Every time a hot new car model comes out, there are plenty of dealers just waiting to take advantage of enthusiasts and early adopters. It’s the old supply and demand effect we learned about in economics, and it means that some folks are more than happy to pay an extra dealer-added markup for the privilege of taking home a unique and much-anticipated car like the 2020 Ford Mustang Shelby GT500.
A stock photo of the actual 2020 Ford Mustang Shelby GT500 being sold for a $50,000 markup
We’ve already seen markups of various degrees since the new 2020 Shelby GT500 hit the market months ago, but we might have just found the most expensive one in the country at the moment. This distinctive honor goes to Redwood Ford in Ukiah, California, which is selling a Twister Orange 2020 Ford Mustang Shelby GT500 for the eye-watering price of just $149,995.
Vehicle stickers at $96,785
On the bright side, this Shelby G500 is equipped with the Carbon Fiber Track Pack. On the other hand, the MSRP from Ford is $96,785, meaning that the $149,995 desired by Redwood Ford includes an insane markup of $53,210 – the price one might pay for a very well-equipped 2020 Ford Mustang GT Premium. Perhaps that’s what the dealer has in mind with this GT500 – whoever sells this thing at its current list price will receive a free car.
GT500 on Redwood Ford website listed for $149,995
Indeed, if a salesperson can convince a buyer to pay this much for a car that’s been on the market for several months now, in the midst of a pandemic, well, they certainly deserve a large reward. Personally, we’re not sure whether we should be laughing or going into shock, but the fact that the dealer’s page has a prominent “lock in price” button below the $149,995 figure had us busting out laughing, we must admit.
Granted, that inflated asking price still seems like a bargain compared it to the 2020 Ford Mustang Shelby GT500 we spotted back in March that was listed for $185,890. But in all fairness, that car had the $10,000 painted stripe option, and this one does not. But we’ll just take the vinyl stripes and pocket the $35k savings, thanks very much.
There’s no telling how much longer dealerships will be tacking “market markups” and “demand-based addendums” to their 2020 Ford Mustang Shelby GT500 inventory. However, the Shelby GT350 was still getting marked up essentially until the GT500 came out. Now, they’re veritable bargains on the used car market. So if anyone wants one, they’ll either need to find a dealer who isn’t trying to make a quick buck (or 50 thousand of them), or wait until the next-gen S650 Ford Mustang hits the road for the 2022 model year to get a used one.
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Comments
And it’s in Ukiah, which is not near any major population centers. I guess Redwood is looking for a marijuana baron with more money than sense or a Silicon Valley millionaire in a hurry to purchase it at this price.
This is exactly why the entire OEM-dealer system needs to be scrapped and rebuilt from scratch. Ford and every other OEM has no control over its dealers and the dealers do what they damn well please, all for short term returns and no long-term decision in sight. Follow Tesla and operate your own stores, do it right like Apple and create customers for life. Ford is losing a lot more customers not because of its products, but because of poor dealer experience when it comes to sales, service and parts operations. Granted there are some good dealers, but there are even more bad and mediocre ones. Ford can do better. So can every other automaker.
$130-150k is the going market for “Track Pack” GT500’s. Very limited production package and by far the most desirable (I had dozens of customers, most high-profile race drivers) that wanted a GT500 but ONLY if track pack. I bet that dealer gets 3-10 calls a day from other dealers asking what they can buy it for. Most dealer-dealer “trades” on GT500 Track Pack cars are over $115k.
Let’s be clear here: you are speculating about the 3-10 calls a day. Also, 3-10 is a very wide range. No matter, even if they do get the calls – which is a big if – it’s all for nothing if those calls don’t convert into sales. How long has this model been on the lot? How much are they paying to keep it in inventory?
My point here is similar to that of BroShmo above – the entire factory-dealer ecosystem and process needs to be scrapped and overhauled top to bottom. Easier said than done, I know.
Sure, the track package is rare, no doubt about it. If there is true demand that outpaces supply, then business 101 dictates that Ford should produce more units with the option, while instituting regulations on blatant attempts at price gouging such as this one.
Because not a single customer – no matter how wealthy – wants to leave the showroom knowing they’ve been had. That doesn’t earn repeat business, no matter the industry.
Patience is king here! The same sort of thing happened when the new GT 350’s hit the market. Wait a year of two when demand has softened a bit and so will selling deals.
When I was a Ford of Canada dealer (25 + years ago) if I had pulled this trick I know full well that I would never get another short supply vehicle(s). I particularly remember F150s being in short supply across the border in the 80s and Canadian dealers were shipping them to the US. The Hand of God came down upon them!! They were penalized by the factory for the difference from lowest dealer cost with all credits removed to full MSR. It stopped the exporting in it’s tracks.