GT500 ADM disappearing

[Tomster]

Even if the markups are disappearing they're still retaining their values. Compare the price of a 20 GT500 to the price of something like a 20 M5 or M8. Bimmers, Mercedes, and other cars that occupy the performance luxury categories have depreciated like they normally do. The GT500 and it's competition has not.

Keep in mind this was one person's opinion. Also of note: each market is different. For example, southern California and bum f^*ck Idaho will not command the same prices. A lot of people in So Cal for instance shop around in the Midwest to avoid some of the buying premiums.

So what some guy thinks the market is needs to be based upon a value with comps as well as comparative market values in each respective market.

Me? I don't think much has changed. As said, we are in the depths of winter and sale values usually slump this time of the year.

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[JetGray_Mach1]

He makes a fair point. GT500 demand >>>>>>>>>> Mach 1 demand

Yeah ofcourse, it was meant to be a sarcastic comment. Hence the upside down face…

 

[DopamineQuest]

Yeah ofcourse, it was meant to be a sarcastic comment. Hence the upside down face…

Idk I'm not an emoji expert

 

[Evolvd]

The dealer I bought my car from has a GG 2022 CFTP advertised at $5K over. I know it’s anecdotal but I’ve heard of quite few good deals happening in the last few weeks.

 

[rp930]

My thanks goes out to everyone for your insight and opinions. I best go and get the trailer ready for a journey through the Rockies before the spring snows hit.

I hope you get this deal done. I’m sure you will be more than satisfied with it. It will be a great upgrade.

 

[Dave2013M3]

A lot of the problem is that a lot of dealers paid over MSRP for other dealers cars.

 

[Cobra Jet]

I'm still on my quest for a 2020-22 GT500 but have hesitated due to the ADM ($20K additional dealer markup), supply chain problem resolution (flooding market with new cars) and the possibility of a coming recession, which could crater car prices. Autotrader has over 200 of these 'last gasp' GT500s for sale and the dealers that I am currently talking to are offering reduced ADMs from $20K down to $5K. Could the new GT500s follow the same trend of the Mach1 that has big discounts now being offered?

Ok, read the entire thread. Stay with me, it's a little winded (long) but has meaning and a point.
---------

My simple Cliffs Notes regarding ADM:

So if I owned a Hamburger Joint and it had (2) drive throughs:

- Left drive through, I sell a regular plain old fashioned cheeseburger for $5.00

- Right drive through, I sell the SAME EXACT cheeseburger, but it's $25.00

Explain to me why anyone would pay $25.00 for the SAME item, when they can get it for $5.00, with very minimal effort . . .
--------------------

To ME, paying ADM for anything is just wasteful from the perspective that it doesn't take much effort to find the same product without ADM. Even for instance a car that isn't within your exact ZIP or ZIP radius, a potential Buyer could still get a better deal even with the vehicle shipped for less than one with ADM...

While I get the whole "it's ma-money, and I'll do as I please" or the "wanna-gotta-have its" or the "be first on the block"..... yes, I get all of that...

To ME is just shows lack of common sense to willfully pay MORE "just because" when if spending some time researching or getting outside the box with little effort, has a greater reward by paying less and maybe putting what would have been the delta "ADM money" into something else, anything else.......

In no way am I trashing anyone - but just from a logical and realistic perspective, paying ADM is just saying to these Dealerships that what they are doing is A-OK.... when it's really not.

ADM doesn't benefit the Manufacturer, it only benefits the Dealer. ADM is not a Manufacturer sponsored add-on at all. In fact, some don't realize that paying ADM over MSRP could be detrimental IF the Buyer ever has to file a Lemon/Buy Back claim. Ford RAV won't entertain any cost paid above MSRP. They won't entertain it because ADM was not an original line item on the Manufacturers Window Sticker at all. The recovery of the ADM delta would be the Buyer going back to the Selling Dealership and trying to get them to cough up the ADM delta.

One last thing too - paying ADM only puts the original purchaser upside down when it comes to future vehicle value. Just because a vehicle is a limited edition does not mean it's going to be an "investment" or that it may retain a value greater than when it was new. Just because the current financial or market climate may be off kilter also doesn't mean the vehicle value will remain higher than it was when new.

-----------

Case in point is the 2000 Cobra R. IIRC, that vehicle had an MSRP of roughly $58k; back then when those hit the market that Cobra was THE "top dog Mustang" and most powerful ever from Ford. ADM on a 00R was costing buyers between $20k-25k+ over MSRP, so roughly total purchase of approx. $78k-$83k out the door.

Then 2003/04 Supercharged Cobras hit the market, and what used to be the hottest Cobra (00R) had its value tanked. It tanked because for roughly $34k, one could have a brand new, more powerful, faster and easily modifiable Cobra for less than HALF of what the "King" 00R cost.

