Greedy *******s.....

Last year I put my name on a waiting list for a GT500
with an out of town dealer. I was number nine on the list.
I figured if I could get a brand new reliable Mustang with
500 hp for around 45K I might go for it. After several inquiries
and many months, I finally received an email stating that the
price is $65,000. I replied that I wasn't interested.
So yesterday, I stop in at the local Ford dealer - not
the one with the waiting list - to pick up an e brake cable
for my Ranger. Holy ****, there's a GT500 on the showroom
floor! I didn't think they were going to get any, so I never
asked. I looked it over closely, and there are only two
things I don't like - the white color and the stripes. But
I do like the fact that the only price displayed on the car
is the MSRP of $43K in the window. This dealer is known for
its fair pricing, so when the sales guy walked over I asked
him if they are selling the car for the price on the window
sticker. He smiles and says "no". "How much is it", I ask.
He disappears for a minute, comes back, and says "seventy
thousand". I laughed and told him I'd wait for the price
to reach a sane number. No way is it worth that. Ford
should at least have used an aluminum block to keep some
weight off the nose. Are people actually paying that much for
them? Any guesses on what they'll sell for next year?


--


http://911research.wtc7.net/talks/wtc/videos.htm
http://911research.wtc7.net
http://www.st911.org

On Thu, 26 Oct 2006 21:11:51 -0400, Henry > puked:

>
> Last year I put my name on a waiting list for a GT500
>with an out of town dealer. I was number nine on the list.
>I figured if I could get a brand new reliable Mustang with
>500 hp for around 45K I might go for it. After several inquiries
>and many months, I finally received an email stating that the
>price is $65,000. I replied that I wasn't interested.
> So yesterday, I stop in at the local Ford dealer - not
>the one with the waiting list - to pick up an e brake cable
>for my Ranger. Holy ****, there's a GT500 on the showroom
>floor! I didn't think they were going to get any, so I never
>asked. I looked it over closely, and there are only two
>things I don't like - the white color and the stripes. But
>I do like the fact that the only price displayed on the car
>is the MSRP of $43K in the window. This dealer is known for
>its fair pricing, so when the sales guy walked over I asked
>him if they are selling the car for the price on the window
>sticker. He smiles and says "no". "How much is it", I ask.
>He disappears for a minute, comes back, and says "seventy
>thousand". I laughed and told him I'd wait for the price
>to reach a sane number. No way is it worth that. Ford
>should at least have used an aluminum block to keep some
>weight off the nose. Are people actually paying that much for
>them? Any guesses on what they'll sell for next year?

My dad bought a T-bird the first year that they were reintroduced from
a dealership down here for list while others were charging a premium.
He was on a list and even custom ordered the seats a single color
instead of two colors.

I wonder if there are any dealerships even considering doing that with
this car...
--
lab~rat >:-)
Do you want polite or do you want sincere?

Henry,

Was the price clearly marked on the vehicle - as in on the window
sticker? If so, get your financing lined up at your bank then walk in
and ask for the sales manager. Tell him that you'll take the GT500 for
the price they're advertising it for.

When he says that's not the real price, that it's actually $70k then
tell him you'll be back in with the local investigative news program to
ask him why he's running a bait-and-switch. Be reasonable, but be a
little loud about it and watch what happens.

You could also mention that you'll be placing calls to your state's
attorney general's office, better business bureau, chamber of commerce,
etc. to let them know how that dealership does business. Then ask for
the number to the Ford's regional rep, as well as the general manager
and owner(s) of the dealership...

If they're posting the price on the vehicle then they should honor that
price.

mark h

Remember what MSRP stands for? It is Manufacturer's SUGGESTED Retail
Price. It is not the advertised, or final out the door, price.

Mark Henry wrote:
> Henry,
>
> Was the price clearly marked on the vehicle - as in on the window
> sticker? If so, get your financing lined up at your bank then walk in
> and ask for the sales manager. Tell him that you'll take the GT500 for
> the price they're advertising it for.
>
> When he says that's not the real price, that it's actually $70k then
> tell him you'll be back in with the local investigative news program to
> ask him why he's running a bait-and-switch. Be reasonable, but be a
> little loud about it and watch what happens.
>
> You could also mention that you'll be placing calls to your state's
> attorney general's office, better business bureau, chamber of commerce,
> etc. to let them know how that dealership does business. Then ask for
> the number to the Ford's regional rep, as well as the general manager
> and owner(s) of the dealership...
>
> If they're posting the price on the vehicle then they should honor that
> price.
>
> mark h
>

In article >, Mark Henry wrote:

> When he says that's not the real price, that it's actually $70k then
> tell him you'll be back in with the local investigative news program to
> ask him why he's running a bait-and-switch. Be reasonable, but be a
> little loud about it and watch what happens.

