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Michael Bryant

2020 GT500 Price Markup

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Contacted a local dealer regarding my interest in a new Shelby GT500.

Internet Sales Manager replied “The car is selling $25k over sticker with a $5k NON REFUNDABLE deposit.”

I told him I would wait until the “newness” wear off!

Are these the kind of numbers that others are seeing?

Regards,

Michael

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21 minutes ago, Michael Bryant said:

Contacted a local dealer regarding my interest in a new Shelby GT500.

Internet Sales Manager replied “The car is selling $25k over sticker with a $5k NON REFUNDABLE deposit.”

I told him I would wait until the “newness” wear off!

Are these the kind of numbers that others are seeing?

Regards,

Michael

At this point in time you can bet pretty much every dealer is going to have ADM's on the 2020 GT500 and even if a dealer was to sell at MSRP the car will be purchased by a "flipper" who will put their own "mark-up" when they resell the car on eBay.

If buyers didn't pay ADM's there would not be any ADM's but since buyers do pay ADM's, dealers add ADM's. Not much you can do except wait for the demand to drop off.

It would not surprise me if the new GT500 ends up like the 2008 KR's, sitting unsold on dealer lots because of the ADM's. And for anyone considering paying a ADM, you may want to talk to GT350 owners who paid a ADM and asked how it worked out for them.

Steven

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Speaking of absurd ADMs. Went to local ford dealer to pick up some parts.   Has a spec super snake  in showroom.   Then adds another 10k on top.   The thing is right now I can get the base mustang for 5k under sticker and send it to sai myself.  Moron on the floor looked like doe in the headlights

Edited by twobjshelbys

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4 hours ago, twobjshelbys said:

Speaking of absurd ADMs. Went to local ford dealer to pick up some parts.   Has a spec super snake  in showroom.   Then adds another 10k on top.   The thing is right now I can get the base mustang for 5k under sticker and send it to sai myself.  Moron on the floor looked like doe in the headlights

Can you still send your own 2018 or newer car to SAI? The website implies you have to order through a dealer.

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11 minutes ago, Al G. said:

Can you still send your own 2018 or newer car to SAI? The website implies you have to order through a dealer.

Maybe not, I don't keep up with it.  If not that's a bummer.    In any case, deep discounts on in stock mustangs abound.

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Another ADM thread....about as exciting as another oil thread...geesh 

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1 hour ago, Cali_KR said:

Another ADM thread....about as exciting as another oil thread...geesh 

Yes I agree, the ADM whine-fest was played out long ago. It’s a free market system and it works. If you want to dance early, pay the fiddler, if not,  just wait. Nobody has a gun to their head. The 2020 GT500 is currently commanding ADMs because it is an awesome car and the order banks are filling rapidly.. If people don't want to pay the ADM, they can  just wait for the market to possibly adjust.

In regard to the SuperSnake thing.

Whether you have to go through a dealer or not, I would think you should still be able to buy the base Mustang at a discount,  then tack on the SuperSnake pricing. If not ......you have the option to walk away.

Edited by mhr1961
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The real point about the ADMs is that unless they are universally applied the cars just sit there.  Case in point is this dealer. They glommed on to the last run of the Shelby GT350s, and they sat with huge ADMs on the lot for almost two years until they sent them back to Ford under the guise they couldn't sell them because of the air bag recall.  Nevada had no such restrictions.  Some large dealers may be able to absorb the inventory time in their floor plan.  The small dealers that can't will sell at MSRP (or a small token fee, perhaps to recoup their "membership" fee). 

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5 hours ago, 1 Alibi 2 said:

WE the buying public created ADM's,.....................enjoy !!

Not really.  Ford pricing the cars lower than the market will bear is a bone thrown to the dealers.

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18 hours ago, Al G. said:

Can you still send your own 2018 or newer car to SAI? The website implies you have to order through a dealer.

Correct current model Super Snakes are a dealer only purchase.

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17 hours ago, Fat Boss said:

Not really.  Ford pricing the cars lower than the market will bear is a bone thrown to the dealers.

ADM only applies to " select " cars, & only works with people with more money than brains, MSRP has nothing to do with it..

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Funny.  Every single person I have ever met that has lots of money has a corresponding amount of brains.  As far as MSRP, Ford could have easily added $5k to the MSRP of the GT350 throughout it's 2015-2020 run and still sold every one.  Instead, they threw the dealers a bone.  Do you really think Ford doesn't know what the market will bear for their cars?

