[ZPirate]

Originally Posted by Chevelle vs Camaro

And i’m sure these dealer would listen to Chevy if they could fill there orders so the could meet volume needs….. but they can’t. Is chevy giving those dealer ships there residuals they’d normally receive for the number of cars they would sell if chevy could supply them….. probably not…

So telling them to sell the cars they can get them at the price they set….. but not incentivize them to do so but also not fill there orders just ain’t cutting the mustard.


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While dealers do rely on residuals from manufacturers based on sales, they don't make much profit from each new vehicle they sell. However, were they really make their money is from service. That hasn't changed even with the shortage of new vehicles, in fact it has likely increased due to people keeping vehicles longer. On top of that the used car business has picked up because of the shortage of new vehicles.

I don't care what the circumstances are selling a vehicle for more than MSRP is gouging the customer in my opinion. Especially given that pre shortage prices were well below MSRP for many vehicles, including the Camaro. Dealers are already making more money selling a vehicle at MSRP versus invoice. Personally I wouldn't buy any vehicle over MSRP and any dealer asking more than MSRP wouldn't get any present or future business from me.

[timesublime]

Yep. I have my eyes on a Tincoat 2SS here in CO. Spradley Chevy in Pueblo. They want 5k over MSRP and won't budge. One can get a nicer car for the 50K they want for it.

[ST1LE]

Originally Posted by timesublime

Yep. I have my eyes on a Tincoat 2SS here in CO. Spradley Chevy in Pueblo. They want 5k over MSRP and won't budge. One can get a nicer car for the 50K they want for it.

Eh...not a nicer performance car. Not that I disagree with you, I would walk away too just out of principal.

[bigd1276]

Originally Posted by MR's 2SS

As for gas producers.... Im sure the $100/bbl oil is good for profit compared to the $40/bbl of 18 months ago.
As for NG... lack of pipelines causes high prices where pipelines do not exsist.
As for unemployment bennies. I know several restaurant owners who lost most of their wait staff during mandatory shut downs. I know of many local businesses which have failed. I know the restaurants wait staff is different and they lost them due to the mandatory shut downs. And they claim the former employees refused to return due to it paying better to stay home. Although I believe those bennies have run out now.
We have mom in a nursing home. Understaffing has altered the field. It seems underpaid overworked staff didnt want a mandatory spike so that was the last straw. Now dramatic understaffing is the result.
Then theres printing money.
All of this is political. These are not market driven issues.
Its pathetic leadership from top to bottom. government and corporations. They continue to thrive while the public falls behind.
The only thing I can say is dont pay inflated prices for crap you can do without. And look at the results of elections and vote accordingly.
All this crap is being done. Its not just happening. And if you fault capitalism you are not paying attention.
Its a coordination between authoritarian government and certain large corporations.

Bingo!

[flobb]

Originally Posted by timesublime

Yep. I have my eyes on a Tincoat 2SS here in CO. Spradley Chevy in Pueblo. They want 5k over MSRP and won't budge. One can get a nicer car for the 50K they want for it.

Originally Posted by ST1LE

Eh...not a nicer performance car. Not that I disagree with you, I would walk away too just out of principal.

"Nicer car" doesn't necessarily mean different make/model. $5k can add some substantial options. I looked up the car in question and it only has dual mode exhaust, Cherry paint, and Nav

[timesublime]

^^This is what I meant.

[TXCSSU]

Originally Posted by GearheadSS

Umm, I've been in the new car business for 22 years. Our dealership sells at MSRP(or below in some cases) and we're doing just fine. All while stocking around 25-35% of the new vehicle inventory that we used to stock.

Not every dealership is the same though. Smaller dealerships are probably going to see a bigger pinch as they operate at less volume normally. I can imagine a small dealership in a really dense area having trouble getting allocations or having larger dealerships get their allocations.

One thing that's probably happening that I suspect won't be popular with may people on here is that these dealerships are filling for government assisted grants due to Covid. I can only imagine how much worse the car market would be if dealerships didn't have those business grants/loans.

