So Ford wonders why they are losing money? $34,000 adjusted market value! - FMVperformance.com : The site for all your Ford Mazda and Volvo needs
 
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post #1 of 10 (permalink) Old 02-08-2007, 09:30 PM Thread Starter
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So Ford wonders why they are losing money? $34,000 adjusted market value!

Ok, so I was at a new client ( Ford Dealership) the other day and they have a beautiful GT in the showroom.
On the window sticker they had hand written below the MSRP of $166,500 "ADJUSTED MARKET VALUE FOR LIMITED AVAILABILITY --- $34,000" which brought the price of the vehicle to over $201,000. When I was inquiring about the vehicle to several employees they were laughing at the fact that several Millionaire's "buying agents" had visited the dealership wanting to buy it but they were not willing to pay the 34k.
What the hell is wrong with people!?? I'm sure there is a substantial profit in the vehicle at the full sticker but this markup is just retarded.

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post #2 of 10 (permalink) Old 02-08-2007, 09:33 PM
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Re: So Ford wonders why they are losing money? $34,000 adjusted market value!

Besides the fact they build bland cars with warranties that dont match up to their foreign competition. They are actually borrowing against all of their property, intellectual, and physical, just to make cars. They are only a few years away from bankruptcy.

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post #3 of 10 (permalink) Old 02-08-2007, 09:36 PM
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Re: So Ford wonders why they are losing money? $34,000 adjusted market value!

Im waiting to buy a Mustang GT for $15k when they go belly up

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post #4 of 10 (permalink) Old 02-09-2007, 09:19 AM
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Re: So Ford wonders why they are losing money? $34,000 adjusted market value!

[quote author=1bad3 link=topic=69041.msg1196171#msg1196171 date=1170988401]
Besides the fact they build bland cars with warranties that dont match up to their foreign competition. They are actually borrowing against all of their property, intellectual, and physical, just to make cars. They are only a few years away from bankruptcy.
[/quote]

Really? Ford offers the same warranty as Honda and Toyota.

Also, the "adjusted market value" is controlled at the dealership level. Ford itself doesn't add that cost.


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post #5 of 10 (permalink) Old 02-09-2007, 09:24 AM
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Re: So Ford wonders why they are losing money? $34,000 adjusted market value!

Market Value is only going to go up when the demand increases. If there was a limited supply, and all the rich bastards wanted one, it would be a reasonable adjustment. It looks like they are trying to adjust the price simply because there aren't many of them, which doesn't work if no one is buying them.

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post #6 of 10 (permalink) Old 02-09-2007, 09:31 AM
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Re: So Ford wonders why they are losing money? $34,000 adjusted market value!

in such a low volume market, its common. They don't care if they get 40 people who want to buy a GT at MSRP. They only need to find one person who is willing to pay that $34k. In the meantime, its bringing people into the dealership to look at it, effectively free (well not free, whatever it costs them to hold the car) advertising. They aren't in a huge hurry to sell the car, so they will try to get as much money for such a rare item as they can. Supply and Demand, Sure, demand is low, but so is supply, so sometimes it takes time to sell it, but someone will pay it eventually. Low volume, high premium items usually take a while to sell, as it takes a while to find the right buyer. I never understand why people get in a tizzy over market adjustments. Its just the same as any other negotiation. If you think its crap, but are actually interested in buying the car, try to haggle. If the market adjustment is appropriate to the market, the dealer will not budge. If its just them trying to steal money (and doesn't accurately reflect market value), they won't sell the car, and eventually they will have to knock it off of the price to sell the car. I thought it was crap at first that we had to pay MSRP for my wife's mini, but its relfects the market value. Even now that the '07 mini's are out, dealers STILL aren't discounting the '06's more than $500 off of MSRP (and they are having no problems getting rid of their stock). Resale value of them is excellent. Also, this is dealer level add-on, as another pointed out.


Three letters can explain why Ford is losing money. . .

U
A
W

period.

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post #7 of 10 (permalink) Old 02-09-2007, 07:15 PM
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Re: So Ford wonders why they are losing money? $34,000 adjusted market value!

[quote author=hwm3 link=topic=69041.msg1196814#msg1196814 date=1171030774]
[quote author=1bad3 link=topic=69041.msg1196171#msg1196171 date=1170988401]
Besides the fact they build bland cars with warranties that dont match up to their foreign competition. They are actually borrowing against all of their property, intellectual, and physical, just to make cars. They are only a few years away from bankruptcy.
[/quote]

Really? Ford offers the same warranty as Honda and Toyota.


[/quote]

Now they do.

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post #8 of 10 (permalink) Old 02-09-2007, 08:46 PM
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Re: So Ford wonders why they are losing money? $34,000 adjusted market value!

[quote author=1bad3 link=topic=69041.msg1198280#msg1198280 date=1171066521]
[quote author=hwm3 link=topic=69041.msg1196814#msg1196814 date=1171030774]
[quote author=1bad3 link=topic=69041.msg1196171#msg1196171 date=1170988401]
Besides the fact they build bland cars with warranties that dont match up to their foreign competition. They are actually borrowing against all of their property, intellectual, and physical, just to make cars. They are only a few years away from bankruptcy.
[/quote]

Really? Ford offers the same warranty as Honda and Toyota.


[/quote]

Now they do.
[/quote]

They have since July of last year.


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post #9 of 10 (permalink) Old 02-09-2007, 09:12 PM
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Re: So Ford wonders why they are losing money? $34,000 adjusted market value!

[quote author=hwm3 link=topic=69041.msg1198425#msg1198425 date=1171071961]
They have since July of last year.
[/quote]

Did they offer the same warranty on the Focus prior to that? When I was car shopping prior to July I took a look at the Focus and thought they were already equivalent.


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post #10 of 10 (permalink) Old 02-09-2007, 09:29 PM
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Re: So Ford wonders why they are losing money? $34,000 adjusted market value!

From what I heard the dealers were aloud to charge whatever they wanted for the GT.(and people were paying) All the dealerships here in PA that got GT's ended up sending the cars to CA.

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