenanigans anymore.

 

[TRU-BOOST]

I don't think we, the consumer, will ever KNOW all the ins/outs of the allocation process.

Or to put it another way, the dealerships that have successfully built a reputation for no-nonsense selling, also seem to get a lot of allocations.

If buyers are savvy, and willing to do the due diligence, they do NOT have to put up with the shenanigans anymore.

It varies slightly from brand to brand, but the process is similar with them all for the most part. Its been a good 20 years since I have worked directly at a dealership, but have been in the auto industry in some form or another for 30+ years. Not to mention I have gone through the process well over a dozen times as a buyer. Several of those being with Ford. Im quite familiar with their process.
The only brand in my experience that makes the process miserable is Toyota. They cannot "order" you a vehicle. Meaning you can select exactly what you want, and they will see what they can do to get it. Toyota corporate builds whatever the hell they want and put it on an inventory list for dealers to choose from. If something matching your description is available pops up the dealer tries to get it. Sometimes they succeed. Sometimes they dont. They will usually reach out to offer you several vehicles that are kinda close to what you wanted, just not exactly. I've done it twice with a manual Corolla hatchback for my son and a GR Corolla for myself. Never again.

 

[Snakebitten]

From what I understand, depending on what state the dealership is in, Toyota does not actually do business directly with the dealership. The manufactured vehicles are sold to one of two distributors. Literally middleman structured.

Those vehicles MSRP can even be controlled by the distributor.

I don't know which states have dealerships that buy directly from Toyota, but not all dealerships do

 

[TRU-BOOST]

From what I understand, depending on what state the dealership is in, Toyota does not actually do business directly with the dealership. The manufactured vehicles are sold to one of two distributors. Literally middleman structured.

Those vehicles MSRP can even be controlled by the distributor.

I don't know which states have dealerships that buy directly from Toyota, but not all dealerships do

Yep. My experience with Toyota "ordering" was poor both times. I did find a dealer to sell at MSRP, which on those cars was a tough find. But their process sucks. Even worse now that Toyota intentionally keeps low inventory to make people fight for cars. It aint worth it. They arent even reliable anymore.

 

[graycorgi]

Currently, MSRP is just under $30k WITH destination included.

I want to clearly point out that this is an exception to the rule of how manufacturers typically advertise prices, and that this is a pro-Consumer move from Ford. Most manufacturers do not include the destination fee in the advertised price like Ford is doing with the Fathom. Here are two examples of brands misleading consumers by excluding this fee:
1. Slate's published "under $25k" starting price of $24,950 excludes the $1,450 destination fee. The Slate actually starts at $26,400.
2. Kia EV3's "under $30k" starting price of $29,890 excludes the $1,495 destination fee - it actually starts at $31,385.

The transparency in pricing makes the Fathom a more compelling option relative to the competition. When they say under $30k, it actually means under $30k. Nobody expects state taxes to be included in that number because tax policy varies so much by state. The "destination fee" on the other hand is not a government fee - it is a pure profit grab by manufacturers, so it is a great thing that Ford is rolling it into the published starting price.

 

[TRU-BOOST]

I want to clearly point out that this is an exception to the rule of how manufacturers typically advertise prices, and that this is a pro-Consumer move from Ford. Most manufacturers do not include the destination fee in the advertised price like Ford is doing with the Fathom. Here are two examples of brands misleading consumers by excluding this fee:
1. Slate's published "under $25k" starting price of $24,950 excludes the $1,450 destination fee. The Slate actually starts at $26,400.
2. Kia EV3's "under $30k" starting price of $29,890 excludes the $1,495 destination fee - it actually starts at $31,385.

The transparency in pricing makes the Fathom a more compelling option relative to the competition. When they say under $30k, it actually means under $30k. Nobody expects state taxes to be included in that number because tax policy varies so much by state. The "destination fee" on the other hand is not a government fee - it is a pure profit grab by manufacturers, so it is a great thing that Ford is rolling it into the published starting price.

Kinda sorta. The Fathoms advertised starting price is 28,350 and the 1,595 destination gets added on top. That all seems pretty standard. I cant think of a vehicle that I purchased over the last 20 years where a destination fee snuck up on me. Its one of those things that consumers just need to be aware of. Go to any manufacturer website and look for your vehicle of choice. Some brands show right from the start what the destination fee is under the vehicle price. Others like the Kia EV6 I just looked at make you dive a little deeper. Configure the vehicle to your taste and look at the final summary. Destination charge is listed in the total breakdown. Lastly destination costs are a real thing. Manufacturers use an average to keep it simple but getting vehicles moved around the world on boats, trains and trucks isnt free.
Much like anything you order online, the shipping costs extra.

 

[mark]

If you can move a vehicle across the country for $1000, you can be sure Ford is doing it for half that price. It’s a profit center. There is no reason I should subsidize a vehicle being shipped to Australia when I am 600 miles from the manufacturing location.

 

[WXman]

I want to clearly point out that this is an exception to the rule of how manufacturers typically advertise prices, and that this is a pro-Consumer move from Ford. Most manufacturers do not include the destination fee in the advertised price like Ford is doing with the Fathom. Here are two examples of brands misleading consumers by excluding this fee:
1. Slate's published "under $25k" starting price of $24,950 excludes the $1,450 destination fee. The Slate actually starts at $26,400.
2. Kia EV3's "under $30k" starting price of $29,890 excludes the $1,495 destination fee - it actually starts at $31,385.

The transparency in pricing makes the Fathom a more compelling option relative to the competition. When they say under $30k, it actually means under $30k. Nobody expects state taxes to be included in that number because tax policy varies so much by state. The "destination fee" on the other hand is not a government fee - it is a pure profit grab by manufacturers, so it is a great thing that Ford is rolling it into the published starting price.

Actually this is not true. Ford is still doing the same old trick here. It clearly says so on their website.

What they ARE doing is simply setting the base price so that once a person adds destination fees, etc. it'll start at $30k but this also doesn't include dealer fees, etc.

So actually the BASE Fathom (if anyone can actually get one when they do go to production) will cost over $30k before any options whatsoever.

Perhaps a handful of people will be happy with a stripped down BASE Fathom, but the majority will not. Most will want the ER battery at minimum, and a lot of folks will probably add AWD, and we haven't even gotten into option package yet......