[Xaxas]

Originally Posted by MR's 2SS

As for gas producers.... Im sure the $100/bbl oil is good for profit compared to the $40/bbl of 18 months ago.
As for NG... lack of pipelines causes high prices where pipelines do not exsist.
As for unemployment bennies. I know several restaurant owners who lost most of their wait staff during mandatory shut downs. I know of many local businesses which have failed. I know the restaurants wait staff is different and they lost them due to the mandatory shut downs. And they claim the former employees refused to return due to it paying better to stay home. Although I believe those bennies have run out now.
We have mom in a nursing home. Understaffing has altered the field. It seems underpaid overworked staff didnt want a mandatory spike so that was the last straw. Now dramatic understaffing is the result.
Then theres printing money.
All of this is political. These are not market driven issues.
Its pathetic leadership from top to bottom. government and corporations. They continue to thrive while the public falls behind.
The only thing I can say is dont pay inflated prices for crap you can do without. And look at the results of elections and vote accordingly.
All this crap is being done. Its not just happening. And if you fault capitalism you are not paying attention.
Its a coordination between authoritarian government and certain large corporations.

No you don't get it, dealerships NEED to make money besides manipulative sell tactics and shady financing, and they are within their right to lobby for decades to be an unnecessary middleman between the manufacturer and the consumer, how dare you demand fair pricing as a customer!

People here I swear... They're the ones to blame someone for getting a $60k hospital to survive COVID by saying it's their fault they got sick and that the hospitals need to make money.

But what do I know, I eat food off a plate not dirt off a boot.

[RealG]

Be patient, let the war , inflation, rising gas prices do their magic. Dealers are going to get a wake up call soon it’s coming. The everything bubble going to burst. Manufactures have been making as much as they can of everything. it’s going to catch up.
Future production straight up, future demand straight down.

[LT1gen6]

Supply and demand for commodities dictate price. Econ 101. Price in relation to MSRP? The "S" in MSRP stands for "suggested," meaning that dealers are free to charge more or less than MSRP. This is longstanding business practice that now generates controversy?

As far as MSRP and dealer inventory, read what Mary Barra just said 2 days ago: https://www.freep.com/story/money/ca...22/6912822001/

Automakers are in a fight for their lives. Their business models and practices are changing. While this may be upsetting to many, it's just a fact for these times.

[m6-lt1]

Originally Posted by LT1gen6

Supply and demand for commodities dictate price. Price in relation to MSRP? The "S" in MSRP stands for suggested. Dealers are free to charge more or less than MSRP. This is a longstanding business practice that now generates controversy?

As far as MSRP and dealer inventory, read what Mary Barra just said 2 days ago: https://www.freep.com/story/money/ca...22/6912822001/

Automakers are in a fight for their lives. Their business models and practices are changing. While this may be upsetting to many, it's just a fact for these times.

I do fear that all automakers/dealers are going to do this where they stop stocking a bunch of new vehicles on their lots once there are no more supply shortages in order to make more profit per vehicle.

That being said all it takes is for one or two major manufactures/dealers of that manufacturer to NOT do that and the majority of consumers will flock to that dealer/manufacturer that’s able to sell bellow msrp like in the pre covid days. And if GM goes bankrup because they tried to make more profit per car instead of trying to provide something affordable to their longtime customers then so be it. Once the Camaro officially gets axed they have nothing I want anyway (no manual in the c8 no interest from me).

[RealG]

Not one manufacture alone can switch to a “order” only model. the competition will stock their lot full and the customers will go there. People are not patient they’re only being forced to be patient because of the current situation. This situation like all others will pass. When I hear people saying it’s different this time that guarantees me it’s exactly the same.lol This cycle will reverse like all past cycles. That’s why it’s called a cycle. It’s not in corporate America’s DNA to limit production. when they get the parts they’re going to build as many as they can of everything!

[RealG]

Picture this. Let’s say GM switches to a order only model and the profits rise. Wow . Next .Guarantee the first new young executive will say we need to make more cars. More cars = More profit duh !. And we’re right back where we started. Lol they’ll make as many as they can for as much profit as they can. Nothing will change ultimately.

[LT1gen6]

Picture this instead: the law of diminishing returns
https://www.investopedia.com/terms/l...inalreturn.asp