We had a customer order a 2006 Mustang GT, and when it came in he informed us that, for whatever reason, he would not be able to take delivery of the car. BUT- a good friend of his has agreed to buy the car, so we won't have to worry about finding a home for it (like finding a home for a new Mustang GT would somehow be a problem for ANY Ford dealer right now...). Now, we've sold every new 2005 and 2006 Mustang right at factory invoice. And you'd think he'd let his "good friend" buy it for the same price, right? WRONG!!

Through some dumb luck, we found out that this guy put the Mustang on eBay, and sold it for $1000 MORE than he paid for it! He hasn't even taken delivery yet, and since he's listed as an eBay Power Seller, I highly doubt he ever had any intention of taking delivery. I'm sure he ordered the car knowing he could sell his place in line to someone else for an incredible profit (let's face it- the guy has done nothng to earn the $1000, at least in my book). There is no good friend, this guy lives out of town. If he WAS a good friend, why would he have bought it on eBay? (I have a printout of the auction.)

Yes, this guy's pretty sharp, I don't fault him for that. What irks me is if the original story were true ("I lost my job, I can't afford the car now, blah, blah, blah..."), then the car should have gone into our inventory and then WE could give it to the next person on our list that's been waiting months for a new Mustang. If we've learned anything from this, it's that we're selling Mustangs WAY too cheap. I just feel as though we were used, and it ticks me off. Try to sell a car at a fair (well, MORE than fair) price, and there's someone out there to take advantage of the situation.

What do y'all think?

 

He doesn't happen to work for the government does he?

 

I think it happens with every hot new car that is introduced. I've seen it with Miatas, the new Thunderbirds and this Mustang. I've seen dealerships selling places in line for the privelidge of negotiating for the car (not the car, you still had to deal on that) for seval thousand on ebay.

The way I look at it, if both people were happy with the deal, so what. You're getting your asking price right? The ebayer got his price, and some guy got in line for a car. Everyone got what they wanted.

 

1956MarkII- "We had a customer order a 2006 Mustang GT, and when it came in he informed us that, for whatever reason, he would not be able to take delivery of the car. BUT- a good friend of his has agreed to buy the car, so we won't have to worry about finding a home for it (like finding a home for a new Mustang GT would somehow be a problem for ANY Ford dealer right now...). Now, we've sold every new 2005 and 2006 Mustang right at factory invoice. And you'd think he'd let his "good friend" buy it for the same price, right? WRONG!!

Through some dumb luck, we found out that this guy put the Mustang on eBay, and sold it for $1000 MORE than he paid for it! He hasn't even taken delivery yet, and since he's listed as an eBay Power Seller, I highly doubt he ever had any intention of taking delivery. I'm sure he ordered the car knowing he could sell his place in line to someone else for an incredible profit (let's face it- the guy has done nothng to earn the $1000, at least in my book). There is no good friend, this guy lives out of town. If he WAS a good friend, why would he have bought it on eBay? (I have a printout of the auction.)

Yes, this guy's pretty sharp, I don't fault him for that. What irks me is if the original story were true ("I lost my job, I can't afford the car now, blah, blah, blah..."), then the car should have gone into our inventory and then WE could give it to the next person on our list that's been waiting months for a new Mustang. If we've learned anything from this, it's that we're selling Mustangs WAY too cheap. I just feel as though we were used, and it ticks me off. Try to sell a car at a fair (well, MORE than fair) price, and there's someone out there to take advantage of the situation.

What do y'all think?"

Now, we've sold every new 2005 and 2006 Mustang right at factory invoice.

Are you nuts! Those cars are going for MSRP between dealers up here if they come with the sales card- 'bout $1500 over if they don't. Still can't get one.

I can't tell you how to do your Mustangs, but that car would have rolled into stock- period- if the ordering customer couldn't take it.

You think that's a challenge- try managing Z06's. I thought we handled it the right way- we're getting 22, all to prior customers, all at MSRP. We have enough backup names on the list to last well into '07, then we'll worry about actually having to sell the car.

 

Ok maybe I'm 'slow' or something but I don't get it. If the first buyer says he can't and then dosen't take delivery of the car, how can HE sell it to anyone else? If HE dosen't sell it to the second party, how can he collect the $1000.

Whatever...

BTW, I don't see anything wrong with a dealer selling the product for whatever the market will pay. If someone is willing to pay you $50k for an '06 stang, more power to ya. It won't be me... but more power to ya.

 

It would seem to me that if your *customer* signed a contract, the purchase agreement was between you (your dealership) and him and obviously nobody else. With that in mind, it would seem that since he can't take delivery for whatever reason that this would be grounds to terminate the contract and that there would be no obligation on your dealership's behalf to have to give it to someone else for the terms in the defunct contract. What am I missing here?

 

Agreed. He cant sell something he doesnt own.

 

Yeah xlt....I'm 'slow' this morning also. If he paid cash for the car then sold it on ebay....I could understand that. But how could he sell something he never owned?

 

He sold his place in line to get a Mustang, and like I said, we found out about the Ebay auction strictly by accident. What he did was collect the $1000 profit from the eBay buyer upfront as a "deposit," then the auction winner's going to pay us what the original buyer agreed to pay. Pretty slick, huh? I wonder what happens when the buyer comes out of the ether and realizes his "deposit" was never applied to his purchase price.

If this were up to me, I would have called the guy about one second after seeing the car on eBay and told him he's SOL. But I'm not the one that gets to make these decisions, so....... I just hope we don't let it happen again. And yes, Ernie, when it comes to pricing Mustangs, we ARE nuts. But again, I don't get to make those decisions, either.

 

this is just another example of greed turning people into EDIT(pardon my french). can you say,"any scam will do, long as I get mine!".
I knew you could.

 

Jeff,
Yes, you were hustled and it is natural to feel violated. Honest people and ethical companies such as Bortel Ford are unfortunately, easy marks for the dishonest. That Bortel would resist the price gouging antics of other dealers is testimony to the integrity of your company.

 

well, i see a very easy way for you to get even with this scum of the earth bottom feeder. just keep telling him that there was some kind of problem, and that the car will be in next week...... for the next 6 months. he will get a black mark on his ebay feedback for failure to deliver, and have to refund the money to the auction winner.

 

That doesn't hurt the guy who got the $1000 as much as the guy who gave the $1000.

 

i would email the guy that won the auction and fill him in with what happened and see what he has to say about it. he probably doesnt care, just wants his car, but it would be interesting to hear his side of it.

 

Sold his place in line? How much did 'his place in line' cost him? I admit it's a slick deal on his part but I feel that it will backfire on him in some way. As for the winner of the auction....a saying comes to mind...
"A fool and his money are soon parted."