[Glen]

Well.....being one of the admins and editors here at AFM with some Ford contacts because of the website, I am currently shopping for a 05 GT.

Without going into detail, my purchase is related to the website. But despite this relationship with Ford, in my search for a new Mustang, I continue to find Dealers adding extra Money to the MSRP.

I don't want to wait to special order a new Mustang. I have found some with more options then I want and will most likely buy on of them. Thanks to Fords help, I have located some to consider.

However, of those cars listed, none of them were at the Ford dealer I have done a lot of business with here locally. Today, I went down to my local dealer to pick up some parts that came in for one of my mustangs. So, I stop into the sales department and tell them that I would prefer to purchase one from them. After waiting about 1/2 hour for someone to help me, they tell me that they have one just the way I like it scheduled to arrive in the next few days. Great!! Ken Grody Ford in Carlsbad California, BTW.

The sales manager prints out the VIN and the vehicle specifics for me. Then he says, "we are adding $3000 on to the MSRP"! No thanks, and oh by the way...you just lost a customer forever.

I have also heard of other dealers doing the same thing. I am not against a business making profit, but for me to be willing to buy a car already loaded with options I don't really care about, not negotiate, and pay MSRP, is pushing my limit. To add another $3K onto the price is greater then 10%. Under normal circumstances I would pay much less the MSRP and so the dealer is already making a much higher profit.

Make no mistake. I love mustangs and so far I am very excited about the new Mustang. But I will not easily forget this greedy dealer. In part, it makes me question Ford. I know that Ford cannot tell a dealer what to sell a car for, however they could very easily make it very difficult for a dealer to get cars to sell, when they take advantage of the shortage like this. (ARE YOU LISTENING FORD?) Eventually, you will have more cars then buyers.

What do you all think of this practice? Does it effect your opinion of Ford and it's dealers? By the way, please don't hesitate to mention the name of the dealer who wanted to sell you a Mustang for MSRP++. So, the rest of us don't waste our time visiting this dealer.

[Tominator]

Same thing happens when any new model is rolled out that has the press the new Mustang does.

The PT Cruiser was going for well over 6 grand above the MSRP and the Thunderbird 10 grand over at their introduction.

It's nothing new, but it does suck big time!

[Jason29]

Tell this dealer you will purchase at MSRP that day. When I was shopping around, dealers had them marked up over sticker, but quickly came to MSRP if you were serious about buying.

One local dealer (Champion Ford in northern KY) would not come off of $5000 over sticker. However, they called me a few weeks later (after I had bought one for MSRP some where else) and said they were now selling at MSRP. I just laughed and told them happy holidays!

Shop around and call some dealers outside of your normal area. I was able to find a few dealers not too far from me selling at MSRP.

Good luck in your search! :thumbup

Jason

[MGPony]

It's simply Consumers 101 - Supply & Demand. As long as there is strong demand for the 2005 Mustang, greedy dealers will easily get 10 - 15% over MSRP. Ford won't do anything about it as long as the cars are selling. You can look at the history of hot and unique cars that came out at the time of their introduction: Dodge Viper, PT Cruiser, and Thunderbird; all these cars commanded a premium which consumers easily and willingly paid all because the car was strongly desired.

I knew going into my purchase that I would be paying a premium, but I also knew I wasn't going to be gouged. My dealer tried to get $3K over sticker, but I ended up paying a $1K (as was expected). This is nothing different than what you see on e-bay; the most desired items will command the highest price. I'm thoroughly thrilled with my new car and if someone tells me they could have sold the car to me $500 over invoice, I'm not going to let that bother me. Oh well.

[LastOwnedA77]

Originally Posted by Glen

What do you all think of this practice? Does it effect your opinion of Ford and it's dealers?

It stinks, but we do live in a capitalistic/free market society where the laws of Supply and Demand rule, so it is to be expected. If I was a dealer, I would try to get all the money I could as well, although alienating loyal customers is another issue. Myself, I've decide to wait until spring when the prices come down and I don't have to worry about driving in the snow (see other thread...)