The sticker isn't advertising. The sticker is just what the manufacturer
MSRP is and nothing more. It was to let buyers know what the MSRP is. The
dealer is apparently playing by the letter of the law. If the dealer
removed the window sticker and replaced it with their own at $70K that
would be a story for the news people.

Mark Henry wrote:

> Henry,

> Was the price clearly marked on the vehicle - as in on the window
> sticker?

Indeed it was, and it was the only price displayed. It was $43K
and change.

> If so, get your financing lined up at your bank then walk in
> and ask for the sales manager. Tell him that you'll take the GT500 for
> the price they're advertising it for.

I considered that, but I doubt I could find a judge to agree
with it. They'd probably say something about MSRP not being an
advertised sale price.



--


http://911research.wtc7.net
http://www.st911.org

I've read all the posts and most are correct. I bought my first Ford (05
GT, 5 Spd, sonic blue) due to the Camaro being cancelled in 'early 05 and
then they saw the error of thier ways.

Ford did the same thing with the GT (GT40 remake). The list was $140K and
the dealers were selling for $250+. The GT40, GT500 and Shelby are niche
cars. Most will be purchased, then stored and shown on rare occaisions.
You can buy a Mustang GT for about $29K full loaded and then if you reallly
want, put on the supercharger for about $5K to get to the 500HP range.

At a local meeting I saw/heard the first Shelby sold in San Antonio. Wasn't
impressed by the interior finish or the engine, I expected more for $70K. I
did like the hood (although the hood scoops are non-functional) and I REALLY
do like the front end, very much more agressive than the standard Mustang
GT.

Is Ford short changing the loyal customer base, IMHO, YES. Look at their
sales numbers and quarterly loss statements. Ford recently (posted in this
NG) told any Mustang related item, they either had to pay a licensing fee or
be sued. Possibly Ford should pay a royalty fee to the breeders that named
the Mustang in the first place as that's where Ford got the name for the
"Pony" car???

For $70K, I'll purchase a BMW or Porsche, while I like my Mustang GT, no
Ford (short of the classics) are worth $70K.


"Henry" > wrote in message
...
>
> Last year I put my name on a waiting list for a GT500
> with an out of town dealer. I was number nine on the list.
> I figured if I could get a brand new reliable Mustang with
> 500 hp for around 45K I might go for it. After several inquiries
> and many months, I finally received an email stating that the
> price is $65,000. I replied that I wasn't interested.
> So yesterday, I stop in at the local Ford dealer - not
> the one with the waiting list - to pick up an e brake cable
> for my Ranger. Holy ****, there's a GT500 on the showroom
> floor! I didn't think they were going to get any, so I never
> asked. I looked it over closely, and there are only two
> things I don't like - the white color and the stripes. But
> I do like the fact that the only price displayed on the car
> is the MSRP of $43K in the window. This dealer is known for
> its fair pricing, so when the sales guy walked over I asked
> him if they are selling the car for the price on the window
> sticker. He smiles and says "no". "How much is it", I ask.
> He disappears for a minute, comes back, and says "seventy
> thousand". I laughed and told him I'd wait for the price
> to reach a sane number. No way is it worth that. Ford
> should at least have used an aluminum block to keep some
> weight off the nose. Are people actually paying that much for
> them? Any guesses on what they'll sell for next year?
>
>
> --
>
>
> http://911research.wtc7.net/talks/wtc/videos.htm
> http://911research.wtc7.net
> http://www.st911.org

At $70K for a Mustang, I'll take an E Saleen...its only 60K and has
550HP....looks better too!

