I was getting my wife’s Edge repaired at the dealer in New Bern NC last week, and they had just one car in the showroom, a 2022 Mustang Shelby GT500. I glanced at the sticker and winced that it was $101K ($79K plus $20K options). I commented about the price to an employee, and he said - “Oh No, $128K”. The dealer had tacked on a $25K market adjustment. Sheesh! My bet is that car will sit there quite a while.
It will if any of the local customers have any common sense. Even though I don’t want to rehash my recent car buying experience, here it is:
The Lexus dealership closest to my home had signs posted that they were adding a $5k market adjustment to the sticker price of all new cars. When I mentioned the specific model that I wanted, the arrogant a-hole salesman said, “Oh, for THAT model, we add a $15k market adjustment”. And, they offered only $3k for my trade-in. I was on my best behavior that day, so I departed without telling him to pound salt where the sun doesn’t shine.
Lexus dealership #2 added a 5k “market adjustment” for all models, including the one that I wanted. Their trade-in offer of $5,500 was ~$2k less than the fair market value of my 2011 Outback 3.6R Limited, so I bid them farewell.
Local Lexus dealership #3 did not charge any “market adjustment”, but they insulted me by claiming that my pristine trade-in was worth only $1k. As the flight attendants say while you are deplaning… Buh buy!
Then, I found a Lexus dealership ~70 miles away, which doesn’t add any “market adjustment” to the MSRP. But, I assumed (incorrectly) that they would also low-ball my trade-in. To my great satisfaction, they offered $7,500 for my trade-in.
So, the amount of money that I saved by simply taking an effortless drive of a bit more than one hour on I-78 netted me a saving–over my best previous offer–of several thousand $$. In comparison with the first dealership, I saved more than $10k.
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It may be sold sooner than you think. Very few were produced.
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What’s wrong with a vendor charging what the market will bear for a product?
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A Tulsa , OK dealer was getting 10000.00 over sticker price plus the dealer added stuff for the Ford Maverick pickup . So the Shelby markup is not a surprise and it will most likely sell that way.
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I’m all for that until it gets to a point of gouging. The government has stepped in to restrict price gouging when greedy suppliers take advantage of circumstances. When the normal rules of supply and demand are not working for an essential commodity, it’s time to intervene if they can’t control themselves and instead hold consumers hostage. Even worse if they artificially create those conditions to keep prices higher than they normally would be for consumers.
Mustang GT500
Essential commodity
It’s not like they’re charging $10 for a gallon of milk. Now if we were seeing $10K market adjustments for a Ford Fiesta we would have an issue. But when we’re talking Mustangs and Corvettes, and $95K pickup trucks, these are wants and not needs. Let the free market sort things out.
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No More GT500’s for the 2023 model year, just the Mach 1. Believed to be a short run for 2023 before the 2024’s start production. $10K-$15K markup is what dealers in the Northwest are asking according to CarGurus listings.
If we have become critical at the price of a 760-horsepower car, maybe our priorities are not in order. Luxuries of excess should go to the highest bidder.
That is the intent. Certain cars draw showroom traffic. Years ago, a Chrysler representative told us that while that 32-year-old is looking over the Viper which he cannot afford the insurance for, his wife is picking out a new minivan.
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Apparently it was more than the market will bear because they did not make the sale. I probably would have bought from the third dealer and sold the trade in myself.
The OP did not make an offer. There are many people out there with thousands of dollars to spend, dealer is wait for the right buyer.
Limited production expensive “collector” cars like the GT500 often see big markups. No need for government intervention.
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I had hoped it would be understood when using that terminology that I was referring to cars in general. I’m pretty sure none of the contributors here believe that a rare muscle car is an essential commodity but that cars in general have become just that to modern society. And around here at least, those excessive profiteering schemes are being used on all cars- even those that are considered grocery getters or less expensive cars. If they add 10% to a very high priced car, it sounds like a lot of money to most people. However, to those who are struggling to make ends meet in these difficult times, 10% on top of something they can barely afford is a big difference even if it appears small compared to the huge profit $ being tacked onto a sports car.
Ah, car prices. A dealer charges market rate and is blasted? It’s a collectible car. You want a $150k toy? Get over it.
I understood that but as far as I see it isn’t happening to cars in general. I’m not actively looking for a new car, but I don’t see crazy markups on entry-level basic cars. You can still buy an econobox for sticker price. You might not get the color or option package you want, but hey, that’s life.
Never underestimate the appeal, for some, of conspicuous consumption.
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Nope. I did ask them for a loaner while my wife’s car was in the shop and I explicitly asked for the GT500. I laughed, they laughed.
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[quote=“shanonia, post:16, topic:188225, full:true”]
Never underestimate the appeal, for some, of conspicuous consumption.
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Without that Ferrari, Porsche, Rolls Royce, Bentley, et al, would have been out of business long ago.
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I spent many years buying or leasing upper mid-priced cars every 3 or 4 years. While i liked the longer wheelbase, the premium interior, and the greater ride comfort they provided, my primary reason for these cars was to let others know that i was “doing well”. It was important for my own ego also. Stuff like that simply doesnt matter to me anymore.
You just admitted what I have long suspected…that these kind of expenditures are basically about stroking one’s ego and trying to “impress” others who frankly are not worth worrying about. In fact, I believe in the opposite…I’d rather be seen wearing old clothes and driving an old car, while my growing net worth far exceeds the people who burn through their money trying to keep up an image.
A person might see me wearing an old T-shirt and driving my old economy car, and think I don’t have two nickels to rub together, and that’s fine with me. This hypothetical person isn’t my friend, and I could care less what he thinks about me. If he tries to ask me for money, I just smile and say “sorry sir, I’m poor”, and he will believe me, and go bother someone else.