Jump to content
TEAM SHELBY FORUM

ADM's down...


supe

Recommended Posts

My Buddie just purchase a Shelby and its awesome. So the question "how much". A sweet deal $4000.00 over MSRP. I am on the hunt for a car. :happy feet:

A deal like that is going to be hard to find unless you have some special connection or favor owed you. Good luck on the hunt. Let us know how it goes.

 

Grabber

Link to comment
Share on other sites

A deal like that is going to be hard to find unless you have some special connection or favor owed you. Good luck on the hunt. Let us know how it goes.

 

Grabber

 

Oh for gods sake would that attitude just stop already. Let me ask, how much over did you pay? Im guessing more than 4k and you are just bitter!

Link to comment
Share on other sites

Oh for gods sake would that attitude just stop already. Let me ask, how much over did you pay? Im guessing more than 4k and you are just bitter!

 

Not bitter here! 4k on the ground? I can drive it today? No waiting??

 

Tell me where, I just might buy another one. :D

Link to comment
Share on other sites

My Buddie just purchase a Shelby and its awesome. So the question "how much". A sweet deal $4000.00 over MSRP. I am on the hunt for a car. :happy feet:

 

 

supe, why don't you try the same dealer (if they have access to another gt500) that gave your buddy that deal? grabber is right, 4k over msrp is like stealng the car at this point. most adm's are still at least 10k or more over sticker.

Link to comment
Share on other sites

just made a deal on 2008 msrp in louisiana at small dealership what a steal they said they are still making money on it

Wow great deal. 1st post too. Welcome.

 

So many have been burned with no contract. I assume you have it all in writing and they took a down payment.

 

Why the big Green face ?

Link to comment
Share on other sites

Oh for gods sake would that attitude just stop already. Let me ask, how much over did you pay? Im guessing more than 4k and you are just bitter!

Chuck, the facts speak for themselves. We have many knowledgeable people on the forum. Some of them are dealers and others have scoured the US for a decent price. The fact remains....Grabber is RIGHT...it is currently difficult to obtain this good of a price.

 

Believe me, Grabber is not bitter. He is sensible. And for the record...I paid less than $4k over...and I agree with Grabber.

 

Dave

Link to comment
Share on other sites

Of course they are 8 - 10 percent from msrp to invoice cost..........I know, I was in the business. So 4000-5000 bucks on each car if sold at msrp.

 

Not that it matters much, but MSRP on a GT500 is $42,975 (before options), with invoice at $39,488. That's $3,487 in profit - not $4K to $5K. Now on a heavily optioned GT500, you may be closer.

Link to comment
Share on other sites

B)-->

QUOTE(Five Oh B @ Feb 27 2007, 04:35 PM) 107250[/snapback]
Not that it matters much, but MSRP on a GT500 is $42,975 (before options), with invoice at $39,488. That's $3,487 in profit - not $4K to $5K. Now on a heavily optioned GT500, you may be closer.

what about holdback?

Link to comment
Share on other sites

B)--><div class='quotetop'>QUOTE(Five Oh B @ Feb 27 2007, 04:35 PM) 107250[/snapback]</div><div class='quotemain'><!--quotec-->Not that it matters much, but MSRP on a GT500 is $42,975 (before options), with invoice at $39,488. That's $3,487 in profit - not $4K to $5K. Now on a heavily optioned GT500, you may be closer.

what about holdback?

Good to see ya 5.4. Hope things are good in your world.

 

What some people fail to realize is that the dealer hold back helps pay for advertizing and other sales costs. That stuff costs money.

Link to comment
Share on other sites

Good to see ya 5.4. Hope things are good in your world.

 

What some people fail to realize is that the dealer hold back helps pay for advertizing and other sales costs. That stuff costs money.

Hey Grabber, good to hear from you, too. I've been around. Just been in Lurk mode for a few months. I stopped by a local dealer that had a (sold) red/white GT500 in their service bay. It was really pretty. Not sure if it will sway me from the white/blue, though. I have a while to decide. I am hearing April 16th for order date for '08. I'll decide by then (knowing that I can change it until it is pulled for production).

 

I realize part of the profit goes to overhead. Whether it is the holdback, part of the "above invoice" amount or all of it differs from deal to deal, car to car and dealer to dealer.

