What ever happened to the Ford "cracking down on" ADMs?

[shogun32]

Does having the X plan prevent dealers from charging markup or does it just ease the blow?

AXZD plan are strictly defined by a formula. X plan at the scummiest dealer is the same as the most angelic one in the USA/Canada. It is a FIXED price relative to Invoice and you can look it up if you have a code/PIN. Part of the program RULES is that doc fees are capped to a fixed 99 and so forth.

Not all dealers subscribe to AZXD and furthermore Ford doesn't grant eligibility to all vehicles they make, either.

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[Bikeman315]

AXZD plan are strictly defined by a formula. X plan at the scummiest dealer is the same as the most angelic one in the USA/Canada. It is a FIXED price relative to Invoice and you can look it up if you have a code/PIN. Part of the program RULES is that doc fees are capped to a fixed 99 and so forth.

Not all dealers subscribe to AZXD and furthermore Ford doesn't grant eligibility to all vehicles they make, either.

So a dealer offers a customer X plan, following all the rules and after all is said and done says, “OK there is an ADM of $5k. Will that fly?

 

[shogun32]

I'm not interested in haggling and arguing for hours to save a couple $1,000. Just give me the keys and let me leave already.

95% of the world haggles on the price of a cucumber and a liter of milk. It is only USA/UK and other "1st world, mostly north European" where everybody has been programmed like sheep to accept the posted price.

I don't know the origins of why car buying became one of the "only" haggle transactions in the States.

If the Ford dealer sells at MSRP they've pocketed the 4.5% over invoice, the Holdback (another 2-3%) and the advertising fee (0.3% ish), the 'doc' fee (300-1000, or up to about 1.5%) and then any gross comps for quarterly sales performance. So we're talking an easy 6-8% out of which of course the dealer must subtract commission and operating expenses.

Now compared to Intel/AMD which make 30-40% margin, or software (60-90%), single digits sounds pretty tight. But even so you can tell dealers of any size as a rule make $$$$$.

You might think the Consumer Protection regulator might take a dim view of the goings-on and likely to play the race card should the secondary/used transportation market had continued running out of control. But higher purchase prices means more tax revenue for the locale and what gov't ever turned down more money to pad their budgets and award them rich raises?

If you dust off your economics textbook you'll find that the solution to scarcity and high prices is AS ALWAYS high(er) prices. Where the system went off the rails was the BANKS financing people who couldn't pay MSRP let alone ADM and not forcing uneconomic decisions to DIE before they were even executed. Every time you find economic laws being broken it's because the BANKS are CHEATING. And they get away with CHEATING because the Fed doesn't put an immediate halt to the lawlessness.


PS. I don't have an economics degree, but I listened to Rush while staying at a Motel 6 for a week.

 

[shogun32]

So a dealer offers a customer X plan, following all the rules and after all is said and done says, “OK there is an ADM of $5k. Will that fly?

NO and Ford Legal will get ugly with them.

 

[SuperZaynn]

This sounds nice in theory but doesn't work in practice.
If they ask for ADM and you walk away, they don't care cause they know the next guy to walk up will happily pay ADM. That's how a free market works. There's more demand than supply so prices go up.

I don't like these ADMs either but aren't we essentially doing the same thing to them? Look how many people in this thread are talking about how to get cars under invoice. Everyone is trying to screw them over just as much. There's no dealer-consumer relationship going on here. It's a business transaction and both parties fight to get the best deal for themselves.

Personally, I think they should just get rid of dealerships and consumers buy direct from manufacturer, but that's another discussion.

I mean I can see both sides, but the guys trying to get it at invoice probably have connections that work for ford and that’s the benefit of working for a company, they offer a discount. Also, when we finance with a dealer, they get more money on the back end of the deal so if they break even on a vehicle, they might make between 2-5k depending on the terms of the loan the bank gave you. You know what we get once we leave the dealership? Depreciation, you wanna know what the dealer gets, MONEY!!!!

