[1stmustang]

This is one of those things that really burns me.. Up here in the Pacific Northwest the call it a
market adjustment and it runs about 5k. I wouldn't even talk to them until they got said they would start at msrp.

Got my v6 for a about 1000 under msrp.

And I agree as long as we just let it go they will keep ripping everyone off.

[MEH362]

I had been looking at and trying to talk my wife into letting me buy a new '05 for a month after they came out. Once I finally got her to agree I went back to the local Ford dealership after work the very next day. That would be GREENVILLE FORD in Greenville, Texas just 30 miles east of Dallas.

All of a sudden they slapped a $3K market adjustment on the car saying that it's really hot. Eventhough they had only sold one (1) GT on the lot since they were introduced five weeks earlier. Nor were they willing to order one from the factory for less than $3k over MSRP.

I told them that they were crazy and that they could find some other sucker to buy the only other GT they had on the lot.

I've purchased a couple of vehicles from them in the past. An Explorer in the 90's and a Ranger just two months prior. I will NOT be back again to buy any vehicle from them in the future.

The following morning before 10am I had a '05 GT Premium ordered from Randall Noe in Terrell Tx for $500 under MSRP with no hassles.

[Ravenblack67]

Why is selling over MSRP a bad thing? Those who want the product bad enough will pay. Others will wait. Ford is on track to make lots and lots of mustangs. The price will drop. The same thing occurs with homes on waterfront lots, aprtments with a great view, plasma TV, designer clothes, courtside basketball seats, etc. God bless America where you can charge what the market will bear.

[Peet]

I just started down this road. I've been a german car owner for yers now (3 BMWs, 2 Mercedes) and the reason I left BMW for Mercedes was the price gouging on newly introduced models. The reason I'm leaving mercedes (honestly - makes me feel dead on the inside )... but that's a different story.

I'm in a suburb of Chicago. In our market we have approximately 40 dealers. Out of the 40 dealers I'd venture an estimate that about half of them have GTs in stock. Some have one, and some have 3-4. I've been watching this market for two weeks now. The dealers with one are rotating stock. People come buy and leave. The ones with 3-4 keep the same 3-4. Now that I'm ready to buy, I called around. Being an xplan participant, I asked if they would offer it. Well, I got tons of rejections, but ultimatley one girl said she'd go the prom with me ... unfortunatley it was my third color choice, but the more I called, the more agreements I got to the xplan price. Finally the time came and I called the dealer with the 4 cars. They just about laughed and said this is a hot car and they needed at least $5k over list. To which I replied, (no offense to anyone here - I'm a buyer of one too now) this is a commodity car that will be all over the roads of america very very soon. It is a nice, lower priced sports car that has hit a sweet spot. I have never paid anything but invoice price for any car I've ever bought (seriously) and am not about to pay list let alone the gouged price. (fwiw, I bought a lincoln navigator first year, the E36 body BMW m3 first year and the W203 bodied BMW C class first year - all at invoice - it was when BMW E46 chasis (current style) came out and BMW raised the price by about 8k and then dealers strapped on 6-8k that I bailed.)

It was at that time that I realized why they kept the inventory. So the moral of the story is that although market-driven and supply/demand are great concepts for grad school marketing programs (and good business models) it does not apply to the commodized car marketplace. The dealers pay short-term leases on all cars on the lot - I hope they pay and pay and pay while the car sits and rots. Ultimatlely the buyer will ask - well, how much will you discount it since it's been sitting outside on the lot for 3 months?

P

[Crazy001]

I'm 19, and this is the 4th new car I've bought (long story), but I couldn't believe what the dealers were asking for this car. I ended up walking out of two ford dealers, as they wouldn't give me enough on my trade. One of them was trying to tack the "market adjustment" for lack of availiability on the V6 I was looking at, and I was bargaining down to MSRP. This was when the other dealer I walked out of had 50 '05 mustangs on the lot. Lack of availability, they said! I gave up on the new Mustang for now, convinced no dealer would give me a deal, and I decided I would get one when a dealer was willing to make me a deal on one. I'm active duty military, and this happened when I was home on leave.

