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Dealer Mark-Ups: Free Enterprise or Rip-Off?

Posted January 17 2008 07:14 AM by dfarr 
Filed under: Miscellaneous

Nearly $72,000 for a production Mustang? That’s what the sticker said.

 


While waiting to pick up a press vehicle from a local Ford dealership, I strolled over to a Shelby GT500 convertible in the showroom to check out the sticker price. The $51,705 was about what I expected, but I was shocked to see that the dealer had tacked on another $20,000 for “adjusted market value.” That’s $71,705 for a regular production Mustang.

It didn’t get much better out on the sales lot, where I saw an ’08 Shelby GT priced at $41,417 – $30,740 retail plus the dealer’s $10,475 AMV.

Granted, the new Shelby Mustangs are great cars, with the GT500 arguably ranking as one of the best production Mustangs of all time. And they are limited production. But does that give dealers the right to add $20,000 straight to the top of the profit line?

Some people call it free enterprise. I think it’s a rip-off.

Thankfully, not all dealers play the game. If you’re in the market for a Shelby or other special-edition Mustang, shop around. You may have to drive a ways to get one for sticker price, but you could save a bundle in the process. – Donald Farr



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