Options Pricing Leaked

Randy M

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The email my dealer shared with me is that "R"s are awarded in 2 ways:
- sell 3 GT350's, you get one "R" to sell
- once the above allocations are met, all additional cars awarded in a lottery - dealers get one "chip" in the lottery for every "X" Mustangs (any) sold (I don't recall but I think "X" =10)

The initial allocation of "R"s was solely on volume. Hooterville Ford did not get one, but they got a GT350 to sell.

Also - the email said "R" production will continue for the length of the 16/17 model run - but would NOT be produced during Ford "winter months" - which IIRC was Nov -> May.

If this is correct then anyone who has ordered an R model has to wait for their dealer to sell three regular models before their R model is made? That could be a very long time depending on how those three cars were ordered and what region they were ordered in before the R allocation can be made available.
 

johnny-longtors

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If this is correct then anyone who has ordered an R model has to wait for their dealer to sell three regular models before their R model is made? That could be a very long time depending on how those three cars were ordered and what region they were ordered in before the R allocation can be made available.
IF they did not get an "R" in the initial allocation - which was based on past sales volume of Mustangs.

^ that info is not correct regarding the R
All I can tell you is that's what he showed in a "corporate email" from Ford regarding the program when I sat in front of his computer 2 weeks ago. It's not hearsay - I saw the message on his system with my own 2 eyes. It was explicit in details. If it's incorrect then it's incorrect directly from Ford.
 

Chris!

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IF they did not get an "R" in the initial allocation - which was based on past sales volume of Mustangs.

All I can tell you is that's what he showed in a "corporate email" from Ford regarding the program when I sat in front of his computer 2 weeks ago. It's not hearsay - I saw the message on his system with my own 2 eyes. It was explicit in details. If it's incorrect then it's incorrect directly from Ford.

The car is part of a lottery. Direct from ford to my ears.

The selling 3 and getting 1 thing may be for 1% of dealers that even get more than 1 or 2 cars.

Think about it. The math doesn't add up.

Not going to argue with you; not sure where that email came from, as it very well could have come from a ford rep or something. But the R will be part of a lottery.
 

johnny-longtors

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I don't know what makes your source any more authoritarian than what I saw, but I really don't care. At the end of the day me finding an "R" at a less-than-astronomical ADM is not likely to happen anyway, so it's virtually moot in my eyes.

I don't understand why Ford just doesn't simply make a shit-ton of these cars - it's not like they're a loss leader for the model or anything. It's a handful of specialty parts on a commodity chassis.....
 

jlauth

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I don't know what makes your source any more authoritarian than what I saw, but I really don't care. At the end of the day me finding an "R" at a less-than-astronomical ADM is not likely to happen anyway, so it's virtually moot in my eyes.

I don't understand why Ford just doesn't simply make a shit-ton of these cars - it's not like they're a loss leader for the model or anything. It's a handful of specialty parts on a commodity chassis.....

Yep...in my opinion if I walk up to Hole in the wall Ford Dealer X with a deposit and say I want to order GT350 R with these options and this color...why is that order not placed. A sale is a sale to me. I know that it works by allocation but it seems like a sold order is a sold order.
 

Lemers

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Yep...in my opinion if I walk up to Hole in the wall Ford Dealer X with a deposit and say I want to order GT350 R with these options and this color...why is that order not placed. A sale is a sale to me. I know that it works by allocation but it seems like a sold order is a sold order.

The computer won't let them?
 

Randy M

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Yep...in my opinion if I walk up to Hole in the wall Ford Dealer X with a deposit and say I want to order GT350 R with these options and this color...why is that order not placed. A sale is a sale to me. I know that it works by allocation but it seems like a sold order is a sold order.

From what I understand they're only making 500 R models a year and dealers have to earn the allocation or win it through the lottery.
 

GT Premi

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What a freaking cluster!! Ford's making dealers jump through hoops to get the car, which means dealers are going to make customers jump through hoops to get it, too! Reading this kerfuffle, looking at what dealers are already planning on charging in ADMs and the limited run of these cars, at this point I wouldn't be surprised if dealers start holding gladiatorial competitions for the damned things! The last man/woman alive gets the privilege to overpay for the car and take it home. Jeez!

I'm not playing all these damned games, so I guess I won't be getting one after all.
 

Randy M

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What a freaking cluster!! Ford's making dealers jump through hoops to get the car, which means dealers are going to make customers jump through hoops to get it, too! Reading this kerfuffle, looking at what dealers are already planning on charging in ADMs and the limited run of these cars, at this point I wouldn't be surprised if dealers start holding gladiatorial competitions for the damned things! The last man/woman alive gets the privilege to overpay for the car and take it home. Jeez!

I'm not playing all these damned games, so I guess I won't be getting one after all.

The process isn't all that different than the GT500 and Boss 302 obstacle course many had to go through. Ford, for whatever reason, thinks this is the best way to do it. They create the frustration. The dealers most likely don't like it either. Think about it, would the dealers rather have 30 GT350's to sell at a more modest profit coming in for service/parts after the sale? Or two owners that pay an ADM and most likely park it in their garage thinking they've got some gem?
 

jlauth

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I suppose I will believe this all when I see it. Its not the 1960s anymore. When the demand is there the production will follow. I have said it before in these threads but the Raptor was also said to be limited production (which it still is...but), until Ford realized that there was a huge demand. So what took place then was 5 years of sales of 10000+ per year. The raptor is a different animal because its a truck and truck sales are huge. But if there is a lot of interest in the R I don't just see Ford passing up those dollars.
 

Chris!

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It's only gotten rediculous because there's a lot of misinformation out there that others perpetuate and frustrate buyers with.
 

