Dealer Markups, opinions?
Thought I would open this can of worms up and see what everyone thinks.
I want to buy a Shelby and can handle the $40,000 price tag, but its definitely at the top of my price limit. As a matter of principal, I won't pay a dealer markup and have rarely paid much over invoice for a vehicle. I would be willing to pay MSRP on a limited production car though. I'm not independently wealthy so money is an issue.
So what does everyone think? Would you pay the dealer markup? If so, how much would you be willing to pay?
I want to buy a Shelby and can handle the $40,000 price tag, but its definitely at the top of my price limit. As a matter of principal, I won't pay a dealer markup and have rarely paid much over invoice for a vehicle. I would be willing to pay MSRP on a limited production car though. I'm not independently wealthy so money is an issue.
So what does everyone think? Would you pay the dealer markup? If so, how much would you be willing to pay?
I'm sure they're going to mark the GT-500 up, but I'm not going to pay it. I qualify for Z-plan but don't have a frame of reference to know how difficult it is to use Z on a specialty car like the Cobra (and now that Shelby's name is attached to it, it'll likely be worse).
I'll wait till later in the production cycle to get a better deal if I have to. My financial situation may dictate that anyway. Being first on the block is awesome, but comes at too high a price for me.
I'll wait till later in the production cycle to get a better deal if I have to. My financial situation may dictate that anyway. Being first on the block is awesome, but comes at too high a price for me.
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I made deals for the Bullitt (ordered), Mach 1 (ordered), and Cobra (on dealer lot) never paying more than $1K over invoice, and that was for the Cobra which a lot of dealers had $3 - 5K over invoice because of the MC option.
Originally posted by rarecat@March 24, 2005, 10:33 AM
I'm with you, I'll never pay ADM on principle alone, but will likely pay MSRP. I do have X-Plan at my disposal, but doubt I could find any dealer willing to do the deal.....
I'm with you, I'll never pay ADM on principle alone, but will likely pay MSRP. I do have X-Plan at my disposal, but doubt I could find any dealer willing to do the deal.....
My budget is really about $35,000 for a car, but I can stretch it to 40, but thats really about it.
Originally posted by 1 BULLITT@March 24, 2005, 10:40 AM
I made deals for the Bullitt (ordered), Mach 1 (ordered), and Cobra (on dealer lot) never paying more than $1K over invoice, and that was for the Cobra which a lot of dealers had $3 - 5K over invoice because of the MC option.
I made deals for the Bullitt (ordered), Mach 1 (ordered), and Cobra (on dealer lot) never paying more than $1K over invoice, and that was for the Cobra which a lot of dealers had $3 - 5K over invoice because of the MC option.
$40k is a little large for me as it is, let alone markups. Plus, we don't know what they will cut out in the production model (leather interior pieces?, brake size?, eaton instead of whipple?). And I generally hold the notion that no car is worth paying the dealer over MSRP just for the privaledge to buy.
Plus, at that price, modding up a stock GT is starting to look pretty attractive. I can do a lot with $12k, and I really don't care about resale value.
Plus, at that price, modding up a stock GT is starting to look pretty attractive. I can do a lot with $12k, and I really don't care about resale value.
One thing's for sure, I'd probably have to go long-range just to find one SVT dealer. We only have one Ford dealer in my town, I think the nearest SVT dealer may be in Tampa.
My family lives in Detroit though. I might go back up there to look around.
My family lives in Detroit though. I might go back up there to look around.
If you want the car, pay for it. MSRP is a SUGGESTED price, not set in stone. Most cars can be bought for well under this price because this is what the buying market dictates. Conversely, a highly sought-after limited production vehicle will bring well over MSRP because this is what the buying market dictates. It's all about supply and demand. Dealers are not screwing people any more than the guy that takes his $500,000 Enzo to Barrett-Jackson and gets $1,000,000 for it. He sold it for what someone was willing to pay. If NO ONE pays over MSRP for the Shelby, then you will be able to buy one for less. Again, it all boils down to how much the car is worth to YOU. Throw principle out the window...
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Originally posted by Flyinlow@March 24, 2005, 10:45 AM
You probably have the advantage of more dealers in your area. I'm limited to two, and would likely have to go to Chicago to find more dealers for SVT.
You probably have the advantage of more dealers in your area. I'm limited to two, and would likely have to go to Chicago to find more dealers for SVT.
Originally posted by 1 BULLITT+March 24, 2005, 9:57 AM--><div class='quotetop'>QUOTE(1 BULLITT @ March 24, 2005, 9:57 AM)</div><div class='quotemain'><!--QuoteBegin-Flyinlow@March 24, 2005, 10:45 AM
You probably have the advantage of more dealers in your area. I'm limited to two, and would likely have to go to Chicago to find more dealers for SVT.
You probably have the advantage of more dealers in your area. I'm limited to two, and would likely have to go to Chicago to find more dealers for SVT.
[/b][/quote]
I just said this in another thread
Originally posted by Rampant@March 24, 2005, 10:46 AM
$40k is a little large for me as it is, let alone markups. Plus, we don't know what they will cut out in the production model (leather interior pieces?, brake size?, eaton instead of whipple?). And I generally hold the notion that no car is worth paying the dealer over MSRP just for the privaledge to buy.
