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GT500's at MSRP?


SSGT500

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I heard of members getting great deals on 08's, including some at MSRP. I called about 10 dealers in my area (Chicago suburbs) to check prices. Most said 15K to 25K ADM. The only exception was Packey-Webb in Downers Grove who were in the 6K-8K range. Anyone that got a MSRP deal, did very good.

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I heard of members getting great deals on 08's, including some at MSRP. I called about 10 dealers in my area (Chicago suburbs) to check prices. Most said 15K to 25K ADM. The only exception was Packey-Webb in Downers Grove who were in the 6K-8K range. Anyone that got a MSRP deal, did very good.

 

I would think if you found any dealer that had one sitting in the show

room for a couple months or longer and you throw down MSRP CASH

on the table, they would at least think twice before turning it down????

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I heard of members getting great deals on 08's, including some at MSRP. I called about 10 dealers in my area (Chicago suburbs) to check prices. Most said 15K to 25K ADM. The only exception was Packey-Webb in Downers Grove who were in the 6K-8K range. Anyone that got a MSRP deal, did very good.

Thanks for the honest post. I think there is a false sense of price drops and MSRP deals a flood, and this hits the point. I agree with several here that any MSRP deals you hear of as still far and few between and more than likely deals signed some time ago.

 

Good luck, and keep looking, even a blind chicken finds a kernel of corn once in a while! :hysterical:

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Calling is not the way to approach it. You need to go to each dealer in person. Get to know a contact person. Preferably the GM or SM or whoever is in charge of pricing the car. Once you get to know them, visit a few times to show you are serious. Make a sincere offer in person. IF they don't accept it, tell them "thank you" anyway and let them know you will stay in touch. Get the guys email address or phone number. Stay in touch with him and let him know you are still in the market for MSRP. Just don't over-contact him and annoy him.

 

The cars will likely come down sooner or later. When they do, you will have a deal already working.

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I agree that visiting a dealership in person is much better than a phone call. I did visit some dealers, the best I found in person was 6K ADM. When I spoke with salesmen on the phone, and mentioned that I had heard of MSRP deals, all said "Not here".

 

Even if they did they probably would not admit it.......... :headspin:

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I would just like to say that I think cash isn't what dealers want.

If you are gonna finance a 50k car, they stand to make alot of money on the financing if its done through Ford Credit.

A 10k ADM is worth less than a 5 yr 8% APR on 50k, so Im not sure they would jump on a cash at MSRP deal.

 

In fact, if you dont mind financing, I would leverage the fact they will make alot more money on financing to try to knock them down to MSRP. Cash is king in my business and most others, but this business makes money hand over fist by financing IMHO.

 

But I would also look around here at the sale forum, and on EBay, and I think you can get pretty close to what you want near msrp if you arent trying to have it built your way. Note which ebay listings arent meeting reserves, and maybe those dealers are getting frustrated that they arent getting it sold...

 

Good luck

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I would think if you found any dealer that had one sitting in the show

room for a couple months or longer and you throw down MSRP CASH

on the table, they would at least think twice before turning it down????

 

 

This is highly unlikely.

 

Think about it.

 

Lets say you had $20K sitting somewhere and you can't get it for another 30 - 90 days. Someone offers you $4K CASH for it and is willing to wait to get it. Would you take the $4K cash and let $16K of your money go so you can have it now instead of 30 - 90 days from now?

 

That is exactly what the dealer would be doing by taking a MSRP cash deal VS holding out for the $15K over they want.

 

Now if we are talking about a new Focus and over a few hundred bucks, sure, the dealer would probably take it rather than see a cash buyer walk out. But they are not going to just drop $16K of their profit just because you throw cash down in front of them and lost $16K potential profit.

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I heard of members getting great deals on 08's, including some at MSRP. I called about 10 dealers in my area (Chicago suburbs) to check prices. Most said 15K to 25K ADM. The only exception was Packey-Webb in Downers Grove who were in the 6K-8K range. Anyone that got a MSRP deal, did very good.