 

[Ewheels]

95% of the world haggles on the price of a cucumber and a liter of milk. It is only USA/UK and other "1st world, mostly north European" where everybody has been programmed like sheep to accept the posted price.

I don't know the origins of why car buying became one of the "only" haggle transactions in the States.

I don't think accepting posted prices makes us sheep. I think it's quite a luxury to not worry about prices of common transactions.
People haggle on transactions that stretch their budgets. For less fortunate people, that might be cucumbers and milk. For most people in the US and UK, that typically is cars and houses.

Would you really want to haggle on every transaction you make? I, for one, feel quite fortunate to be able to buy cucumbers and milk and not even look at the price tag.


Anyway, back to Fords....I get your points that dealers make a profit regardless of sale price. I think the average American car buyer is in such a financial situation where they can't comfortably afford to give dealers free money without care. However, the fact that these ADMs haven't gone away only shows there's enough car buyers out there who can.

 

[shogun32]

You know what we get once we leave the dealership? Depreciation

aucontrair, you "Get a New CAR !!" (said in your best Price is Right voice)
heh, and it's even a Mustang.

and for good measure

 

[KAlexander]

Huh, let's see I'll start the bidding at $200? I can use my pin for 4 cars/yr I think?

Shit. I'd give you twice that

 

[KAlexander]

How do you get them to answer the dealers I have called just say they don't know how much to charge yet.

The dealers around Texas I've called flat out told me "minimum of 10k markup"

Called ourisman because I really want a fucking DH without paying GT500 prices, and they told me "there will probably be a 7k+ markup". At this point, I can get a 2LT C8 for 75k at my local Chevy dealer or save my doubloons and get a 500; or save even more and hope this shits over with when the S650 500 comes out.

 

[CoBrArOx]

The dealers around Texas I've called flat out told me "minimum of 10k markup"

Called ourisman because I really want a fucking DH without paying GT500 prices, and they told me "there will probably be a 7k+ markup". At this point, I can get a 2LT C8 for 75k at my local Chevy dealer or save my doubloons and get a 500; or save even more and hope this shits over with when the S650 500 comes out.

That's ridiculous I wish Ford would actually do something about adm's

 

[Bikeman315]

The dealers around Texas I've called flat out told me "minimum of 10k markup"

Called ourisman because I really want a fucking DH without paying GT500 prices, and they told me "there will probably be a 7k+ markup". At this point, I can get a 2LT C8 for 75k at my local Chevy dealer or save my doubloons and get a 500; or save even more and hope this shits over with when the S650 500 comes out.

That's ridiculous I wish Ford would actually do something about adm's

Guy's stop listening to what dealers are telling you now. They're just getting a hard on watching you face contorting when they tell you that. Once the cars start shipping there will be MSRP deals out there.

 

[CoBrArOx]

Guy's stop listening to what dealers are telling you now. They're just getting a hard on watching you face contorting when they tell you that. Once the cars start shipping there will be MSRP deals out there.

Let's hope so.

 

[shogun32]

Called ourisman because I really want a fucking DH without paying GT500 prices, and they told me "there will probably be a 7k+ markup"

I've been telling Jason they are going to regret doing an about-face on the Mustangs. Nothing worse than an Internet community scorned... I've pitched them several ideas to have their rep (sell 10-12 units at MSRP to "lucky" forum members) and eat their ADM-cake too on the rest of the allocation, but so far no traction.

 

[KAlexander]

Guy's stop listening to what dealers are telling you now. They're just getting a hard on watching you face contorting when they tell you that. Once the cars start shipping there will be MSRP deals out there.

Their moms, still hoes.

 

[MachMe]

I'm willing to work with my dealer on a $5K ADM max, and that would have to be with a guaranteed deposit refund if I back out. As much as I want the DH, I'm willing to accept it being out of my reach due to greed.
It does sound like a dream that we would all band together and not pay ADM, but I feel like we represent the minority of new Mustang buyers. The rest have the funds to not care or maybe willing to risk financial peril to say they have it.

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