PRICE GOUGING NOW IN EFFECT for 07 Shelbys

Once again in my pursuit to get farther up the list for the New 2007 Shelby GT 500 Mustang, I have more bad & angry news to report from Michigan.

I have just returned from several more regular FORD dealerships within a 50 mile radius of my hometown and all (4) of them have repeatedly said the same thing today….They will not allow me or anyone to ORDER their own Shelby GT 500 Mustang in the color they want or with certain options they want. The way we get them is the way we are selling them!

Again they told me, NO ONE will be willing or stupid enough to sell you a Shelby GT 500 for sticker price when they can ask 100k+ for it & get it!

Some gereral comments from the dealers were as follows:

Why should I sell you a New Shelby cheaper then what an original one currently goes for?

Theirs no law that says I have to sell it to you at sticker price from the factory.

Theirs nothing that says I have to let you order a car or to sell you a car you want to order.

We have (2) cars coming in & were putting them on eBay with a reserve price of ???

I’ve already got & have accepted several 5k down payments just to be called when we get one in & set the asking price. If they say I’ll give you 5k less than I’m asking for it, I’ll say NO & return the money & go to the second one on the list & do the same thing. NEXT!

This is how much it is & if you are you willing to pay the price it’s yours, if not, your deposit checks in the mail.

I don’t know about the rest of you, but something must be done to discourage this type of business practice. Why should car dealers be allowed to sell an M.S.R.P. Sticker price vehicle to the American Public for twice the M.S.R.P. sticker price? Do we need some type of laws on this?

Are the dealers not a direct Representative of Ford Motor Company for Ford Motor Company? and does FORD approve of this?

Maybe we need to start a web page listing for these Price Gouging dealers so we know who NOT to recommend any & all future car/truck sales to for those of us who are loyal to FORD products & willing to pay a small mark up?

Maybe we need to contact FORD directly & complain about price gouging?

Maybe we need to contact our state politicians to help protect consumers from bad car dealers like we have for gasoline station owners who charge $3.50 to $5.00 for a gallon of gas. We need some type of new car buyers protection when demand is high & volume is low?

I don’t know what the answer is, but we all need to do something now because this is starting to snowball & get out of hand real fast since they announced only 7,000 will be built.

Welcome to the Ford family my Donkey!

More like you have to pay through the donkey to get a Shelby GT 500 Mustang

More ideas & suggestions on what to do are welcome. Let your voices be heard!

 

I totally disagree with you , That's why they put that big new window sticker in the window with a Suggested RETAIL Price!

If all car companies thought as you did, then they would only list their cars on eBay & only sell them to the highest bidders with a reserve price of (XX %) above the actual cost just to move them or to make the most possible profit for their own company to prosper from & lotally leave out the dealers regardless of volume production numbers.

Do you think the dealers pay MSRP? They don't! They pay well below the A,X,& Z plans & their profits come from the difference they pay at reduces prices from the MFGs & the price closest to MSRP or the actual sale price (with or without rebates). Then on top of all that, any extras & services they can sell you to keep you coming back several times a year at $75.00+ hour.

Haven't you seen the generous discounts already from MSRP from all MFG's? That shows you right their that theirs a hugh mark up, thousand of dollars depending on the make & model. I for one do get a discount from all the MFGs & I can save anywhere from 2 to 8.5k on the average depending on the make & model I choose, which still allows the sales person, the dealer & the MFG to still make money to live on.

I know I wouldn't want my sales Reps over charging for a product that I make & sell to them at well reduced prices that already has a Retail price listed on it! That alone would tell the customers that as the MFG of the product I don't care about the sales force over charging for something that I already established a fair market value on. I sold it to them cheap enough to still make a profit & left enough of a mark up in it for the Reps to live as well.

You might want rethink your thoughts on this if you got the discounts I currently get on a daily bases & not this limited time crap their are all doing. Unfortunately most dealers do not want to give me the discount when it comes to the Shelby GT 500 because it's less money in their pocket when they have to sell it at a discount.

One last thing to think about....for 2007 they are making only 7000 cars, my guess is in 2008 it will be only 8000 & the last year will be 2009 with only 9000 cars. Still low volumes, with high demand & high prices each year.

 

Your right this is not a war of words just opinions. And for the record I also have a used car Dealers License & have been in the business for over 25 years. I personally will not list a used cars price for more than 25% then what I paid for it. Rarely does anyone walk up off the street & pay full asking price. That leaves me room to lower my price and/or negotiate their trade-in value so I can make a sale & still have a 10 - 15% return on my money invested so I can pay my taxes, insurance, overhead & personnel and still try to make a decent living each day for my family. Maybe you think I should be more greedy like the rest of these so called ethical new car dealers, but life's not just about the money, its about doing the right things in life without any regrets. I treat people as I would expect to be treated...Fair, honest, kind, & considerable who also gives an equal opportunity to all that I come in contact with.

