500KR prices unravel

[05fordgt]

This is a complex issue, but is very much a microcosm of what happened in the US economy over the last two years.

 

The idea that the "market sets the price" is what screwed us up big time. Free market unchecked is about greed. How much can i get something for...vs how little can i pay for something. The housing market imploded because we got too greedy (buyers and sellers). The same can apply in the case of these hipo cars that are selling over MSRP.

 

THe MSRP for theses GT500 and SRT8 vehicles already had a nice profit margin built in. Dealers saw an opportunity to make more money....Ford doesn't seem to regulate what a dealer does, and critics complain that a "fair market" means that the Dealer has a right to ask for as much as they can get for a car and that the market will set the price.

 

In the case of a car....you can do that. But should you? When does it stop? Why is it OK for a bank to approve a family a home loan of 1/2 a million dollars, but the family combine income is only 60K? Why must a family try to buy a 1/2 million dollar home they cant afford? Why is it ok Ford a Townhome in Columbia MD to sell for 450K+ simply because there are buyers who are willing to pay for it? Is its worth really that high?

 

Just because you can...doesn't mean you should. Its greed....period. And it has effects, and consequences, and repercussions. Maybe not as much in the car buying biz than in the real estate market. But the principles remain the same.

 

If a dealer can make a profit selling a vehicle below MSRP....then they souldnt be able to sell a vehicle for over MSRP. Even IF there a buyer who is willing to pay for it. He or she doesnt WANT to spend that much....but they are willing to because of reasons XYZ. What happens when these reasons turn out to be a facade?

 

Greedy "collectors" who buy a car and spend more in markup that the MSRP even cost...at the risk of buying an item that depreciates with value....its stupid. And dealers are equally to blame....the get as much as you can while you can moto will fail u in the long term.

 

So, with your reply above, dealers shouldn't be able to sell over MSRP? Then I got a question for you? What compensation do they have, when John Smith walks in and buys the newest "hot car" (i.e KR), at MSRP (a stretch, but its your thought of MSRP for this car), but he instantly puts it up on Ebay for $50K over MSRP! That isn't right either. The dealer can't make the extra $$ that would go to keeping the business running, keep employees employed, but the fellow is gonna make more $$$ in one transaction than a normal US citizen makes in one year? Thats wrong too. I don't have a problem with ADMs as long as its in line with the market at the time of the purchase, and you have people willing to pay them.

 

walked into ford today and looked at a 09gt500 with 5kadm....white with red stripe package....sales chick said i could not look inside never mind some car sales dude was leaning all over it...the sales chicks sales pitch...its fast...i looked and left....on the way out i did sit in the new flex..me likes...no i will not buy any gt500 until the stupidity leaves this market...and from the looks of things..that should be fairly quick

 

We have the exact same car, and its MSRP. We never went crazy with ADMs on our GT500s. 2007 we got 2 of them, both MSRP to long-standing customers of over 20 years each, and the 3 2008s we got were at $7K, then $4K and then 2K, as the market saw the price drop. All the while the other dealers around us were still at a consistant $10,000 to $15,000 over MSRP. We were the fairest in town. Now, the supply has caught up, and the one we have is list price, maybe even a small discount.

Edited October 8, 2008 by 05fordgt

[jonas1022]

seen a 38K drop in KR asking price in one week..(142K to 102K) if that does not tell you how crooked dealers are nothing will....credit is going to be tuff and interest rates are going to rise....is any KR worth 102K at this date and time..NO.but by next week you might be down to msrp which still way out of line for a mustang is more reasonable...of course in 2 weeks jack off dealers may see handwriting on the wall and finally start to make deals with those buyers who have cash...oh this is beautiful...hopefully reason and value comes back (however i doubt that)

I don't know that charging what the market will pay for something is being crooked. More like finding the true market value of the product. A luxury product in this case. And as the demand drops, so does the price. Especially on a luxury item like the KR. None of them are essential to the health and welfare of people. Not a big demand for one when your IRA is tanking and you don't know if there is going to be a retirement check next month because you bet on Lehman Bros., or some other crap shoot.