[born2run74]

I agree with MGPony, this is simply the law of supply and demand in action! There's nothing wrong with it at all and is an economic fundemental - the seller is willing, ready and able to charge what the market will bear. In some areas of the country (including mine), that means 3k over msrp. Yes, it does suck for anyone that wants a stang and isn't willing to pay the higher price, but they just have to wait awhile until the supply demand equation is a bit more in equilibrium (what a great economics term) It's the other way around with computer systems - so much supply out there that you can get a hot puter for dirt cheap now...

That being said... I paid $200 over MSRP for mine, here was my strategy:
1)buy at the very end of the month (i.e. last day or 2). The salesmen wants to make the commission and has greater pressure to sell to increase his commission.

2)The dealer may have to "floor," or finance, his inventory if it's been sitting on the lot longer than one month. That means they have to pay interest expense on unsold inventory from the month before. If they can sell it before the new month starts, lower inventory holding cost for them.

Hopefully this helps- it doesn't hurt to try!

Cheers

[SMP]

Originally Posted by Glen

Well.....being one of the admins and editors here at AFM with some Ford contacts because of the website, I am currently shopping for a 05 GT.

Without going into detail, my purchase is related to the website. But despite this relationship with Ford, in my search for a new Mustang, I continue to find Dealers adding extra Money to the MSRP.

I don't want to wait to special order a new Mustang. I have found some with more options then I want and will most likely buy on of them. Thanks to Fords help, I have located some to consider.

However, of those cars listed, none of them were at the Ford dealer I have done a lot of business with here locally. Today, I went down to my local dealer to pick up some parts that came in for one of my mustangs. So, I stop into the sales department and tell them that I would prefer to purchase one from them. After waiting about 1/2 hour for someone to help me, they tell me that they have one just the way I like it scheduled to arrive in the next few days. Great!! Ken Grody Ford in Carlsbad California, BTW.

The sales manager prints out the VIN and the vehicle specifics for me. Then he says, "we are adding $3000 on to the MSRP"! No thanks, and oh by the way...you just lost a customer forever.

I have also heard of other dealers doing the same thing. I am not against a business making profit, but for me to be willing to buy a car already loaded with options I don't really care about, not negotiate, and pay MSRP, is pushing my limit. To add another $3K onto the price is greater then 10%. Under normal circumstances I would pay much less the MSRP and so the dealer is already making a much higher profit.

Make no mistake. I love mustangs and so far I am very excited about the new Mustang. But I will not easily forget this greedy dealer. In part, it makes me question Ford. I know that Ford cannot tell a dealer what to sell a car for, however they could very easily make it very difficult for a dealer to get cars to sell, when they take advantage of the shortage like this. (ARE YOU LISTENING FORD?) Eventually, you will have more cars then buyers.

What do you all think of this practice? Does it effect your opinion of Ford and it's dealers? By the way, please don't hesitate to mention the name of the dealer who wanted to sell you a Mustang for MSRP++. So, the rest of us don't waste our time visiting this dealer.

Try Heller Ford.. Talk with Bill Gilbow(760-745-3361)... I had to order one at the time but he offered it to me in writting 500 below MSRP.....
Good Luck
Stephen

[blast461]

Glenn, while I agree with the supply and demand principle, it has yet to be proven. I think this more a spot of GREED 101.

I am also with you when a sales manager tries to push over invoice that he has lost my business for ever.



COMMON SENSE 101 tells me that vehicles depreciate so fast that every $$$ you pay over invoice you might as well burn. The bank already knows what that vehicle is worth and what the value of it is years from now based on a standard depreciation scale.



I found many dealerships willing to sell me at MSRP, because I was right up front about it. I called around my local dealerships, so not to waste my time in their never-ending attempt to get me sign papers. Believe me they will waste hours and may not have a car for you anyway. Needless to say the day the stang came out I had no problem finding GT's. I had to work a little to find exactly what I wanted, however.



My specs where a GT, Mineral Grey, with red accent interior, the nice wheels, etc... Guess what, after few laborious hours of phone calls, I found one 15miles from house. It wasn't shipped to the dealer yet and it wasn't in the search tools.



I found it by simply networking. That’s the time it took me to look up phone numbers, make calls etc.. It saved me $3k and load of BS from a salesman.



This is all I said when I called. If you got X car, I will give you MSRP for it right now. That was it, done deal. I had about 90% of the dealerships willing to sell at MSRP when I told them how unethical I felt it was to markup. In their never-ending need to please they usually agree right off.



