2nd month of soft Mustang sales

[351CJ]

31 days ago I posted a topic "Big discounts on Mustangs"

In that thread I pointed how how sales of Mustangs in July were soft at only 10,577. I also said that anyone who paid MSRP, let alone one cent over MSRP was a fool as there soon would be an over supply of Mustangs and disounts will follow.

Most of you guys scoffed at me and claimed that the low sales in July were due to shortages of Mustangs, the changeover to the 06 MY or vacation shut down.

Well, the August sales #s came out today and Ford sold ONLY 10,921 Mustangs in August, barely more than July.

Using the August #s that's an annual sales rate of 131,052, which is fewer Mustangs than Ford sold with the old model (142,000 in 04, 151,000 in 03, 141,000 in 02, 155,000 in 01 and 203,000 in 00.

Since Ford is building around 16,000 Mustangs per month (192,000 / year), new 06 Mustangs will soon be stacked up on dealer lots like cord wood in November. Although GTs are still hard to come by where I live, the dealers near me have V6s coming out of their ears, especially verts.

So I repeat, don't pay one cent over MSRP for a new Mustang. Don't let the dealers gouge you with expensive dealer add ons. Just as the greedy Ford dealers killed the T-Bird with insane mark-ups, they are now doing thier best to kill the Mustang.

Very soon there will be more Mustangs sitting on dealer lots than they will know what to do with. Have patience and don't let the dealers rip you off.

 

[jfischer]

Just got back from looking at Escapes. The local Ford dealer had a ton of V6's in stock, but only one GT Convertible.

If you're looking for a V6, there seem to be more available again, but the GT selection is very minimal around here.

 

[Ryder]

I hope they go down soon.

 

[Berserker]

31 days ago I posted a topic "Big discounts on Mustangs"

In that thread I pointed how how sales of Mustangs in July were soft at only 10,577. I also said that anyone who paid MSRP, let alone one cent over MSRP was a fool as there soon would be an over supply of Mustangs and disounts will follow.

Most of you guys scoffed at me and claimed that the low sales in July were due to shortages of Mustangs, the changeover to the 06 MY or vacation shut down.

Well, the August sales #s came out today and Ford sold ONLY 10,921 Mustangs in August, barely more than July.

Using the August #s that's an annual sales rate of 131,052, which is fewer Mustangs than Ford sold with the old model (142,000 in 04, 151,000 in 03, 141,000 in 02, 155,000 in 01 and 203,000 in 00.

Since Ford is building around 16,000 Mustangs per month (192,000 / year), new 06 Mustangs will soon be stacked up on dealer lots like cord wood in November. Although GTs are still hard to come by where I live, the dealers near me have V6s coming out of their ears, especially verts.

So I repeat, don't pay one cent over MSRP for a new Mustang. Don't let the dealers gouge you with expensive dealer add ons. Just as the greedy Ford dealers killed the T-Bird with insane mark-ups, they are now doing thier best to kill the Mustang.

Very soon there will be more Mustangs sitting on dealer lots than they will know what to do with. Have patience and don't let the dealers rip you off.

I don't think there is anybody who doesn't know that the prices will come down. Soft sales in July? Maybe because there were none on the lots except v6's 2000 over and an occational GT for much over but really not to many on the lots. Is that when the GM employee discount started too? Well no matter what if you don't want to pay MSRP or over, everybody knows it's only a matter of time. I paid MSRP which is probably to much but I so wanted this car bad. Usually when I wait, it doesn't happen so I just said I don't care and I'm happy as hell for not waiting. Now the gas prices.....

 

[SactoStang]

I have had my '06 on order since late July and I did anticipate higher gas prices but not at this current rate or circumstances. I wonder how much bargaining strength I have with my dealer when my car does finally arrive and gas prices make owning a V8 is less affordable? I was quoted MSRP and I think timing of the retail price of gas will determine if the demand for a V8 is still viable.

 

[Pliskin]

V6 Converts all over the place. I'd understand a bit over MSRP for a GT but V6s are common now. They're gonna be everywhere. Thats one of the reasons I waited for a GT. Even to the person that doesn't know that much about mustangs, the GT headlights will at least make you stand out if the extra 90hp doesn't.