Fast forward another 7 years from 2004 to 2011, the 00R wasn't worth more than $45k.. I recall seeing many even listed at $39k-$42k... Those who paid $78k-83k+ couldn't even unload an R for $40k, let alone $78k-83k+. Fast forward again up to year 2018, the 00R was just starting to command north of $40k, lucky if one could get $55k+... Again, buyers who paid $78k-$83k+ are still in the negative.

Just recently in the last 3-5 years has the 00R finally surged past the $40k-$50k slump and prime examples are fetching in the $100k-$140k range, depending on if it's in the wrapper, super low or no miles, low SVT Build #, has all docs and if not ever raced.

An ORIGINAL owner who still may have their 00R from new who paid $78k-$83k+, is only now, 23 years later, able to not only get to break even, but get out of the negative equity and be on the positive side.

Another forum I'm on, someone was happy an 00R sold for $120k.... sure, the guy who paid $78-$83K+ is happy, but who's happier - the guy who waited 23 years to recoup $78k-$83k+, or the other guys who bought an 00R new @ MSRP (or lower)....

Common sense shouldn't be sidelined "just because" A) the vehicle is a "limited production" or that B) who cares "it's ma-money"... and foolishly pay ANY Dealer ADM, because in doing so there is the possibility of being in negative equity.

Don't let the Dealerships win with their ADM fees and tactics; there isn't any good reason to pay ADM. If people stop paying ADM, the ADM will disappear because for every day that vehicle sits on a Dealer's lot, they're losing money and it's a liability.

 

[RagmopInKona]

The problem is there are enough fools in this country willing to pay more than Even Ford thinks they are worth. Clearly dealers don't need to move them and are willing to look at them in the showroom , Also when the covid mess was in full swing many dealers bought from other dealers at over msrp. So they are in DEEP on these And with no NEED to move them off the balance sheet. They will wait on a willing to pay it buyer. They are not going to take a bath on them when they paid other dealers 10-15k over msrp just to get it.

 

[DopamineQuest]

The problem is there are enough fools in this country willing to pay more than Even Ford thinks they are worth. Clearly dealers don't need to move them and are willing to look at them in the showroom , Also when the covid mess was in full swing many dealers bought from other dealers at over msrp. So they are in DEEP on these And with no NEED to move them off the balance sheet. They will wait on a willing to pay it buyer. They are not going to take a bath on them when they paid other dealers 10-15k over msrp just to get it.

Is it more foolish to pay 5 or 10k extra to have what you want right now, or wait 2 or 3 years in the hopes to save 5k when 5k doesn't really matter to you.

A lot of people STILL don't seem to understand, there are a lot of people with a lot of money.

 

[Solarhermit]

Ok, read the entire thread. Stay with me, it's a little winded (long) but has meaning and a point.
---------

My simple Cliffs Notes regarding ADM:

So if I owned a Hamburger Joint and it had (2) drive throughs:

- Left drive through, I sell a regular plain old fashioned cheeseburger for $5.00

- Right drive through, I sell the SAME EXACT cheeseburger, but it's $25.00

Explain to me why anyone would pay $25.00 for the SAME item, when they can get it for $5.00, with very minimal effort . . .
--------------------

To ME, paying ADM for anything is just wasteful from the perspective that it doesn't take much effort to find the same product without ADM. Even for instance a car that isn't within your exact ZIP or ZIP radius, a potential Buyer could still get a better deal even with the vehicle shipped for less than one with ADM...

While I get the whole "it's ma-money, and I'll do as I please" or the "wanna-gotta-have its" or the "be first on the block"..... yes, I get all of that...

To ME is just shows lack of common sense to willfully pay MORE "just because" when if spending some time researching or getting outside the box with little effort, has a greater reward by paying less and maybe putting what would have been the delta "ADM money" into something else, anything else.......

In no way am I trashing anyone - but just from a logical and realistic perspective, paying ADM is just saying to these Dealerships that what they are doing is A-OK.... when it's really not.

ADM doesn't benefit the Manufacturer, it only benefits the Dealer. ADM is not a Manufacturer sponsored add-on at all. In fact, some don't realize that paying ADM over MSRP could be detrimental IF the Buyer ever has to file a Lemon/Buy Back claim. Ford RAV won't entertain any cost paid above MSRP. They won't entertain it because ADM was not an original line item on the Manufacturers Window Sticker at all. The recovery of the ADM delta would be the Buyer going back to the Selling Dealership and trying to get them to cough up the ADM delta.

One last thing too - paying ADM only puts the original purchaser upside down when it comes to future vehicle value. Just because a vehicle is a limited edition does not mean it's going to be an "investment" or that it may retain a value greater than when it was new. Just because the current financial or market climate may be off kilter also doesn't mean the vehicle value will remain higher than it was when new.

-----------

Case in point is the 2000 Cobra R. IIRC, that vehicle had an MSRP of roughly $58k; back then when those hit the market that Cobra was THE "top dog Mustang" and most powerful ever from Ford. ADM on a 00R was costing buyers between $20k-25k+ over MSRP, so roughly total purchase of approx. $78k-$83k out the door.