Randy M

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It's only gotten rediculous because there's a lot of misinformation out there that others perpetuate and frustrate buyers with.

Ford could release a statement laying the whole process out if they wanted to. But that would be counter to what they're trying to do, create the hype and buzz for the product.
 

GT Premi

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It's only gotten rediculous because there's a lot of misinformation out there that others perpetuate and frustrate buyers with.

You got that right! Reading some of this stuff makes me want to flip my desk! I really, really want a GT350R, but all this stress being put on just being able to get one is insane. I well remember how the GT500 was supposed to be a limited run (and guys paying 5 figure ADMs for '07 GT500s), but it ended up running for 7 model years. I "gambled" that the same would hold true for the Boss 302 and missed out. I don't want to miss out on the GT350R, but I'll be damned if I'm paying the $25K - $30K my dealer has expressly said they're slapping on it!
 

mike.s

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You got that right! Reading some of this stuff makes me want to flip my desk! I really, really want a GT350R, but all this stress being put on just being able to get one is insane. I well remember how the GT500 was supposed to be a limited run (and guys paying 5 figure ADMs for '07 GT500s), but it ended up running for 7 model years. I "gambled" that the same would hold true for the Boss 302 and missed out. I don't want to miss out on the GT350R, but I'll be damned if I'm paying the $25K - $30K my dealer has expressly said they're slapping on it!

its frustrating for sure. I don't buy enough cars to have a relationship with a dealer that would give me a shot at one of these for msrp. my local dealer has a reputation for being hard to deal with. gonna talk to them tomorrow and see what they say. not gonna go through the gt500 fiasco again of searching and searching to find a deal to have it pulled out from under me at the last minute to give to someone else for an ADM, I will just buy a damn camaro
 

Franz

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People can complain all they want about the lack of information, convoluted order process, and shortage of inventory. Ford knows exactly what they are doing, and the process works. By building a quality product that is both highly desirable, and at a lower volume than what the market demands, they are increasing Shelby brand equity and keeping resale values high.

I was able to sell both my 2013 and 2014 GT500s for at least what I paid for them. In fact, I just sold a friend's 2013 GT500 with 3,700 miles for more than its original invoice price. What other cars bring over factory invoice 2.5 years after they were sold new? Almost none. If Shelby resale values plummeted 50% in 18 months like half the other American cars, I doubt that they would be nearly as sought after.

At the end of the day, I'll stick with the laborious process in order to guarantee exclusivity. It's worked for Ferrari for years. Not a bad brand to emulate!
 

ON D BIT

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People can complain all they want about the lack of information, convoluted order process, and shortage of inventory. Ford knows exactly what they are doing, and the process works. By building a quality product that is both highly desirable, and at a lower volume than what the market demands, they are increasing Shelby brand equity and keeping resale values high.

I was able to sell both my 2013 and 2014 GT500s for at least what I paid for them. In fact, I just sold a friend's 2013 GT500 with 3,700 miles for more than its original invoice price. What other cars bring over factory invoice 2.5 years after they were sold new? Almost none. If Shelby resale values plummeted 50% in 18 months like half the other American cars, I doubt that they would be nearly as sought after.

At the end of the day, I'll stick with the laborious process in order to guarantee exclusivity. It's worked for Ferrari for years. Not a bad brand to emulate!

Do you know Tink and his rover? :pop:
 

Crackerballer

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I could see Ford limiting R production for multiple reasons:
1: They lose money on each car they make/sell. Could be plausible but now that I see a $65,000 price tag for an R with A/C I don't think this is the case

2: The Halo effect, they limit R productions and let the base GT350 meet unmet R demand. We as enthusiast who can't get an R buy a base and mod it with Ford OEM products to "upgrade" the base, and it's likely their margin on the products after the fact are higher than the sum-total of them on an R model. Not to mention if some, like rear spoiler, suspension, anything, fits on GT models, they can also sell to that crowd as well.

3: Parts/time/manufacturing resource availability. If they are similar to SVT vehicles and hand assemble, or a portion of the car requires a retooling of otherwise usable resources (IE they have to retool a line/set of machines/folks who normally make the other model Mustangs for the R and GT350 models, and their margin is less, then that is an opportunity cost, especially if margin is lower AND the rate of production is lower)

Having said all of that, I think what is VERY interesting is the current market prices of used Boss 302s. I've had my eyes on a few GHIGs with low miles and people still want $40-44K for one. Bet they drop precipitously now!
 
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johnny-longtors

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1: They lose money on each car they make/sell. Could be plausible but now that I see a $65,000 price tag for an R with A/C I don't think this is the case
I seriously doubt that - it's a commodity chassis in commodity colors with a handful of speacialty parts I can only assume they are buying in bulk. The GT is already massively over-priced.
2: We as enthusiast who can't get an R buy a base and mod it with Ford OEM products to "upgrade" the base, and it's likely their margin on the products after the fact are higher than the sum-total of them on an R model.
Absolutely this. FAR less effort for Ford to stock the parts and sell at a premium than it is to make and move cars even with a decent margin.
3: Parts/time/manufacturing resource availability. If they are similar to SVT vehicles and hand assemble, or a portion of the car requires a retooling of otherwise usable resources (IE they have to retool a line/set of machines/folks who normally make the other model Mustangs for the R and GT350 models, and their margin is less, then that is an opportunity cost, especially if margin is lower AND the rate of production is lower)
I think there's zero re-tooling for any of this - it's parts, nothing structural is changing. Dropping a bumper bar on the line is a 20 second proposition. It's allocating a slot on the line (the V6 line as I understand it) and getting the parts in place.

There's no reason Ford can't make a ****ton of these - they are just choosing not to.
 

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