Getting a GT350 at MSRP

[obiwandado]

A good deal is a state of mind.

Absolutely! I work for a dealer now and used to sell about a year ago and this is a fact.

You can't convince people that they're getting a good deal, or it's very difficult. I've seen guys crack people over and over again and they're as happy as can be. On the flip side, there's people paying 3K below invoice minus holdback and they're convinced they're getting fucked.

Know what you're willing to pay and don't settle. When you get it be happy and move on, if you can't get it then look somewhere else or reevaluate your budget.

With all of that in mind, I WOULD NEVER PAY markup on a mass produced car. The GT350 won't be numbered and it won't see limited production. Wait a few months after they start hitting the showrooms and below invoice will be a possibility. If you want the first one in your town, then you'll have to pay what a dealer asks.

Beggars can't be choosers.

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[Hack]

Absolutely! I work for a dealer now and used to sell about a year ago and this is a fact.

You can't convince people that they're getting a good deal, or it's very difficult. I've seen guys crack people over and over again and they're as happy as can be. On the flip side, there's people paying 3K below invoice minus holdback and they're convinced they're getting fucked.

Know what you're willing to pay and don't settle. When you get it be happy and move on, if you can't get it then look somewhere else or reevaluate your budget.

With all of that in mind, I WOULD NEVER PAY markup on a mass produced car. The GT350 won't be numbered and it won't see limited production. Wait a few months after they start hitting the showrooms and below invoice will be a possibility. If you want the first one in your town, then you'll have to pay what a dealer asks.

Beggars can't be choosers.

I agree with most of your post and I have a similar philosophy, but I am a car guy and I have paid more for a car because I didn't want to wait for it. That's why I would never say never on paying a markup.

I have no issue with people saying they won't pay a markup. I'm irritated by those who are demonizing the dealers for wanting to make money, though. It seems like a greedy position to me. And also if you think you should be able to be first in line, but not pay for being first in line, that makes no sense to me. I always expect to pay something for getting something. It seems only fair.

 

[OH5GT 2 S550]

If that deal sets the tone for the rest of us.... You should be standing in the lake all by yourself. Also putting it nicely.

Sorry, but 1 deal to a guy in BFE Michigan is NOT going to set the tone for everyone else in the country. I honestly don't understand why everyone is so bent outa shape on this issue. If you don't pay ADM, what's it matter if someone else does. I doesn't affect you!!!!

 

[Evolvd]

If you don't pay ADM, what's it matter if someone else does. I doesn't affect you!!!!

That all depends on if that person bought from the same dealer you are shopping at.

However in response to Beefcake's comment on milk, lumber and such...cars have an M.Suggested.R.P. It's the same MSRP if you buy in California or Florida. Milk prices are adjusted based on many factors from the type of cows it comes from to how far it has to be shipped. Every gallon of milk in that store will be priced the same and no one gets a better deal. If the last gallon of milk is on the shelf the store owner doesn't add 20% to the cost.

In the end...it's a suggested retail price and the dealership is free to set whatever prices they think they can get. THIS is why people negotiate with cars and not with milk and lumber.

 

[Cruzinaround]

Sorry, but 1 deal to a guy in BFE Michigan is NOT going to set the tone for everyone else in the country. I honestly don't understand why everyone is so bent outa shape on this issue. If you don't pay ADM, what's it matter if someone else does. I doesn't affect you!!!!

It does when you're gloating about it on an open forum.

 

[Five Oh Brian]

Profit is not a bad word. Asking over MSRP is neither illegal nor immoral. I am much more offended by jewelry and furniture retailers who charge 300-400% over their cost for their goods (I've worked in both of those industries once upon a time many moons ago).

As far as I can tell, we still live in the USA where we are capitalists in a free market economy. Trying to demonize a seller for asking high, even though they will typically negotiate down to a price that makes both parties happy is pointless. This is true in all industries, not just automobile retailing. For example, when you go to buy a house, you can be dang sure that the seller of that house is trying to maximize his/her transaction price, while the buyer counters back and forth until both parties are agreeable. Why does the home's seller start higher, even in light of comps in the neighborhood suggesting a lower mean price? Because that's how a free economy works.

Trying to stifle the "free" part of our free economy by capping how much a seller can ask for? Why? Again, if an asking price is too high, buyers will not buy and the seller eventually has to lower prices until a deal can be had. That's how it works. Trying to intervene and put price caps on things flies in the face of how our economy works.

The market dictates the value of a good, not an arbitrary MSRP put on a product by a manufacturer. Manufacturers simply guess at an MSRP. Need a great example of an MSRP gone wrong? When Ford released the 2005 GT (mid-engined supercar, not the Mustang), MSRP was $139,995. Dealers were easily selling them for $200K plus initially, then still $10K-$20K over by the end of the first year. How did Ford respond? For 2006, Ford raised the MSRP a full $10K to $149,995 to cash in on what the market was clearly telling them - that the market believed the true value to be much higher than Ford guessed when they arbitrarily picked an MSRP initially. This suggests that even if manufacturers went to a direct-sell approach eliminating dealers (as some of you have suggested they do), this might not lower prices at all if the manufacturer sees an opportunity to charge even more for a hot product. Hmmm, thought provoking.