Then 2003/04 Supercharged Cobras hit the market, and what used to be the hottest Cobra (00R) had its value tanked. It tanked because for roughly $34k, one could have a brand new, more powerful, faster and easily modifiable Cobra for less than HALF of what the "King" 00R cost.

Fast forward another 7 years from 2004 to 2011, the 00R wasn't worth more than $45k.. I recall seeing many even listed at $39k-$42k... Those who paid $78k-83k+ couldn't even unload an R for $40k, let alone $78k-83k+. Fast forward again up to year 2018, the 00R was just starting to command north of $40k, lucky if one could get $55k+... Again, buyers who paid $78k-$83k+ are still in the negative.

Just recently in the last 3-5 years has the 00R finally surged past the $40k-$50k slump and prime examples are fetching in the $100k-$140k range, depending on if it's in the wrapper, super low or no miles, low SVT Build #, has all docs and if not ever raced.

An ORIGINAL owner who still may have their 00R from new who paid $78k-$83k+, is only now, 23 years later, able to not only get to break even, but get out of the negative equity and be on the positive side.

Another forum I'm on, someone was happy an 00R sold for $120k.... sure, the guy who paid $78-$83K+ is happy, but who's happier - the guy who waited 23 years to recoup $78k-$83k+, or the other guys who bought an 00R new @ MSRP (or lower)....

Common sense shouldn't be sidelined "just because" A) the vehicle is a "limited production" or that B) who cares "it's ma-money"... and foolishly pay ANY Dealer ADM, because in doing so there is the possibility of being in negative equity.

Don't let the Dealerships win with their ADM fees and tactics; there isn't any good reason to pay ADM. If people stop paying ADM, the ADM will disappear because for every day that vehicle sits on a Dealer's lot, they're losing money and it's a liability.

words of wisdom...much appreciated Cobra Jet. Exactly the same story with the '08/'09 GT500KR. ADM of $25K on top of the $82 MSRP and now they are still selling for less than 50%.

 

[shogun32]

Explain to me why anyone would pay $25.00 for the SAME item,

your example is a bit specious. Try 7-25% more expensive in the 2nd lane. And caveat that the expensive line has no wait, while the cheaper lane can have a 3-10 minute wait if the right lane gets busy enough.

But your main point is valid. Anything made in more numbers than 2000/yr, let alone multi-year runs of 5000+ is not remotely deserving of 'exclusivity' or 'collectable' status.

Take the modern Nissan GT/R for example. 1700/yr at the high water mark, sub-500 for the last few years. THAT level of production gives the car a veneer of "exclusivity".

modern GT350/500 guys are delusional to put it kindly.

An ORIGINAL owner who still may have their 00R from new who paid $78k-$83k+, is only now, 23 years later, able to not only get to break even, but get out of the negative equity and be on the positive side.

$58,000 in 2000 is equivalent in purchasing power to about $100,000 in 2022. So if you paid more in 2000 and only got 100K today, you're still very much upside down in real terms, not to mention the opportunity cost of that ADM fee that 22 years worth of stock market or even CD/bond returns could have netted you over the same timespan.

 

[RagmopInKona]

Is it more foolish to pay 5 or 10k extra to have what you want right now, or wait 2 or 3 years in the hopes to save 5k when 5k doesn't really matter to you.

A lot of people STILL don't seem to understand, there are a lot of people with a lot of money.

No most understand that there are many people with more money than brains. These same folks will go shop at amazon or a big box store because the mom and pop retailers prices are higher. but don't think twice about paying 15-30k market adjustment for a car . Hello, buller, Anyone, Anyone.

 

[Solarhermit]

if I recall, GM doesn't allow their dealers ADM? - like on the C8 'vette. I was contemplating that but decided to stay away from the ugly but nimble Z06.

 

[shogun32]

A lot of people STILL don't seem to understand, there are a lot of people with a lot of money.

of course. And some of them just found themselves tossed out of work. With not a few to follow.

Are there 12-15,000 too rich to care guys within the USA who will pay to secure this car? Apparently not. Once the initial stampede dissipated there was no follow-on "gotta have it" money chasing units. So now units sit unsold month after month. and used prices are steadily resuming the usual and customary trajectory.

Unless you're at death's door, the car drives the same today that it did 2 years ago.

 

[Inthehighdesert]

It’s pointless. Its supply and demand, not that frick’n complicated. Then again it completely escapes so many. One of the genius’s previously said Ford would be fire saling the 40k Superduty’s sitting waiting on chips. It was crickets when it was pointed out that equated to 3-4 units per franchised dealer. It seems to me if the nay sayers were such financial genius’s they would be in a position to not care about an adm on a limited production vehicle. Lets be honest, these same posters that are continuously in every one of these threads will never buy one of these cars regardless of what the price is.

Is it more foolish to pay 5 or 10k extra to have what you want right now, or wait 2 or 3 years in the hopes to save 5k when 5k doesn't really matter to you.

A lot of people STILL don't seem to understand, there are a lot of people with a lot of money.

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