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Will the Dealer Markup ever End?


nascarneil00

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Is it just me, or is the dealer markup thing a bit ridiculous? I know that a dealership in Louisville Kentucky has 3 Shelbys and they've been sitting in the showroom since early September. They have a markup of $20,000. I don't know about you guys but i would think that not selling such a car for that amount of time would bring down the markups and i've told all the dealers around me that i would gladly buy a shelby from them if they would get rid of the markups. So will this madness ever end?

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Is it just me, or is the dealer markup thing a bit ridiculous? I know that a dealership in Louisville Kentucky has 3 Shelbys and they've been sitting in the showroom since early September. They have a markup of $20,000. I don't know about you guys but i would think that not selling such a car for that amount of time would bring down the markups and i've told all the dealers around me that i would gladly buy a shelby from them if they would get rid of the markups. So will this madness ever end?

The demand it greater than the supply. The car is Hot.

 

People thought that winter would cool the ADM's.

 

Once Spring and Summer come.....prices will even be stronger as demand even increases more.

 

Around 5000 built so far if you do the math and another 3000 more to come for 2007. The lists are strong and long for the car too, so ADM's are here to stay. Sorry to have to say that, but I think it is true.

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The demand it greater than the supply. The car is Hot.

 

People thought that winter would cool the ADM's.

 

Once Spring and Summer come.....prices will even be stronger as demand even increases more.

 

Around 5000 built so far if you do the math and another 3000 more to come for 2007. The lists are strong and long for the car too, so ADM's are here to stay. Sorry to have to say that, but I think it is true.

 

+1

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Is it just me, or is the dealer markup thing a bit ridiculous? I know that a dealership in Louisville Kentucky has 3 Shelbys and they've been sitting in the showroom since early September. They have a markup of $20,000. I don't know about you guys but i would think that not selling such a car for that amount of time would bring down the markups and i've told all the dealers around me that i would gladly buy a shelby from them if they would get rid of the markups. So will this madness ever end?

As long as they're not selling at 20 over, maybe they should mark 'em up $40,000 and really generate some interest.

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Is it just me, or is the dealer markup thing a bit ridiculous? I know that a dealership in Louisville Kentucky has 3 Shelbys and they've been sitting in the showroom since early September. They have a markup of $20,000. I don't know about you guys but i would think that not selling such a car for that amount of time would bring down the markups and i've told all the dealers around me that i would gladly buy a shelby from them if they would get rid of the markups. So will this madness ever end?

 

You have to decide what you willing to pay over and make em an offer. If your holding out for MSRP on an 07, its probably not going to happen. The madness might end in 08 but hard to say. People are starved for a serious muscle car that harkens to the day. The GT500 probably captures the look and feel of a muscle cars of yore better than any Ive seen in my adult life. There are probably lists for the 08 a mile long already. Unfortuantely its a sellers market.

 

 

KC666

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You have to decide what you willing to pay over and make em an offer. If your holding out for MSRP on an 07, its probably not going to happen. The madness might end in 08 but hard to say. People are starved for a serious muscle car that harkens to the day. The GT500 probably captures the look and feel of a muscle cars of yore better than any Ive seen in my adult life. There are probably lists for the 08 a mile long already. Unfortuantely its a sellers market.

KC666

KC666,

I agree with your statement. The car is a magnet and attracting a ton of people.

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Is it just me, or is the dealer markup thing a bit ridiculous? I know that a dealership in Louisville Kentucky has 3 Shelbys and they've been sitting in the showroom since early September. They have a markup of $20,000.

 

 

The demand it greater than the supply. The car is Hot.

 

People thought that winter would cool the ADM's.

 

Once Spring and Summer come.....prices will even be stronger as demand even increases more.

 

Around 5000 built so far if you do the math and another 3000 more to come for 2007. The lists are strong and long for the car too, so ADM's are here to stay. Sorry to have to say that, but I think it is true.

 

Grabby - had to say something, sorry. Doesn't the fact that 3 cars sitting for 4 months @ $20,000ADM = demand doesn't match this price point? Will ADM's ever go away, probably not (not what my answer was 6 months ago BTW), but this example proves it's not at $20k any more, right?

 

And about the "seasonal affect of sales" theory... not sure if it holds much water. Maybe on a Vert in Northern MN, but everyone who wants this car knows that it's limited production for a limited # of years. If they're going to buy it, why wouldn't they pull the trigger now vs. waiting 3 months for the North to thaw out? Doesn't make sense to me.

 

As long as they're not selling at 20 over, maybe they should mark 'em up $40,000 and really generate some interest.

