ADM Mitigation Strategies

[Melange_X3]

I know ADMs are a sore subject and I congratulate those who were able to get their GT500 at MSRP. For those of us who paid ADMs I would like to share and discuss ways to mitigate the cost of the ADM we paid. Let me start by saying I don't like ADMs and I was able to get my GT350 at MSRP but I wasn't able to order a GT500 at MSRP. I have a Golden Ticket GT500 on order with a $15K ADM. With that said I made the decision to spend the money so how can I mitigate basically taking $15K throwing it out the window for a luxury I don't need? I will explain in posts below. I hope ideas can be shared to help each other. Remember a cost avoidance is as good as making extra money and we are looking at the overall picture and not just the car purchase.

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[likeaboss]

Looking forward to this creative take on ADM justification...

 

[rebellovw]

You can't mitigate it - as you spent the 15K - all you can do is accept it - and let it go. In five years - you won't even miss the money - unless you bought VTI stock with the 15K - you might have 20K then.

It is best to accept it - and perhaps delete this thread as there will be no comfort found in hearing folk's opinions. I wouldn't want to have spent the 15K and on top of that hear what people thought of it - I'd keep it to myself.

 

[Melange_X3]

Mitigation 1
I knew I was going to buy a GT500 years ago so when I bought my home in Southern California 2 years ago I opted for Solar Panels. They cost a lot but give you dollar for dollar equity value in the home and you get a big rebate but since that is long term money I won't count it. My solar panels 0 out my bill and earn me 60 dollars a month. Average annual electric costs avoided are about 2400 plus 720 profit paid to me from the electric company. That is $3,120 per year and if you tally that over 5 years of keeping the car it is $15,600. I have erased the ADM plus put $600 in my pocket.

 

[rebellovw]

Mitigation 1
I knew I was going to buy a GT500 years ago so when I bought my home in Southern California 2 years ago I opted for Solar Panels. They cost a lot but give you dollar for dollar equity value in the home and you get a big rebate but since that is long term money I won't count it. My solar panels 0 out my bill and earn me 60 dollars a month. Average annual electric costs avoided are about 2400 plus 720 profit paid to me from the electric company. That is $3,120 per year and if you tally that over 5 years of keeping the car it is $15,600. I have erased the ADM plus put $600 in my pocket.

Solar panels usually cost at least 30-40K - so any energy money you earn/save - has to go against paying for the equipment. It will take likely 7 years or so to cover the solar panel cost in energy savings.

 

[rebellovw]

Is ADM considered when you register the car - or is the ADM payment a separate transaction? That would suck to have to cover CA high cost of living and vehicle registration with an extra 15K - hopefully you can avoid that.

 

[rebellovw]

Mitigation 2:

You pay cash. Others that bought at MSRP and financed - would likely be at MSRP + 15K for the total cost of ownership. So you are likely at level with these folks.

 

[oregongt350]

I know ADMs are a sore subject and I congratulate those who were able to get their GT500 at MSRP. For those of us who paid ADMs I would like to share and discuss ways to mitigate the cost of the ADM we paid. Let me start by saying I don't like ADMs and I was able to get my GT350 at MSRP but I wasn't able to order a GT500 at MSRP. I have a Golden Ticket GT500 on order with a $15K ADM. With that said I made the decision to spend the money so how can I mitigate basically taking $15K throwing it out the window for a luxury I don't need? I will explain in posts below. I hope ideas can be shared to help each other. Remember a cost avoidance is as good as making extra money and we are looking at the overall picture and not just the car purchase.

Oh my GOD !!!!!!!!!!!!!!!! I think we need to start a Al Anon Forum for the guilt ridden ADM'ers. Either pay the ADM and ride off into the sunset or don't. No excuses, no complaining, no justifications or rationalizations or criticizing. Can't adults be adults and
Caveat emptor.

 

[Melange_X3]

Mitigation 2
I recently bought a home in SoCal. When you by homes out here you just get the house and some Temporary landscaping in the front and nothing in the back. You get 6 months to finish the front and a year to finish the back before the HOA rains down on you. Again I knew I was going after this car so I decided to do everything myself. I am an engineer by trade so making the drawings and plans was no problem and anybody can dig holes for plants. Contractors out here cost a lot and quoted $7k for front yard landscaping and $50k for the back yard for what I wanted. The project included a built in BBQ island, sone paver and rock patios, stone fire pit, permanent concrete seating with cushions, twin pergolas, plantar boxes, retaining walls and landscape lighting. It took longer than contractors but me and Junior worked like peasants and got it done and quality approved by my HOA for $14k in materials. That was a $43k cost avoidance. I am up $43,600 at 5 years after paying the ADM.

 

[Melange_X3]

Looking forward to this creative take on ADM justification...

Not trying to justify it. Trying to help people take some of the pain out of it.

 

[Melange_X3]

Keep in mind paying ADMs is a luxury not a need. It is no different than people who fly first or business class vs economy. I fly to Tokyo often where an economy seat is usually $1,200 a business class seat is $4,000 and a first class seat is $10,000. Believe me the person who pays 10k for an airline seat has a financial plan on how they are going to support it they are not Justifying it. People where I live hire people to come out and detail their cars at home and some have live in maids and most have landscaping companies to maintain there yards. If you don't have ideas to reduce the the financial impact of the ADMs you are wasting everyone's time in this thread.

 

[rebellovw]

Sorry morons pay 15K ADMs. Good luck with mitigating your 15K.

 

[Melange_X3]

Mitigation 3
This is one anybody can do and it is actually fun. I registered with one of the online survey sites that gives you points for taking various surveys you can convert to cash payments. When I am on the can or riding the exercise bike in the gym instead of playing candy crush or crossword puzzles I take surveys. It is not much but I average about $100 a month just playing around. That small change ads up over time to the tune of $6,000 more over a 5 year span. Not bad for use idle time a little better.

 

[FastCarFanBoy]

Mitigation 3
This is one anybody can do and it is actually fun. I registered with one of the online survey sites that gives you points for taking various surveys you can convert to cash payments. When I am on the can or riding the exercise bike in the gym instead of playing candy crush or crossword puzzles I take surveys. It is not much but I average about $100 a month just playing around. That small change ads up over time to the tune of $6,000 more over a 5 year span. Not bad for use idle time a little better.

My wife does these all the time. They pay cash and some of them pay good money, she got paid $300 to use and rate VR equipment for 4hrs.

 

[Melange_X3]

Sorry morons pay 15K ADMs. Good luck with mitigating your 15K.

So calling me a moron is being helpful? Why are you even here? Maybe if you used some of my strategies you would be driving something nicer than a Mustang GT. Some of us work to get ahead where they can afford to spend extra and others just throw salt. Making up a 15k expenditure is just for fun as a hobby on this forum. Serious money is made in how I manage stocks. I am not a moron because I spent money on an ADM. It was a luxury I can afford and it is fun to balance it out. Yes I worked like a peasant to avoid getting raked over the coals by landscaping and hardscaping contractors because it is true I don't like getting ripped off. Here is the easy math for you...I could build BBQ island, pour concrete and dig holes but I can't build my own Shelby GT500 so I traded some effort to make up the difference on the cost and you are obviously mad about it.

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