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$16K ADM?


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I normally dont' complain about ADM, if someone wants to pay it, that's their choice. However, I was shocked today when I contacted one of my local dealers to see what they would quote me on a 2013 Shelby GT 500 convertible. $16G over MSRP! as a dealer, you have to know that:

1) no one in their right mind would ever pay that much mark up on a mass produced car.

2) your probably scaring off a potential buyer by shooting that high.

Frankly I would never do business with this dealer after seeing this:

 

I have the Shelby below at one of my sister stores.

 

Your price:$85,490+TTF

 

Ron Sitz

Internet Manager

Team Ford Marietta

770-422-1100 Ext. 2261

678-231-6088-Cell/Text

678-581-4767 fax

http://teamfordmarietta.net/

 

 

img_print_sticker_button.gif

 

 

img_fordlogo.gif

Disclaimer: This window sticker is only representative of the information contained on an actual window sticker, and may or may not match the actual window sticker on the vehicle itself. Please see your retailer for further information.

Vehicle Description

VIN

MUSTANG

2013 SHELBY CONV N

5.8L 4V DOHC S/C

6-SPEED MANUAL TRANSMISSION

Exterior

RED CANDY METALLIC TINTED CC

Interior

CHARCOAL BLACK W/BLACKSHELBY MAN LEATHER RECARO STS

Standard Equipment INCLUDED AT NO EXTRA CHARGE

EXTERIOR

. ALUM HOOD W/AIR EXTRACTOR

. LEMANS TOP STRIPES WITH

GT500 SIDE ROCKER STRIPES

. 19"X9.5"(F) 20"X9.5"®

FORGED ALUMINUM WHEELS

. PWR CLOTH CONVERTIBLE TOP

. QUAD REAR-EXIT STAINLESS

STEEL WITH 3.5" TIPS

. HID PROJECTOR HEADLAMPS

INTERIOR

. SPORT BUCKET SEATS WITH

RACING STRIPE INSERTS

. SHAKER AUDIO SYSTEM

AM/FM/SINGLE CD/MP3

. SIRIUS SAT SVC - N/A AK&HI

. SYNC

. AIR CONDITIONING

. 4.2" LCD SCREEN

FUNCTIONAL

. SVT ENGINEERED BILSTEIN

COCKPIT-SELECT DAMPERS

. UNIQUE 3.31 REAR-AXLE

WITH TORSEN DIFFERENTIAL

. ELEC PWR ASSIST STEERING

. PWR WINDOWS,LOCKS,MIRRORS

. EASYFUEL CAPLESS FILLER

. UNIVER GARAGE DOOR OPENER

. AUTOMATIC HID HEADLAMPS

. BREMBO VENTED DISC BRAKES

WITH ABS

. CARBON FIBER DRIVESHAFT

SAFETY/SECURITY

. ADVANCETRAC W/ ESC

. ABS/TRACTION CONTROL

. DRIVER/PASSENGER AIR BAGS

. SIDE AIRBAGS

. SOS POST CRASH ALERT SYS

. SECURILOCK PASS ANTI THEFT

. TIRE PRESSURE MONITOR SYS

WARRANTY

. 3YR/36000 BUMPER TO BUMPER

. 5YR/60,000 POWERTRAIN

. 5YR/60,000 ROADSIDE ASSIST

Price Information

BASE PRICE

$59,200

Included on this Vehicle

EQUIPMENT GROUP 821A

3,495

CONVERTIBLE BOOT COVER

SVT PERFORMANCE PACKAGE

Optional Equipment

2013 MODEL YEAR

RED CANDY METALLIC TINTED CC

395

BLACK LTHR RECARO W/BLACK

.5.8L 4V DOHC S/C

.6-SPEED MANUAL TRANSMISSION

.P265/40R19 F P285/35R20 R TIR

CLOTH CONVERTIBLE ROOF

BLACK

MANUAL 4-WAY DRIVER'S SEAT

50 STATE EMISSIONS

TAPE STRIPE DELETE

OVER THE TOP STRIPE DELETE

ELECTRONICS PKG W/NAVIGATION

2,340

SHELBY MAN LEATHER RECARO STS

1,595

SHAKER PRO SYSTEM

1,295

SHELBY COVER *DLR-INSTLD-ACCY*

375

__________

TOTAL VEHICLE & OPTIONS

68,695

DESTINATION & DELIVERY

795

__________

TOTAL MSRP

$69,490

Disclaimer: Option pricing will be blank for any item that is priced as 0 or "No Charge".

img_fuel_economy.gif

Estimated Annual Fuel Cost: $ 3,150

CITY MPG

015

HIGHWAY MPG

024

Vehicle Engine Information

 

Actual mileage will vary with options, driving conditions, driving habits and vehicle's condition. Results reported to EPA indicate that the majority of vehicles with these estimates will achieve between _ and _ mpg in the city and between _ and _ mpg on the highway.