My thoughts exactly!

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IMHO, the people that thought they were going to wait it out and buy one at msrp from dealerships that were asking ADM's were wrong, especially when the body style will be changing after 08 for the worst from what I have seen so far. I bought mine at msrp at a SVT dealership which had an allotment of 15 cars for 07, there was over 40 people on a reserve list if any of the 15 dropped out, now I was talking the sales person that I perchased mine from and they are getting another allotment of 15 cars for 08 and he stated to me there was over 40 people still on a reserve list, he also told me that they maybe asking a 5k ADM on the 08's because there was people buying the cars just to resell them for a profit, so his attitude is why can't we make that profit ourselves, along with that there are large SVT dealerships in Canada calling people that they know have Shelby's and are offering them over what they payed for the car, I know, I was one of them they called, I just politely told them to go :censored: themselves, I know large SVT dealerships in Canada have upwards of 100 people on reserve lists, just my 2 cents.

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I think that it may be dying down some. I feel this way do to all of the sudden we have 2 dealers coming on this site. One is the largest on the west coast, and wanting to sell cars. This tells me that it is slowing down and people are not walking in and buying them like they used too. I also noticed tht ebay is not selling as high as it used too. Right now there are several cars that aren't making reserve with less then 2 hours to go at 15k over. One vert is only at 50k with just over 1 hour to go. I know that ebay is not the whole picture and is not super accurate. But I do feel that with the majority of GT's not selling because of not making reserve and the selling price to be 10-13k ADM right now. Just my .02

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Anything is possible. Ford GT's initally went for double their M.S.R.P, and now they can be had for M.S.R.P. One low mileage 2005 GT went over the BJ auction block over the weekend for $150,000 which is about $9,000 less than M.S.R.P. and on top of that, the buyer won't have to pay the gas guzzler tax either. So its a good indication that the prices for the Ford GT have stabilized in spite of the fact that the car's production has ended.

 

So it is possible that the ADM on the 500 will go away, but when that will happen is still the question. If that dealer has been sitting on those 3 500's for three months, I would imagine that the bank will start bugging them to move one or more of the cars out. My advice would be to make sure that they have your name and phone number and tell them to call you after the bank chews them a new rear end for flooring the cars so long. Who knows? They may work with you after all.

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Grabby - had to say something, sorry. Doesn't the fact that 3 cars sitting for 4 months @ $20,000ADM = demand doesn't match this price point? Will ADM's ever go away, probably not (not what my answer was 6 months ago BTW), but this example proves it's not at $20k any more, right?

 

And about the "seasonal affect of sales" theory... not sure if it holds much water. Maybe on a Vert in Northern MN, but everyone who wants this car knows that it's limited production for a limited # of years. If they're going to buy it, why wouldn't they pull the trigger now vs. waiting 3 months for the North to thaw out? Doesn't make sense to me.

My thoughts exactly!

If they are asking 20K, I bet that they would take 15K if you worked them. Some people seem to buy cars when the weather is nice.....it gets them out of the house to go car shopping and test driving. Don't be sorry, Your opinion is valid too.

 

Grabby

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If they are asking 20K, I bet that they would take 15K if you worked them. Some people seem to buy cars when the weather is nice.....it gets them out of the house to go car shopping and test driving. Don't be sorry, Your opinion is valid too.

 

Grabby

All's good! Peace, love and no thongs for Ruf. That's what makes the world go 'round... :banana piano:

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Who brought up my Thong again?.....

 

I don't think we have enough data to put together a trend or pattern here.

 

If they've sold 5k Shelbys - unless we know how much all of the buyer's paid, we can't accurately say what prices people are paying.

 

There are too many variables. Markets - time of the month - how long a unit has been on the ground - and more.

 

If you're in the market - decide on what you're willing to pay. Then shop around. If you can't get one for that price - move on.

 

Or - buy a Mustang GT and have a ball building it Your Way.

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Our dealers, out here in N. California, who our family supports dearly, would not budge back in August. Paid $55K to a dealer in IL over ebay....this dealer has a new customer. The easiest car purchase we ever had. The nicest people and only $1K to ship across country in an enclosed truck. We are ordering a new F250 Crew cab and it won't be from our dealer out here. In a way I do not blame them for the ADM (the dealer I'm speaking of is small and will only get one or two GT500) but to be short sided and not take care of the customers who are taking care of you is not too smart. I still love my local dealer for parts (they are good with the FRPP) but we are no loner loyal when it comes to car purchases. Heck we may even look at the Dodge. Ouch.

