Drop ship Raptor

MikeEby said:

I guess the old saying "A bird in the hand is worth two in the bush" doesn't apply to Raptors.

Mike

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Fast turnover is a great way to increase profits if there is unlimited availability. This is how discount retailers with razor thin margins make their money.

But with limited Raptor allocations, dealers are better off getting the highest price possible for each truck they get. These guys are not dumb.

df4801 said:

You still don't understand business. You can't evaluate their decisions until you see the final sale price and how long it took them to sell.

For example, if the vehicle sat on their lot for a full year but they sold it for $3k over sticker then it was easily the right call.

But enough business lessons for the night, any more and I would have to charge you!

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Understand it just fine. Your scenario might work in a world where those 2017 units are not costing the dealership money sitting there. Now the 2018's are hitting the lots and they have year old units still in stock. You do realize that the dealer pays Ford interest on every vehicle? Every day a vehicle sits on the lot their profit margin shrinks. The new Raptor rush is over. The people that have to have the newest latest greatest first have them. The buyer willing to pay retarded mark ups are few and far between.

SilverBolt said:

Understand it just fine. Your scenario might work in a world where those 2017 units are not costing the dealership money sitting there. Now the 2018's are hitting the lots and they have year old units still in stock. You do realize that the dealer pays Ford interest on every vehicle? Every day a vehicle sits on the lot their profit margin shrinks. The new Raptor rush is over. The people that have to have the newest latest greatest first have them. The buyer willing to pay retarded mark ups are few and far between.

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you realize interest rates are comically low right now. they could sit on that truck for more than 5 years for less than $10k

SilverBolt said:

Every day a vehicle sits on the lot their profit margin shrinks.

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You are correct again!

Every day it sits they lose around $3

I can't believe they don't just sell at invoice to get rid of that interest payment!

df4801 said:

You are correct again!

Every day it sits they lose around $3

I can't believe they don't just sell at invoice to get rid of that interest payment!

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I don't post much, but you sound like a D-Bag. Just stay out of the thread.

Slaughterhouse said:

I don't post much, but you sound like a D-Bag. Just stay out of the thread.

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I'm sorry snowflake....go grab your blankie and find your safe place.

df4801 said:

You are correct again!

Every day it sits they lose around $3

I can't believe they don't just sell at invoice to get rid of that interest payment!

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Interest rates have gone up considerably in the last 2 years. The current prime rate published by the Wall Street Journal is 4.25%. I doubt that dealer gets that rate because there is considerable cost to service floor plans. Lets say they are paying 5%, so on a $60K truck that would be about $250/month. A far cry from the $90/month your quoting and adds up quickly.

There is really nothing special about a Raptor that limits production. If Ford decided to make as many as dealers wanted they could. The first year there are startup issues that limit production, especially with suppliers. I'm not sure that's true now, add to that the pinned up demand because for almost 3 years there were no Raptors being built. All the local dealers near me have at least one in stock, one has 3 currently, its a smallish market about 100 miles outside of Chicago, unfortunately none are SCABs and they are all trying to jump on the ADM bandwagon.


Mike

When my local Ford dealer tried marking up my GT350 by 10K - I said see you later! I had been averaging 1 car a year through them. So they lost my business when I bought a Z/28 instead. They finally did sell the GT350 at MSRP a year later.

I'm now buying a 2017 Ford Raptor at 1K over invoice at another ford dealer. Guess who will be getting all my future business?

Oh yeah that first dealer also sold their dealership this year. They didn't know their market. Not only did they lose my business I had also been sending them my friends which averaged an additional two or more cars a year.

So yes dealers market up cars, but they also lose future customers. So I'm glad to see it all works out in the end.

Bull65 said:

When my local Ford dealer tried marking up my GT350 by 10K - I said see you later! I had been averaging 1 car a year through them. So they lost my business when I bought a Z/28 instead. They finally did sell the GT350 at MSRP a year later.

I'm now buying a 2017 Ford Raptor at 1K over invoice at another ford dealer. Guess who will be getting all my future business?

Oh yeah that first dealer also sold their dealership this year. They didn't know their market. Not only did they lose my business I had also been sending them my friends which averaged an additional two or more cars a year.

So yes dealers market up cars, but they also lose future customers. So I'm glad to see it all works out in the end.

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You sound like a savvy shopper, which is good for you, but not so good for the dealer. A Raptor with a $10k ADM puts around $20k of profit into the dealer’s pocket. Given how savvy you are, how many vehicles would this dealer have to sell you and your friends to make $20k in profits?

He could sell ten cars to you and your friends over the next several years to make $20k, or he could sell one Raptor with an ADM today. I know which I would rather do. How about you?

Maybe you are not as important of a customer as you think you are.

18 ordered in Texas (no vin yet). Ford drop ship to Alaska, courtesy delivery from dealer up here. Yep I'm back. Disappointed Avalanche is no longer available.


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