Here are some terms & a few tips on how to buy a car. Go ahead and use your own judgment on what they mean to you or if I'm correct or not. But my whole point from the beginning has been from a NEW CARS SALES stand point only, not after the car has initially been sold to a consumer & then offered for sale later. (thats where the real value begins in the eye of the beholder after a few of the good ones have been wrecked or no longer made causing less to be in circulation making them more of a collectible with higher prices)


MSRP: Manufacturers Suggested Retail Price.

When you go to look at a new car there will be a sticker on the car that lists the MSRP. This sticker is placed there by the factory and has to be there by law. The MSRP sticker shows the price for the base model plus any options. It is important for you to know what the MSRP sticker price is, but don't get thrown by it. When you negotiate with the dealer, you're going to negotiate up from the dealer's invoice cost of the car not down from the MSRP sticker price.

Dealer's Sticker Price.
It's often located next to the MSRP sticker. It's lists additional fees. If a car is selling well, dealers may increase their profits by adding on hundreds to thousands of dollars in extra fees. Similar to the MSRP sticker, it is important for you to know what the dealer's sticker is so you don't get thrown by it. You need to be negotiating based on the dealer's costs as listed on the invoice.

Dealer Invoice. (Applies to New Car Dealers Only)
New dealer invoices lists the total price the dealer paid for the car and details the costs to the dealer. Ask your salesman if you can see the dealer invoice. Historically, dealers would never let customers see the dealer invoice, but these days it is more and more common for dealers to let you see the dealer invoice. Here is what is typically listed on the dealer's invoice: base cost of car, hold back (built in dealer profit,) gasoline, make ready servicing, and advertising fund.

Car Dealer fees
Dealer Preparation Fee. This is what the dealer charges you to prepare your car. Some dealers charge $500 or more for this fee. At most new car dealerships they don't have to do very much to prepare a car for sale. They peel off the plastic protectors on the car, test drive the car a few miles, and put in the fuses. Sometimes, you can get them to give this fee up.

Destination Charge.
This is what it costs the dealership to have the car delivered by truck. You have seen those large trucks on the freeway carrying cars right? This is a real fee to the dealer and it is customary that it is passed on to the customer. Before paying this fee check with on line pricing resources to make sure the dealer is not over charging you.

Advertising Fee.
Dealers may try to hide this fee by using strange acronyms like DCFA (Dealer Cost For Advertising). Also, check the dealer invoice to see if an advertising fee is included in the dealer cost. If it is, you should not have to pay it twice.

Floor Plan Interest Fee.
The manufacturer usually includes one to two months of floor plan interest in the hold back on the dealer invoice. Some dealers try to pass this fee on to you.

Window Etching Fee.
Dealers have been known to charge as much between $300 - $900 to etch the Vin Number # on your window. You can get a kit at your local auto parts store and do this yourself for as little as $29.

Documentation Fee.
This includes registration, tag, title and other state fees. Check with your local Department of Motor Vehicles for how much these fees should be in your state. Then, get your auto dealer to write down what the documentation fees are going to be for your car. If any of the fees seem too high ask the dealer about them.

Port Prep Fees.
Fees for things done to the car in port when it arrives in the US. An example is applying an under coating. This fee is not negotiable with the dealership.

Kelly Blue book & NADA books are from an independent company that publishes purchased information from the industry. They contact lenders, auction houses, new & used Car/Boat & RV dealers & pay them for that general information like Year, make, model, mileage, engine size, options, condition and etcetera so they can create a data base of information to be sold back to the people in the Industry. After they AVERAGE all that information from coast to coast , they will come up with (3) Three or (4) Four categories depending on who’s book it is. It is then used as a measuring stick for business.

Loan value – is representative of what the bank will loan on it based on the additions or deductions listed in the book.

Trade-In value – is representative of what a dealer’s general average value was for your car when taken in on trade based on its condition.

Private Party value - is what a buyer can expect to pay when buying a used car from another private party.

Retail Value - is representative of dealers' asking prices and is the a starting point for negotiation between a consumer and a dealer.


So as you can see, the value you listed is not a true representation of what it's worth sight unseen. How do you know that this car hasn't been restored like many other older mustang cars have been? Like I said before & all along, I have been talking about NEW CAR PRICES that already have a fair market value listed on it from the factory & that's called MSRP & that is a law in all 50 states & that it must be visible to the consumer.

 

One thing I can say is we both agree to disagree on how this over pricing issue should be handled. And that's Ok. thats what makes america great.

We all have brung up good points, but the bottom line is, we all love the RED SHELBY just the way it was when it was presented to us & we don't want it changed or to feel like were robbing a bank when trying to approach the dealer & inquiring about the cars.

To end on a good note I got a call today from my own home town dealer (of all places) & they expect (2) cars in & that I'm #2 on the list. I asked if they would let me order the car the way I wanted & they said yes. I then asked if they will be hiking the price & they said NO: and as soon as they get more info in after the final debut of the car at Cobo hall in Detriot (January 2006) they will call me if I had not already stopped in.

So I guess that means hell does sometimes freeze over & that I'll definetlly be attending this years event to personally see what changes were made & what the final cut is before ordering.