I had one on order at msrp, but got tired of waiting, plus I did not like the salesman. I found one on Ebay last month a 2008. I called and offered $1400 over and he took it. If you watch Ebay very few cars go for over MSRP, they usaully don't meet the reserve price and they have to relist them. There are a couple of GT500's I saw last month, relisted 3-4 times now. I had to drive 500 miles for my car.

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I had one on order at msrp, but got tired of waiting, plus I did not like the salesman. I found one on Ebay last month a 2008. I called and offered $1400 over and he took it. If you watch Ebay very few cars go for over MSRP, they usaully don't meet the reserve price and they have to relist them. There are a couple of GT500's I saw last month, relisted 3-4 times now. I had to drive 500 miles for my car.

This is exactly how I got the car I wanted. And at $1300.00 over I think I got a killer deal. It was a 300 mile drive to pick mine up. All the local dealers still holding out for 5K-10K over and there not selling.

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This is exactly how I got the car I wanted. And at $1300.00 over I think I got a killer deal. It was a 300 mile drive to pick mine up. All the local dealers still holding out for 5K-10K over and there not selling.

I like the way the delaers put a high, "Buy It Now" or starting bid, then no one else bids on it. I offered $1400 over too 3 other dealers and they said no way, but the 4th was ready to sell. It was worth the $1400 just to tell my dealer where he could stick that car I ordered 6 months ago!

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I would just like to say that I think cash isn't what dealers want.

If you are gonna finance a 50k car, they stand to make alot of money on the financing if its done through Ford Credit.

A 10k ADM is worth less than a 5 yr 8% APR on 50k, so Im not sure they would jump on a cash at MSRP deal.

 

In fact, if you dont mind financing, I would leverage the fact they will make alot more money on financing to try to knock them down to MSRP. Cash is king in my business and most others, but this business makes money hand over fist by financing IMHO.

 

But I would also look around here at the sale forum, and on EBay, and I think you can get pretty close to what you want near msrp if you arent trying to have it built your way. Note which ebay listings arent meeting reserves, and maybe those dealers are getting frustrated that they arent getting it sold...

 

Good luck

Not sure I agree with this! Simply put, and not going to get into a long winded response, but the dealer gets the cash they make on the car, be it MSRP or 5K over. Ford credit makes the money on the loan. That said, I doubt the dealers give a rats behind about how much money Ford Credit makes as it does not hit their pockets! I think the cash in hand is what they want, not the loan! But hey, we all have opinions.

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This is highly unlikely.

 

Think about it.

 

Lets say you had $20K sitting somewhere and you can't get it for another 30 - 90 days. Someone offers you $4K CASH for it and is willing to wait to get it. Would you take the $4K cash and let $16K of your money go so you can have it now instead of 30 - 90 days from now?

 

That is exactly what the dealer would be doing by taking a MSRP cash deal VS holding out for the $15K over they want.

 

Now if we are talking about a new Focus and over a few hundred bucks, sure, the dealer would probably take it rather than see a cash buyer walk out. But they are not going to just drop $16K of their profit just because you throw cash down in front of them and lost $16K potential profit.

 

:headscratch:

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Not sure I agree with this! Simply put, and not going to get into a long winded response, but the dealer gets the cash they make on the car, be it MSRP or 5K over. Ford credit makes the money on the loan. That said, I doubt the dealers give a rats behind about how much money Ford Credit makes as it does not hit their pockets! I think the cash in hand is what they want, not the loan! But hey, we all have opinions.

the finance department does make money when you finance instead of paying cash. most banks pay at least $300 if you dont doing anything but give them the buy rate. if you can mark the rate up alittle then you could make pretty good money on 50k. $300 dont sound like much but if you avg just $300 on 100 units a month thats 30k. now that alot of money to most dealers. if someone just pays cash we dont get the extra money. so dealers would RATHER you finance than pay cash. i have heard it all my life "whats the CASH price" i can most of the time give you a better price if you finance.

michael morris

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Not sure I agree with this! Simply put, and not going to get into a long winded response, but the dealer gets the cash they make on the car, be it MSRP or 5K over. Ford credit makes the money on the loan. That said, I doubt the dealers give a rats behind about how much money Ford Credit makes as it does not hit their pockets! I think the cash in hand is what they want, not the loan! But hey, we all have opinions.