Mark

"Henry" > wrote in message
...
>
> Last year I put my name on a waiting list for a GT500
> with an out of town dealer. I was number nine on the list.
> I figured if I could get a brand new reliable Mustang with
> 500 hp for around 45K I might go for it. After several inquiries
> and many months, I finally received an email stating that the
> price is $65,000. I replied that I wasn't interested.
> So yesterday, I stop in at the local Ford dealer - not
> the one with the waiting list - to pick up an e brake cable
> for my Ranger. Holy ****, there's a GT500 on the showroom
> floor! I didn't think they were going to get any, so I never
> asked. I looked it over closely, and there are only two
> things I don't like - the white color and the stripes. But
> I do like the fact that the only price displayed on the car
> is the MSRP of $43K in the window. This dealer is known for
> its fair pricing, so when the sales guy walked over I asked
> him if they are selling the car for the price on the window
> sticker. He smiles and says "no". "How much is it", I ask.
> He disappears for a minute, comes back, and says "seventy
> thousand". I laughed and told him I'd wait for the price
> to reach a sane number. No way is it worth that. Ford
> should at least have used an aluminum block to keep some
> weight off the nose. Are people actually paying that much for
> them? Any guesses on what they'll sell for next year?
>
>
> --
>
>
> http://911research.wtc7.net/talks/wtc/videos.htm
> http://911research.wtc7.net
> http://www.st911.org

The price increase in Ford GT500's is not a function of supply and
demand or a free market. It's the result of two economic factors working
together; the price elasticity of demand (specifically an inelastic
demand curve) and the realization that the GT500 can be classified as a
Veblen-good.

Supply and demand is only applicable to common shared goods which are in
wide demand. The GT500 is a luxury good (IE a Veblen-good) and does not
fall within this definition. For example, supply and demand has nothing
to do with the pricing structure for a $2.5 million dollar yacht.

While it's true that Ford controls both the amount of production (the
total number of vehicles produced in any given period) as well as the
number of vehicles alloted to any specific dealership, this does not in
an of itself create an artificial scarcity of the item. All products are
produced in limited supply and it is the manufacturer's job to match
production rates with consumption (consumption and demand are different).

The price isn't being increased because of greed (greed is both a given
and a requirement in a transaction when you're talking about a luxury
item), or availability. It's up because the dealerships realize that
they can increase the price without reducing the demand for the item (IE
it's inelastic - no matter how high or low the price goes the same
number of people will want it).

In the beginning stages demand for a Veblen-good is fixed and only
increases due to the bandwagon effect. As more people buy the product
demand will increase in direct proportion to the perceived exclusivity
of the product in question (although these two ideas seem counter to
each other). So, over the next six to twelve months you'll slowly see
more GT500's hitting dealer showrooms, and yet the price probably wont
come down significantly.

If a Ford dealership increased the price of say a red V6 Mustang 100% no
one would buy it. Why? Because although it's a high demand item, it's
not preceived as a must-have item (something you can't live without) or
an exclusive item. Buyers would simply switch to another car.

People will pay the higher price for the GT500 because it's perceived to
be an exclusive item that's worth the price.

mark h

PS - Despite what some think the US operates as a free market. You can
argue that Federal and State sales tax impinges on a free market, but
that argument has been run over too many times to count. The government
itself does not control, or restrict the production, sale or procing of
the GT500. However, there are several staple type products (such as milk
and sugar) which are artifically price controlled. These items could be
considered to exist outside of the free market.

In article >, Mark Henry wrote:

> While it's true that Ford controls both the amount of production (the
> total number of vehicles produced in any given period) as well as the
> number of vehicles alloted to any specific dealership, this does not in
> an of itself create an artificial scarcity of the item. All products are
> produced in limited supply and it is the manufacturer's job to match
> production rates with consumption (consumption and demand are different).

Please explain how alloting too little to one area and too much to another
doesn't create scaricity in the area with too little. Spreading a product
thinly can create a scaricity.

> The price isn't being increased because of greed (greed is both a given
> and a requirement in a transaction when you're talking about a luxury
> item), or availability. It's up because the dealerships realize that
> they can increase the price without reducing the demand for the item (IE
> it's inelastic - no matter how high or low the price goes the same
> number of people will want it).

Demand does vary for the GT500 as witnessed by numerous people in this
newsgroup alone who may buy at ~$40K but certainly not at $65K. But for
that to happen there has to still be equal or more people left than there
are cars by the time the price hits $65-70K. This can helped greatly by
using allotments. This way the cars all won't go to one region where
there are a ton of people willing to pay $59K but not $65K. The fact
there the product is in say, NYC, doesn't change the market situation in
LA unless either product or buyer knows it exists on the other side of
the nation and buyer and seller can meet up.

> If a Ford dealership increased the price of say a red V6 Mustang 100% no
> one would buy it. Why? Because although it's a high demand item, it's
> not preceived as a must-have item (something you can't live without) or
> an exclusive item. Buyers would simply switch to another car.

As pointed out by many in the case of the GT500 including myself.

> People will pay the higher price for the GT500 because it's perceived to
> be an exclusive item that's worth the price.

Some people are idiots, some idiots have money they wish to waste on some
perception of image.