 

[Klay]

I think it's too early for you to be assuming this much, even thhough mustang production has been pumped up we still don't see many on lots. Don't forget many people ordered 06's so those sells have yet to be seen. It doesn;t surprise me that august and july were down. If this trend continues until say december then you are probably right.

On a side note, the whole thought process of never paying msrp is one of the factors hurting domestic auto companies. They are forced to offer incentives (even if it is a good car) because no one will buy it for sticker. So don't sit and wait for the car to be forced to be sold for incentives because you will miss out on plenty of driving time.

 

[ctfordguy]

I local dealer here in CT was advertising that they would do Family Plan price on all V6 Mustangs in stock. I take that as a sign that supply has caught demand, at least for the V6.

 

[Mickey21]

It wouldnt hurt either if the Mustang was also eligible for Family Pricing... Kind of hard to resist their other models when the other model pricing is so great... GM's discount along with Dodge's etc, might also have something to do with slower sales... The gas prices skyrocketing might do something as well. It did something in the 70's and probably isnt helping now...

 

[martimus]

I personally think statements like this are premature. Lets face it this "employee pricing" thing is gonna have an effect on Mustang sales, especially considering Mustangs aren't included.

Car manufacturers need to realize that selling cars at A-plan is gonna increase short term profits but create long term nightmares. In the long term, used car values are gonna continue to plummet because its now cheaper to buy some new cars than buy a slightly used one.

 

[tjredgt2000]

Monthly sales numbers are the number of vehicles purchased by dealers and do not reflect retail sales unless they go directly to fleet customers such as Hertz.

 

[Dyoct]

I personally think statements like this are premature. Lets face it this "employee pricing" thing is gonna have an effect on Mustang sales, especially considering Mustangs aren't included.

Car manufacturers need to realize that selling cars at A-plan is gonna increase short term profits but create long term nightmares. In the long term, used car values are gonna continue to plummet because its now cheaper to buy some new cars than buy a slightly used one.

Agreed..

Also, where is this info from? Sales reports here are showing 51% in Mustang sales...

 

[Big-Foot]

Someone already mentioned this but I have to echo the same sentiment.
The only reason that sales are soft on the GT's is because of the lack of availability. I live in a major metropolitan area and the only GTs on the lots here are ones that the Dealers really think are Harley's (I.E. They are marked up 5+k over MSRP).. I drove 350 miles to pick my car up at a fair price.

351CJ - Are you going to buy one or just prognosticating on the market for them?

 

[tjredgt2000]

Scoff at this. Mustang sales in August 2005 were 67% greater than August 2004.

http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=F&script=414&layout=-6&item_id=751772

 

[alfman9]

They sell over 4,000 more units than they did in August of last year. Your right, there certainly isn't any demand for Mustangs anymore.

I do have to agree that anyone that pays more than sticker for a car is a friggin indiot.

 

[SatinSilStang]

I have seen the same selection at the same dealer for about 1 month now. If you want a $50000.00 Saleen just let me know. That dealer can't give them away. I did see a used GT for $29000. just the other day,it has been at another lot for at least 2 months. Alan

 

[Mickey21]

Wow, those figures show the Mustangs sales year to date are still 33% ahead of last year at this time. Pretty damn good sales... Looks like the demand is still high then...

 

[Pliskin]

They sell over 4,000 more units than they did in August of last year. Your right, there certainly isn't any demand for Mustangs anymore.

I do have to agree that anyone that pays more than sticker for a car is a friggin indiot.

Don't scoff at people for paying what they needed too. Don't make them feel bad for it or in some way regret in the least. They wanted the mustang and they got the mustang they wanted. Leave 'em be. They may not be fortunate enough to get a plan price.

 

[PolkThug]

If they want to sell more than send some [Bleeping] GT allocations to Kansas. I'm waiting....

 

[stanmckinney]

Dealers know they can't sell at A plan forever. But when everyone else is doing it, what can you do? Don't forget rebates have been around a long time too.
It's not unusual, and this has been the case for a long time with rebates and other incentives, to buy a new car for less than a used one.
That does affect used car prices and trade-in values. Gas prices will have an effect. If Ford increases Mustang production, that will have an effect too. Demand will be met eventually and prices will drop.
It's a darned complicated business. No one wants to pay retail, so incentives are necessary for all but the very hot models.
Ford and GM's stocks are all rated as junk. The future is very muddy.