To ADM or not, that is the question!

[ON D BIT]

A base 2012 has over 4,500 in profit at MSRP, plus the dealer holdback. What do your facts say?

My facts say that you are forgetting about the 2k they have to put up front. My facts say that you are forgetting about the expenses it takes to run a dealership. Everyone has to be paid, the utility bills paid, lease of the land, you know basic overhead stuff.
My facts say they have to pay interest on every GT500 that is one their lot.
My facts say that an dealer owner never once made a profit on new car sales for the 20 years he owned his dealership!

oke:

 

[needspeed]

My facts say that you are forgetting about the 2k they have to put up front. My facts say that you are forgetting about the expenses it takes to run a dealership. Everyone has to be paid, the utility bills paid, lease of the land, you know basic overhead stuff.
My facts say they have to pay interest on every GT500 that is one their lot.
My facts say that an dealer owner never once made a profit on new car sales for the 20 years he owned his dealership!

oke:

Well said.

No one wants to pay an ADM, but there are those who want one bad enough and supply and demand rule.

I bought 3 new cars in the last 4 months from my dealer and I am fine with them making a profit. I would like them to stay in business and take care of me as a good customer. Not all dealers are bad and if you do not like yours, shop elseware. There is nothing new here, all new models of higly desirable cars go through this cycle.......Steve

 

[Nicolaskl]

My facts say that you are forgetting about the 2k they have to put up front. My facts say that you are forgetting about the expenses it takes to run a dealership. Everyone has to be paid, the utility bills paid, lease of the land, you know basic overhead stuff.
My facts say they have to pay interest on every GT500 that is one their lot.
My facts say that an dealer owner never once made a profit on new car sales for the 20 years he owned his dealership!

oke:

:rollseyes

 

[ifly]

For us slow/new folks.... what is "ADM"??

 

[ON D BIT]

addition dealer markup

 

[NightRide]

My facts say that you are forgetting about the 2k they have to put up front. My facts say that you are forgetting about the expenses it takes to run a dealership. Everyone has to be paid, the utility bills paid, lease of the land, you know basic overhead stuff.
My facts say they have to pay interest on every GT500 that is one their lot.
My facts say that an dealer owner never once made a profit on new car sales for the 20 years he owned his dealership!

oke:

The first part of this statement leads me to believe you work for a dealership. On that last sentence you lost me though. Are you saying a dealer owner never makes money on new car sales? He just sells cars out of the kindness of his heart then? If that's the case then it's one of the craziest things I've ever read on here. Dealerships are in business for one reason, to make money.

For us slow/new folks.... what is "ADM"??

This is an added cost above sticker price by the dealer to further rip you off.

 

[Chris!]

Couple things:

1) if the dealer is only getting 1 car this year that $1k fee isn't getting spread around, it's a direct expense of that one car.

2) if you buy the car at MSRP and it's a base car there will be (using 2012 as an example) $4500 in gross profit. Take out the $1k fee. Take out the prep cost ($200). Take out about $900 in salesperson commission. Take out $450 in sales manager commission. That leaves about $1850 in profit...before paying the light bills etc. the dealer isnt getting rich at MSRP. I'm sorry but selling a $55k, and making $1850 on it isn't exactly a great deal. (before someone says dont forget floodplain costs! Chances are most of these cars won't last on dealers lots more than 30days, making that amount a non point)

3) the options only make the dealer a couple hundred per option.

4) yes- ford is going to build as many GT500s as people want to buy. That doesn't mean that every dealership is going to get as many as they want to sell. Your Galpin Ford's Ocala Ford's and other big Ford dealers all will get a large number of GT500s. Your local small dealer that doesn't sell any mustangs usually, will get the 1 car they certify for and MAYBE another.

5) and finally- the average dealer gross profit per new vehicle was about $900/car last year. By the time you pay your staff, and your bills, there isn't much left over. Finance office is where the dealer makes money on new cars, along with warranty service. Used cars can be where the money is (if you buy the right cars at the right price)

 

[Go-Fast]

Will you dealer make the same deal for others?

I believe they are only getting one Shelby as of right now. Will check to see if they have anymore available.



It's going to be fun lining up against the all mighty ZL1 at the drag strip!!! oke:

 

[monsterpost]

I believe they are only getting one Shelby as of right now. Will check to see if they have anymore available.



It's going to be fun lining up against the all mighty ZL1 at the drag strip!!! oke:

Good luck with that, the only thing THEY care about is the ring time. I think they know whats going to happen at the drag strip. All kidding aside at the drag strip just because you have the quicker, faster car doesn't mean your going to win. You still have to be as good or better driver then the guy your racing.