To me, it doesn't make sense to pay $2k over MSRP on a new car. If you finance it, you'll still be paying that $2k surcharge off of the loan when every dealer around will be selling them at MSRP or below. I will NOT pay that much more money for the pleasure of being the first one in my area to own one. I figured I'd get mine, one way or another, for a fair price, and I was willing to wait.

One week later, back up here on Fort Drum, I went to a local dealer, and they immediately treated me better than any other dealer I have been at. They sold me my car at MSRP, and giving me 2000 more on my trade than either other dealer I looked at. Customer service sells cars, not price gauging. I love my new car, and I'm very happy that I wasn't sucked in by those other dealers. I will never return to that sleazy dealer that tried to tack on the market adjustment, and I will recommend everyone to the dealer that treated me right.

[KDOYEA]

I, like most here agree that the mark-up is crap! That is why when PHIL LONG FORD in Colorado Springs, told me after a test drive that they were selling the only GT they had, which by the way had 500+ miles on it for about 3 grand over msrp, I said ok never mind, they are such theives there, I should have known from previous buys. I found a great dealer- MORRIE'S MINNETONKA FORD, that treated me great. Granted it is in Minneapolis, but I got the car for 500 below MSRP and the airline ticket there was only 200.00 so that is still a 300.00 savings, and not MSRP or above, and they picked me up at the airport. Road trip! It was fun, and I got to break it in--1300 miles worth. IT was worth it, I am one of only 3 maybe 4 here in the springs, and get questioned all the time. ( I made this deal with the internet salesman Paul Lalos, he is great, and the deal was made before the car even got there-he knew it was coming) So it got in 4 days before I flew in, he ended up getting mine, (yellow), a silver, and a black in all in the same week. The black was bought by someone in Cali and the silver went to Chicago, so he must be doing something right!

[jgerretson]

In Maryland there are 2 dealers about 15 miles apart. One is in Columbia and one is in Laurel. The Columbia one is adding $8k dealer mark-up to the convertibles on their lot and the one in Laurel has a standard $99 processing fee. Guess which one I bought from and will recommend. I have no problem with dealers making fair profit, but greedy rip-offs are different. I will never buy from the Columbia dealer nor recommend it to anyone. I will however let people know about the one that treated me fairly.

2005 GT Convertible, Windveil Blue, Parchment Interior and Top, Upgrade Interior Package, polished wheels, air bags, auto

[sranger]

I paied MSRP and never worryed about it because I have worked hard for my money over the years and quite frankly If I want to spend a little more to get one of the hottest cars going "NOW" that is my choice. I did not have any means to get a __ plan so I would have looked kind of stupid telling the dealer he had to sell to me the car under MSRP because it would be greedy of him to wait a couple of days and sell it to a guy( or gal ) willing to pay it. That is by definition supply and demand. That is why the GTO's are selling well below MSRP. If you want a great deal, there you go...

If I had taken most of the advise in this post, I would not have been able to enjoy the car for the last two months. Also, in my opinion, if one or two grand is a show stopper in your purchase of a new car, then maybe you are stretching your budget a little too thin...

However, If I had waited, either I would not be able to find a car or I would be paying more now due to the shortages on the GT coupe. Ford did raise the MSRP price and no dealer in their right mind would sell one under MSRP....

Did I like paying MSRP? No

Am I going to worry or whine about it? No

Would I have paid over MSRP? Probably not, but I certianly would not blame the dealer for asking for it. Life is way too short to get all bent out shape over it...

[Waxed'05 GT]

Originally Posted by Peet

I just started down this road. I've been a german car owner for yers now (3 BMWs, 2 Mercedes) and the reason I left BMW for Mercedes was the price gouging on newly introduced models. The reason I'm leaving mercedes (honestly - makes me feel dead on the inside )... but that's a different story.