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Our dealers, out here in N. California, who our family supports dearly, would not budge back in August. Paid $55K to a dealer in IL over ebay....this dealer has a new customer. The easiest car purchase we ever had. The nicest people and only $1K to ship across country in an enclosed truck. We are ordering a new F250 Crew cab and it won't be from our dealer out here. In a way I do not blame them for the ADM (the dealer I'm speaking of is small and will only get one or two GT500) but to be short sided and not take care of the customers who are taking care of you is not too smart. I still love my local dealer for parts (they are good with the FRPP) but we are no loner loyal when it comes to car purchases. Heck we may even look at the Dodge. Ouch.

 

I hear you. My local dealer is the same way. The loyalty only goes one way with this car. You get nothing in return from my dealer except false hope and unkept words. Really stinks too because I like to do business local.

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Who brought up my Thong again?.....

 

I don't think we have enough data to put together a trend or pattern here.

 

If they've sold 5k Shelbys - unless we know how much all of the buyer's paid, we can't accurately say what prices people are paying.

 

There are too many variables. Markets - time of the month - how long a unit has been on the ground - and more.

 

If you're in the market - decide on what you're willing to pay. Then shop around. If you can't get one for that price - move on.

 

Or - buy a Mustang GT and have a ball building it Your Way.

 

Jeez, I'd almost hafta accuse Ruf of being analytical, like me, not some English major. Anyway, the only thing I'd add to Ruf's observations is that we need some info on the ADMs for the Shelby GT. Those cars are legitimate dollar competition for the remaining unsold GT500s and should bleed off some (a lot?) of the pressure on the remaining GT500s in 07 and 08. I have to admit I thought ADMs would have dropped under $5K by now. I also never expected to get the rock star treatment everywhere I go, even now, with this car (camera phones, following into the parking lot, knocking on the window to get me to stop and talk, etc.). This thing is bigger than I thought. Glad I bought in while I could.

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Jeez, I'd almost hafta accuse Ruf of being analytical, like me, not some English major. Anyway, the only thing I'd add to Ruf's observations is that we need some info on the ADMs for the Shelby GT. Those cars are legitimate dollar competition for the remaining unsold GT500s and should bleed off some (a lot?) of the pressure on the remaining GT500s in 07 and 08. I have to admit I thought ADMs would have dropped under $5K by now. I also never expected to get the rock star treatment everywhere I go, even now, with this car (camera phones, following into the parking lot, knocking on the window to get me to stop and talk, etc.). This thing is bigger than I thought. Glad I bought in while I could.

With only 6000 Shelby GT's being made, I think the bleed off, as you call it will be felt only very slightly due to the low number. There is barely enough of those cars to put on in every dealership.

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+1

 

 

Seems to be holding around 15K over in my area, local dealer has one on the showroom for 15K over, salemans stated that the hope of the GT-H filling a void of Gt500 buyers isn't happening....he said calls to people on list for the 500 aren't interested in the GT-H...with a price tag of nearly 40K and a dealer ADM of 5K (only on the first one) the second allocation doesn't have any takers, buyers are saying " but it doesn't have 500 HP"...............and for that money I'll wait an try to get a GT 500.....

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Seems to be holding around 15K over in my area, local dealer has one on the showroom for 15K over, salemans stated that the hope of the GT-H filling a void of Gt500 buyers isn't happening....he said calls to people on list for the 500 aren't interested in the GT-H...with a price tag of nearly 40K and a dealer ADM of 5K (only on the first one) the second allocation doesn't have any takers, buyers are saying " but it doesn't have 500 HP"...............and for that money I'll wait an try to get a GT 500.....

 

Hmmm. That's pretty interesting. Like I said, I surely wouldn't have expected this kind of legs for the GT500 price. This is a marketer's (wet) dream. Wonder if the Bullit will fare better than the Shelby GT.

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I think that it may be dying down some. I feel this way do to all of the sudden we have 2 dealers coming on this site. One is the largest on the west coast, and wanting to sell cars. This tells me that it is slowing down and people are not walking in and buying them like they used too. I also noticed tht ebay is not selling as high as it used too. Right now there are several cars that aren't making reserve with less then 2 hours to go at 15k over. One vert is only at 50k with just over 1 hour to go. I know that ebay is not the whole picture and is not super accurate. But I do feel that with the majority of GT's not selling because of not making reserve and the selling price to be 10-13k ADM right now. Just my .02

Don't forget the 10% Buyers Fee at BJA so the guy paid $165,000 plus shipping for the FGT.

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