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ADMs started with the Ford GT when it was a truly  limited production vehicle.  Even those collapsed near the end with some cars sitting at 2x over for a year or more before they sold.  Then the strategy was adopted early in the GT500 life cycle when it was thought that too would be a limited production.  People thought the cars would be rare and the extra money they paid would be absorbed by the increase in value.  Well, the GT500 went in to full production and the sheer number of them meant they would never increase in value. So ADMs became the mark of "early adopters".  Every model year starts off with ADMs and by the end, the cars are selling below sticker. 

Dodge dealers tried ADMs on some flavors of the Challenger. Early on Dodge re-did its allocation scheme to factor in "days in inventory".  So if one dealer had a car and sold it for MSRP and another added a 5K markup.  If they both sold in the same amount of time the guy with the markup probably got another car.  But eventually the MSRP cars sold faster, and the dealers with markups (1) had cars stuck in inventory and (2) didn't get any more while the dealer on the other side of town got more.  ADMs disappeared in a flash.

The lesson is that dealers care about profit (new car sales are only marginally profitable).  The manufacturer could care less about what the sell for and is only interested in numbers.  This is a case where you might sell for less but you truly do make it up in volume.

Edited by twobjshelbys

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In 1987 I was promoted to the Metro LA Ford Field Mgr position and there were ADM's on cars even in the 'good old days'; some dealers had them on EVERY car in inventory.

Pete Ellis Ford was one of those dealers and our District Mgr was all over me to get him to pull those ADM stickers. 

Pete told me he had to use ADMs because 'it was really expensive to run a car store in LA and the Factory didn't provide enough hold back on cars to sell them at MSPR.'

Ford was in the process of developing a system to allocate new cars based on 'days supply' which eventually stopped most dealers from using ADMs.

The Factory cares about retail sales (not the selling price) as they need to keep the factory running and get UIOs (units in operation). UIOs let them boost of 'market share.'

Things have changed, but in my time after 6 months a car comes off 'floor plan' and the dealer has to pay for it. 

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I have never paid ADM, especially in this local market where they are anywhere from $5K for an average sedan or truck to going over $35K for specialty cars.  I remember a 2005 Ford GT doing for $100K ADM.  Crazy. I have told the dealers that for the markup, I could find the special Shelby that I wanted somewhere at MSRP, fly there first class, stay in a suite until the paperwork cleared, ship the car  and then fly home first class.  The cost would still save me tens of thousands and I would have had a nice vacation.  

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2 hours ago, ChicagoChris said:

 

Pete told me he had to use ADMs because 'it was really expensive to run a car store in LA and the Factory didn't provide enough hold back on cars to sell them at MSPR.'

 

Should have asked Petey how all the other Ford dealerships in LA were able to run a Ford dealership if LA was so expensive.

In fact Pete Ellis had an advantage over the other LA Ford dealers, cheap rent. Those Ellis dealerships were always located in low rent areas like Bellflower,  Commerce, South Gate.

Not sure if he or any of his dealerships are still around but I for sure wouldn't buy a car from them.

 

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4 hours ago, twobjshelbys said:

The manufacturer could care less about what the sell for and is only interested in numbers.  

What many people also forget or fail to realize, we are not Ford customers. The dealership is Ford's customer and Ford's only concern is how many cars can they get the dealership to take.

Ford could care less what a dealership charges as long as they move product.

Do you think that Sony cares that a retailer in TImes Square sells a television for more money than the Costco store across town sells the same TV for? They sure don't because you are not buying that TV from Sony, you are not Sony's customer, the retailer is Sony's customer not us.

ADM's make two parties happy. They make the dealership happy because of the pure profit they create and they make the manufacturer happy because the manufacturer can make the dealer accept slow selling cars in exchange for another allocation of the car that buyers will pay an ADM on.

ADM's will always be there until buyers stop paying them but there is no reason to believe that will change anytime soon.

Steven

 

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3 minutes ago, SAI-Steven said:

What many people also forget or fail to realize, we are not Ford customers. The dealership is Ford's customer and Ford's only concern is how many cars can they get the dealership to take.

 

Yep.  It's funny because I've often referred to auto dealers as "factory outlet stores". 

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In Nor Cal some of the dealers here put an ADM on everything from a Fiesta to a Raptor.  When the GT350R arrived there was a $100k ADM, finally dropped to $25k after a while.  Silly numbers.

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15 hours ago, cobrakidz said:

In Nor Cal some of the dealers here put an ADM on everything from a Fiesta to a Raptor.  When the GT350R arrived there was a $100k ADM, finally dropped to $25k after a while.  Silly numbers.

Hmmmm, our local dealser in Hawaii have the same history.  One was successful at getting a $100,000 ADM for a 2005 Ford GT.  But usually the ADM is a bargaining chip as it will start at $35,000 or specialty Fords and get "bargained down" to about $20,000-$35,000 over MSRP.

