Despite strong demand, Mustang buyers won't pay over sticker
RICHARD TRUETT | Automotive News
DETROIT -- Mustangs are galloping off dealership lots almost as fast as they are delivered. But the reborn pony car is just trotting on the Internet.
A review last week of dozens of listings on eBay, the online auction site, shows that potential buyers are refusing to pay more than sticker price. In fact, spoiled by years of heavy incentives, they apparently are already looking for deals.
eBay has been an accurate barometer in sizing up demand for hot vehicles. But both versions of the new 2005 Mustang are struggling to meet suggested sticker prices on eBay. The V6 base model stickers for $19,410, and the 300-hp, V8-powered GT is $24,995, including destination charges. Some dealerships advertising the Mustang on AutoTrader's Web site are asking slightly below sticker.
This is unusual for a highly anticipated hot car. In the past few years, hot cars such as the Chrysler PT Cruiser, Nissan 350Z sports car, Mini Cooper and Ford Thunderbird roadster initially have sold for thousands over sticker to buyers who wanted to be the first on their block to own one.
But the Mustang is bucking that trend. Keith Martin, publisher of Sports Car Market, a magazine that tracks auction and resale prices of classic, special-interest and high-performance cars, says consumers have wised up to the fact that many production cars usually don't sell for more than their sticker prices for at least 20 years.
Friendly Ford in Pittsboro, N.C., received its first two 2005 Mustangs this month, a V6 model and a GT. The store, near Raleigh, tried two marketing approaches for the cars.
Dealer Bob Esau put the V6 model in the showroom and sold it immediately for slightly under sticker. He listed the GT on eBay. Five days into a seven-day eBay auction, the car had not drawn a single bid, even though it was priced $335 less than the sticker.
Esau says he's surprised. "I think, around here, people are waiting for a deal," he says.
Ford spokesman Dave Reuter says most Mustangs last no more than two or three hours on a dealership's lot. He says Ford is not concerned about consumers' unwillingness to pay more than sticker price for the car.
Says Reuter: "We have enough hard data in the form of orders, sales and days-to-turn to know that this car is very, very strong and that demand is going to stay strong."
RICHARD TRUETT | Automotive News
DETROIT -- Mustangs are galloping off dealership lots almost as fast as they are delivered. But the reborn pony car is just trotting on the Internet.
A review last week of dozens of listings on eBay, the online auction site, shows that potential buyers are refusing to pay more than sticker price. In fact, spoiled by years of heavy incentives, they apparently are already looking for deals.
eBay has been an accurate barometer in sizing up demand for hot vehicles. But both versions of the new 2005 Mustang are struggling to meet suggested sticker prices on eBay. The V6 base model stickers for $19,410, and the 300-hp, V8-powered GT is $24,995, including destination charges. Some dealerships advertising the Mustang on AutoTrader's Web site are asking slightly below sticker.
This is unusual for a highly anticipated hot car. In the past few years, hot cars such as the Chrysler PT Cruiser, Nissan 350Z sports car, Mini Cooper and Ford Thunderbird roadster initially have sold for thousands over sticker to buyers who wanted to be the first on their block to own one.
But the Mustang is bucking that trend. Keith Martin, publisher of Sports Car Market, a magazine that tracks auction and resale prices of classic, special-interest and high-performance cars, says consumers have wised up to the fact that many production cars usually don't sell for more than their sticker prices for at least 20 years.
Friendly Ford in Pittsboro, N.C., received its first two 2005 Mustangs this month, a V6 model and a GT. The store, near Raleigh, tried two marketing approaches for the cars.
Dealer Bob Esau put the V6 model in the showroom and sold it immediately for slightly under sticker. He listed the GT on eBay. Five days into a seven-day eBay auction, the car had not drawn a single bid, even though it was priced $335 less than the sticker.
Esau says he's surprised. "I think, around here, people are waiting for a deal," he says.
Ford spokesman Dave Reuter says most Mustangs last no more than two or three hours on a dealership's lot. He says Ford is not concerned about consumers' unwillingness to pay more than sticker price for the car.
Says Reuter: "We have enough hard data in the form of orders, sales and days-to-turn to know that this car is very, very strong and that demand is going to stay strong."