Plus, at that price, modding up a stock GT is starting to look pretty attractive. I can do a lot with $12k, and I really don't care about resale value.
$40k is a little large for me as it is, let alone markups. Plus, we don't know what they will cut out in the production model (leather interior pieces?, brake size?, eaton instead of whipple?). And I generally hold the notion that no car is worth paying the dealer over MSRP just for the privaledge to buy.
Plus, at that price, modding up a stock GT is starting to look pretty attractive. I can do a lot with $12k, and I really don't care about resale value.
I wont pay markup on anything. People that do are nuts, it wont be long before you could get one for MSRP or less. I imagine there will be markups for 6 months on the new cobra but then it should calm down a bit. I dont see them going for much less than MSRP for some time though.
People paid crazy markup on ZR-1 corvettes when they came out in 1990. This has to be one of the worst in history. Then they were offered at discounts 6 months later.
People payed extra for 03 cobras even.
People paid markups on 2005 GT's now dealers have them in stock for msrp or less.
Believe it or not people even paid markups on the 2004 GTO's when it first came out. Now you know those guys are really kicking themselves when local dealers are selling new ones at $7000 less than sticker.
I just dont understand the logic of paying more "Ohhh I had the only one in the area for 2 months" . Thats not worth a $5000 premium to me.
People paid crazy markup on ZR-1 corvettes when they came out in 1990. This has to be one of the worst in history. Then they were offered at discounts 6 months later.
People payed extra for 03 cobras even.
People paid markups on 2005 GT's now dealers have them in stock for msrp or less.
Believe it or not people even paid markups on the 2004 GTO's when it first came out. Now you know those guys are really kicking themselves when local dealers are selling new ones at $7000 less than sticker.
I just dont understand the logic of paying more "Ohhh I had the only one in the area for 2 months" . Thats not worth a $5000 premium to me.
It is a highly desirable, low production vehicle, expect markups. At least for the first couple years of production. Most instances the markups dealers put on cars are purposely meant to keep the car from selling so that way they can keep it in their showrooms. I wouldn't be surprised to see $10k markups on this car.
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I resent such outrageous implication since I probably happen to be the brightest, most resourceful, sensible, and intellectual TMS member roaming these boards.
Thank you, thank you all for the standing ovation!
:bowdown:
This brings up a very interesting point. I read many times that people would be willing to pay $40,000 for this car. According to all the early information it looks like it will be a good value at $40,000. What happens if MSRP is $37,000 will everyone still be willing to pay $40,000 or is it now only a value at $37,000 then? Conversely, people won't pay estimated MSRP of $40,000 + $5,000, but if MSRP is $45,000 they will happily pay it because they are only paying MSRP.
Originally posted by Karpro@March 24, 2005, 10:27 AM
This brings up a very interesting point. I read many times that people would be willing to pay $40,000 for this car. According to all the early information it looks like it will be a good value at $40,000. What happens if MSRP is $37,000 will everyone still be willing to pay $40,000 or is it now only a value at $37,000 then? Conversely, people won't pay estimated MSRP of $40,000 + $5,000, but if MSRP is $45,000 they will happily pay it because they are only paying MSRP.
This brings up a very interesting point. I read many times that people would be willing to pay $40,000 for this car. According to all the early information it looks like it will be a good value at $40,000. What happens if MSRP is $37,000 will everyone still be willing to pay $40,000 or is it now only a value at $37,000 then? Conversely, people won't pay estimated MSRP of $40,000 + $5,000, but if MSRP is $45,000 they will happily pay it because they are only paying MSRP.
Originally posted by 1 BULLITT+March 24, 2005, 8:12 AM--><div class='quotetop'>QUOTE(1 BULLITT @ March 24, 2005, 8:12 AM)</div><div class='quotemain'><!--QuoteBegin-PACETTR@March 24, 2005, 10:59 AM
I resent such outrageous implication since I probably happen to be the brightest, most resourceful, sensible, and intellectual TMS member roaming these boards.
Thank you, thank you all for the standing ovation!
[/b][/quote]
sure
My limit is $40,000, so if the MSRP is $37,000 and they marked it up to $40,000, I would consider buying it. Beyond that I just can't swing it and at $40,000 I have used up my safety margin.
Originally posted by Karpro@March 24, 2005, 10:27 AM
This brings up a very interesting point. I read many times that people would be willing to pay $40,000 for this car. According to all the early information it looks like it will be a good value at $40,000. What happens if MSRP is $37,000 will everyone still be willing to pay $40,000 or is it now only a value at $37,000 then? Conversely, people won't pay estimated MSRP of $40,000 + $5,000, but if MSRP is $45,000 they will happily pay it because they are only paying MSRP.
This brings up a very interesting point. I read many times that people would be willing to pay $40,000 for this car. According to all the early information it looks like it will be a good value at $40,000. What happens if MSRP is $37,000 will everyone still be willing to pay $40,000 or is it now only a value at $37,000 then? Conversely, people won't pay estimated MSRP of $40,000 + $5,000, but if MSRP is $45,000 they will happily pay it because they are only paying MSRP.
But also what people say in a forum and what they would really do, or are capable of, arent always the same. Im sure more than 1 of the guys saying they are willing to pay $40,000 for it, couldnt afford to pay $10,000 for it in reality.


