The Down and Dirty ADM Thread

[likeaboss]

I've been watching GT350s online and the amount available continues to raise. Here is what I'm seeing.

-GT350s with advertised ADMs of $10-$20K continuing to sit, many of them for months
-Allocations with smaller ADMs at smaller dealers showing up in bigger dealers inventory with higher ADMs
-Cars listed around MSRP going quickly

It's almost like there is collusion going on between many in the dealer network to artificially keep pricing high. I have a feeling the bubble is going to burst here soon with GT350 production in full swing towards the end of the 2016 model year. The cars just aren't moving with the huge ADMs. As of this morning there are 447 showing on Cars.com alone which isn't reflective of what's in dealer inventory as a whole.

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[honeybadger]

I know a local dealer here in Seattle is buying other dealer's allocations so they can maintain their 20k ADM.

 

[Sawman70]

Some would say Disney is a complete waste of money. You pay all that money, line the pockets of disney share holders, gain a few pounds eating rotten food, and get nothing buy a few pictures in return. The ROI is 0 from the start. A trip to the mountains or the lake or a national park would be a fraction of the cost and could be just as memorable, with better pictures to boot and wont get your kids hooked on the corporate gravy train

You could say the same thing about cable TV, eating out at all, star bucks, going to the movies, etc etc. How others spend their money on leisure activities is a very personal decision and none of anyone elses business

So short sighted. I could...

Invest it and have several fold more thousand towards retirement.
Go to Vegas with the wife.
Remodel the bathroom.
Etc. Etc.

The reality is Disney or not, my choices have tangible and intangible values to my life. They did not go to the owner of a dealer. I did not buy "air".

If you want to spend ADM, I do not care. I am only talking about why I won't. This is my reality and philosophy at work. I would not charge ADM if I owned a dealer. I do not charge ADM for my catalog of parts I sell. If that makes me stupid or a bad businessman, so be it. I have standards on how I must be treated as a customer and I treat mine the same way.

This is a discussion on a Mustang enthusiasts sight. I am just participating in it.

 

[jwhite]

I get the "I'm not paying an ADM guy" I get the "who cares about ADM guy, it's worth it guy" to each his own.
I don't get why it's such a hate to the dealer? Why does everyone think the dealer is trying to screw them at every turn? Terms like "stealership",,,,, For the guy on the fence of paying an ADM, where would you feel better about the money going to? I know my dealer does a lot of fund raising for the local high school in sponsoring athletic events, bought at least 3 new score boards for baseball, football and basketball, and scholarship programs to help with kids trying to go to college. Summer employment for high school kids. Do you just hate business owners in general? We pay an ADM in some sort, weather it be the latest new brand name fashion, your wife's new Coach, MK, Louis Vaton purse. I remember when Guess jeans hit the market. $100 for a pair of jeans, at that time was unheard of. Nike shoes,,, Christmas gaming systems and new hot toys for the kids,,, Cabage Patch kids. I could go on and on. Again I don't care if you want to pay it or not, just don't get the hate for the dealership???

 

[GT P-TREE]

The "hate" for the dealerships comes from the fact that Ford, who manufactures/develops/produces the vehicle advertises a price for the car that makes themselves, and the dealers money. Said dealer then takes that car, and hikes up the price because the consumer can not buy the car new any other way. If Best Buy got in the new cell phone, advertised price of $500, and charged $1,000, because they can, they are a dealer, you would be upset. You would probably drive across town to Electronics Store that would sell at $500. Same principle. If people didn't know what the MSRP for the vehicle was, then the price could be nebulous.

 

[jwhite]

I guess I didn't make my point very clear after reading it, sorry.
Maybe we'd feel better if Ford just said it was a $70,000 car and we bought at MSRP?
I'm just not opposed to a business making money for a hot item. The competitive market drives price, unfortunately the 350 has very little competition with the limited production and allocations. Did I like paying an ADM,,,, no. But I do like the rareness of the car. I did pass on the first 350 my dealer ordered because of the ADM, I was just like so many of you. When I got the call for a second one they received they " the GM at dealer" explained if I sold it with a cheaper ADM than the first I would lose my integrity with the guy that bought the first one. I do think it funny that my brother in law who could easily afford a steep ADM won't pay it because he says he's not paying over $60k for a mustang, but owns a 13 Shelby Super Snake that he has well over $100k in and a 15 Hennissey Z28 again well over $100k in.?? It's just a Mustang and fancy Camaro! Lol

 

[jwhite]

Please again I'm not defending the ADM or being critical of the guy that stands on his principal of no ADM. I am a big sports fan and go to many pro/college games but I will NOT pay more than $300 for a ticket to anything!!! That's my limit, could I afford it yes but principle of it NO. But I don't hate Ticket Master? It's simple supply and demand.

 

[tuckerware]

The "hate" for the dealerships comes from the fact that Ford, who manufactures/develops/produces the vehicle advertises a price for the car that makes themselves, and the dealers money. Said dealer then takes that car, and hikes up the price because the consumer can not buy the car new any other way. If Best Buy got in the new cell phone, advertised price of $500, and charged $1,000, because they can, they are a dealer, you would be upset. You would probably drive across town to Electronics Store that would sell at $500. Same principle. If people didn't know what the MSRP for the vehicle was, then the price could be nebulous.