I'm in a suburb of Chicago. In our market we have approximately 40 dealers. Out of the 40 dealers I'd venture an estimate that about half of them have GTs in stock. Some have one, and some have 3-4. I've been watching this market for two weeks now. The dealers with one are rotating stock. People come buy and leave. The ones with 3-4 keep the same 3-4. Now that I'm ready to buy, I called around. Being an xplan participant, I asked if they would offer it. Well, I got tons of rejections, but ultimatley one girl said she'd go the prom with me ... unfortunatley it was my third color choice, but the more I called, the more agreements I got to the xplan price. Finally the time came and I called the dealer with the 4 cars. They just about laughed and said this is a hot car and they needed at least $5k over list. To which I replied, (no offense to anyone here - I'm a buyer of one too now) this is a commodity car that will be all over the roads of america very very soon. It is a nice, lower priced sports car that has hit a sweet spot. I have never paid anything but invoice price for any car I've ever bought (seriously) and am not about to pay list let alone the gouged price. (fwiw, I bought a lincoln navigator first year, the E36 body BMW m3 first year and the W203 bodied BMW C class first year - all at invoice - it was when BMW E46 chasis (current style) came out and BMW raised the price by about 8k and then dealers strapped on 6-8k that I bailed.)

It was at that time that I realized why they kept the inventory. So the moral of the story is that although market-driven and supply/demand are great concepts for grad school marketing programs (and good business models) it does not apply to the commodized car marketplace. The dealers pay short-term leases on all cars on the lot - I hope they pay and pay and pay while the car sits and rots. Ultimatlely the buyer will ask - well, how much will you discount it since it's been sitting outside on the lot for 3 months?

P

I live in a western suburb of Chicago and I do not know where you found these GT's on all the lots, but from scoping the lots and checking at Ford Direct.com there only seems to be one MAYBE two GT's at any suburban dealer that I can find in the western or northern burbs for that matter.
Must be the luck of the Irish. And, oh yes, it is true....German cars in Europe ARE the taxi cabs, why are they so overpriced here? I think the "brand" is overinflated and over-priced.
-my two cents....

[Stangers]

Originally Posted by sranger

I paied MSRP and never worryed about it because I have worked hard for my money over the years and quite frankly If I want to spend a little more to get one of the hottest cars going "NOW" that is my choice. I did not have any means to get a __ plan so I would have looked kind of stupid telling the dealer he had to sell to me the car under MSRP because it would be greedy of him to wait a couple of days and sell it to a guy( or gal ) willing to pay it. That is by definition supply and demand. That is why the GTO's are selling well below MSRP. If you want a great deal, there you go...

If I had taken most of the advise in this post, I would not have been able to enjoy the car for the last two months. Also, in my opinion, if one or two grand is a show stopper in your purchase of a new car, then maybe you are stretching your budget a little too thin...

However, If I had waited, either I would not be able to find a car or I would be paying more now due to the shortages on the GT coupe. Ford did raise the MSRP price and no dealer in their right mind would sell one under MSRP....

Did I like paying MSRP? No

Am I going to worry or whine about it? No

Would I have paid over MSRP? Probably not, but I certianly would not blame the dealer for asking for it. Life is way too short to get all bent out shape over it...

.........:thumbsup

[RSmith63]

Well here in Hawaii we are very limited to different dealers, most are owned by the same company (Cutter Ford, Dodge, GM) and none would budge on any plans. I am A plan elidgable but the dealers told me that even they couldn't get the '05s at any plan price. We did pay about $3 grand over invoice but got more for my trade than what they originally offered. That is the first vehicle we have bought over invoice, but the dealer had the exact model and color we wanted and I have not seen another screaming yellow GT yet, alot of V6's though, but I am sure they will get more in.

[hutmo]

We all want below invoice... but begrudge a dealer making what they can.
We all brag about getting a great deal from a dealer but moan like heck when we can't. You can't have it both way my friends.

If someone is willing to pay over MSRP than good for the dealer. Is it gouging? NO! No one is forcing you to buy that car. There are other choices if you want to avoid such a high price. You can always wait until supply exceeds demand to get a better price or buy a different car.

