My lovely local dealership

joeymustang · Oct 29, 2007

You guys have it "easy"...over here (Puerto Rico) with shipping, customs and dealer markup guess how much a gt500 cost?

yep $89,000

oh and dont get me started on a brand new z06...can you say $125,000? and people buy them!!! guess theres people with very deep pockets i dunno

ranger04 · Oct 29, 2007

My dealer had 1 shelby marked up 13 grand over sticker and that sucker didn't last 2 days before it was gone. Around here they sell every shelby they get and sell them fast.

Agent Smith · Oct 29, 2007

There's a local dealer in the Ann Arbor, MI area advertising an 08 Shelby coupe for $68,000. Hope they sell it before the Challenger and Camaro come out!!

It's true that companies cannot 'officially' make a retailer sell their products for a certain price. But they CAN decide whether or not that retailer will carry their product or not. So they can unofficially strongly suggest that a retailer play ball....or they just move distribution to their competitor.

ScottM · Oct 30, 2007

Jenns01TA said:
you would probably crap noodles...

Jenns01TA said:
I will simply crap...

Hmm... you trying to tell us something here? I'm kidding, good luck on the interview!

On a serious note, I just recently made a trip to a local Ford lot to look at trucks for my wife and saw a GT500 sitting outside of the show room under the overhang. It had a 20,000 dollar markup on it. I just stood there puzzled because there was a 08 GT and a couple other cars in the show room, but the GT500 was sitting outside dirty and dusty as all get out.

I was talking to a salesman about the price and the markup and explained how quickly they would move if they would get rid of the rediculous markup. He argued with me that it's not them that dictate the price, persay (well, it is), but rather the market. He told me they didn't want to sell it for less because that would drive the overall value of the car down. I was pretty quick to inform him that these GT500's aren't collectors cars and they aren't going to increase in value, at least in my opinion, and there is a reason there is a MSRP.

I can understand market dictating the price of a vehicle, but come on, I don't know about everywhere else, but the GT500's arent flying off of the lots around here (oops, I just read ranger04's post). It seems to me that most of the dealerships have ebayitis and are trying to cash in. It seems like they are willing to take the finance hits just for the chance at selling one to that one guy willing to pay, rather than having it more available to the masses.

Quick question though, hypothetically, if I wanted a GT500, couldn't I just walk in to a dealership and order one, rather than paying their markup on one on the lot? Would they still tack their markup on to an order?

Five Oh Brian · Oct 30, 2007

ScottM said:
Quick question though, hypothetically, if I wanted a GT500, couldn't I just walk in to a dealership and order one, rather than paying their markup on one on the lot? Would they still tack their markup on to an order?

Many dealers do not want to special order a GT500, as they may think they can get more by simply ordering for the store and pricing it to the market when it arrives.

The dealership I work for pre-sold all five of our 2007 GT500's in advance for MSRP + $10K. They sold out instantly and we had a waiting list of 20+ guys willing to pay that (this was Jan/Feb 2007). We took $10K deposits, and four of the five guys took delivery when their cars arrived and everyone was happy. One guy had a huge change in circumstance and couldn't buy his, so we refunded his deposit. The other dealers around us were getting $20K to $30K over sticker at the time, so my boss decided to put the "extra" GT500 in the showroom at MSRP + $25K. Car sold in less than 24 hours at that price! Ford came out with the "red stripe appearance package" at the end of the 07 run (in June) and gave us one. My boss put the same $25K markup on that car and it was sold with just 2 phone calls the next day!

So, fast forward to the 2008's, and now my boss has decided not to pre-sell and give away potential monies. The first '08 GT500 showed up, and the boss priced it at $69,950 (about $22K over MSRP). Car sat unsold for a month with several would be customers balking at the price. I pointed out eBay prices that were dropping to the $5K to $10K over sticker range, and convinced him that the car would sell at $54,950 (about $7K over sticker) and that we had to act quick or the car would just sit. Car sold the next morning at the lower price!

Now our next '08 GT500 is coming soon. I have no idea what the boss will try to price it at, but I think we're seeing prices get closer and closer to MSRP nationwide and in our neck of the woods. Probably won't be MSRP on this next car, or the next, but it's getting closer now.

Did I mention that I couldn't get one at MSRP even as an employee? I decided my money would be better spent on an 07 GT that I could mod to my liking and still have lots of money left over.

BelueLX · Oct 30, 2007

Our local dealer has a '95 GT convertible pace car for $50k. About 12 years old now.