For Comparison Shopping all vehicles classified as Subcompacts have been issued mileage ratings from _ to _ mpg city and _ to _ mpg highway.

img_xtendedserviceF1.gif

Ford Extended Service Plan is the ONLY service contract backed by Ford and honored by the Ford and Lincoln dealers. Ask your dealer for prices and additional details or see our website at <a href="http://www.ford-esp.com/">www.Ford-ESP.com.

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My dealership has one allocation left. Its a clean allocation, not spec'd out. We did not start out with ADM, and in fact sold our first one at sticker, but currently have an offer of $1500 over. Pretty fair when you stack it against $16k! That's just stupid!

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MSRP = Manufacturer's Suggested Retail Price

 

The MSRP is the price that the manufacturer recommends for the car. It is up to the individual dealer to determine what he wants to actually charge for the car. I would not pay MSRP for any car, but I don't have a problem paying a price that gives the dealer a reasonable profit. Without a profit large enough to cover their expenses and allow for inflation, they will go out of business. I use to have access to local Ford and Dodge dealerships, both are now closed, the Ford dealership is now a vacant lot and the Dodge dealership is a tire store. Now the nearest dealerships are 25 miles away. The now closed Ford dealer was a greedy sucker and went of business do to bad business polices. The Dodge dealer ship was just poorly managed. Both played the ADM game and it cost them business they couldn't afford to lose.

I would like to think that the ADM's are more to deter selling the car rather than actually rip off a potential customer. A lot of the ADM's I have seen, go away within a couple of months. The dealer eventually gets tired of paying the flooring fees on the car and the attraction value of having a hard to get car on the showroom floor has lessened and they get rid of the ADM and sell the car for MSRP or lower and move onto that next piece of eye candy.

The only people that pay an ADM are the same people that say "If you have to ask the price, you can't afford it". As far as I am concerned, they get what they pay for and I'm happy for the dealer.

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My dealership has one allocation left. Its a clean allocation, not spec'd out. We did not start out with ADM, and in fact sold our first one at sticker, but currently have an offer of $1500 over. Pretty fair when you stack it against $16k! That's just stupid!

 

and that's pretty fair, if someone wants to pay a little more to have the car now, I understand. I would have seriously considered a quoye at $1500 above sticker but trying to get $15000 just guarantees I will never buy from this dealer.

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From a dealers perspective a large ADM makes business sense. If you have a rare car that is hard to get you have a couple of options when it comes to selling the car. You can treat it the same way you would treat any other car on your lot an price it to move. In this case the car may last a day or two. You have made a decent profit on one car. Another option is to place a large exorbitant ADM on the car and put it in a high traffic area in your showroom. Using this option people come into your dealership just to see a car they may never see on the street. Some people that are serious about buying the car will either pay the asking price or walk out laughing, I thing in this instance there are a lot more laughing than paying. But there are a lot of people that look at the inflated price and question a salesman about it, the salesman now has a potential customer standing in front of him asking questions. A good salesman will jump on the opportunity and steer the customer to a V6 Mustang. When you compare an inflated $75,000 car to a nicely equipped $25,000 car, the cheaper car looks pretty attractive. After all, when was the last time you needed to go 200 mph. In this option you have used one overpriced car to attract many potential customers into your showroom and into the hands of your sales people. Turning one sale into many sales. Makes sense to me.

You have attracted many people who would never be able to buy the high dollar Mustang and have you've been able to show them that they can still afford a new or used Mustang that you just happen to have in your inventory that is ready for immediate delivery at a decent price.

