Jesus, trying to talk to dealers about how much they try to rip people off and then hearing them justify it is like asking a fat kid why he likes candy. As others have stated, dealerships make more off of their service department and finance department than they do in new car sales. Could FORD raise the price of the GT500 and sell the cars? Hell yes they could!! If they had raised it by $5000 in the first place they would be pocketing part of the ADM instead of the greedy SOB dealerships. They would of course have to reduce the price a little bit as time went on. I was born at night but not last night so don't give me that crap about "Poor little dealerships going out of business" BS. They are going out of business because of this same BS about raising such a high ADM. People are smarter than they give them credit and refuse to pay that much of an ADM. A fool and his money are soon parted and people (businesses) that try to prey on this crap are paying the piper right now. There was a huge ADM on the Z06 at first but then people stopped paying it and the prices dropped. And the dealerships that conducted business with decent practices and sold the cars at MSRP from the beginning developed a strong case of dealer-customer loyalty. Two Corvette dealerships readily come to mind that sold their customers their cars at or near MSRP. And guess what happened to their business? Did it go belly up? Hell no!! In fact they sold more Z06s and regular C6s as a result. You see, word got around at how they conducted business and people wanted to do business with them. There are many reasons why businesses go out of business and one way that helps is to try and gouge their customers when they know their is a product in high demand. Did you ever hear of the business philosophy in which you don't mark up the product a hell of alot but instead sell on volume? I'm sure you are familiar with Walmart so therefore you have. I conduct my business in the manner of making some money (profit) and passing on some money (savings to customer). There is one word that directly describes Dealerships and that word is "Greedy".
Will Ford raise MSRP for 2008?
- Thread starter badsube
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JETSOLVER said:
I agree 100% with the internet buying concept. Shoot, look how well it works when you buy a car off of EBAY. You find the car you want, have it shipped and it's in the driveway. You could then have Service Centers for maintenance and maybe a few dealerships for disembarkment of the vehicles bought. There are all kinds of ways to save money due to lack of overhead at the dealerships.
Ryan02Stang said:
Dealers make money selling cars on A and X plan. It's just not as much!
I've had 4 Mustangs in the last 5 years, 2 GT ang 2 Cobras, I got all of them on A plan. The dealer was more than happy to sell me a car on A-plan.
Tim
Could they increase MSRP for 2008?
Its a definate possibility.
However, I think Ford has/will learn from GM's mistakes with the ZO6, as others have pointed out. GM tried to combat the dealers BS markups, by raisng the retail price. Essentially, keeping the increased amount of markup the dealers were charging for themselves.
Unfortunatly, GM shot themselves in the foot to an extenet, because the 5,000 markup has put a serious damper on demand for the ZO6.
I would bet the price will remain unchanged for 08 for the GT500, or a very slight increase to keep with inflation..
In about a years time, you will see dealers trying to unload GT500s at steep discounts.
Its already starting with the ZO6.:thumbsup:
Let the bargain hunting commence!
epper:
Its a definate possibility.
However, I think Ford has/will learn from GM's mistakes with the ZO6, as others have pointed out. GM tried to combat the dealers BS markups, by raisng the retail price. Essentially, keeping the increased amount of markup the dealers were charging for themselves.
Unfortunatly, GM shot themselves in the foot to an extenet, because the 5,000 markup has put a serious damper on demand for the ZO6.
I would bet the price will remain unchanged for 08 for the GT500, or a very slight increase to keep with inflation..
In about a years time, you will see dealers trying to unload GT500s at steep discounts.
Its already starting with the ZO6.:thumbsup:
Let the bargain hunting commence!
epper:
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Purvis said:Could they increase MSRP for 2008?
Its a definate possibility.
However, I think Ford has/will learn from GM's mistakes with the ZO6, as others have pointed out. GM tried to combat the dealers BS markups, by raisng the retail price. Essentially, keeping the increased amount of markup the dealers were charging for themselves.
Unfortunatly, GM shot themselves in the foot to an extenet, because the 5,000 markup has put a serious damper on demand for the ZO6.
I would bet the price will remain unchanged for 08 for the GT500, or a very slight increase to keep with inflation..
In about a years time, you will see dealers trying to unload GT500s at steep discounts.
Its already starting with the ZO6.:thumbsup:
Let the bargain hunting commence!
There are NO, I repeat NO steep discounts on a Z06 although I do get your point, I think manufactors' are starting to treat sports cars like playstations and xboxes by releasing few at a time to keep a craze and buzz going for the car as long as possible. The fact is that it works, Americans want what they cant have right now, and that's the appearance Ford and GM are trying to give. The Z06 is still selling well above sticker in the majority of areas epecially without a preorder and the shelby will carry for a while too before prices get to MSRP or below.
bluestreak89 said:
False.
Some Dealers are now advertsing $1,000 off before you even walk in.
If you haggle, there are recent reports of people walking out with ZO6's for thousands off.
Go read the Corvette forums and go check out the Dealer section for the most recent deals.
I have been following this closely, as I have comtemplating pulling the trigger on an 07 ZO6.
magred said:
I hate to stoop to this level but you've drawn me into it. You're in **iot. Im not trying or do I need to justify the ADM's. If you think that Wal-Mart and Costco and all these other "wholesalers" are making a "little" profit with a "little" markup on their goods (that they buy from manufacturers in HUGE BULKS at EXTREMELY LOW PRICES), your really are out of your mind and there is very little hope for you to ever understand. So go about your business and we'll go about ours as a top 30 dealer in the nation, selling and servicing our customers with above and beyond customer service and selling GT500's at current market value. Good luck!
