Good God! I'm not talking about a Hundred dollars, What I'm talking about are the Dealers that Charge $1500 to $15,000 Dollars more than the MSRP! What I am Talking about are those Dealers that are just out to Rape the Public, not the ones selling a Car for $500- 1000 more than MRSP!

It is Wrong and a Disservice to all in the fact that it condones this type of behavior! But You can waste your money any way you want! I'll find a dealer that sells at a Reasonable Profit to do my Business with, because Money is not as easy to come by for some as it is for others.

 

Just rebumping my question to page 2.

 

I am new to this forum I am a sales Manager at a very large Ford Dealer In So Cal You giuys need to to know that a salesman is paid on a percentage of profit about 20% The 04 Mustang GT has about 1200 payable profit in it The Salesperson will recieve (if they sale it at sticker) about 240.00 for each mustang sale Remember we have families to support and we all have an average of 9 Mustangs per dealer And an averagr of 20 salespersons per dealer Do the math

 

I ordered my 2005 in May with the understanding I would get it A plan price.
If I don't get A plan price they can keep it. I will wait until spring and order it from another dealership. I have to store it all winter anyhow.

 

I don't want to continue this topic on here - maybe on an economics website? In closing... bashing people by calling them names generally doesn't win an argument. I respect your opinion and you and I can both spend our money however we like. I'll leave it at that. Thanks - Karl

 

kcsherman, You have 11 more salesmen than you need? Welcome to the board.

Back to the topic ....

I don't blame dealerships for "market adjustments". This practice can turn around and hurt them more than they know. How many customers do they lose by trying to squeeze out a few extra bucks? One guy might buy a car at +5K while 50 other people refuse to ever buy a car at that dealership again. Not only that, but how many dealers have seen adjusted prices hurt future sales of certain models? Does the Prowler, GTO, and the best example, Thunderbird mean anything to anyone? My local dealers all wanted around 8-10K over sticker for the T-bird and now they can't sell any. Pontiac dealers tried adding to MSRP on the GTO and ruined what was probably the best time to get the things off the lots. Now they are probably stuck paying interest on cars no one wants.

Do you want to blame the auto companies? GM really isn't helping dealers get GTO's off the lot, at least not when they began marketing the 05 GTO. Its the Dealer's problem now. In reality, GM/Ford sells the cars to the dealer who sells them to us. The big companies really have no say in what the dealers do with the cars. Sure they can reduce their allotment the next year, I think, but if it is a big dealership who normally sells a lot of vehicles, the auto company is going to turn their back to whatever they are doing. It's all about moving vehicles and making money.

The person who pays over sticker for a mass production car is the one at blame for added markups. I am not talking a couple of bucks either. Do a search on Ebay for the 05 Vette. Dealers all over the country are adding 5-10K on the coupe. People are paying it!!! Why wouldn't dealers ask for it if people are dumb enough to pay? Is it really that big of a deal to have the first one on the block? Not only that but you will probably have one of the cars with questionable quality. My local Chevy dealer said he will get me the C6 at MSRP but he said I would have to wait for their next open allotment. I'm hoping it's in the middle of winter. Gives me more time to save and gives GM a while longer to find any potential problems. I also get to hear many reviews on the internet. Very simple logic is that markups continue because 1-2% of the population makes too much bloody money! Ok that was a bad G60Seconds joke ....


Chainsaws are products like anything else and I can see why someone would want to make a quick buck raising prices, though I would probably donate them instead of selling them. The issue about hotels overcharging for shelter in Florida really is unethical though. People need to have a place to stay, they can share chainsaws. This topic really doesn't belong here though IMO.

 

Hop over to www.corvetteaction forums.com and you'll find a couple of dealers who are offering C5's at-$11-12K off MSRP.

Anyway, chill guys. This thread is beginning to sound like Stangnet.

 

Yea but what is the price of a C6 if I want to buy one for Labor day?

