Backstory to May's Camaro & Mustang sales stats

[v6sonoma]

Originally Posted by EnvyTerra

Maybe I am understanding this wrong, but it's bad for a car company to sell cars with incentives? a sold car is a sold car am I right?

A car sold is a car sold is what got GM into bankruptcy. It works as a band aid for a product people don't want to buy. Selling at full retail means profits are high and better cars can be funded. When the Mustang was outselling the Camaro in the late 90's early 00's the camaro was being killed,and GM was done spending money on it. If the car sells itself there gonna keep em coming.

[BoomBoomKid]

Don't get me wrong I'm a diehard Chevy guy and own a C5 Camaro that I believe is the best Camaro ever, yet don't forget the fact the 2010 Camaro is a new car brought back after 7 years and the interest and sales will be greater until the newness wears off. I just think there are more potential Ford Mustang owners out there.

[ssump29]

Originally Posted by CaniacFan

You are correct. More incentives to customer, less revenue/profit to dealer.

But what Tran was trying to say is that Chevy - is not offering incentives on the Camaro whereas Mustangs are being sold at deep discounts and 0% financing - hence, Ford/Mustang's numbers were highly inflated for the month of May.

Thankx Tran...

I have to correct you on that thought process. The dealer does not and I repeat does not take less revenue or profit. The manufacture does. When incentives are announced its from the Car company not the dealer, so when a dealer honors Fords/GMs incentives the parent companies take the hit and reimburse the dealer for the money they lose.

EX: Manufacture delivers car to dealer and charges them 31000. Manufacture then offers incentives on said car of 2500. Now dealer honors the companies incentives and sell the car for 28500. The dealer isn't taking that hit, what they do is make the paperwork up and then send it to be reimbursed by the parent company. So instead of making any money they break even because they paid 31000 for the car and sold it for that amount. So they don't lose any money on the car, their numbers are affected by having to pay their employee money on a car that they didn't make a dime off of.

[cab2g]

It'd be super awesome if GM offered more incentives for the Camaro. Who doesn't love saving money??? But I can't blame Ford for doing what they did. The 2010 Mustang GT had roughly the same HP as the 2011 V6 Who'd want to buy such craptastic cars when majorly improved 2011 are available?

[BoostedX2]

Originally Posted by ssump29

I have to correct you on that thought process. The dealer does not and I repeat does not take less revenue or profit. The manufacture does. When incentives are announced its from the Car company not the dealer, so when a dealer honors Fords/GMs incentives the parent companies take the hit and reimburse the dealer for the money they lose.

EX: Manufacture delivers car to dealer and charges them 31000. Manufacture then offers incentives on said car of 2500. Now dealer honors the companies incentives and sell the car for 28500. The dealer isn't taking that hit, what they do is make the paperwork up and then send it to be reimbursed by the parent company. So instead of making any money they break even because they paid 31000 for the car and sold it for that amount. So they don't lose any money on the car, their numbers are affected by having to pay their employee money on a car that they didn't make a dime off of.

In my area the Ford dealers are offering Both manufacturers and dealer discounts (total 6K) on Mustang GTs, so they are both losers...

[ssump29]

Originally Posted by Mr T

In my area the Ford dealers are offering Both manufacturers and dealer discounts (total 6K) on Mustang GTs, so they are both losers...

Yes in that case you are correct. It's kinda rare tho that a dealer would offer discounts as well when incentives are being given.

[Enator]

Originally Posted by EnvyTerra

Maybe I am understanding this wrong, but it's bad for a car company to sell cars with incentives? a sold car is a sold car am I right?

Yes a sold care is a sold car and you are right

[cab2g]

Originally Posted by ssump29

Yes in that case you are correct. It's kinda rare tho that a dealer would offer discounts as well when incentives are being given.

I'm sure a lot of people in the market for a Mustang would feel like they'd be ripped off paying any more than a V6 price for a 300HP V8 when the next model year offered a 300HP V6...

[GaryTucker]

Originally Posted by ssump29

Yes in that case you are correct. It's kinda rare tho that a dealer would offer discounts as well when incentives are being given.

Actually, not as rare as you'd think. My chevy dealer typically sells for $200 over invoice (discount given) and also gives you the rebates. We got $200 over on our GT1 Corvette and also the rebate that GM had going on at the time it came in.

[MikeSVX]

Originally Posted by GaryTucker

The big issue is how many are still sitting on dealer lots? We've seen dealers still trying to get MSRP or above on cars...so if there are a number on the lots, you may see discounts to "clear them out" as the 2011 are now rolling down the line.

Also, I believe you'll see a slowing of sales as the new model year comes out. You won't see the "gotta have the hottest thing on the market" crowd rebuying a camaro (unless the Z28 ends up being the "next hottest thing") and you've satisfied quite a bit of the pent up demand from the years of no production and many of those people aren't going to buy a new car after only one year.

Only time will tell on what the numbers look like.

There are people out there that tend to hold out a year for a new model to allow the bugs of a new design to be worked out. You will start to see those people buying the 2011 models.

[ROD1]

Originally Posted by Tran

There was a factor which contributed positively to the Mustang's strong sales numbers - Ford's incentives to clear out 2010 Mustangs.

Of the Mustangs sold in May 2010, 43% were 2010 models which were being cleared out with incentives of $2,500 off with 0% to 5.9% financing. Also, the 2011 Mustang has $1,500 on the hood for returning lessees, plus financing as low as zero percent for 36 months.

The rebates etc. have been in effect for several months. Its most likely due to pre sold orders.

[Bond]

Originally Posted by phenixdragon

Sadly a good friend of mine bought a 2011 Mustang. :(

I've got a friend looking at them too.
I can't wait to go against him!
Driver's race!!

[ravensjeff]

This kind of reminds me of talking about football game outcomes. The Camaro had 500 yards of offense, 47 minutes of Time of possesion, totally dominated the game, but the Mustang won 17-14.

[SVT_SRT]

We all should be thankful that cars are selling again, the people have spoken and we want fast loud cars not these little toaster oven hybrids =)