Availability - Dealerships with allocations

[ElSanchez302]

If your place bought the FORD GT's. Let's say you actually bought them, title and keys in hand ...they are yours. Then I would agree...Sell them for whatever your heart desires. Because they are yours to sell. Whatever subjective reasoning you have behind that set price is yours to defend and justify to your targeted market. And if they buy that line of crap then you deserve them as your client. It only means they have a lot more money than brains.

If however you have the cars just like the majority of dealerships have them...on a consignment through the manufacturer financing with a ticker going that depreciates your profit the longer it sits in your inventory then I completely fail to see how you can even justify any reason other than simple greed as the motivation for a 100% markup. Its just obscene and the reason why the stereotypes of the vultures that work for dealerships is perpetuated.

Larger dealerships that move alot of cars and hit their dealer bonuses don't see the interest being paid on lot cars as a reason to buy or sell cars any faster, slower, higher or lower. It's a cost of business...like taxes. And when they were new, we charged over sticker on them too and guess what, those that paid extra are now getting even more for them, which proves one of my points. They are taking no loss. BTW, I have about 7 GTs in stock that we are in no mood to sell unless we get top dollar for them. Well over a million in inventory and no complaints about interest being paid on them...and I love walking by them to admire every day. :hail:

And who said anything about 100% markup? That's not our business model. If the GT350 had been priced at $100k and had $10-15k markup for the dealer, there might not have been an ADM. But since they aren't, and the margins are obviously not that big, and there are buyers who really want the car enough to pay an extra few thousand, everyone wins other than those not willing to pay the ADM. Sorry, you'll have to wait then. Or buck up, and enjoy your new car. YOu blame the dealers, but as I said, we respond to the market. You get a taste of what you think is the market from the Forums here, but it's a very small sliver you are seeing from a group of great Mustang enthusiasts who all hope/wish we could get that perfect "deal". Sometimes these guys win and get one at sticker or close to, usually from some small dealer in the middle of nowhere. And, quite honestly, if a dealer is getting 1 or 2 cars and they are giving them up at sticker, well, that doesn't make a whole lot of sense from a business perspective. That's biz 101...dont' leave money on the table.

You might be a nice guy, a family man, but your sense of ethics here is completely skewed. The cars are not really yours. You're the salesman representing the Manufacturer and hoping that the brand identity and owner loyalty will maintain your business. What you do is alienate the projected demographic that FoMoCo really targeted and go straight for harpooning the whales well above that intended demographic who really do have more money than brains.

They are not skewed. You simply don't see it because you believe that paying retail or over is "wrong". Really? What about those people that line up outside Apple stores to buy new products to resell at a profit? What about all those places that sell new PS4's and Xbox's waaaay over list and people pay it to have the "first" one. How about all those people that pay waaay over sticker for a new set of Jordan's from Nike. And those are not limited production peices with future value. Well, maybe the Jordans. lol

We do not alienate anyone. I keep saying it, the market for ANY product is what someone is willing to PAY for it. If I have 20 cars and they all sell for over sticker, who is right? And $70k market is not "whale" territory. Not even close. And Galpin has one of the most loyal customer bases ever. We treat our clients right, all the time. Especially in a situation where someone is paying good money for a car. We roll out the red carpet, friend. I always tell my clients, I might not be able to help much on the price, but I promise to find you the best interest rates, top dollar on a trade if you have one, and/or hook you up on an extended warranty. We can make good in other areas.

Like I said, I would never pay that kind of money, but that's why I won't have a GT350 and I'll have to suffice with my lowly 2015 GT PP. I hope I am making some sense. I'm a car dude who sees both sides. I see some guys in here that are just dealer haters and that's fine, can't get away from that...but the hate they have is just humorous to me. Why so angry?? :shrug: You really mad at the dealer or others for paying the money when we can't or won't?

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[FPCV8YO]

We do not alienate anyone. We treat our clients right, all the time.

I can personally attest to the fact that this is bull shit!

 

[mbreinin]

If you want to blame someone, blame Ford. By limiting the production and handing the cars out in "allotments" they are creating the hype and permitting dealers to rape the consumer. If Ford agreed to build as many GT350s as were ordered, and the order banks were wide open, you would not have ADR issues. While I think it is a shame that dealers are tagging on ADR, I see how it makes sense from a business perspective. Since when are car dealers not out to fleece their customers? LOL.

 

[ElSanchez302]

Bull shit!

So eloquent. You got me.

 

[FPCV8YO]

So eloquent. You got me.

So smug.

 

[ElSanchez302]

I can personally attest to the fact that this is bull shit!

Aren't you the guy that I sent a PM too?

Interesting you never responded?

 

[ElSanchez302]

So smug.

Not smug. I made some valid points and hoped that I'd have a good debate. Instead, the guy that's been slamming dealers for an ADM's best response to my points was "bull shit". Doesn't seem very sporting, huh?

