houtex

I had this guy come in my dealership, and wanted to order an 05 Mustang GT. Which was fine by me, he looked like a responsible person, and we can get anybody credit. No problem.

We got the options, color, etc, all worked out. It came time to talk about the bottom lines, when he hit me with "Oh, I have an Xplan pin, can I use it?"

Being the up front salesperson I was, I admitted to him that it was unlikely. Our allocation, while not small, was not such that the sales mangers and owner felt they could spare Xplans for the '05 Mustangs.

I started to tell him how V6s could be had for MSRP and the GTs were getting $2k over (which is less than some places, mind) when he cuts me off and says to me "Well, here's the thing. Either you get me the Xplan, or I'll go somewhere else to buy the car."

I asked him real quick if there'd be another car, say a Focus ZX, that he could use the Xplan pin on instead of the Mustang? Because that I could do, no problem. Or maybe an F150?

Nope, it was the Mustang GT or nothing, he says.

Well, at that point, I realized it was futile. We talked briefly a bit more, trying to get him to buy the car here, as that's my job. At the end, I wished him well, of course, on his search for an Xplan for the '05. And of course, I give him my card and ask him to call me when the furor dies down or if, remote as that is, he decides to buy from here with the markup.

But inside I was seething. And I had to face my manager on that. You know, you get that 3 or 4 times a week, the time spent, and it looks like I'm lollygagging. Which is not true. The NERVE of the guy to come in to this dealership, and ask for an Xplan. The car is dang near unobtainable, and he wants an Xplan. I can get Xplan on anything but that car. Greedy buyers. Always trying to bend us over on price. We gotta eat too, ya know.

Well, that's my story. Opinions?

/the preceeding is fictional, but is probably happening in real life ™.
//Are the dealers really greedy folks? Methinks the pot is calling kettle some names...
///yep, I'm officially tired of the whole greedy dealer thing. And NO, I am not a dealer or salesperson. I just work on their computers.

Giddyup

Yo Mike, repeat customers and word of mouth do as much/more for a dealership as anything else, and if someone has X-Y-or Z Plan, then it should be good on any vehicle IMO.

69stang351w

I think at this point in the game, getting 05 Mustang GT is a rare thing! (even more on plan). 06 maybe a better chance, hope so for all that want them!
I was one of a few to get Xplan here on GT. The cars now are all above msrp and being out here (Hawaii) does not make it better!
Happy Trails!!!

icemant180

I fail to see how a buyer is greedy, he was prepared to spend money at your dealership. He has an x-plan and the mustang is not an excluded vehicle. He is doing the right thing by going to different dealers until he finds one that will honor the plan. The way I see it, it's your dealership that is greedy.

ponyboy66

I have to say that you have lost at least one customer and more than likely many more.

I had this very discussion with my dealer when I picked up my car Thursday night.

I explained to him that some dealerships are not excepting plans on the '05 because the dealer knows that they can get more.

My sales manager said that the owner takes the complete opposite point of view to that.

He says "We're not selling a mustang at ? plan price, we are selling that F-150, or 500 or focus down the road and to the customers neighbors and friends." "It is more important that we have a good reputation in the community than make a few extra bucks on a sale." I asked him if I walked into the dealership today and asked for X-Plan would he take.
He matter-of-factly said "Yes".

My opinion.
You have just lost a lot more dollars in future sales than you would have made on the difference between the plan price and your mark up.
You can say not. But this guy will definatley spread the word about his experience.

That is the cold reality.

Good luck.

FourLights

I get tired of the whole "greedy dealer" thing too, and I am also not a dealer. Hey, it is a free market and if you want to sell a car with a mark-up that is fine with me. I as a customer can decide to buy from you or not, it is nothing personal, just business.

On the other side of the coin, the dealer should not be upset about a customer holding out for x-plan, that is their porogative.

I like to see that this car is so in demand, makes me feel good about my purchase. I know it won't last forever.

1 COBRA

Well MikeyB, the fictional story probably turns to reality many times over daily. But to each his own. The dealers can enjoy the advantage for a while since it won't last forever and those who are helping their position better have plans to keep their cars for a long time. They'll get a rude awakening if the time ever comes for trading or selling. That's right guys. No soup (SEs/Cobras) for you!

But there is a bright side... that is, driving with the fog lights on.