 

My question was really trying to see if the holdback brought it to the 4 or 5 grand that SVTPower spoke of. I think it does.

Link to comment
Share on other sites

ya, theres probally about $1000 in hold back. The average profit on ford cars was at about 11% without hold back in the mid 90s.Their profit margin has shrunk quite abit in the last 10 years.

 

With holdback the dealers profit is around 4-5K. Holdback is not "just for advertising ect" it is general profit like anything else.It could go towards stamps and envelopes or a new house for the owner. LOL

Link to comment
Share on other sites

ya, theres probally about $1000 in hold back. The average profit on ford cars was at about 11% without hold back in the mid 90s.Their profit margin has shrunk quite abit in the last 10 years.

 

With holdback the dealers profit is around 4-5K. Holdback is not "just for advertising ect" it is general profit like anything else.It could go towards stamps and envelopes or a new house for the owner. LOL

 

Correct, Ford is squeezing the gap between invoice and MSRP yearly. Used to be that selling at MSRP was like hitting the lottery, but now it's a very small percentage. On some models, like Ranger or Focus, that difference can be as little as $400 to $500!

 

Holdback is paid by most manufacturers, and is customarily 3% of MSRP. This is true for Ford, as well. Holdback is paid to the dealer to offset the cost of interest paid on vehicles sitting on the lot unsold. This allows dealers to buy a lot more vehicles to build up a big display and selection for customers than they would be able to otherwise. Basically, we don't own the vehicles on our lot - the bank does. And the bank charges us interest every month. Holdback covers that interest for about 90 days. If you add up the holdback paid to a dealer for the entire month on all vehicles and subtract out the interest paid for that month to the bank, the holdback line is usually a wash (read: not a profit generator). Some stores lose money on this line if they stock up too heavily and don't sell enough cars, while better dealers can turn a little profit on this line. If you read the explanations of holdback at edmunds.com or kbb.com, you'll see that the experts also will tell you that it is not a source of income and hence is typically not negotiable at a dealership.

Link to comment
Share on other sites

QUOTE(Five Oh B @ Feb 28 2007, 11:13 AM) 107642[/snapback]</div><div class='quotemain'><!--quotec-->Correct, Ford is squeezing the gap between invoice and MSRP yearly. Used to be that selling at MSRP was like hitting the lottery, but now it's a very small percentage. On some models, like Ranger or Focus, that difference can be as little as $400 to $500!

 

Holdback is paid by most manufacturers, and is customarily 3% of MSRP. This is true for Ford, as well. Holdback is paid to the dealer to offset the cost of interest paid on vehicles sitting on the lot unsold. This allows dealers to buy a lot more vehicles to build up a big display and selection for customers than they would be able to otherwise. Basically, we don't own the vehicles on our lot - the bank does. And the bank charges us interest every month. Holdback covers that interest for about 90 days. If you add up the holdback paid to a dealer for the entire month on all vehicles and subtract out the interest paid for that month to the bank, the holdback line is usually a wash (read: not a profit generator). Some stores lose money on this line if they stock up too heavily and don't sell enough cars, while better dealers can turn a little profit on this line. If you read the explanations of holdback at edmunds.com or kbb.com, you'll see that the experts also will tell you that it is not a source of income and hence is typically not negotiable at a dealership.

 

 

Great explanation Five Oh, makes sense. It never ceases to amaze me how some people try to oversimplify things. We often fail to remember that the dealerships have a large overhead to consider. The building, the utilities, the financing on their dealership, paving the parking lot, striping it, planting trees/bushes, signs, restrooms in the showroom, window washing...you could go on and on. Not to mention all the hours the sales people stand around when no customers are in the store. Then, they spend 1-2 hours selling a car and we think we're paying a fortune "per hour" for that service.

 

I sometimes wonder if we'll ever get to the point where you could order a car directly from the internet and have it delivered to your house to cut out all that cost. I know it would take a lot of changes, and it definitely would not work for all customer groups...but for people who already know about the cars, can pay cash or arrange financing on their own, and if they could figure out a way to do the PDI....then just maybe...

 

Not trying to run you out of business....I'm sure many people still need all the services the dealers provide. Hope no offense taken. ;)

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...
...