New GT350 under MSRP

[AtlantaGT500]

I was checking out prices on new GT350s and came across one at Louisburg Ford in Louisburg Kansas. They claim it is $3000 under MSRP on their website and on Autotrader.

For the record I have not contacted them to verify. I hope it pans out for somebody.

 

[mike.s]

it wont..those prices are automatically put in when the car is added to the inventory. called on several that were just like it

 

[johnny-longtors]

Kansas "Truth in Advertising" (aka bait-n-switch) law:

Kansas Statutes § 50-626: Prohibits the use of deception in connection with consumer transactions, and states that deception includes, but is not limited to, making misrepresentations about the property or services at issue.

Possible Penalties

Some of the penalties that fraudulent or deceptive advertisers may suffer in Kansas include:

Restraining order or Injunction (Kansas Statutes § 50-632 and Kansas Statutes § 50-634);
Revocation of any license or certificate to engage in business in the state of Kansas (Kansas Statutes § 50-632);
The cost of reasonable attorney’s fees of the person suing, if that person wins the lawsuit (Kansas Statutes § 50-634);
Up to $10,000 per violation of the law against deceptive consumer transactions (Kansas Statutes § 50-636);
Up to $20,000 per willful violation of a court order (Kansas Statutes § 50-636).

Advertising in TWO places seem to me to be a pretty clear / actionable violation.

 

[AtlantaGT500]

Kansas "Truth in Advertising" (aka bait-n-switch) law:



Advertising in TWO places seem to me to be a pretty clear / actionable violation.

Well if somebody can confirm the $3000 under or blatant deception I would file a complaint.

 

[13COBRA]

I know Jason, the owner of Louisburg, personally.

I don't see the car on his website? But regardless if you read the disclaimers at the bottom:

Reasonable efforts are made to ensure that the information included on this site is accurate. However, neither Louisburg Ford Sales nor its affiliates will be responsible for misprints or other errors displayed on this site.

He sells everything at $50 under invoice (cost). The GT350 has a $5k markup, after he pays the $2k fee, it'd be $3k. I imagine his website automatically prices at $50 under invoice on every vehicle.

 

[Snoopy49]

I know Jason, the owner of Louisburg, personally.

I don't see the car on his website? But regardless if you read the disclaimers at the bottom:



He sells everything at $50 under invoice (cost). The GT350 has a $5k markup, after he pays the $2k fee, it'd be $3k. I imagine his website automatically prices at $50 under invoice on every vehicle.

I thought the $2K fee was for 2 cars?

 

[13COBRA]

I thought the $2K fee was for 2 cars?

That's what I thought as well. It's up for debate now. My Ford rep reads it as $2,000 and guaranteed 1 vehicle. I read it as $1,000 per year.

Your thoughts? lol

"As a Shelby GT350 Certified Dealer, I will generate at least one Shelby GT350 allocation for the first two full model years."

I read it as I'll generate at least one per each year. She read it as I am guaranteed 1 car total.

 

[Snoopy49]

I read it the same as you. Wasn't this the same agreement for the 2013/14 GT500's?

The fee of $1,000 per model year will be charged to my dealership's parts statement in two (2) $1,000 installments.

It pretty hard to read anything else in the above statement.

 

[13COBRA]

I read it the same as you. Wasn't this the same agreement for the 2013/14 GT500's?

Unfortunately that section was worded differently haha

I've talked to several higher ups at Ford, and no one can give me a definite answer, yet. They keep saying once the MY17 banks open they will have a better idea.

What they don't understand, is I already have a list of customers wanting to order...it's kinda hard for me to tell them to hold on I don't know how many I'll get.

 

[conceptmachine]

13 cobra, how do you get more than 1 a year then? Didn't you say you sold like 5 this year already? I've seen other dealers with a lot more than 1.

For the record, some dealers sell at MSRP, so they eat that 1K and don't mind. I reckon later this year there will be several that are eating a lot more than that for buying at 10K over from other dealers.
Thing is, its a lot easier to swallow a write off.

 

[DAVESVT2000]

He stated earlier he bought other dealers allocations and paid their fee.

 

[13COBRA]

13 cobra, how do you get more than 1 a year then? Didn't you say you sold like 5 this year already? I've seen other dealers with a lot more than 1.

For the record, some dealers sell at MSRP, so they eat that 1K and don't mind. I reckon later this year there will be several that are eating a lot more than that for buying at 10K over from other dealers.
Thing is, its a lot easier to swallow a write off.

He stated earlier he bought other dealers allocations and paid their fee.

+4


Yes, I purchased my allocations from small rural dealers that didn't want them.

 

[conceptmachine]

Got it, thank you! So, how is the R obtained by the dealer? If it's a lotto, how does it work?

 

[13COBRA]

Got it, thank you! So, how is the R obtained by the dealer? If it's a lotto, how does it work?

3:1 or 4:1. Basically if you earn 3/4 GT350 allocations, you'll get 1 R.

 

[conceptmachine]

How does 1 dealer get 3 or 4 GT350's when mentioned above, 1 allocation/dealer/year?
For the record my local dealer got 1 '15 gt350 and for '16 got 1 gt350 and 1 R.
Sorry for all the questions, would just like to know how it works.
Thanks Cobra

 

[13COBRA]

How does 1 dealer get 3 or 4 GT350's when mentioned above, 1 allocation/dealer/year?
For the record my local dealer got 1 '15 gt350 and for '16 got 1 gt350 and 1 R.
Sorry for all the questions, would just like to know how it works.
Thanks Cobra

Based on market share. I imagine your dealer sells a considerable amount of standard Mustangs every year.

 

[conceptmachine]

I'd say a fair amount, I wouldn't say they knock it dead, but they do OK.
So this allocation sheet really only means the dealership is granted 1 car for sure, but more can be "earned" based on market share of how many mustangs are sold, and if not enrolled then you get NONE.

 

[13COBRA]

I'd say a fair amount, I wouldn't say they knock it dead, but they do OK.
So this allocation sheet really only means the dealership is granted 1 car for sure, but more can be "earned" based on market share of how many mustangs are sold, and if not enrolled then you get NONE.

Correct.

I still believe every dealer that signs up get one each year...plus any additional allocation based on market share.

 

[cluscher]

13COBRA, I just want to say thanks for all the candid info and support you provide the community here. You prove the typical dealer approach isn't necessary to survive, and my bet is your approach makes your dealership more successful than it would otherwise be. I wish there were more out there like you; you could teach some valuable lessons to those who wished to listen and learn. Thanks again.

 

[liter of cola]

truth has been spoken^