I don't know whether to laugh or cry

[SLOW 97]

Drove past a local Honda dealer yesterday and saw the had an '05 GT vert for sale already. So I was interested to see what the wanted for it so I checked out their site. It turns out, they want $38,900 for it. That is outrageous. Sadly though, some rich sap will buy it for his daughter cause her friend has one. This price gauging is getting out of hand. Yes, I understand the concept of supply and demand but nearly $40k for a used GT vert is crazy. I wanted to get on a list for the new Cobra, but my local dealership said they weren't taking any deposits or anything yet. They probably want it to be a free for all so the cars go to the guy who's got the money to pay for Ford's "Fair Market Adjustment" ripoff scheme or whatever they call it. This is precisely why the T-Bird is about to be axed yet again. This time probably for good. Thats a shame. It's a pretty nice car, but not for $40k.

 

[crewwolfy]

More importantly, what the hell did they trade it in for at a Honda dealership!?!? I shudder at the thought...

 

[86bluecobra]

i was wondering the same thing. maybe the nsx?

 

[topless beach]

That's amazing. What state was that in? I've got a redfire gt vert w/ 25 miles on it. I really like it, and I've only had for 24 hours, but I'll let it go for $38,000 in a hearbeat.

Any buyers out there you know of?

 

[05Stangster]

Both.

 

[351CJ]

. They probably want it to be a free for all so the cars go to the guy who's got the money to pay for Ford's "Fair Market Adjustment" ripoff scheme or whatever they call it. This is precisely why the T-Bird is about to be axed yet again. This time probably for good. Thats a shame. It's a pretty nice car, but not for $40k.

Ford has nothing to do with "Fair Market Adjustment". That is something the dealers came up with. All Ford can do is set a "Suggested Manufacturer's Retail Price" and charge the dealer for the car at Factory invoice. Ford CANNOT dictatate what the dealer charges for the car, it's against federal anti-trust laws.

You are correct, though, that dealer rip-off markeups really killed any sales momentum the T-Bird may have had and led to it's early demise.

However as long as people are stupid enough to pay dealer markeups, the dealers will try to get them.

 

[stanmckinney]

its
it's means it is

 

[tylers65]

its
it's means it is

You sure showed him

 

[bigcat]

More importantly, what the hell did they trade it in for at a Honda dealership!?!? I shudder at the thought...

SLOW 97 why dont you stop in and pretend to want to buy it....find out what they traded it for...

 

[Jewls05GT]

S2000 maybe? That's the only thing I can think of.

 

[SLOW 97]

SLOW 97 why dont you stop in and pretend to want to buy it....find out what they traded it for...

ROFL! I was already planning on doing that! But I'm a stupid 20 year old kid so most car salesman laugh at me when I ask about things at dealerships so they probably won't take me seriously. Suprisingly, my local Ford dealer had no problem letting me take out a Dark Shadow Grey '03 Cobra two years ago. I bet that 'Stang was traded in for an Insite. Probably couldn't afford to put gas in it. BTW, I'm in the Ch-Town suburbs and the car is at Schaumburg Honda. Maybe before work tomorrow I'll swing by there and check it out and see what kind of BS they try to feed me. Like saying SFI stands for "Super Fuel Injection."

 

[REDFIRE 05 GT]

I went by the dealer the other day and was looking at a new Ford Escape for my wife. The salesman thought I was looking to trade my GT and offered me 2K over MSRP for it, seems he found some sap who was willing to pay 5K over for one.

 

[horseowner]

Who said they took it on trade?

They may well have bought it at a local auction just to attract some attention to their used car lot.

Or... the dealer may own a string of dealerships (most do) and brought it over from his Ford dealership (or Lexus, or Jaguar, or Porsche) and placed it on his Honda lot for the same reason: to attract foot traffic.

And I'll say it one more time, though nobody wants to hear it: The key letter in MSRP is the S: SUGGESTED.

Nobody screams bloody murder when a dealer is willing to sell an Explorer or Expedition for thousands BELOW MSRP due to slack demand. They only yell when the dealer asks MORE than the "Suggested" price because of heavy demand. You can't have it both ways.

We either all pay MSRP (Go buy a Saturn) or we respect the dealers right to sell Above OR Below the "Suggested" price- depending on market supply and demand.