Good luck and DO NOT buy into the supply demand bull. If you have the tenacity, you will save yourself $$$$.

[Vandil]

I recently ran into the same practice at a number of my local dealers. Did it taint my opinion of these dealers? It certainly did, I won't be back to any of them for parts, service ect. Did it taint my opinion of ford? No, not really it's the dealers who are price gouging not ford. In my recent experience dealers in more well off areas had the most inflated prices. Perhaps due to the higher percentage of more money than brains customers in those areas.


I ended up driving an hour and a half to visit a dealer who gave me an excellent price on the car.(so good I'm half worried he'll sell it out from under me) Granted I had to order it but the wait to me is well worth a serveral thousand dollar difference in the price. As I didn't order with the IUP I'm hoping I got lucky as all those who orderd ahead of me with the IUP are now on hold till feb at the earliest.

[fred-fred]

Let me know the specs and options on the Mustang. BTW do you mind coming to Texas?
I will make you a deal on the car.

[MGPony]

MSRP = Manufacturer's Suggested Retail Price. I'd be the last that sides with the dealer - because I'm not. More power to the consumer who does his research, spends the time to network, and exercises patience in arriving to a purchase price that doesn't exceed the MSRP. It's a business of playing the game right. Who ever is more willing; the dealer to make a profit and sale, or the consumer who desires the car, will be the winner.

If you're not wanting to pay anymore than MSRP, then time and effort will be needed to get what you want. No matter what you buy, if demand exceeds supply, expect to pay a premium; just like gasoline, a gallon of milk, and those hard to find toys we're trying to get for our kids.

Have a Merry Christmas!

[Fiat Freak]

Any dealer insisting on above MSRP is short-sighted, and should be told where to get off.

Anyone willing to pay above MSRP is foolish today, and will be sorry tomorrow at trade in time.

It's the law of supply and demand hard at work. You demand too much of a scarce commodity, you're gonna have to pay the price.

I can wait. You should too.

[jshiver]

I bought a 2005 the second week they were out (Black GT with red Interior). SEVERAL of the dealers in the Dallas area were asking $2,500 to $4,000 over invoice.

Supply and demand working in a capitalistic society. None of us should complain.

However, I cut a deal on my GT (for sticker) and was about to sign the paperwork when I realized the math did not work. I brought it to the attention of the salesman and GM. They said that they were adding $2,500 "due to market conditions." I told them that was fine, but I was not interested and they should have been upfront about their expectations.

I walked out, returned to work and wrote the GM a letter about how dissapointed I was in their dealership regarding their deception.

He called me later that night, apologized for the way they acted and said they would honor my original offer.

All that being said, how bad do you want one? Pony up or wait until supply and demand level off and make cut a good deal.

[Dash Riprock]

I wont even pay MSRP...I spent 3 hours at the dealership to get my price on the 2004. The salesman kept telling me that the demand for the '04 would still be high when the '05 came out because people wouldn't want to pay the premium on an '05. I told him either he could sell a car TODAY, or wait for a sucker who believes that crap to walk in. I got my '04 for $1000 over pink sheet (well BELOW invoice) because I walked in with pre-approval from my credit union...which is like walking in with cash!!


__________________________________________________ _____________________
keep in mind that we have kids on here.

[MGPony]

To each his own. If you want to spend half your days at a dealership working to negotiate a price below manufacturer's suggested price, that's your prerogotive. Consumers decide what they want to pay whether it be retail, resale, wholesale, or whatever. No one can fault a dealer for charging what a buyer is willing to pay. If you don't like it, you can either sit there and challenge him and make a day of it, or you can move on until you find a dealer who's willing to sell you a car at your price. It is Supply & Demand - plain and simple.

And yes, I am one of few in my area who have a new '05 Mustang GT. I'm glad I got it when I did because of all the chat I'm reading about the '05 Lawsuit regarding the MyColor Dash Display, shortages of spoilers, shortages of V6 Manuals, and just an overall strong demand for an exceptional car that Ford didn't quite expect. I'm not really planning to sell it any time soon so I'm not too concerned with any depreciation. To anyone who can get their price - kudos to you!