Wow!!! I stopped by a Ford dealership today, they had a white with blue stripes 2008 GT500 on the ground sitting outside with a $20,000.00 ADM, and a 2008 Highland Green Bullitt in the showroom with a $6,500.00 ADM. The guy asked me if I wanted to take the GT500 for a ride, I told him I did not, because it was $20,000.00 over priced. I told him it would be sitting there for sale for a long time with that ADM. I told him he really ought to check the market; the days of those obscene ADM’s were over. What the heck are they thinking?

 

They are just stupid! Guess they want that car as a lot jockey! Some places MSRP is obtainable, in other markets, the markup is very little at only a few thousand $$$ over. More realistic now.

Now, that Bullitt ADM, somoeone should just slap the management for doing that!

 

Earlier this month, I saw a Bullitt on a dealer lot with a $10k admin fee! They quickly came down to MSRP, but they wanted to keep the $2500 rebate. I told them NO THANKS and walked out!

 

I just bought a Bullitt at below MSRP. They also had 2 shelbys and a Saleen all at stupid markups.

 

I just don't know what dealers are trying to accomplish with prices like that.............

 

We're constantly sold out of GT500's and sold our most recent '08 coupe for under $50K. The market around our area is MSRP, or just slightly higher by a couple grand.

All of our Bullitts have been sold at MSRP so far, but we have two in stock today (both HG) that will likely be repriced below MSRP very soon, as the market for Bullitts is a little soft.

All of our V6, GT, and California Specials are just $50 over the invoice total, so with the $1,500 rebate they end up being $1,450 below the invoice total! Trying to move 'em all out now that the '09 ordering has begun and the '10's start production in January.

 

The dealership I use for parts and service has a vapor w/black stripe GT500 with a $20,000 ADM mark up as of last weekend.

 

A dealership within 10 miles of this one had a 2007 GT500 sitting on their showroom floor with ADM of $25,000 on it for over a year, they ended up selling it late last year for $3,000 over MSRP...

These Guys are crazy.

 

Greedy gouging bastards, the lot of 'em.

 

The party is over for the dealers. It is no longer 2005 when consumer goods and gas prices were half of what they are now. If the want to sell they have to deal.

Perhaps they can take a hint from the old cliche... "it's the economy, stupid".

 

Automotive dealers have the lowest profit margin of any retailer, and among the highest opperating costs. Even at MSRP its nothing compared to any electronics, clothing, or (god forbid) jewelry store where everyone just bends over and smiles. Buy $30k worth of Coach purses-the store made $10,000, and Coach made another $18,000. Buy $30k of car at a dealer, and it made about $2500 gross at MSRP (let alone the cost of rent for acres of land in the middle of town, enough for 200 Coach stores to set up shop, and sit on 3-15 million in inventory to 'shop' from)....Home Depot pulls in at least 35% at the store alone, Walmart over 50% profit. So whine about dealers all you want, you just got bent over on that Big Gulp(6 cents total investment with the cup maybe??). And don't get me started on the resale value 3 years later of a pair of Nike shoes made in Malaysia you paid $120 for....

The average dealership runs at an overall profit loss in sales and makes up for it in parts and service with over $1mil a month(versus say -80k retail on a good month). If YOU were drop kicked in the place of a dealership owner, after one day you would be in therapy. If a GT500 were sold at say, a Nike shoe outlet margin, it would have a $550,000 markup on it.

 

And over here in Canada, Bullitts are on the lot for $40K

 

Regardless of what profit actually is made by the dealer or by Ford, I think the dealers also tack on these ADMs when the car first arrives because the car brings in foot traffic. Once in a while, that foot trafic leads to the sale of a completely different car. One more sale than would have been made without the Shelby or Bullitt in the window to draw attention to the dealership.

We have a Ford, a Dodge and a Chevy dealer right next to each other near by. They each always got some attention grabber out front. Sometimes it a used but pristine Monster Truck. But I've seen Shelby GTs, various Datona Chargers, Vettes, Hot rodded "lead-sleads" and lines of brightly colored GTOs and even boats and jet skis. The GT500s and Bullitts remain inside at the Ford dealer.

The Chevy dealer often has its cars parked out by the street with their lights on and flashing to grab even more atention (it is actually almost dangerously distracting while driving by).

Anything to get attention, right?

 

I would argue grocery stores and pharmacies have lower profit margins than car dealers, but you are correct about the markup of coach purses, jewelry, et al

 

Wow, 50% profit at a Walmart. Have you ever seen a Walmart P&L? Probably not, because the the P&L's I see are usually a little closer to 20% gross and 3% to 5% net. You should stick to what you know and not pull #'s from who knows where......