mikejaeggi Posted June 7, 2012 Report Share Posted June 7, 2012 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/ 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". 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. 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. Link to comment Share on other sites More sharing options...
devious_stang Posted June 7, 2012 Report Share Posted June 7, 2012 its pathetic, but they do get a few dummies to pay them....especially overseas people Link to comment Share on other sites More sharing options...
EricUSMC Posted June 7, 2012 Report Share Posted June 7, 2012 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! Link to comment Share on other sites More sharing options...
ChrisSD Posted June 7, 2012 Report Share Posted June 7, 2012 MSRP alone is a dumb price to pay. You lose $10k driving off the lot. Link to comment Share on other sites More sharing options...
Snoopy49 Posted June 7, 2012 Report Share Posted June 7, 2012 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. Link to comment Share on other sites More sharing options...
mikejaeggi Posted June 7, 2012 Author Report Share Posted June 7, 2012 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. Link to comment Share on other sites More sharing options...
jerseygator Posted June 7, 2012 Report Share Posted June 7, 2012 Link to comment Share on other sites More sharing options...
mullens Posted June 7, 2012 Report Share Posted June 7, 2012 I don't blame the dealers. I blame the idiots that pay it and enable these guys. Link to comment Share on other sites More sharing options...
Snoopy49 Posted June 7, 2012 Report Share Posted June 7, 2012 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. Link to comment Share on other sites More sharing options...
662HP631TQ Posted June 8, 2012 Report Share Posted June 8, 2012 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. Link to comment Share on other sites More sharing options...
1 Alibi 2 Posted June 8, 2012 Report Share Posted June 8, 2012 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.. Link to comment Share on other sites More sharing options...
2010KonaBlueGT Posted June 8, 2012 Report Share Posted June 8, 2012 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 Link to comment Share on other sites More sharing options...
Grabber Posted June 8, 2012 Report Share Posted June 8, 2012 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. Link to comment Share on other sites More sharing options...
2010KonaBlueGT Posted June 8, 2012 Report Share Posted June 8, 2012 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 Link to comment Share on other sites More sharing options...
Grabber Posted June 8, 2012 Report Share Posted June 8, 2012 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. Link to comment Share on other sites More sharing options...
bergenfelter Posted June 8, 2012 Report Share Posted June 8, 2012 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. Link to comment Share on other sites More sharing options...
2010KonaBlueGT Posted June 8, 2012 Report Share Posted June 8, 2012 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 Link to comment Share on other sites More sharing options...
ati Posted June 8, 2012 Report Share Posted June 8, 2012 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. Link to comment Share on other sites More sharing options...
2010KonaBlueGT Posted June 8, 2012 Report Share Posted June 8, 2012 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 Link to comment Share on other sites More sharing options...
2010KonaBlueGT Posted June 8, 2012 Report Share Posted June 8, 2012 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 Link to comment Share on other sites More sharing options...
ati Posted June 8, 2012 Report Share Posted June 8, 2012 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? Link to comment Share on other sites More sharing options...
devious_stang Posted June 8, 2012 Report Share Posted June 8, 2012 ^^^^i like this point Link to comment Share on other sites More sharing options...
Snoopy49 Posted June 8, 2012 Report Share Posted June 8, 2012 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! Link to comment Share on other sites More sharing options...
Snoopy49 Posted June 8, 2012 Report Share Posted June 8, 2012 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. Link to comment Share on other sites More sharing options...
Grabber Posted June 8, 2012 Report Share Posted June 8, 2012 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 ! Link to comment Share on other sites More sharing options...
svt13 Posted June 8, 2012 Report Share Posted June 8, 2012 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. Link to comment Share on other sites More sharing options...
svt13 Posted June 8, 2012 Report Share Posted June 8, 2012 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. Link to comment Share on other sites More sharing options...
Boss Hoss 540 Posted June 8, 2012 Report Share Posted June 8, 2012 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 Link to comment Share on other sites More sharing options...
mikejaeggi Posted June 8, 2012 Author Report Share Posted June 8, 2012 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. Link to comment Share on other sites More sharing options...
2010KonaBlueGT Posted June 9, 2012 Report Share Posted June 9, 2012 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 Link to comment Share on other sites More sharing options...
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