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On 9/26/2019 at 8:28 AM, Fat Boss said:

Funny.  Every single person I have ever met that has lots of money has a corresponding amount of brains.  

Faaaaak, I am in short supply of both 🤣🤣🤣

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14 hours ago, Cali_KR said:

Faaaaak, I am in short supply of both 🤣🤣🤣

Clearly I was leaving us out of that assertion.  

dumb-dumber-suits.png

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I think the new Corvette is really gonna hurt sales of the GT500. Even at MSRP it's a tough sell. This coming from a Ford enthusiast and employee. With the Camaro going away, this will be the competition for the GT500. Kudos to GM for the car.

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2 hours ago, 08 Ont GT500 said:

I think the new Corvette is really gonna hurt sales of the GT500. Even at MSRP it's a tough sell. This coming from a Ford enthusiast and employee. With the Camaro going away, this will be the competition for the GT500. Kudos to GM for the car.

Agreed the Corvette at MSRP, which you can get all day long, makes the GT500 at MSRP a very tough sell.  The Corvette is clearly better in every way.  That said I’m a Mustang guy, but if I were buying today my loyalty would be changing to GM and the Corvette.  Even at MSRP to MSRP I would buy the Vette.  The fact they are putting these crazy ADM’s will drive many away.  I’ll be laughing at all the GT500’s that sit on lots for months with ADM’s.  They tried to get ADM’s for the Bullitt so they sat for over a year, they tried with the 50th, they also sat.  After the short window of people that just have to have it first they will sit just like those did.

 

Honestly if I were buying today, because I have 3 kids, I would probably get the Redeye, it’s a much better value and a beast of a car!!!

 

Edited by carnut12
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All speculation. Look at the Vette reviews on YouTube- not so great. You'll be hard-pressed to find one without options that add tens of thousands over MSRP and equally hard-pressed to actually order a base model. I expect the easily swayed and gotta-have-it-now crowd will be bored and disappointed with their Vettes not long after buying them. My son worked at a Chevy dealer. I've seen and heard about their lack of build quality first hand. You got hooked into the hype, especially saying the Vette is "better in every way" :doh:The GT500 hasn't even been released yet and it's a brand-new model. 

Not all dealers have ADM's on Bullitts. However, I've seen very high ADM's on Hellcats when they were new and I'm sure Redeyes will have them as well.

Come back to your senses and actually wait for the cars to be available to take a test drive and inspect first before you make a decision and a purchase.

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9 minutes ago, Secondo said:

All speculation. Look at the Vette reviews on YouTube- not so great. You'll be hard-pressed to find one without options that add tens of thousands over MSRP and equally hard-pressed to actually order a base model. I expect the easily swayed and gotta-have-it-now crowd will be bored and disappointed with their Vettes not long after buying them. My son worked at a Chevy dealer. I've seen and heard about their lack of build quality first hand. You got hooked into the hype, especially saying the Vette is "better in every way" :doh:The GT500 hasn't even been released yet and it's a brand-new model. 

Not all dealers have ADM's on Bullitts. However, I've seen very high ADM's on Hellcats when they were new and I'm sure Redeyes will have them as well.

Come back to your senses and actually wait for the cars to be available to take a test drive and inspect first before you make a decision and a purchase.

 

Just curious....where on youtube did you see a "Not so great" review on the new C8 Vette ?....I saw many and never saw a bad one yet but

if you have one please post it here I'd be interested to see it.

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1 hour ago, svtkeith said:

 

Just curious....where on youtube did you see a "Not so great" review on the new C8 Vette ?....I saw many and never saw a bad one yet but

if you have one please post it here I'd be interested to see it.

:thumbsup:

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On 10/19/2019 at 11:05 AM, carnut12 said:

Agreed the Corvette at MSRP, which you can get all day long, makes the GT500 at MSRP a very tough sell.  

 

The 2020 vette isn't on dealer lots yet so how can you get one all day long at msrp?

I just looked at eBay and there is only one 2020 vette listed as a PRE-ORDER for $125,000

Just curious on what you're basing your post on?

Steven

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I think he meant maybe a year from now when people start selling them due to quality and mechanical issues- "No  more ADM all day long!" :hysterical2:

The current Vettes always could be had with Black Friday sale prices all year long.

Ok, see reviews so far. New C8 almost 200 lbs more than C7, takes 10 more feet to stop from 70mph than C7, is quieter, so much so that it detracts from the experience of driving a sports car, and the interior is awkward. Not to mention the ugly wheels and rear end. But it's "better in every way" :hysterical:

To stay on topic: There's a reason there will be ADM's on new GT500's. Demand.  Because it will be quality built engineered to perform musclecar. 

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