And they are bright.

ekessler507

Greedy buyer or greedy dealer? :scratch:

The process of purchasing a vehcile, whether new or used, can be a real pain the azz ... PERIOD! :bang: It is almost like the chicken or the egg. Did the dealer gouge the customer on the first ever vehicle sale or did the customer rob the dealer blind on the deal? The world will never know.

Thw whole process could be simplified by making the sale price the sale price and the customer gets any and all incentives, plans, etc. However, that will never come to pass. Dealers will continue to try and make as much as possible in the deal by marking prices up, hiding costs, and omitting to tell the buyer what incentives or plans are available to him/her. That is about the ONLY constant that the buyer is armed with when visit a dealer.

Yes, dealers need to make money, that is why they are in business. IMHO though, many more vehicles would be sold if there was less chess play and more relationship building. If I could find a dealer that wasn't after the lint in my pocket, they could pretty much guarantee that I would ALWAYS give them first crack at selling me a vehicle ... ALWAYS!


EK

Danalor

Greedy buyers? How about the dealerships who are marking up the GT's because of it's popularity and availability. Your dealership is $2000 over, and your owner will more than likely raise that as the demand continues to grow.

When I purchased my V6, I knew how much I was willing to spend and how much I could comfortably afford. Doesn't make me greedy, I'm just trying to stay within my budget.
Your statement of "I can get the X Plan on any other model" clearly demonstrates your dealerships greed in wanting to cash in on the maximum profit they can get on the GT's why else would it be marked up $2000 over msrp.

WBstangGT

So which are you the dealer or the buyer? The way you wrote that up makes you sound like you are the dealer, and at the bottom you went the opposite way of your title and said you are tired of greedy buyers. SO which is it?

Cooolcobra

I've had my GT for 3 weeks now. I didn't order it, I found it in Florida. I got "A" plan price without a problem. I consider myself very lucky. Oh by the way I work at a Ford dealer and they told me I wouldn't get one till next year! :notnice: Now that I have one everyone who talks to me asks me if my employer "took care of me" that's when I chuckle and tell them I had to buy it from Palm Coast Ford in Florida ! So while my dealership couldn't help me they probably will lose a few more customers that don't have any plan pricing. All I can say is GOOD job,way to think ahead ! Get alittle more money now or a lot less later. Word of mouth is very powerful !!!!

hispony

There are good dealers who go out of their way to get you the lowest price possible. Just happened to us with an '05 Expedition.
Multi-year relationship with the dealer, muti-thousand savings on price

There are bad dealers who think they can get a few more thousand out of you because someone will pay to get a car now.

Thre are in-between dealers who don't drift from MSRP.

You have to shop around and find a dealer you feel comfortable with and would buy another vehicle from.

foxhtn

We gotta eat too, ya know. [QUOTE]

Yeah, but knowing when to get up from the table, is another matter!

Zip34

I have to say that if it wasn't for my salesperson, I don't think I would be driving my GT 'Stang right now. He told me he would sell it to me for x-plan, but when the car arrived his GM was dumbfounded. I actually heard, "What do you mean X-PLAN!". My salesperson, who has been with Ford for many years, just said, "That's right. His parents bought from me and now he is buying from me. I'm building a family and friends customer base."

After that my salesperson walked over to the desk, did up the numbers, and I drove away in my 'Stang.

Needless to say, they will be getting more business either from me or anyone else I can recommend. But I will be sending them directly to my salesperson.

Horseowner

Consumers want to pay the least amount possible. Just take a look around for your small, hometown, full-service mom&pop hardware store, grocery store, clothing store, shoe store, etc., etc., etc. and then take a look at all the new WalMarts, Home Depots, etc. that have replaced them.

Customers TALK about "loyalty" and "service" and "long-term relationships" but when it comes time to actually spend money about 99% throw all of those warm, fuzzy feelings out the window and want to know "how cheap can I get it?"

That's how all those mom & pop stores who spent 3, 4 or 5 generations building "customer loyalty" and "community goodwill" all went bankrupt in just one generation. It's also how all of our manufacturing went overseas- because nobody wanted to buy a US made Zenith when they could get a Japanese made Sony for less. Same with import shoes, clothing, etc. We vote with our wallets every single day.

Dealers, on the other hand, practically give away whatever's NOT in demand at the moment which is most vehicles, most of the time. Just take a look at the incentives, rebates and invoice pricing on most vehicles today. Once in a blue moon a vehicle comes along where the dealer has a chance to actually make a significant profit and we want to deny them the rare privilege. Never mind that we beat the dealer down to invoice on the Expedition, then got 0 % financing and a free DVD player, etc. Now we want the same deal on our Mustang GT. MSRP wasn't "fair pricing" on the Expedition but suddenly it's "fair pricing" on the GT?!?