 

[Go-Fast]

Good luck with that, the only thing THEY care about is the ring time. I think they know whats going to happen at the drag strip. All kidding aside at the drag strip just because you have the quicker, faster car doesn't mean your going to win. You still have to be as good or better driver then the guy your racing.

You're right,....I do notice lots of ZL1 buyers now talking more about the ring than the drag strip!!! :shrug:


All kidding aside at the drag strip just because you have the quicker, faster car doesn't mean your going to win. You still have to be as good or better driver then the guy your racing.

X2

 

[Lemers]

1. Don't pay ADM. I won't even waste my time at a dealer with an ADM sticker on the window.
2. I'm willing to travel. El paso thinks it has a captive audience because it's 5 plus hrs drives to cities as large or larger. So they ask too much.
3. Dealer profit is as much my concern as me getting a good deal is their concern.

 

[DRBSVT]

Couple things:

1) if the dealer is only getting 1 car this year that $1k fee isn't getting spread around, it's a direct expense of that one car.

2) if you buy the car at MSRP and it's a base car there will be (using 2012 as an example) $4500 in gross profit. Take out the $1k fee. Take out the prep cost ($200). Take out about $900 in salesperson commission. Take out $450 in sales manager commission. That leaves about $1850 in profit...before paying the light bills etc. the dealer isnt getting rich at MSRP. I'm sorry but selling a $55k, and making $1850 on it isn't exactly a great deal. (before someone says dont forget floodplain costs! Chances are most of these cars won't last on dealers lots more than 30days, making that amount a non point)

3) the options only make the dealer a couple hundred per option.



4) yes- ford is going to build as many GT500s as people want to buy. That doesn't mean that every dealership is going to get as many as they want to sell. Your Galpin Ford's Ocala Ford's and other big Ford dealers all will get a large number of GT500s. Your local small dealer that doesn't sell any mustangs usually, will get the 1 car they certify for and MAYBE another.

5) and finally- the average dealer gross profit per new vehicle was about $900/car last year. By the time you pay your staff, and your bills, there isn't much left over. Finance office is where the dealer makes money on new cars, along with warranty service. Used cars can be where the money is (if you buy the right cars at the right price)

In addition to the $4,500 gross profit on a base car, there is also dealer Hold Back dollars. This is 3% of the total MSRP (less destination charge) which on a base car will amount to around 1500 bucks. Since the 2013 Shelbys will probably be sold very quickly, most of these dollars will be added to the dealer's total profit.

 

[Chris!]

I was including the holdback in that 4500 profit. There isn't $6k in that car.

 

[speedrx]

Any idea what the plan is for Ford building and allocating the GT500's? Let's say they are going to build out a specific amount to give every dealer who pays the SVT fee 1 vehicle + some number of extra vehicles to reward dealers who sell a lot of Mustangs. Let's say this number is 2500 Shelby GT500's. Let's say total demand is 5000 vehicles.

When will Ford take orders above the 2500 initial allocations to the other 2500 people who may be interested in purchasing one? I understand dealers cannot order any vehicles beyond what Ford is allocating for them, yet Ford has said it will build all 5000 to meet demand.

What is the process? When can second wave be ordered? I think the deals will potentially be had on the second wave of ordered vehicles once the ADM buyers have their cars.

 

[Lemers]

No set number. The GT500s will be built on the same line as the GTs. So no stopping GT production to retool for the GT500s. This will allow ford to build as nanny as ordered.

 

[Chris!]

They will sell as many as are ordered.

Dealers will know initial allocations this week

 

[CAPTAIN JACK]

I sell Fords, since last winter I have compiled a list of people who want this car. So far
it exceeds 18, which certainly more than we will get cars. All were told MSRP, and hope we can get as many cars as we can sell.

 

[jonesd]

So how does it work after the initial allocation is distributed?

Once all the dealerships have received their allocation orders, can any dealership with a svt license now order a 2013 since ford will build as many as they can sell?

 

[Lemers]

Ford still expects to make up to 10k this year.

 

[DRBSVT]

I was including the holdback in that 4500 profit. There isn't $6k in that car.

MSRP before destination charge on a base 2012 Shelby GT500 is $48,810 and invoice is $44,161 for a difference of $4,649. Hold Back is 3% of MSRP ($48,810) which comes to $1,464. Add the two numbers together and they total $6,113. In my Dealer's region, there is a $498 advertising assessment and a $56 fuel charge which is added to the invoice amount. By my calculations, the total gross profit on a base car is $5,559.