Dealer Markups
 

A lot of people seem to be flipping out over dealer markups on Mustang special editions. They also seem to angry at Ford for not doing anything about said markups.

Does ANY automaker do anything to discourage dealer markup on their popular new models? As dealers are indivdual businesses that buy cars from the automakers, what could any automaker do to penalize a dealer for making extra profit on a sale?

Any hot new model the debuts seems to be marked up at the dealer for the first year or so, then when demand dies down, they start selling at MSRP or below. Then once the vehicle has been on the market long enough for sales to drop, the dealer incentives start.

I don't like "market adjustments" either, and when I ordered my Mustang, I just had to shop around and find a dealer that was willing to sell at MSRP, which I thought was fair. I didn't look at some of the dealers like Vancouver Ford, who were adding a $5K markup on a GT and say "Curse you Ford! It's your fault! I'll NEVER buy a Ford AGAIN!!!!" I'm just never going to buy from that individual dealer. Ever.

You've got the right idea: don't boycott the brand; boycott the dealers.

Exactly what I am (will be) doing. Problem is, they still hurt the company's reputation = decline in market share.

What amuses me is that people think cars like the Veyron go for MSRP. If you have to ask....

The minute the next Ferrari model is released, go to a dealer and ask for one at MSRP.

Ferrari and Ford produce vehicles aimed at different ends of the market. Ford for the working everyman, Ferrari for the working everyman's company chairman. If you can afford to get into that rarefied end of the performance spectrum, price is the least of your worries. Then there's the rest of us.

Actually Kevin, that isn't always true. I have a friend who went half's with his brother on the brand new Ferrari 599 GTB Fiorano. They both put down $50,000, and ordered it to their exact specs. Price was in the mid $200 range. They paid MSRP!!! They were going ot keep it for an investment, but they really didn't like it (the quality, not the speed. It was fast as ****). Now, they did sell it, for a VERY healthy profit, about 3 weeks after getting it. Ferrari isn't unlike Ford. They want the dealers to sell at MSRP, and can actually do something to them if they don't. Now, when that car comes back, as a used vehicle, they can sell it for whatever they want. All Enzos sold went to customers who bought Ferrari's supercars in the past, and they were at MSRP! Now, when a used Enzo pops up, they are going for over a Million dollars.

I was just at the local Lamborghini dealer last Sunday. They have a Gallardo Spyder out front. MSRP is $245,000. NO ADM sticker on the window. They have to have one of these on it, if they want to add to the sticker.

because there are folks out there who simply must be the first on the block to own something .. people paid twice sticker for pt cruisers when they first came out .. people will knock you down to see a stupid movie just because pro mo`s say it`s a must see film ... iv`e said many times .. humanity has become as sheep waiting to be led to slaughter