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From a dealers perspective a large ADM makes business sense. If you have a rare car that is hard to get you have a couple of options when it comes to selling the car. You can treat it the same way you would treat any other car on your lot an price it to move. In this case the car may last a day or two. You have made a decent profit on one car. Another option is to place a large exorbitant ADM on the car and put it in a high traffic area in your showroom. Using this option people come into your dealership just to see a car they may never see on the street. Some people that are serious about buying the car will either pay the asking price or walk out laughing, I thing in this instance there are a lot more laughing than paying. But there are a lot of people that look at the inflated price and question a salesman about it, the salesman now has a potential customer standing in front of him asking questions. A good salesman will jump on the opportunity and steer the customer to a V6 Mustang. When you compare an inflated $75,000 car to a nicely equipped $25,000 car, the cheaper car looks pretty attractive. After all, when was the last time you needed to go 200 mph. In this option you have used one overpriced car to attract many potential customers into your showroom and into the hands of your sales people. Turning one sale into many sales. Makes sense to me.

You have attracted many people who would never be able to buy the high dollar Mustang and have you've been able to show them that they can still afford a new or used Mustang that you just happen to have in your inventory that is ready for immediate delivery at a decent price.

 

 

Good reasoning there. Being "Greedy" on 1 car is one thing. But if it makes business sense for the rest of your inventory, I get it. You explained this very well there. Eventually the car will sell. You can either buy it at the inflated price, or wait until they can't sell it. You ALWAYS win when you exercise your power of decision in the right way. Use it the wrong way.....and no money for mods if that is your thing! Some are going to pay that ADM, most won't and patience will truly be a virtue when it is lower than MSRP.

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At MSRP there is a nice profit for the dealer !!

.

Base coupe - invoice $ 49,458 / MSRP $ 54,200

Base Vert - invoice $ 54,020 / MSRP $ 59,200..................................& they make something on every option..

 

 

That's not pure profit.

 

Do you know what it takes to purchase, operate and maintain a Dealership? There are COSTS to having that $5K "profit" getting there and sitting there.

 

And the owner wants a income too...He ain't there not to make money.

 

 

Phill

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At MSRP there is a nice profit for the dealer !!

.

Base coupe - invoice $ 49,458 / MSRP $ 54,200

Base Vert - invoice $ 54,020 / MSRP $ 59,200..................................& they make something on every option..

 

 

Dealers do not pay invoice for a car. There is a 3rd price that you do not get to see.

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Dealers do not pay invoice for a car. There is a 3rd price that you do not get to see.

 

 

Are you talking about hold-back?

 

 

Phill

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Are you talking about hold-back?

 

 

Phill

 

 

yes sir. The additional $1,920 that can be made on a nicely loaded GT500 coupe if the customer gives the dealer a good report card.

Edited by Grabber
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yes sir. The additional $1,920 that can be made on a nicely loaded GT500 coupe if the customer gives the dealer a good report card.

 

As far as I know, hold-back isn't for a good report card, it's for the ordering dealer.

 

For instance, if my dealer needs a car with XYZ options and finds it at your dealer, a dealer trade can be made and your dealer keeps the hold-back so he's not "shit out" by selling/trading the car at invoice.

 

That was explained to my by one of my best friends who has been a car salesman and mostly a F&I guy for decades so I take him at his word.

 

However, if my dealer gets one allocated to him he gets the hold-back AND any 'profit' over invoice.

 

 

Phill

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From a dealers perspective a large ADM makes business sense. If you have a rare car that is hard to get you have a couple of options when it comes to selling the car. You can treat it the same way you would treat any other car on your lot an price it to move. In this case the car may last a day or two. You have made a decent profit on one car. Another option is to place a large exorbitant ADM on the car and put it in a high traffic area in your showroom. Using this option people come into your dealership just to see a car they may never see on the street. Some people that are serious about buying the car will either pay the asking price or walk out laughing, I thing in this instance there are a lot more laughing than paying. But there are a lot of people that look at the inflated price and question a salesman about it, the salesman now has a potential customer standing in front of him asking questions. A good salesman will jump on the opportunity and steer the customer to a V6 Mustang. When you compare an inflated $75,000 car to a nicely equipped $25,000 car, the cheaper car looks pretty attractive. After all, when was the last time you needed to go 200 mph. In this option you have used one overpriced car to attract many potential customers into your showroom and into the hands of your sales people. Turning one sale into many sales. Makes sense to me.

You have attracted many people who would never be able to buy the high dollar Mustang and have you've been able to show them that they can still afford a new or used Mustang that you just happen to have in your inventory that is ready for immediate delivery at a decent price.

 

I don't agree. When a dealer adds an ADM they're taking advantage of an opportunity to pipe the customer. In other words being greedy.

I can't imagine anyone walking into a dealer to buy a GT500 being talked into a V6 Mustang.