Ultimately, and back to GT350's specifically, if your local dealer asks an ADM on a GT350, simply present yourself as a serious & capable buyer and negotiate a price to your liking. If said dealer will not budge, move on to the next dealer, and the next dealer, and the next dealer until you find one with a deal to your liking. If you cannot find the deal you want now, just wait a few months, years, etc. until all of the "gotta-have-it-now" customers get their GT350's and prices will have settled down. Time = money. Trust me; it's cyclical every time a cool new gizmo hits the market.

And, please try to remember that we are all on this site for the same reason. We are passionate about Mustangs and want to learn and share with other Mustang enthusiasts.

 

[mustang_lurkers]

It is simple to talk with your wallet. Just say no to ADM and it will go away.

 

[Five Oh Brian]

It is simple to talk with your wallet. Just say no to ADM and it will go away.

Absolutely true. If dealers ask too much and people don't buy, then eventually prices will fall into equilibrium with the market. Basic supply and demand in our free market economy.

 

[OH5GT 2 S550]

It does when you're gloating about it on an open forum.

Them gloating on an open forum doesn't affect your buying a GT350. Sure, it may piss you off, but that's your problem, not the dealers!!!

 

[Hack]

It is simple to talk with your wallet. Just say no to ADM and it will go away.

You are exactly right. Typically the people who are willing to pay a little more get the first cars and then over time the people who don't want the car enough to pay extra will get their cars (and a better price).

 

[Rated R]

My advice for any dealer, sales guy etc who posts here:

You really should stop defending an argument in favor of ADM. The general consensus here is that MSRP is the fair limit for the price of a car. What you're doing is shooting yourself in the foot, and furthermore painting yourself as an ass. Basically a person of whom not to do business with. I fail to see what any of you think you may gain by offering such an opinion here. You're basically blacklisting yourself. The ego you're showing in the position you hold is self deprecating. Can you not see that?

 

[Five Oh Brian]

My advice for any dealer, sales guy etc who posts here:

You really should stop defending an argument in favor of ADM. The general consensus here is that MSRP is the fair limit for the price of a car. What you're doing is shooting yourself in the foot, and furthermore painting yourself as an ass. Basically a person of whom not to do business with. I fail to see what any of you think you may gain by offering such an opinion here. You're basically blacklisting yourself. The ego you're showing in the position you hold is self deprecating. Can you not see that?

Here's the irony, Randy: I have said repeatedly that anyone looking to pay MSRP or less on a GT350 will be able to easily get that deal - as long as they're patient. I've never said that ADM's are good, simply that it's not illegal or immoral.

My dealership doesn't have ADM's on any Shelbys or SVT's and we sell our regular vehicles for many thousands below MSRP every day on every sale. We sold out of all 2014 specialty vehicles quickly as we priced those all below MSRP.

My dealership is the kind of dealer that everyone seems to be looking for, yet I seem to come under fire a lot because I have faith in our free market economy to set the equilibrium in pricing. I have a Bachelors Degree in Business from the UW and it's that education (not my profession) that guided my opinion of our economy. Look around the world and you'll quickly see that our economy (although not perfect) is much better than any others out there.

Again, MSRP or less will be available on GT350's to anyone at most dealers eventually. Do some searching, have some patience, and get the deal you want.

 

[908ssp]

My advice for any dealer, sales guy etc who posts here:

You really should stop defending an argument in favor of ADM. The general consensus here is that MSRP is the fair limit for the price of a car. What you're doing is shooting yourself in the foot, and furthermore painting yourself as an ass. Basically a person of whom not to do business with. I fail to see what any of you think you may gain by offering such an opinion here. You're basically blacklisting yourself. The ego you're showing in the position you hold is self deprecating. Can you not see that?

"Fair" has nothing to do with it.

 

[activeGT]

Defending the dealers with an ADM.

I paid $2k more than I KNEW I should have for my new GT. But it was the only one in town with my colors and options and I wanted it RIGHT NOW.

So when I sell it and take the $2k it isn't the dirty dealer's fault. It is mine.

I look at it this way: The dealer getting $5k over MSRP is making a smart business decision since he will profit in the long run at, say, a $10k profit. But if he loses the cheap-skate who wants to pay $1k over dealer cost because it is "fair" he didn't lose a nickel unless cheap-skate is going to buy 10 more cars from him in the next few years. Does he care if "Mr. I want it for cost" boycotts his dealership? I doubt it. Sorry if this offends anyone here.

 

[Qwkynuf]

Defending the dealers with an ADM.

I paid $2k more than I KNEW I should have for my new GT. But it was the only one in town with my colors and options and I wanted it RIGHT NOW.

So when I sell it and take the $2k it isn't the dirty dealer's fault. It is mine.

I look at it this way: The dealer getting $5k over MSRP is making a smart business decision since he will profit in the long run at, say, a $10k profit. But if he loses the cheap-skate who wants to pay $1k over dealer cost because it is "fair" he didn't lose a nickel unless cheap-skate is going to buy 10 more cars from him in the next few years. Does he care if "Mr. I want it for cost" boycotts his dealership? I doubt it. Sorry if this offends anyone here.

I mostly agree with you. The dealer that I buy from has an ADM sticker on every car on the lot. I have bought my last 7 cars from the same sales guy there, and the running joke is that when I find a car that I want, I pull the ADM sticker off, wad it up and hand it to him - saying "Let's start with this".

There have been a few occasions where he told me right up front that they weren't going to move on a particular car, I just moved on and either bought something else or held off for another time.

I guess it doesn't hurt anything for them to ask, I am just not going to pay it.

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