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Ford dealers planning major markups on Shelby GT500

05/16/2006, 9:11 AM

By admin

Some Ford dealers are set to rake in as much as $25,000 over the suggested retail price for the Shelby GT500 Mustang. While Ford hasn’t officially announced a price for the car that goes on sale this summer, it’s widely expected to cost about $40,000. While Ford is strongly discouraging such markups, several dealers are already using auction service eBay to find the highest bidders. In a check this morning by Leftlane, several GT500s were going for between $10,000 and $25,000 over MSRP. “Buy It Now” prices were between $75,000 and $100,000. Last week, Ford told dealers it was boosting production of the GT500 to 9,000 units a year. The move came in response to strong demand, and in an effort to discourage price gouging. In January, we reported that some Pontiac dealers were selling the popular Solstice for $5,000 to $10,000 over MSRP.

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05/16, 9:17 AM

posted by:

Curtis

Ford drop all the old cars and come out with something new!

05/16, 9:18 AM

posted by:

Zarba

And a year after they come out they’ll be at CarMax for $25,000.

05/16, 9:29 AM

posted by:

peter g

If you want ‘em, you pay…

05/16, 9:43 AM

posted by:

Adam

Why on earth would you pay that much? With Ford inceasing production, this pretty much ensures that this car wont be collectible (at least not for a VERY long time) making the mark ups even more ridiculous.

05/16, 9:48 AM

posted by:

bill

““Buy It Nowâ€? prices were between $75,000 and $100,000″

HAHAHAHAHAHAHAHAHA

05/16, 10:04 AM

posted by:

Andre Neves

THIS is why and how dealerships/salesmen have such a bad image of being crooks. They’re always trying to find a way to screw the customers. And then they act like they care about them. Manufactures should control the prices the cars sell for, not the dealerships.
Reminds me of when last year me and my girlfriend were car shopping(for her) and we stopped by a Ford dealership to enquire on the mustang GT. They were selling them for $4-5K over the sticker. I asked one of the salesman why they were doing this and his response was, “because it’s the hottest car on the market right now and there is HIGH demand for them”. I laughed in his face, “right, in the end your still paying almost $35,000 for a Mustang GT. For that much there are so many other BETTER cars she’d rather spend her money on”, and I walked away. almost a month later, I drove by the dealership and they had EVERY single one of the same cars STILL sitting on their lot & showroom.

I know when I baught my ‘04 Dodge Srt-4 that all the “Five Star”(authorized) Dodge dealerships had the car selling at sticker. There was no mark up. But when I dropped by another non-five star dealership, they had one marked up $2,000. And it sat in that showroom for about a month also.

05/16, 10:08 AM

posted by:

Andre Neves

$75,000-$100,000…
in the end it’s still a $100,000 mustang.

05/16, 10:12 AM

posted by:

Anonymous

Re-read #2. Zarba nailed it.

j i m

05/16, 11:13 AM

posted by:

tino

this isn’t spiffy at all :-(

05/16, 12:00 PM

posted by:

aj

I agree with all of these comments about gouging, and car dealers looking like crooks when they do crap like this, but really, it’s logical and makes great business sense when there are idiots out there paying those prices. I say to the dealers on this one – it’s a novelty, get them for as much as you can!

05/16, 12:25 PM

posted by:

mohammed

Rather buy a M5 anyday anytime

05/16, 12:38 PM

posted by:

Jay

# 5- How astute of you to generalize. I am an automotive sales professional, dedicated and proud. I have well over 1000 customers in my database and I can personally guarantee you NONE of them would consider me a crook. I know there are those out there that do not conduct themselves as professionally as we would all like, but that is indicative of any cross-section of humanity. It is a shame that you have had a bad experience somewhere and now look down on my profession.
As far as overcharging for the Shelby- I have sold 2 now for $17,000 over MSRP. That is what the customer offered!!!!!!!!!! Am I a crook for accepting his offer??? Your stance on the issue seems awfully judgemental; you have no idea why the customer wanted them, how he earned the money to buy them or what he’ll do with them when he takes delivery- that is his business. Let me ask you this- if you wanted to sell your house and it was appraised for 100k, you were asking 120k and someone offered you 150k would you take it, or would that be higway robbery?
Besides, there is no other sportscar in the world with 500 horsepower available for less than 50k$ Overall he will have about 55-60k for a car that has 500 horspower and will go 0-60 in about 4 seconds. Good for him.