Best Buy stores are not franchised. They are owned and operated by Best Buy who sets the pricing for all stores which is why they can run a national ad campaign and set a selling price.

I'm not saying this from a pro/anti ADM standpoint. Just clarifying that a franchised dealership has complete pricing autonomy vs. a corporately owned store. Individual Best Buy stores don't have the ability to charge more or less for the latest and greatest iPhone from one location to another.

 

[Sawman70]

The reality is you have Ford Management touting the car as affordable. Releasing the price and telling us how its for everyman. They want everyone who wants one to be able to afford it. They said it from podiums, in press releases, on Youtube and at the track while we drooled. We were allowed to build and price in advanced. Then BOOM. Sorry Charlie, its no longer 48K because the good ol' boys club of dealer owners said so.

This is the hate for dealers. I also harbor some for Ford for allowing it.

I've said enough on this topic. I bought a 2016 F150 Friday rather than trade in my 2015 GT plus $33K to get a GT350. There is not enough car there to warrant that for me. I will Steeda suspension my GT with Koni Yellows (all ordered), Drive it until I am truly bored then see what the market has available without ADM.

Peace out everyone, enjoy your rides.

 

[tuckerware]

I also harbor some for Ford for allowing it.

Ford corporate has no say in the matter. Franchise laws are incredibly protective of dealers and pricing is solely determined by each franchise.

Tesla is battling states all over the country because of these same laws that won't let them open their own stores.

 

[mattlqx]

I'd also argue strongly that dealers provide little to no actual value on the sales end. Yes, most dealers absolutely try to hamstring you at every end possible. That's where the hate comes from. Most know next to nothing about the product they sell or at worst are misinformed about many aspects of the brand, the process and the product.

The value of the dealership from the new car perspective is entirely on the network that makes warranty service easy, but in the end, Ford pays for that. If you're out of warranty, you pay in many cases pretty dearly for that. So again, dealers offer very little realized value. Yet they want $10s of thousands over for simply being a middle man? Get bent.

Ford themselves provides tons of value in producing a top-end car and pricing it affordably. I wouldn't begrudge them at all increasing the price if there's still plenty of value left in it and it goes back into make the brand better. The money from that would go mostly to them. The money from ADM goes into a select few people's pockets at the dealership, providing no value to the purchaser.

See the difference yet?

 

[likeaboss]

The biggest problem is a lot of these dealers are in the red on new car sales. It's become the loss leader for the entire business. The money is in used, service and parts. I had a lengthy discussion with the GM at a large dealership in my area about it. They look at these cars as a way to move new car into the black. I told him I'd rather pay you a little more for a regular Ford than $15k over for a GT350. The Ford step program for sales has these dealers banking on volume kickbacks which the special edition models don't count towards.

 

[Wichard20]

This whole situation sucks for the consumer. Take the ADMs aside. Just the process to find a dealer who bought into the Shelby program and on top of that one of the lucky few who received an R allocation makes it a crap shoot when contacting dealers. I have contacted over 500 dealerships, only a few have Rs. As a consumer besides limiting my search to dealers knowing they received GT350s and or GT350Rs, there is no easy way besides emailing every dealer. I wish Ford handled the Rs as they are handling the GT sales. You get an allocation assigned from Ford and they assign it to a dealer and how they do that I do not care (by your preference, to award on sales, lottery, etc). This would also help ensure individuals got the cars and not brokers (some which are being exported illegally out of the country), dealerships by from other dealerships, etc.

 

[likeaboss]

This whole situation sucks for the consumer. Take the ADMs aside. Just the process to find a dealer who bought into the Shelby program and on top of that one of the lucky few who received an R allocation makes it a crap shoot when contacting dealers. I have contacted over 500 dealerships, only a few have Rs. As a consumer besides limiting my search to dealers knowing they received GT350s and or GT350Rs, there is no easy way besides emailing every dealer. I wish Ford handled the Rs as they are handling the GT sales. You get an allocation assigned from Ford and they assign it to a dealer and how they do that I do not care (by your preference, to award on sales, lottery, etc). This would also help ensure individuals got the cars and not brokers (some which are being exported illegally out of the country), dealerships by from other dealerships, etc.

It would be pretty cool if Ford applied the GT program to the GT350. It would kill this secondary market of brokers and dealers selling to each other in an effort to inflate transaction prices to justify outrageous ADMs.

 

[CANTWN4LSN]

The biggest problem is a lot of these dealers are in the red on new car sales. It's become the loss leader for the entire business. The money is in used, service and parts. I had a lengthy discussion with the GM at a large dealership in my area about it. They look at these cars as a way to move new car into the black. I told him I'd rather pay you a little more for a regular Ford than $15k over for a GT350. The Ford step program for sales has these dealers banking on volume kickbacks which the special edition models don't count towards.

Granted not all dealerships are the same but I have a hard time believing that GM. Most of the MSRP deals are occurring at small dealerships where you would expect just the opposite since most dealership revenue seems to be volume based and large dealers do better based on that logic. The sad reality is the large dealerships are charging high ADM because they can and choose to rather than perhaps the rare circumstances where they have to. They hide behind the supply/demand mentality that so many here buy in to rather than the small town morality of treat your neighbor as yourself. No rant, it is what it is, just disagreeing with that GM.

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