The same is true for any outgoing model, like a SN-95

 

I cant believe some people freak out at the idea of paying MSRP for a high-demand vehicle, and think that a new 05 Mustang should sell for invoice anyway. Its not a Yellow 04 Cavalier. Gross proffit above invoice is usually about $2000 max on a Mustang. Holdback reimbursement is designed to cover the costs of doing business, its not 'free' money. Its not FREE to run a dealership, or own 1500 new automobiles. A Mustang has about the same proffit as a new Plasma TV has to a Best Buy. I never regreted paying MSRP on my RX7tt, I wanted it, I bought it, I loved it. BFD if someone else got one cheaper, I make money to spend it for what I WANT. A discount is like a cookie treat if you can get one. BFD either way. If you NEED the discount, you can not afford the car to start with. The average person completely wastes more then the total price of their automobile on stuff you NEVER see, like junk food and bar tabs within 3 years. Paying more then $20 bucks for Nike Air shoes or more then $.25 for a bottle of water is silly, not 6-8% over cost on a car.

Most people would NEVER make the deal they want from a dealer if THEY owned the dealer. I bet you would want KBB blue-book for a car you were trying to sell yourself. If I walked up to you and offered to buy it for $3000 less then your 'cheapest' price you would let it go for, would you let me have it? If the answer is no, then WHY? If KBB says your car is worth $12,000, and you want $10,500 for it, why wouldn't you let it go for $6,800 if I told you that was my final offer, cash or I walk....what would you do? And why?

 

The new Thunderbirds were selling for $10,000 over invoice, now they can't give em away.

 

Don't pay the MSRP.

There are so many Ford dealers that just a little shopping around will ensure you don't have to pay full sticker.

The dealers in my area have told me straight out they will honor A/X/Z Plans. To quote one of the salesmen, "We'd lose business down the road if we didn't".

 

It is simple economics,

if your local dealer had 5 Mustangs and 10 people want them, expect to pay MSRP, especially if you want to be the one of the first guys in your area to have one.

Shop around, don't just go to the closest dealer to your house and say "i'll take it", but at the same time it is foolish to think that you can get the car for invoice price when there is pent-up demand for this car. Many people here have been waiting over 2 years for this new Mustang (myself, Dan, Boomer, among many).

I for one will try to get the best deal I can, but at the same time, I am not going to wait until '06 or even '07 to get a Mustang with rebates on it.

Most of the cars listed with heavy markups are low-volume cars. Even when the PT Cruiser and New Beetle hit the market, their production volumes were very low, almost fuelling the hype machine. Once production numbers went up, the markups went away as well.

Ford plans on building 170-180K Mustangs for '05, with that, there should be enough to avoid any HUGE markups over MSRP

Question for some of the guys who were in the car market in 1994, I remember the '94 Mustang being a hot hot seller as well, were there any markups on that car?

 

Firtst off let me say that I work for a One Price dealer that sells EVERY new Ford(excluding, the GT and Hybrid) at $200 UNDER invoice. That being said, if a dealers market and customer base allows them an additional mark up on the vehicle so be it. You refer this to "raping" the public. I believe that rape is a forced action. Nobody is forcing you to pay any particular price. You have two options, shop around or don't buy right now.

If MSRP is $23,000 you think it absurd to pay $28,000 but if the manufacturer sets MSRP at $28,000 you'll happily pay it.

I agree that taking advantage on a hot product is agravating to the people that want them. But just like real estate, the buyer sets the market pricing not the seller.

 

Thanks for all the insight... My goal is to be able to walk into the dealership... test drive my car, then give the salesperson a piece of paper with exactly what Im willing to pay for it... which from what Im told, about $500 over invoice is a good starter...

Btw, I apologize if this topic spawned some heated conversation, that was not my intent... Its been 5 years since I bought a car and that was pretty painless... ended up with 250 over invoice, because my mother-in-law was a pain in their rump.. LOL

Thanks again.

 

Hey Kev...I think the point some people are trying to make is that it's basic supply and demand (with a twist). Let's say there are dealers out ther willing to sell for invoice or 500 above invoice or whatever...In my eyes that's what the car is worth and that's what I want to pay for it. When I buy anything...if a few minutes of research can save me some bucks, whether or not i can afford the non-sale price shouldn't matter. I'm still gonna want to save some money. And by me being able to get the car at invoice or below compared to msrp...well...that is a SIGNIFICANT savings! And I will jump at that opportunity.