ScottM · Oct 30, 2007

Five Oh Brian said:
Many dealers do not want to special order a GT500, as they may think they can get more by simply ordering for the store and pricing it to the market when it arrives.

The dealership I work for pre-sold all five of our 2007 GT500's in advance for MSRP + $10K. They sold out instantly and we had a waiting list of 20+ guys willing to pay that (this was Jan/Feb 2007). We took $10K deposits, and four of the five guys took delivery when their cars arrived and everyone was happy. One guy had a huge change in circumstance and couldn't buy his, so we refunded his deposit. The other dealers around us were getting $20K to $30K over sticker at the time, so my boss decided to put the "extra" GT500 in the showroom at MSRP + $25K. Car sold in less than 24 hours at that price! Ford came out with the "red stripe appearance package" at the end of the 07 run (in June) and gave us one. My boss put the same $25K markup on that car and it was sold with just 2 phone calls the next day!

So, fast forward to the 2008's, and now my boss has decided not to pre-sell and give away potential monies. The first '08 GT500 showed up, and the boss priced it at $69,950 (about $22K over MSRP). Car sat unsold for a month with several would be customers balking at the price. I pointed out eBay prices that were dropping to the $5K to $10K over sticker range, and convinced him that the car would sell at $54,950 (about $7K over sticker) and that we had to act quick or the car would just sit. Car sold the next morning at the lower price!

Now our next '08 GT500 is coming soon. I have no idea what the boss will try to price it at, but I think we're seeing prices get closer and closer to MSRP nationwide and in our neck of the woods. Probably won't be MSRP on this next car, or the next, but it's getting closer now.

Did I mention that I couldn't get one at MSRP even as an employee? I decided my money would be better spent on an 07 GT that I could mod to my liking and still have lots of money left over.

Wow, I didn't realize they were selling like that in other places. I haven't really kept up with them that much, I just notice what I see around here in Arkansas, and they just don't seem to move very quickly.

I can definitely understand why the dealerships would want to make money if they can sell at that price, but dang, it sure makes it harder for the average joe looking for that type of car to come up with another 20K!

I just see it as the demand is obviously there for the car, but if it was priced right at MSRP, they would move more, get more in, then sell more, etc..., that's just kind of how I see it. I just don't see that car as an exclusive, collectible car. It's a car that a lot of people wanted to see made, but now it's out of reach for a lot of people.

Thanks for the info though!

stanmckinney · Oct 30, 2007

If the market set the price, the car would not be on the lot.
The dealer is setting the price and the market is not responding.
Dealers are making the extra money, not Ford. And these high prices are hurting Ford. Ford would be better off to sell at MSRP and sell more. It is the greedy dealers who do not want that.
I wonder what they are offering to anyone trying to trade in a GT500?

PUNISHER RACING · Oct 30, 2007

I love the Shelby GT deal take a GT bolt on $5,000 dollars worth of parts a Carrol Shelby plaque and sell it for an extra $14,000 over a GT.......WOW. I think I am going to trade the 07 in on a Bullit can't wait to see that mark-up

Five Oh Brian · Oct 31, 2007

ScottM said:
I just see it as the demand is obviously there for the car, but if it was priced right at MSRP, they would move more, get more in, then sell more, etc..., that's just kind of how I see it.

Well, we can't move more or get more or sell more as a dealership, as Ford "allocates" how many each dealer gets before the model year even starts. For 2007, Ford told us we'd only get 5 GT500's (but we did get a 6th one when Ford added the red stripe package). For 2008, we only get 4 GT500's now that production is being pared down. So, with only a few cars being sent to each dealership, it doesn't matter how much the dealer sells them for or how quick they're sold, Ford is still sending the same total number of cars.

'13_ImpactBlue_GT · Oct 31, 2007

Five Oh Brian said:
Well, we can't move more or get more or sell more as a dealership, as Ford "allocates" how many each dealer gets before the model year even starts. For 2007, Ford told us we'd only get 5 GT500's (but we did get a 6th one when Ford added the red stripe package). For 2008, we only get 4 GT500's now that production is being pared down. So, with only a few cars being sent to each dealership, it doesn't matter how much the dealer sells them for or how quick they're sold, Ford is still sending the same total number of cars.

Just curious, you a salesman or GM?