CGoeschel said:
i dont get mad at those dealerships and i dont blame them. i just will never by any car/truck from them.
dont give me that crap about getting the car the customer wants. thats an out and out lie. most people have no idea what they want. most buyers buy on instinct, or wow factor, and i want it now so i will take any ol car. if your dealership truely cared about getting its customers exactly what they want you would have a small inventory and special order 80% of the cars you sell!:burn: :bash:
Purvis said:
If you think about it, you could probably gauge the expected production run from the MSRP. It's a game - they (Ford) needs to determine how many GT500s they think they can sell, and if the parts supply is there (can they get enough heads? blowers? etc.). If they expect parts issues and consequently a lower production run (still with high demand) then they may well raise MSRP a bit (and by MSRP I'm of course implying invoice).
If Ford expects demand to drop and/or no parts supply issues, then MSRP will likely remain where it is. Or if demand drops AND they have a glut of supplies, then you start seeing the _factory_ discounts. That's something that Ford (in their current financial state) MUST avoid, but historically they haven't been very good at it.
CGoeschel said:
I wholeheartedly believe that dealers have no right to charge ridiculous sums on new vehicles, and will never support a dealer who I know to be price gouging.
In a perfect world, I would much rather just buy cars directly from Ford and have no haggling involved, similiar to what Saturn used to do.
Ford actually designs, produces and markets the vehicles..
What do dealers do again ?
Oh thats right, they take delivery and turn them over to the public and do some paper work..
And for this "service", they demand thousands, and sometimes 10's of thousands of dollars.
I realize this is how things sometimes work in todays world, but just because they get away with it, doesnt mean its right, or that we have to like it. MSRP already includes a fair profit margin and I have no problem giving the dealers their just do..
The thing that bothers me most about all this, is when dealers ask ridiculous amounts on vehicles, it actually ends up hurting Ford, by lowering the overall amount of vehicles sold, because of less people being able to actually make the purchase. So much for Ford's intended demographics and and intended buyer strategies. The dealers in their greed blow this right out of the water.
This is especially unnerving, considering the GT500 was (and is) not intended to be a limited edition vehicle. Yet the dealers cotinually lie and say it is.
The GT500 was meant for the masses..
Good luck!
No, but they buy your health care for you.Chris Benvie said:
Just like you are telling the consumers that they don't know how the car business works, I'm telling you that you don't know how the medical business works. I get told by the insurance company how much money i make on your surgery. I don't get to charge higher prices when the demand for surgery is higher. Most cases, the reimbursement is not worth the time, risk or headache of doing the surgery.
Truthfully, i was saying that tongue in cheek regarding the healthcare system. But, If you want to start pointing fingers at people for acting like they know the car business, then take your own advice and not comment on my business.
drmustang
Banned
CGoeschel said:
That sounds great. Please continue to demand what you perceive to be "market value" as you did with the Mach1s, T-Birds and Terminators.
Sell them at market value until you are choking on them and I'll buy one when the inevitable, greed created, fire sale commences.
There may be a day when Ford's retailers learn how to handle a desireable product. The ADMs and arrogance soon followed by embarrassing discounts is obviously still the standard.
drmustang said:
Remember, Ford also kills the product due to perceived "low customer demand" and we *ALL* lose out - dealers, customers, and Ford...
eichisama said:
I dont like paying ADM's anymore than the rest. Ive had 1 '03 10th anniversary Cobra coupe, 1 '04 Cobra coupe, 1 '04 Cobra vert all that I was able to purchase at D plan and in some cases even have some rebates as well. My '07 Gt500 is inbound right now and guess what? Im paying an ADM above sticker as well. Why? Because I want one now and not later, and Im a little foolish too. I know its going to depreciate. But I dont really care. I want the car. From what Ive been reading about future models coming, the one to watch out for is going to be the 1000 limiteed run of Boss mustangs they're talking about over on Stangsunleashed.com. You think the ADM on this car is bad? Its going to pale in comparison if they only build 1000. There's 4000 + Ford stores out there.
Only 1,000 Bosses? Crap - there goes that dream too. What happened to the days when the Cobra was only 3k more than a GT? Didn't "value" used to be one of the tenets of SVT? *sigh*
CGoeschel - I wasn't even complaining about the ADMs per se, but the eventual outcome. Look at the GT for example. It could have gone 3 years, but Ford killed it because of poor sales. Maybe if the dealers hadn't asked DOUBLE MSRP it'd still be around for another year. Same goes for the T-Bird.
Yes, I know ADMs are a part of life (supply & demand), but perhaps the [Ford] dealers need to learn to follow the market a bit better. Otherwise they'll soon have nothing to sell but 500s and Windstars.
CGoeschel - I wasn't even complaining about the ADMs per se, but the eventual outcome. Look at the GT for example. It could have gone 3 years, but Ford killed it because of poor sales. Maybe if the dealers hadn't asked DOUBLE MSRP it'd still be around for another year. Same goes for the T-Bird.
Yes, I know ADMs are a part of life (supply & demand), but perhaps the [Ford] dealers need to learn to follow the market a bit better. Otherwise they'll soon have nothing to sell but 500s and Windstars.
I wouldn't believe the BOSS would be limited to 1000 cars unless it is a Cobra R level car that is priced sky high. Ford has no reason to limit them unless they aren't selling. They need to make money, not rare cars.
drmustang
Banned
Lets just hope Ford keeps making this stuff. This sure is fun. The 70s and 80s was a long dry spell.
crazyhorse06 said:
Im not claiming to have any inside info other than I heard from someone inside Ford whos been a fairly reliable source that its probably going to be a 75,000 to 85,000 car. Just something I heard. Maybe this is the new R model.
CGoeschel said:
cool. i will order a 07 gt500 just how i want for $2,000 over invoice.
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