 

 

Ford Credit or whatever bank makes money on the loan, but so does the dealer. The dealer makes anything they get over and above the buy rate.

 

So lets say the buy rate is 6%. The dealer hits you at 8%. The dealer makes that 2% off the loan. The lender pays that all up front to the dealer. Of course that is subject to any charge backs as well. If the loan is paid off early then the remaining cash the dealer made from the loan is charged back to the dealer by the lender.

 

So lets look at a $50K loan.

 

At a 6% buy rate the payment would be $966.64 per month on a 60 month loan.

 

At 8% the payment would be 1,013.82.

 

The dealer stands to make $2,830.80 off doing that loan if the loan is paid off over the full 60 months.

 

Basically, the lender allows the dealer to keep anything they get in interest that is over and above the lender's buy rate.

 

Most lenders cap what a dealer can mark up over the buy rate. Some as much as 3%.

 

So with a buy rate of 6% and if the dealer hits you at 9%, the payment would be $1,037.92 on a 60 month loan borrowing $50K

 

The dealer stands to make $4,276.80 off the loan if it goes the full 60 month term without being paid off early.

 

So which is better, getting cash or the dealer doing your financing? By paying cash the dealer stands to lose an additional $2,800 - $4,300 in profit. If the loan is paid off early the dealer will make whatever the interest spread is for the time the loan was active.

 

How do you think mortgage brokers and banks make money? Pretty much the same way. They hit you with x percent over the buy rate and/or hit you for points to buy the rate down.

 

Typically, a dealer can get you a better rate through your own bank that you bank with because the bank will give the dealer lower buy rates because of all the business they get from the dealer.

 

For example. My dad went to his bank to see what rate he could get for a new car loan. At the time it was 8%. The dealer he was buying the car from happened to do loans through his bank. They were able to get him 7% which was through his own bank that was charging him 8% had he went through them directly. So even if the dealer hit him at the same 8% his own bank was hitting him at, the dealer would have made the 1% in interest over the buy rate they got from the bank.

 

On a cash deal all that potential extra profit is gone.

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This is highly unlikely.

 

Think about it.

 

Lets say you had $20K sitting somewhere and you can't get it for another 30 - 90 days. Someone offers you $4K CASH for it and is willing to wait to get it. Would you take the $4K cash and let $16K of your money go so you can have it now instead of 30 - 90 days from now?

 

Ok I am finished thinking about it............

 

HELL NO I WOULD NOT DO THAT, IT WOULD BE STUPID!!!!!!!!!

 

But if you are comparing this tit for tat than you are sayin there

are some STUPID dealers that sale these cars for MSRP???????? :hysterical:

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ShelbyDude,

 

I guess the way to get the best deal is to make the dealer think you're going to finance for a bunch of months at a high rate of interest, but showing a low price paid for the car. Then, after the high interest loan is made, pay the loan off in a month or two. That scenario seems like the best for the car buyer, and worst for the dealer, since the dealer might give the buyer a lower price than if they knew the buyer was going to pay straight cash.

 

More questions -

 

What risk/liability does the dealer assume on a loan if the buyer eventually defaults?

 

Does the bank have to verbally approve the loan or is there an agreement between the bank and the dealer based on credit scores?

 

Are leases pretty much the same money maker to the dealer as a loan?

 

Thanks in advance.

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I actually drove thru Chicago to Indy to get the car.

 

I had just turned down a $2K over deal on my 3rd color choice (Vapor) convertible. That night checking on e-Bay.. I came across a Black '08 vert (second color choice)... I bid MSRP +$1... and won.

 

Flew to Kansas City and picked it up two days later! Black is my favorite car color choice.. but after 5 years with a black Viper my first choice was Grabber Orange... I found one here in Texas, but the dealer would not budge below $5K over.... I called one last time before leaving to pick up the black 'vert... the salesman was pissed saying he wished he could convince the GM that $5K over was ridiculous.

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.

 

Flew to Kansas City and picked it up two days later!

All the dealers I talked to in Texas would not budge either. I found a small town dealer in In. who sold Rousches. Have to admit some of those Rousches look pretty sweet, too bad it was only 430hp. I hauled a trailer and picked it up.

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