I'm GUESSING that if you went in and asked your local Ford dealer to sell you a new '05 GT Vert for MSRP and ALSO agreed to purchase an '05 Excursion or Expedition at MSRP the dealer would knock you down trying to get the paperwork drawn up.

The Mustang is currently worth $5000-$7000 MORE than the MSRP and the Expedition is probably worth $7000-$12000 LESS than MSRP. (I noticed Ford is now offering a $5000 rebate on Explorers and Expeditions in addition to selling you one at invoice or below)

And NOBODY is saying: "Rebate? I don't want no stinkin' rebate!! I don't care if nobody in the world wants this vehicle except me I INSIST on paying the full, Ford MSRP and you're not going to force me to take no BS $5000 rebate! I DEMAND that you sell me this vehicle for the Manufacturer's SUGGESTED retail price- not a penny less!"

Nope... in a freemarket economy it's nothing more than a "suggestion" and not 1 customer in 1,000,000 walks in and willingly pays the suggested price on a vehicle. It's just a starting point for negotiations- up or down.

Having said all that: I walked into my local Ford store in February, found the exact '05 GT I wanted and produced my X-plan PIN number and drove off in the car 90 minutes later for $24,000 and change, so no- I didn't pay a big mark-up and am only defending my own lusts. I was in the right place at the right time and was just a little ahead of the demand curve.

But as much fun as this car is, as much pleasure as I've had in driving it, and as many "thumbs up" and smiles, waves and stares as the car has gotten... I would pay $30,000+ for the car if that's what it took to own and never blink. I don't know of another car anywhere NEAR $30,000 that has this much performance, fun and pizazz. I smile every time I hear those Bassani's rumble.

In a year or two they'll be selling below MSRP but by then it'll just be another "oh... you got a Mustang too" vehicles- though it'll still be a hoot to drive.

OK... I'm through now. Let the flames begin... again.

Steve

 

[topless beach]

I basically agree w/ your speech on free markets, but I think one rebuttal might be that Ford needs some positive buzz that might rub off on the rest of their product line. Sure they have the right to charge whatever the market can bear, but they also need to resurrect a poor public image. Charging "market adjustment" on the first big hit they've had in a while does little to bring the customer back when they need to sell a car of slightly less appeal....like the 500, or the Expedition, or the Freestyle, or the T-bird....come to think of it, now that I have my stang I have very little reason to return except for service.

 

[horseowner]

I basically agree w/ your speech on free markets, but I think one rebuttal might be that Ford needs some positive buzz that might rub off on the rest of their product line. Sure they have the right to charge whatever the market can bear, but they also need to resurrect a poor public image.

I couldn't agree more... BUT it's not "Ford" that's doing this. These are independent businesses... 1000's of them that have absolutely nothing to do with Ford other than buying their wholesale products from Ford.

Ford has no more control (legally or morally) over what the dealer does with the cars than Johnson & Johnson has control over what Walgreen does with their baby powder. The re-seller buys the product wholesale and after that they can offer it for a penny, for free, for $1 or for $1,000,000. They bought it- they own it- and they can sell it for any price they want.

So when people throw rocks at "Ford" for the market adjustment they miss the mark. It's not Ford that's the source of the issue- but rather independent dealers who've discovered that customers have little loyalty in the 21st century... they just want the best price.

I think you and I are both on the same page in this ,

Steve

 

[topless beach]

True; true, but these independent dealers are not doing themselves any favors either since they are trying to sell fords to a public that they would like to return to them for another ford.

Remember in the early 90's when Ferraris were so hot. They were being bought new and immediately sold at huge profits. Does anyone out there remember if the dealers were gouging on "market adjustment"? Just curious

 

[mikeelia]

Salesman came on to me to trade my GT in...

I took a friend to a Ford dealer to return a rental vehicle, and the second I got out of my car a salesman hurried over and said "Sir, are you ready to trade your GT in?" I said, "Are you crazy? I just got it!" and walked away. I couldn't believe he even said that, but this was a dealer that said "$6k markup on standard trans and $5k on automatics" when I was looking around. I got mine a few miles away for less than sticker...

Oh well...

Mike Elia
05 GT lime