05/16, 1:12 PM

posted by:

anonymous

I think it makes sense. Only rich people can buy them, so they might as well get more out of them. It’s not like anyone who is going to buy one can’t afford to pay extra anyway. And with the rise in gas prices, cars like this should be marked up.

05/16, 1:15 PM

posted by:

af

#12 — nice try, crook.

05/16, 1:52 PM

posted by:

SJS

If Ford really wanted to discourage this they would make the retailers sign contracts that prohibited them from selling over MSRP.

05/16, 2:16 PM

posted by:

gsh

heres the problem with dealers. they dont really know what cars they are selling! a 55k-60k mustang?? what a joke!…its JUNK even with 500HP. you could get a corvette for that money..im not even going to mention the foreign powerhouses you can buy in this price range.

05/16, 2:18 PM

posted by:

Scootness

#15…Ford SELLS the cars to the DEALERS!!! Not directly to the customer. The dealers can charge whatever they want. Besides if you read the stickers they say MSRP–MANUFACTURERS SUGGESTED RETAIL PRICE! SUGGESTED! The dealers can sell it for whatever they want. Clearly you are not going out to buy one but why do you have to piss on those who take pride in owning something that not a lot of others have?

05/16, 2:59 PM

posted by:

anonymous

If dealers sold cars at MSRP they’d be broke in a matter of seconds. Even when they sell you a car cheaper, they just sneak the price in elsewhere.

05/16, 3:40 PM

posted by:

RMN

Dealers are not crooks! Bush is the best president we’ve had this century! Cadillacs are the world standard! Xenu is God!

Some of the above statements may or may not be true. Please consult a physician if you feel dizzy while attempting to understand a car dealer’s method of ripping you off.

05/16, 5:11 PM

posted by:

sean

If dealers sold cars at MSRP, they will be in business forever, because they earn about 4 to 5 grand at MSRP, each car!
I take on the side of the dealer, charge as much as they WANT, just don’t complain when cars don’t sell without HUGE discounts.

Everyone, keep in mind it works bothways!

05/16, 5:41 PM

posted by:

Jay

Sean- I wish that were true. (4-5 grand at MSRP) Average margin is only about 2000-2400. Most internet sites that “teach” people how to buy cars are grossly misinforming, and leave nothing for the salesman to feed his family on, earning a commision off of gross profit. Remember, when you beat a dealer up for their best deal, be fair. A car deal should be fair for both parties. Think about it like this: Lets say you had two customers that just ran out of factory warrenty and both needed to replace a transmission. One customer was very understanding, polite and easy to deal with, and had also allowed you to make a fair amount of profit at the time of purchase. The other customer was a hardcase from day one. Informed you that they were going to shop 10 dealers and whoever sold it the cheapest would get the sale. Now if there is any flexibility in the rules or if anything could be done by the dealer to help ease the cost of replacing that transmission, who do you think the dealer would be more willing to stick their neck out for?????

05/16, 5:55 PM

posted by:

anonymous

Good for them…it’s called supply and demand. Who cares if they mark them up? That’s free market economy. If you don’t like it…don’t buy one. The price will come down eventually.

05/16, 5:57 PM

posted by:

Madcapp

I see a great deal of irony in this because Henry Ford, if You know your history, was staunchly anti-jewish.

05/16, 8:12 PM

posted by:

sean

Jay, I am not going into detail on additional income on top of the 2-2.5 grand per car you mentioned. Idealy I do agree with you, however, my last statement says “it works both ways.”
All dealers want to do is make as much money as possible, most don’t care about service (I own BMW and Mercedes). That’s why even if I wanted to purchase a GT500 for MSRP, “do you think the dealer would be more willing to stick their neck out for” me??

I highly doubt, and that is the topic of this discussion. Don’t charge an arm and a leg on top of the deal, and maybe customers won’t be unfair about what they ask to pay.

05/16, 11:20 PM

posted by:

WHUT

Most Ford dealers will only get 1 or 2, a some will get 3, only a select few will get 4. The reality is, most of the dealers will not charge 20-25 grand over. Here, once again, is the example made of the whole from the few, greedy dealers that only care about lining their pockets. So don’t generalize and say “most don’t care about service”, etc. Most dealers do care about their customers. So much so that the majority of them place severe income penalties on their sales and service staff that get less than perfect customer satisfaction scores. I think Jay is right on, because what generally happens is the guy (or gal) that hammer the dealer down to no profit on price are usually the same ones that end up screwing the same salesperson on their customer survey.

 
 
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