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Dealer sold me mine at MSRP - but the dealer needed to pay the $1000 SVT fee just to order the car. So not all pure profit for him as well.

 

It runs considerably deeper than that. There's the price the dealer paid for the dealership, rent and prop. taxes for the ground the car sits on, maintenence of the vehicle while it sits there, the sales commission to the sales person, the FI person, INTEREST on the vehicle from the time it arrives unitl it title is issued, utility costs for the lot/showroom it sits on, etc. etc. etc. etc. etc..

 

And none of that includes the income (i.e. Profit) the owner needs to make in order to keep that business running. NO ONE is in it for free.

 

 

Phill

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I don't agree. When a dealer adds an ADM they're taking advantage of an opportunity to pipe the customer. In other words being greedy.

 

I respectfully disagree. Here's a couple of examples of why;

 

Let's say you win a GT500 in a McDonalds contest, pay the fees and taxes on it for let's say, $5,000 and you sell it for $45,000...YOU ARE BEING GREEDY.

 

You are "taking advantage of an opportunity to pipe the customer", in other words, your words..."Being greedy".

 

Right???

 

If someone gives you a house and you sell it for ANYTHING...Are you "being greedy"?

 

My point is, it doesn't matter what you or the dealer paid for it. It matters what you can sell it for. A business is in business for ONE reason. To make money, and further more to make AS MUCH money as they can (i.e. "MAXIMIZE" profits). If they can sell it for $5, $10 or even $20K over SUGGESTED retail price, what's the issue?

 

Sorry, but that's the American way. But according to your logic, it's "being greedy".

 

Sorry, I disagree and I can't disagree any stronger.

 

 

 

Phill

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I respectfully disagree. Here's a couple of examples of why;

 

Let's say you win a GT500 in a McDonalds contest, pay the fees and taxes on it for let's say, $5,000 and you sell it for $45,000...YOU ARE BEING GREEDY.

 

You are "taking advantage of an opportunity to pipe the customer", in other words, your words..."Being greedy".

 

Right???

 

If someone gives you a house and you sell it for ANYTHING...Are you "being greedy"?

 

My point is, it doesn't matter what you or the dealer paid for it. It matters what you can sell it for. A business is in business for ONE reason. To make money, and further more to make AS MUCH money as they can (i.e. "MAXIMIZE" profits). If they can sell it for $5, $10 or even $20K over SUGGESTED retail price, what's the issue?

 

Sorry, but that's the American way. But according to your logic, it's "being greedy".

 

Sorry, I disagree and I can't disagree any stronger.

 

 

 

Phill

 

The dealer is entitled to a fair profit but jacking the car 16K is wrong no matter how you defend it.

Dealers charging high ADM"s are no different then the crooks that charge $10.00 for a gallon of milk or a loaf of bread after a tornado or a flood. Or is that also considered Maximizing your profits?

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I don't agree. I can't imagine anyone walking into a dealer to buy a GT500 being talked into a V6 Mustang.

 

I agree, but most of the people that walk into a dealers showroom and see a GT500 had no intention of buying it, they are just fascinated by something they can't afford. It is in our nature to want something we can't have, but it doesn't stop us from looking. It's the salesman's job to take advantage of your "want" and offer you something you are more likely to purchase. That could be a Mustang, Focus, or any other car on the lot.

Remember, if you are in a prison shower room and drop the soap and then bend over to pick it up, you deserve what comes next. Don't bend over!

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Dealers charging high ADM"s are no different then the crooks that charge $10.00 for a gallon of milk or a loaf of bread after a tornado or a flood. Or is that also considered Maximizing your profits?

 

That's not true, there is no comparison. You need the bread and milk, you want the car. You can live without the car, but you die without the food.

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As far as I know, hold-back isn't for a good report card, it's for the ordering dealer.

 

For instance, if my dealer needs a car with XYZ options and finds it at your dealer, a dealer trade can be made and your dealer keeps the hold-back so he's not "shit out" by selling/trading the car at invoice.

 

That was explained to my by one of my best friends who has been a car salesman and mostly a F&I guy for decades so I take him at his word.

 

However, if my dealer gets one allocated to him he gets the hold-back AND any 'profit' over invoice.

 

 

Phill

 

A dealer friend of mine told me that holdback is released every quarter. There are many factors that Ford grades the dealer on if they are going to give them all of the hold back to them or just a percentage. Ford corporate grades the dealer on the sale, after the sale follow up, and customer service. You ever notice that they tell you to not forget to fill out the report card. Those report cards go somewhere and do $omething !

