2020 Bullitt price goes up by $1215 while others get $250 increase

[Jetnoise]

Metal tariffs?

Inflation is going to amaze us in the next year -2
My guess it's allocation for warranty claims & buy backs

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[EcoVert]

I count 20 Bullitt's in 90 mile radius of me including six black ones

 

[jabber63]

ah yes the Trump tax on our American cousins, first with china and now with Mexico expect car prices to increase in the US even more

 

[shogun32]

Simple supply and demand

I'm not so sure about all that "demand". Sitting for 4+ months on the floor doesn't strike me as hitting the mark. $1200 is what 2% premium? That's not going to move the needle on so-called used-car resale.

I see most of the Bullitts in my area being advertised for 7-10% off MSRP. At $44,000 the price is finally coming down to where it belongs.

 

[Kevin08]

This has absolutely zero to do with demand. Have you folks been paying any attention at all to tariffs being imposed on goods from China (and soon...Mexico)? Get used to it, prices of vehicles and goods will continue to increase.

But I heard trade wars were good and easy to win.


oh wait.

 

[Stangnut]

So $250 of the the $1215 is from the base price of a GT going up. How much did the PP1 package go up on a GT? What about the Premium pkg? Or the Active Exhaust? Hell, the price of the Bullitt and all it's options went up mid year on the '19's. When you add it all up, I doubt the Bullitt price went up much if at all.

 

[BlueCollarDaily]

Had to raise to pay for the Gen3 engine failures and buybacks...funny thing is 7718 dropped resale across the board while Ford responds with a price increase lol...
I just refinanced my 19 so I could put that money aside for a forged short block as I love the car I'll just make it what I want it to be Ford be damned.....I'm chips all in next step is Stage 2 on the supercharger....if I'm stuck with it I'm gonna be all smiles when I have the windows up with radio on and cant hear it knocking lol

 

[biegerd]

Wow, that was just bad. (But I did laugh though).

It’s not far off...made news here a while back when people took wrong turns due to bad GPS directions and property owners fired warning shots.

 

[biegerd]

I’m not much for conspiracy theories, but wonder if the price bump announcement now is to spur sales of inventory. “Get ‘em now before prices go up!” Just doesn’t make sense for a car that Ford said they would build to demand, but initially allocated so few to dealers. Trying to create an artificial demand, or miscalculated the nostalgia effect?

 

[EcoVert]

I’m not much for conspiracy theories, but wonder if the price bump announcement now is to spur sales of inventory. “Get ‘em now before prices go up!” Just doesn’t make sense for a car that Ford said they would build to demand, but initially allocated so few to dealers. Trying to create an artificial demand, or miscalculated the nostalgia effect?

This makes sense what really hurt early sales of the Bullitt was the high ADM's a lot of dealers put on them. To bad Ford won't learn from this and hold down the ADM the dealers will charge on the GT500. With the economy starting to turn down high ADM on these cars will hurt sales. Hell there even putting ADM's on Rangers.

 

[JoelinNOVA]

This makes sense what really hurt early sales of the Bullitt was the high ADM's a lot of dealers put on them. To bad Ford won't learn from this and hold down the ADM the dealers will charge on the GT500. With the economy starting to turn down high ADM on these cars will hurt sales. Hell there even putting ADM's on Rangers.

Ok for the nine millionth time. Ford has NO SAY over ADM's hence the words Add Dealer Markup and the other HUGE words. MSRP. (suggested retail Price)
Everyone sure never complains for all the times dealers have to drop prices way below what the net net is to sell. Not a peep. I mean why doesn't Ford tell them to NOT lower prices that much it hurts resale? (and it does)
And there is no safe and sound because they would have to change the lower grill to the UGLY grill on the GT for the Sensor that it needs to operate.
What I have not seen in writing is does the 2020 come with FORD Connect? if so there is a change and I'm sure that's not free. I doubt its $1215 either.

 

[EcoVert]

Unless the dealer had bought the car Ford does have a say in what they can charge. Why doesn't Ford say anything when a dealer cuts the price is because the dealer cutting there profit not what Ford is going to get from the sale. Now Ford does give the dealer some incentives and rebaits to off set some of the dealers loss.

 

[shogun32]

nobody sells at a consistent loss and stays in business for long. Unless you're Amazon in which case they lose money with every transaction but make up for it in volume.
The cost to the dealer isn't the real cost. Selling a car at 20% off MSRP isn't an actual loss in the aggregate even if that single instance it could be booked as such.

What Ford receives on every sale I couldn't say - I'm not their accountant. But obviously they aren't losing money on each unit either. It's not uncommon for the 'invoice' price of something to be 2x the actual cost of goods.

Suppose the cost to produce a 30,000 Mustang is 22,500 to Ford. They sell it to the dealer for 25000 and book a 11% margin. The so-called "invoice" is 28,000. The dealer can sell it you for 25,000 and "make no profit" but his various paperwork fees typically more than cover (like at 2x) the cost of sales. At years' end Ford rebates the dealer say $500 per unit and that 11% margin actually nets out to 9%.

Dealerships make a LOT of money. Otherwise there wouldn't be so damn many of them. And they don't take actual "losses". It just looks like it to you/me who are not privy to the truthful numbers.

 

[JoelinNOVA]

Unless the dealer had bought the car Ford does have a say in what they can charge. Why doesn't Ford say anything when a dealer cuts the price is because the dealer cutting there profit not what Ford is going to get from the sale. Now Ford does give the dealer some incentives and rebaits to off set some of the dealers loss.

Not correct at all. Dealers buy as you put it all vehicles from Ford. The vehicles on the lot are all “owned” by the dealer. Once Any OEM drops off the vehicle they are invoiced and paid. So Ford or any manufacture cant tell a dealer not to add ADM. With that said every manufacture does not like ADM. Because they get none of those dollars. And some see this as a loss. So sometimes they will raise the price of the vehicle so they get in on the action so to speak.

 

[JoelinNOVA]

nobody sells at a consistent loss and stays in business for long. Unless you're Amazon in which case they lose money with every transaction but make up for it in volume.
The cost to the dealer isn't the real cost. Selling a car at 20% off MSRP isn't an actual loss in the aggregate even if that single instance it could be booked as such.

What Ford receives on every sale I couldn't say - I'm not their accountant. But obviously they aren't losing money on each unit either. It's not uncommon for the 'invoice' price of something to be 2x the actual cost of goods.

Suppose the cost to produce a 30,000 Mustang is 22,500 to Ford. They sell it to the dealer for 25000 and book a 11% margin. The so-called "invoice" is 28,000. The dealer can sell it you for 25,000 and "make no profit" but his various paperwork fees typically more than cover (like at 2x) the cost of sales. At years' end Ford rebates the dealer say $500 per unit and that 11% margin actually nets out to 9%.

Dealerships make a LOT of money. Otherwise there wouldn't be so damn many of them. And they don't take actual "losses". It just looks like it to you/me who are not privy to the truthful numbers.

Dealers today on average are losing money selling new cars. That’s the facts. They make money on Service ,Parts and Used. Of course if they have a body shop. As for what a vehicle really costs. The manufacture builds a vehicle. And costs all in including R&D are never published. An approx guess is a $30,000 Mustang costs Ford about $18,000 to build all costs in.
They determine what they sell to the dealers for “invoice” less hold back etc. The typical margins OEM,s from MSRP to net net “after holdback etc” is about 14% of MSRP. None of this included incentives (rebates,interest deals, lease deals), you see which the OEM (FORD) pays. Incentive budgets come out of the profit OEM,s make selling cars to dealers.

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