Supply and demand does work. Capitalism works.. thank god. It is a wonderful thing.:thumbup


HUTMO

[billy_tripper]

If the cars weren't selling at that price then they wouldn't be asking it. Obviously the price is too low right now or there wouldn't be a huge shortage like there is. If the price was at the correct market price, there would be enough GT's around to satisfy demand. There are not. When the demand drops, the price will drop. It's not the dealer trying to gouge you, they just know the market price of the car they have. I found mine for MSRP with the IUP and I took it right away. I think it was a mistake by the dealer to sell it to me that cheap but they did. The price on this car shouldn't affect how you view a dealership on future purchases. No dealer will just give you a great deal on something that they know there is a huge demand and shortage for. If they ever gave you a deal on a car, it's because they have several of them on the lot and can get that same one back in stock no problem.

[iplaydat]

When I saw the 2005 Mustang, I knew I had to have one. Well, so did Ford! While I can see a point about price gouging gas and taking advantage of situations like a hurricane, I don't think the 2005 Mustang pricing issue is comparable. There are plenty of other cars you can buy, and no one is forcing anybody to charge or pay over MSRP. What are some suggesting, that the Gov't pass a law limiting what dealers can charge? Haven't we had enough Gov't intervention for our lifetime? Yes, I paid 2k over MSRP, but 3 weeks before I actually bought the car the dealer wanted 3k over MSRP. Sure, maybe I could have shopped around for a better deal, or maybe I wouldn't have the car today. But that was my choice, and I'm glad I have that choice! So when your boss offers you a raise, are you going to turn it down, because it wouldn't be fair to the other employees? I don't blame people (dealers & salespeople) for looking out for themselves and trying to make more money. I see greed as something that motivates poeple to cheat others and take advantage of unsuspecting people. Let me be clear, I do not condone any misrepresentation on the dealers or salespeople's part. I went into the deal knowing full well what the MSRP and invoice price was. So if a fool and his money are soon parted, I am the fool!

As an end note, if you are looking for a non-depreciating "investment", try real estate! My plan is to never trade the Stang in. My other car has 240k miles on it, with the original engine! My 15 year old son is already hoping for the 05 Mustang in my will. Ha ha! I'll be buried in it! (just kidding, son).

[HorseOwner]

Originally Posted by hutmo

We all want below invoice... but begrudge a dealer making what they can.
We all brag about getting a great deal from a dealer but moan like heck when we can't. You can't have it both way my friends.

If someone is willing to pay over MSRP than good for the dealer. Is it gouging? NO! No one is forcing you to buy that car. There are other choices if you want to avoid such a high price. You can always wait until supply exceeds demand to get a better price or buy a different car.

Supply and demand does work. Capitalism works.. thank god. It is a wonderful thing.:thumbup


HUTMO

Hutmo is EXACTLY right. Manufacturers "suggest" what they think a car is worth... a price that's fair to both the re-seller and the buyer. Do most cars change hands at the manufacturer's "suggested" price? Nope... almost none!

Why? Because sales transactions rarely take place in a vacuum where outside market pressures (supply, demand, fuel prices, the economy, fad and fashion, etc.) have no effect. MOST transactions take place at prices far, far BELOW the "suggested" price... a few take place at prices ABOVE the "suggested" price.

Those real world prices reflect the real world pressures. Show me an Excursion or Suburban that has sold anywhere NEAR the "suggested" price in recent years and I'll be shocked. Most are discounted thousands of dollars and then have huge "rebates" and financing incentives thrown in besides.

Now show me the sale of a Ford GT (not the Mustang GT but the supercar GT) that has taken place anywhere near "suggested" price and I'll be equally shocked. The two that I know of locally sold for $140,000 OVER MSRP and $172,000 OVER MSRP ($280,000 and $312,000 total). Why? REAL WORLD market conditions: Supply & Demand.

So... if you want a hot product you have to pay the going rate. If you're willing to drive something that's not so popular right now (Try a fully loaded Excursion or a leftover '04 Thunderbird for instance) you can get an ENORMOUS discount!!

Yeah for capitalism!!

Steve