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I respectfully disagree. Here's a couple of examples of why;

 

Let's say you win a GT500 in a McDonalds contest, pay the fees and taxes on it for let's say, $5,000 and you sell it for $45,000...YOU ARE BEING GREEDY.

 

You are "taking advantage of an opportunity to pipe the customer", in other words, your words..."Being greedy".

 

Right???

 

If someone gives you a house and you sell it for ANYTHING...Are you "being greedy"?

 

My point is, it doesn't matter what you or the dealer paid for it. It matters what you can sell it for. A business is in business for ONE reason. To make money, and further more to make AS MUCH money as they can (i.e. "MAXIMIZE" profits). If they can sell it for $5, $10 or even $20K over SUGGESTED retail price, what's the issue?

 

Sorry, but that's the American way. But according to your logic, it's "being greedy".

 

Sorry, I disagree and I can't disagree any stronger.

 

 

 

Phill

 

 

This is exactly right. Don't blame dealers for charging ADMs. Especially when a lot of them are willing to cut them out for serious buyers. ADMs are there for the morons who are willing to pay them. Its very simple for everyone who doesn't like it, don't be that moron.

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The dealer is entitled to a fair profit but jacking the car 16K is wrong no matter how you defend it.

Dealers charging high ADM"s are no different then the crooks that charge $10.00 for a gallon of milk or a loaf of bread after a tornado or a flood. Or is that also considered Maximizing your profits?

 

 

This is again flawed. This is simple suply and demand econ 101. If there is a tornado or a flood, then there is less supply of the essential good. So because that good is inferior (meaing prices of it doesn't change your use since you need food to live regardless of whether its 1 dollars are 1000) the price goes up since supply went down.

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Supply and demand here Gentlemen. It is what make our world go around!

 

This is what I got here in the DFW area from Grapevine Ford this Monday that had what I wanted on the floor sticker 67,090.00. My trade is a perfect 2012 GT500 with 6800 miles hard loaded save the glass roof and go fast stickers. Been driven in the rain twice...

 

Email Content:

 

Here is my deal for the 2013 Ford Mustang Shelby GT500.

Sales Price $87,090.00

Trade Value $42,000.00

Trade Difference $45,090.00 +TTL

Let me know how you would like to proceed.

Taylor DeWitt

New Vehicle Sales

Grapevine Ford Lincoln

817-481-3531

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I respectfully disagree. Here's a couple of examples of why;

 

Let's say you win a GT500 in a McDonalds contest, pay the fees and taxes on it for let's say, $5,000 and you sell it for $45,000...YOU ARE BEING GREEDY.

 

You are "taking advantage of an opportunity to pipe the customer", in other words, your words..."Being greedy".

 

Right???

 

If someone gives you a house and you sell it for ANYTHING...Are you "being greedy"?

 

My point is, it doesn't matter what you or the dealer paid for it. It matters what you can sell it for. A business is in business for ONE reason. To make money, and further more to make AS MUCH money as they can (i.e. "MAXIMIZE" profits). If they can sell it for $5, $10 or even $20K over SUGGESTED retail price, what's the issue?

 

Sorry, but that's the American way. But according to your logic, it's "being greedy".

 

Sorry, I disagree and I can't disagree any stronger.

 

 

 

Phill

 

i agree with you, the dealer can ask whatever he wants and if gets someone to pay and makes a heft comission, that is capitalism. I guess my real issue with the dealer shooting so high with me when I contacted him was I obviously knew what I wanted and am knoweldgable in these vehicles, I sent him the exact car and options I wanted and he responded with something close but with an added $15K. I'm in sales and if the roles were reversed, I would think "Hey, this guy knows what he wants and probably has done a lot of research. let me start a little high like $5K over MSRP and we can maybe work something out and get myself a sale." instead, his over the top quote ensures I will not work with this dealer again...and I should have known better as they tried to sell me a letf over 2007 at $5k over MSRP when the 2008s had already come out.

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You ever notice that they tell you to not forget to fill out the report card. Those report cards go somewhere and do $omething !

 

 

The staff gets a bonus based on those report cards. I know that for fact. $25.00 goes to the sales person for each "A" they get. The F&I person also gets spiff off of it but can not say how much with any authority. I'm not sure who else gets any, if at all but it has *nothing* to do with allocation, inventory or hold-back.

 

 

Phill

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