It's really just supply and demand. Every customer wants to pay the least amount possible- whether it's for groceries, shoes, hardware or automobiles. And every retailer wants to make the most profit possible- regardless of the product.

It's the American way.

From my point of view there was nothing wrong with the "customer" in this fictitious story EXCEPT that he failed to disclose his X-plan pin number up front. That would have made it a painless, 3-minute conversation on everyone's part.

"Do you accept X-plan pins on '05 Mustang GT's?"

"No, I'm sorry. We don't accept X-plans on GT's at this time."

The customer has the right to ask, and the dealer has the right to refuse.

There's nothing "virtuous" in today's consumer... none of us. We'll do just about anything to get more for our money and we'll always whine if we can't. Likewise there's little that's "virtuous" about a dealer: They're there for one reason and one reason only: To make money.

As the old saying goes: "You've got to make money off your friends because your enemies won't do business with you."

So too with a dealer- You've got to make money off the models that are hot because you sure won't make any money off the models that nobody wants.

It only depends on your point of view,

Steve

TheLegend

I agree. There are dealerships out there that do take XPlan. I think the buyer did the right thing by leaving and going to shop around. Why should he do business with your dealership. What makes you special? #1 You would not except his Xplan,#2 you marked the car up 2 grand.

I walked in my delaership back in October to get my GT. I was the first one that bought a GT from the dealer and the markup was zero. By the way I didnt have any connections. The demand back then was even higher as there was no V6's or GT's on the road or on the lots. I had to test drive a V6 to get a feel of the car. Never could find a GT to test drive so when my car came in it was the 1st GT I had seen and driven.

I understand that these dealers are in the business to make money but dont forget that buyers are in the business to save money and not throw it away to dealers with crazy markups. So I think that dealers should respect the fact that there are buyers out there that dont want to drive a car off the lot and be under 4-5 grand on there loan that same second.

Boomer

-With XPlan, the dealership gets a kickback

-the customer does not have to bargain, it is set price in a setup ford plan. which in turn will probably turn more cars for them in the long run, than gouging someone in the short.

-they don't loss money on the sale. they may not GAIN as much in the end, if they think they can sell it at a higher price to someone else to gain more profit.

What does this show me?
Its a greedy dealer
He can sell 2 cars on xplan or 1 car at the ____ ammount to equal the ammount of money made on the 2 car/xplan scenario.
but they'd rather sell 2 cars at the _____ price, or more... and more...and more

THAT is greed.


Not all dealerships do this mind you.
But the scenario here we are talking about is...

Webba

We can all have our own opinions either for or against the dealer raping people but the above quuote I thought was fantastic by his salesperson. How the heck often does someone in any business do what that salesperson did. And you know after he left the dealership the sales manager climbed allover him. And IMO the salesperson was right. His customers will keep coming back and will tell all his freinds, family, and acquantinces about the great experiance he had. That salesperson is the type of worker you hire for life.

EleanorsMine

To me a greedy dealer is the one who takes his many mustangs and adds silly things like side graphics, plastic vents and hood scoops, little paint jobs(painting the spoiler to match something else) or adding those godawful Ford racing stripes and then tacking that price onto the sticker. Buyer has no choice but to pay it.

Worst offense of all, the STANG package-- that is quite possibly the ugliest 05 ever created... the SEATS even have the count chocula STANG written on em.

Budette

This sounds like the perfect way to give it back to the dealers.

They are so "hepped" up to play the "these are so rare and hard to get" in order to make the stinker money on the new Mustang GT. Go in, play serious to buy, go through all the paperwork (making sure it takes up a at least an hour), waste their time and walk out! On the way out say, "How does feel to get it the same way your giving it!"

With dealers being independent resellers, who unfortunately most customers see as FORD itself, attempting to live for the moment it's no wonder FORD is having problems. Until FORD addresses the problem in a responsible manner, for example starting with: "We believe MSRP is the correct price for the vehicle, and while dealers are free to set any price they want, FORD recommends customers seek out reputable dealers who are looking to sustain customers for the long term, not those who are alienating the buying public because of overzealous greed," and then work to support dealers who have FORD's long term intrests in sync with their own.

Ford is dying from the cancer within, unscruplous dealers, not from bad products.

Sorry for the rant.