foxhtn

Greed! Greed! Greed! :nono: :nono: :nono:

brian

I'm kind of on the fence on this one, but I'm leaning toward the dealer.
Correct me if I'm wrong, but the markup serves two purposes.
1) If somebody's willing to buy it, big profit for the dealer. Go free market.
2) If the dealer only has one or two on the lot and isn't expecting
any anytime soon, then it's a deterrant (sp) to keep people from
coming in a snatching his only cars off the lot. That way more people
can come in and see the car and might be more willing to place an order.

Before my dealer got any cars, he said nobody was willing to place an order until they saw the car.

Would I pay a markup? Oh, heck no.

sqweak

I know you didn't call me a commie, it was just a tongue in cheek barb.

Your house analogy is a bad example. Housing prices are determined by a multitude of factors, including the market they are located in. There are no MSRP for houses. (kbhomes and prefabs excluded). Many other consumer goods, such as gas and even movie tickets are also adjusted for the market. A consumer product with an MSRP of say, 19.99 for a DVD *should* be the same in Manhattan as it is in Mobile. Granted, you may find a chain selling below or above. An identical mustang at dealers in the same town, even across the country, should sell for roughly the same price. If they aren't, the free market allows us the choice to buy from the cheaper dealer. Thats all I've ever suggested, not that ford should bar dealers from doing it. As consumers, we vote with our wallets. My suggestion was simply to get the message across to dealers that this is an unacceptable practice by not giving them your business.

I think we're both coming from different standpoints. I think it's bad for business for the entire brand when observed by the car buying public at large. Your standpoint seems to be that it's only a convience tax on those dead set on a mustang who can't wait. They are two different markets, and the public largely outnumbers the enthusiasts willing to wait for prices to die down or for an order to come in. Either way, the car will be (and already is) a big hit for ford, but those customers turned off by the markup could be forever soured on ford.

I bought my Mustang off the lot at MSRP, from a dealer with generation upon generation of repeat customers. They sold 13 Mustangs that day. I can guarantee they made more in that day than any of the dealers selling 1 or 2 at markup.

sqweak

wrong. It's a FoMoCo directive that there be one Mustang on premises at all dealers. If its their only one and it sells, they are required to postpone delivery until they have a replacement

brian

If that's true then I lean a little further from those dealers.

idesign

I am not sure that it does not hurt the dealer that he is marking his cars up 5,000 over MSRP. If the dealer down the street has a mustang in his showroom and it sits for 3 weeks with this mark up and the dealer 15 minutes away is selling them for MSRP then how does that create good business for the dealer that is marking his up. I go into the dealer with the markup and I am not willing to pay this, I would go down the street and buy one from him, bottom line. Majority of the customers that are buying the Mustang I assume are not willing to pay over MSRP, so they will go else were. So my point is majority of the buyers are going to turn away from a dealer that marks his cars up $5,000 over MSRP so in return the dealer who is willing to sell for MSRP is going to do more business. In reality it is the consumers fault this takes place people need to refuse to pay over MSRP, but there is always that individual that has to be the first so he thinks, and feels that he has something special because he did over pay.

Giddyup

It's usually gonna be the somebody that $5,000 is just pocket change to......IMO.

Lord Chabelo

wrong. It's a FoMoCo directive that there be one Mustang on premises at all dealers. If its their only one and it sells, they are required to postpone delivery until they have a replacement [/b][/quote]
So how come dealers in El Paso have no 05 mustangs on their lots?

sqweak

So how come dealers in El Paso have no 05 mustangs on their lots? [/b][/quote]
*shrug* maybe it's regional? or it has to do with stock vehicles and not order vehicles? All I know is what I was told by friends at the dealership after witnessing the showroom mustang change 3 times and always be "sold".

idesign

It's usually gonna be the somebody that $5,000 is just pocket change to......IMO. [/b][/quote]
That is why I said majority of the buyers would not pay this, yes there is always that fool with money to burn. Heck if you want to pay 5,000 over MSRP give me the $5,000 and I will find you one for MSRP.

Ballz

Not every dealer is selling over sticker . . . luckily!