'13_ImpactBlue_GT · Oct 31, 2007

ScottM said:
Wow, I didn't realize they were selling like that in other places. I haven't really kept up with them that much, I just notice what I see around here in Arkansas, and they just don't seem to move very quickly.

I can definitely understand why the dealerships would want to make money if they can sell at that price, but dang, it sure makes it harder for the average joe looking for that type of car to come up with another 20K!

I just see it as the demand is obviously there for the car, but if it was priced right at MSRP, they would move more, get more in, then sell more, etc..., that's just kind of how I see it. I just don't see that car as an exclusive, collectible car. It's a car that a lot of people wanted to see made, but now it's out of reach for a lot of people.

Thanks for the info though!

$50K for a Stang

I love em but DAMN!!!!!!

Five Oh Brian · Oct 31, 2007

Toms_2003_Stang said:
Just curious, you a salesman or GM?

Neither, I wear two hats at our dealership: Internet Manager and SVT Team Leader. As the local Mustang enthusiast of our dealership, I also order all of our new Mustangs.

Five Oh Brian · Oct 31, 2007

Toms_2003_Stang said:
$50K for a Stang

I love em but DAMN!!!!!!

No, $50K is for a 500hp Shelby GT500. Stangs are $18K to $36K, depending on trim and options.

Or, think of it this way, buy a new Mustang GT coupe and keep the options average and you'll pay around $28K. Add a good supercharger and tune to get you close to 500hp and you're spending an additional $7K. Build up the engine's internals with forged goodies to withstand the additional stress long-term will likely add another $5K. Swap out the Tremec 5-speed for a proper 6-speed and heavy duty clutch and you're liking spending about $3K. Add awesome brakes and you're spending another $4K. Better suspension (maybe even a Watts linkage type) and you're in another $3K. Different body work to stand out a bit would a perhap $3K. Bigger wheels and tires to get it all to the ground will be another $2K. And, ta-da, you're up to $45K magically. Or, just buy the GT500 with all of this already done for you, and find it at MSRP, and you're spending about $45K and your warranty is still intact.

bchampion · Oct 31, 2007

Dealer Markup

The dealership that I bought my '05 from has resulted to sending out e-mails to our club with picts of the brand new '07 Shelby they have in the showroom. For $15K over sticker, it could be yours Yeah, right, no thanks, keep it. So far no takers and it's still sitting in the showroom. Same thing happened to them when the GT's came out. $100K over sticker. One guy came in and offered them $75k over sticker and they said no. Well, they ended up not selling them and had to ship them off to another dealership Dealers are greedy.

LV51FER · Oct 31, 2007

Maybe I'm not as dull as some people but in the UK, cars sell at the price the manufacturer sets, not the dealer, and the only deal is a discount. The only premiums are earned by private individuals who are prepared to front up a hefty deposit and gamble on the car being so popular that people will pay a premium to avoid the waiting list.

For my part, if I saw a dealer marking up a car by £25k for their own personal profit, this is what I conclude:

1. The dealer is greedy and interested only in his own pockets.
2. The dealer is not interested in selling the car for Ford's intended MRSP and is out to make a quick buck so is putting himself above Ford and above the interests of the customer.
3. The dealer doesn't give a damn about the customer or the morality of ripping him off and his service thereafter is likely to be geared to further ripping you off for his own profit.
4. Whether I liked the Mustang or not, I would go and buy a car elsewhere.

stanmckinney · Oct 31, 2007

Well spoken. I wish dealers in the U.S. would follow that philosophy. Maybe Ford wouldn't have the problems it has.

Five Oh Brian · Oct 31, 2007

bchampion said:
Dealers are greedy.

SOME dealers are greedy.

ScottM · Oct 31, 2007

Five Oh Brian said:
SOME dealers are greedy.

You're exactly right. That one perticular one I was at was working me up a deal on a truck that they said was the rock bottom price they could sell it for and no more dealing, well, after driving it over night, I thought I would look it up on line to send a pic to someone and saw the internet price was $1000 cheaper than the "bottom price". When I asked them about it, they didn't sound suprised and said ok, we'll lower the price.

That's mainly what turned me away from them, but the next dealership I went to (different make) asked me what I was looking to get my payments around, and when I told them, they came back with a price that put my payments about $24 a month less than what I wanted. Basically, I got a pretty big amount off the selling price putting me in a good place loan wise with the car without having to haggle at all. I knew the value of the vehicle going in and know I got a hell of a deal.

I know not all are like that and there are definately good salesmen out there, but finding them can be interesting at times.

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