$3500 "market value adjustment

O

ONYX

New Member
Aug 20, 2001
18
0
0
Chicago,IL
#1
Hello all,

I stopped at River Oaks Ford (about 20 miniutes from Chicago) to see if they had any 05's and they 1 had the lime green v6 with all the toys. It was nice but the v6 and the color were not my cup of tea. Anyway, I walked around to see the window sticker and it listed for a total of 26K!!!!! :notnice:
The sticker was 22.5k and there was a "3500" market value adjustment. $3500????!!!! This dealership is smokin crack!!! :bang: They apparently dont realize that this car will be a dime a dozen soon. I hope this car sits there a long time. But then again, a sucker is born every minute.

Chris
 
#3
Why the frick do people get all bent out of shape when a dealer puts on a MVA, so what. If someone wants to pay it so, what, that is their decision.

When they start rolling off the line like there is no tomorrow, then the prices will stabalize and become normal.

It happens with all new model releases, there is always someone who has to have the newest, latest and greatest, no matter what the cost.
 
#4
Nobodys getting bent outta shape. Just sharing info with fellow car lovers. Its not like its a Ford GT (5 or 6k per year for 3 years only) or something. Its a Mustang, something they will produce in excess of 150k of each year. These type of "mva's" can discourage people and continue to give dealers a bad name. If I was considering an 05 Stang (which i'm not) seeing that type of dealer greed would really sour me. But anyway, as I said a sucker is born every minute and if someone is foolish enough to pay that, so be.

Now, lets lay rubber!!!!!!!!!!!! :spot:
 
#5
I'm 50/50 on the issue.

I understand that dealers want to make a profit, it's their business, but in effect it is similar to someone charging $50 for a bottle of water after a hurricane. They are simply jacking up the prices, because people are desperate and want them. (Not that a Mustang is as important as water)

I will say this though, the dealer makes quite a bit on even MSRP... I would be much more inclined to go back to a dealer who was selling at MSRP than one I felt was gouging me at MSRP+.
 
#8
Well some would pay the markup but it's more having an 05 on the lot and writing up orders than selling the only one they have. Here if they are MSRP they are selling within a few hours of hitting the lots. The dealership have to have something to bring in people. Like Ford of Tulsa and their Ford GT! :D
 
#9
ONYX said:
Anyway, I walked around to see the window sticker and it listed for a total of 26K!!!!! :notnice:
The sticker was 22.5k and there was a "3500" market value adjustment. $3500????!!!! This dealership is smokin crack!!! :bang:
Click to expand...

When the SN95 Mustang came out, one of the local Ford dealers added $3K to the V6 models, and $5k to the GT models. I just walked out, drove another 5 miles to the next Ford dealer.

BTW, here it is over 10 years later, and that same Ford dealer still has a ton of left over 2004 Mustangs. About 1/2 of all the cars on its front lot, are left over Mustangs. I wonder why people aren't buying Mustangs there? :rolleyes:
 
#10
Here's how I look at it; When I got my '02 it was still new on the lot in '03 and the dealership had marked it way down to get rid of it. At the same time they got their first Mach 1 in and marked it up about $5,000 and were still able to sell it. These sorts of things balance themselves out in the end. While they might be gouging on one car they are sacraficing on another. If they were not able to mark up their Mach 1 like they did I might not have been able to get my GT for the price I did. And everyone knows that if someone doesn't want to pay the mark up they can simply wait a couple of months.
 
#12
My theory is that for every "sucker" that allows them to pocket an extra $3K or so, there are at least ten potential paying customers that walk in, see the nonsense added to the window sticker, and walk back out the door to buy at another dealer that's not shucking and jiving. So, my point is that for a large-volume car like the Mustang, it's extremely short-sighted to try and cash-in on the first few sold. You do it at the expense of DOZENS of special orders you could have in-the-can that would generate far more profit than you got with the lousy $3K market adjustment. On a mega-volume production vehicle like a dime-dozen GT or V6, volume will always bring in more dough than opportunism. If I owned a dealership, I'd be pricing them right and taking orders and deposits hand-over-fist from people ALL OVER THE STATE that are coming to me because the dealerships near them are blinded by misguided greed.
 
#13
I figure it's just the fee for those who have to be first on the block. In a month or two they'll all be at MSRP. Doesn't bother me at all -- if someone out there is willing to pay $3500 to be the first, I don't begrudge the dealer taking the money to pay someone's salary for the month. Even the owner's. It's not a charity business.

For what it's worth, when I visited Galpin out here in L.A. to look at their first couple 05s, the salesman told me their policy is to charge MSRP, because they have found the added-on fees upset people who visit and are thinking of purchasing.

On the other hand, my experience shopping at Galpin in the past has been that MSRP less any factory-to-customer incentives is the best they'll do. It's kind of like, "we're Galpin, we don't have to discount." So, I bought my '00 Mustang elsewhere anyway.
 
#14
Thanks for the info. I'm in the western burbs and I'm waiting to test drive a car. If I like it, and once my AQHA membership goes through I'm going to make an offer. If they reject it then fine, as I'll tell the salesmen at each of the nearest locations.. at the end of every month I'll call them and make the same offer. They can take it or leave it. First one who takes it will have my business. I'm patient, I can wait till spring or summer if I need to. I have another working car for now.
 
#15
That's a very good plan. When you tell the salesperson up front that you're patient, have plenty of other cars, and don't care if it's this month or this year, but don't want to waste time for no good reason, you really pull the biggest bullet out of their gun: leveraging your will-power.
 
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