Deal or No deal - Real world ADM - Being Transparent

[RaptorWhoSaysNI]

Whatever floats your boat man. You like it, I love it for you!

No boat just a kayak but it floats pretty well.

 

[melvimbe]

As much as I hate the whole ADM situation, I was told up front that there may be an ADM depending on what the market is like when my Raptor arrives. At least they were forthcoming and gave me a heads up. I don't plan on paying anything over $5k ADM. Not happy with the situation but I understand economics as well as supply and demand very well. I do have an arsenal of rebuttals if they come to me with an ADM over $5k. I was also the first customer in-line for their only 37 allocation.

I wouldn't accept this deal, as I'm not accepting a variable price. If I go in to the bank for a loan, I come out with a loan that's a set number of days. The bank doesn't tell me, 2% now, but if rates go up, will charge you the new rate when you complete the loan. Likewise, if you have a home built, the price of the house doesn't go up with the market as it's built. It's locked into to the agree upon amount.

Really, I can't think of any preorder type agreement where the seller can raise the price if they want to, and I would not accept it when buying a vehicle. So if I'm fine with 5k over ADM for whatever reason, or whatever price is agreed upon, then I'll put down a deposit and get myself a guarantee on that price. If the dealer won't do it, then I'm not interested in wasting my time any further.

 

[RaptorWhoSaysNI]

I wouldn't accept this deal, as I'm not accepting a variable price. If I go in to the bank for a loan, I come out with a loan that's a set number of days. The bank doesn't tell me, 2% now, but if rates go up, will charge you the new rate when you complete the loan. Likewise, if you have a home built, the price of the house doesn't go up with the market as it's built. It's locked into to the agree upon amount.

Really, I can't think of any preorder type agreement where the seller can raise the price if they want to, and I would not accept it when buying a vehicle. So if I'm fine with 5k over ADM for whatever reason, or whatever price is agreed upon, then I'll put down a deposit and get myself a guarantee on that price. If the dealer won't do it, then I'm not interested in wasting my time any further.

If I recall correct you can only lock in a rate on a loan for a certain period of time. That would mean you could potentially pay a higher interest rate depending on where LIBOR and interests rates are at the time, but you also may be able to get a lower rate. It's a calculated risk I am willing to take. I will be paying between MSRP and $5k, so it's not out of the realm of possibilities that I might pay MSRP, $2,500, $2,750, or $5,000.

 

[KevoUsmc]

Correct, the loan rate they researched back in June only applies for like 30-60 days or something. We both knew going into it that we'd deal with the financing and such once the truck delivered. They just ran the credit to make sure I was capable I guess of borrowing. I am also only financing half of the vehicle. But when I ordered the truck through the dealership we agreed to MSRP and I have a signed DORA with the pricing, so I don't think I need to worry about them pulling the rug out from under me (in a manner of speaking). If they do consider ADM when it delivers, I have a signed price sheet from them as an agreement. And legal representation through work.

 

[melvimbe]

If I recall correct you can only lock in a rate on a loan for a certain period of time. That would mean you could potentially pay a higher interest rate depending on where LIBOR and interests rates are at the time, but you also may be able to get a lower rate. It's a calculated risk I am willing to take. I will be paying between MSRP and $5k, so it's not out of the realm of possibilities that I might pay MSRP, $2,500, $2,750, or $5,000.

This correct, but essentially, I have a deal with the bank that lasts 30 days (or whatever the timeframe). If I don't use it, then I no longer have a deal with them and would need to lock in a new rate. The point is that the terms of the agreement are known up front. I would not enter a deal for a vehicle where the final price could end up being more than I am willing to pay. I would not put a clause in there that the contract is void if the vehicle isn't built by a certain date (unless it's my option to void it) I'm not wasting my time on that.

And let's be honest, the whole 'wait for market pricing' is crap. It's to get you emotional invested. And what's the value in having a vehicle ordered if they are just going to auction it off to the highest bidder?

 

[RaptorWhoSaysNI]

This correct, but essentially, I have a deal with the bank that lasts 30 days (or whatever the timeframe). If I don't use it, then I no longer have a deal with them and would need to lock in a new rate. The point is that the terms of the agreement are known up front. I would not enter a deal for a vehicle where the final price could end up being more than I am willing to pay. I would not put a clause in there that the contract is void if the vehicle isn't built by a certain date (unless it's my option to void it) I'm not wasting my time on that.

And let's be honest, the whole 'wait for market pricing' is crap. It's to get you emotional invested. And what's the value in having a vehicle ordered if they are just going to auction it off to the highest bidder?

I hear you barking. The pricing isn't unknown though, I'm not paying anymore than $5k and I will no doubt be getting my Raptor from them. Long story behind this one.

 

[melvimbe]

I hear you barking. The pricing isn't unknown though, I'm not paying anymore than $5k and I will no doubt be getting my Raptor from them. Long story behind this one.

I don't see that as an issue, if you know they won't go over your max price.

 

[2slo4u]

Likewise, if you have a home built, the price of the house doesn't go up with the market as it's built. It's locked into to the agree upon amount.

Actually -- they do have clauses that address building material costs, etc. in the contracts and they can raise the price. Plenty of news articles about this if you need proof.

Sorry for "being that guy."

 

[uscraptor51]

I’m keeping my fingers crossed…looks like I found/secured a vehicle out of OH at MSRP. Absolutely no reason to pay $10,000+…$20,000 in CA on a Ford Truck…may have to wait a little longer, but well worth it!

 

[melvimbe]

Actually -- they do have clauses that address building material costs, etc. in the contracts and they can raise the price. Plenty of news articles about this if you need proof.

Sorry for "being that guy."

Point still remains.