 

[FPCV8YO]

Aren't you the guy that I sent a PM too?

Interesting you never responded?

No Ladis. No PMs, no returned e-mails, no returned voice mails from your GM.

 

[FPCV8YO]

Not smug. I made some valid points and hoped that I'd have a good debate. Instead, the guy that's been slamming dealers for an ADM's best response to my points was "bull shit". Doesn't seem very sporting, huh?

Where have I been slamming dealers for ADMs? You need to keep your players straight.

 

[krt22]

If you want to blame someone, blame Ford. By limiting the production and handing the cars out in "allotments" they are creating the hype and permitting dealers to rape the consumer. If Ford agreed to build as many GT350s as were ordered, and the order banks were wide open, you would not have ADR issues. While I think it is a shame that dealers are tagging on ADR, I see how it makes sense from a business perspective. Since when are car dealers not out to fleece their customers? LOL.

Its really not that simple since they can't build them all at once, because then you get into the "who's car gets built first" and ford isnt going to commit to some open production number, no one can manage a production line in that fashion. Total quantity and final need by dates are always part of the equation and it's hard to keep everyone happy.

So smug.

A true car salesman, I will give him that. :cheers:

Elsanchez,

All of your examples of retail products being sold for over retail, don't really follow the same model dealers charging ADM are. In those cases, we have a wave of buyers who all pay MSRP, some keep the item, others resale, but the retailer makes a fixed profit and the resellers then are at the mercy of buyers in terms of getting a certain price. this is a very risky move in many cases since production normally catches up with demand quite quickly. In your case, buyers are at the mercy of the dealers who set astronimical prices and hope for the best, knowing in the worst case they will still sell close to MSRP and make a profit. So let's call it what it is, throwing shit and hoping it sticks. This is closer to the tactics which oil producers and refineries do to artificially drive up prices. It also involves a lot of fear mongering and information manipulation to further justify restricting supply.

 

[mbreinin]

Its really not that simple since they can't build them all at once, because then you get into the "who's car gets built first" and ford isnt going to commit to some open production number, no one can manage a production line in that fashion. Total quantity and final need by dates are always part of the equation and it's hard to keep everyone happy.

Is there a limit on how many GTs, EcoBoosts and V-6s are produced....or does Ford just build to suit demand? Sure, at first there would be ADR as people scrap to be first. However, as soon as they started to roll into dealers in good numbers, that would be over and done.

 

[krt22]

Is there a limit on how many GTs, EcoBoosts and V-6s are produced....or does Ford just build to suit demand? Sure, at first there would be ADR as people scrap to be first. However, as soon as they started to roll into dealers in good numbers, that would be over and done.

There may not be set limits, but I guarantee you there are predetermined targets based on pastsales and current market conditions. Sizing your production line to operate in these limits is not a trivial task and there is a lot of risk involved in oversizing a line and over estimating total units needed when it comes to negotiating purchase contracts with suppliers/labor needed/total floor space required/etc. A small miscalculation or estimation can lead to millions in unused inventory, even more so when dealing with lower volume production

 

[mbreinin]

There may not be set limits, but I guarantee you there are predetermined targets based on pastsales and current market conditions. Sizing your production line to operate in these limits is not a trivial task and there is a lot of risk involved in oversizing a line and over estimating total units needed when it comes to negotiating purchase contracts with suppliers/labor needed/total floor space required/etc. A small miscalculation or estimation can lead to millions in unused inventory, even more so when dealing with lower volume production

Accepted.

Still, I think the demand will easily outstrip the supply for this car. I am talking like I am getting one, but that may be easier said than done. LOL.

 

[Steve68]

If you want to blame someone, blame Ford. By limiting the production and handing the cars out in "allotments" they are creating the hype and permitting dealers to rape the consumer. If Ford agreed to build as many GT350s as were ordered, and the order banks were wide open, you would not have ADR issues. While I think it is a shame that dealers are tagging on ADR, I see how it makes sense from a business perspective. Since when are car dealers not out to fleece their customers? LOL.

This!!!
<Ford Marketing>Look at this neat car we developed and the reasonable MSRP on it!</>
<Customer> I want one! </>
<Ford>We're only making a few so you can't have one (without being f*cked by one of our dealers, AKA the MSRP we quoted is bullsh*t) But looky over here, we'll sell you a GT </>

 

[mbreinin]

This!!!
<Ford Marketing>Look at this neat car we developed and the reasonable MSRP on it!</>
<Customer> I want one! </>
<Ford>We're only making a few so you can't have one (without being f*cked by one of our dealers, AKA the MSRP we quoted is bullsh*t) But looky over here, we'll sell you a GT </>

And they will probably sell you a Voodoo in a crate for 15k soon enough.

Mike

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