[Lt1_4_Life]

Nothing we dont already know....

http://https://www.linkedin.com/news...hical-5735306/

GM: Dealership prices are ‘unethical’

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By Laura Entis, Editor at LinkedIn News
Updated 5 days ago


It’s automakers versus dealers. Given high demand and limited supply, car dealerships across the U.S. are selling vehicles for well above the manufacturer’s suggested retail price (MSRP). In response, Ford and General Motors are threatening to withhold deliveries, The Washington Post reports. It’s a standoff that has consumers stuck squarely in the middle: In January, buyers paid an average of US$728 above MSRP, although premiums for popular models can stretch into the thousands.

The tension spotlights legacy manufacturers’ recent interest in direct-to-consumer sales strategies, which are used by rivals including Tesla and Rivian.

[i007spectre]

Yeah hearing all about it from people looking to get a C8.

[kropscamaro16]

yup just seen this zl1 1le today my buddy went to look at it had a 13k upcharge on it goodluck to them!


https://www.mossbroschevroletmorenov...2101743b47.htm

[jamala00]

Yep, noticing it on vehicles around here too.

[TXCSSU]

Well let's see, a dealership has costs to pay as well. Trust me, I don't like the idea of defending them, but if I were a business owner and widgets XYZ were in short supply and I only sold widgets XYZ, wouldn't I need to increase the price of widget XYZ in order to stay afloat? I mean if I was selling 500 XYZ widgets a month at about a profit of $500 per widget, then suddenly I was only getting 5 of them, how much more can I sell them for and be forgiven? I'd have to sell them for $50000 a piece to maintain the same profits and make sure my employees get paid, right?

Of course, the flip side of this is to have something worth trading in, right? At least give the dealership a chance to make some of that money via their used car sales. I would've loved to make more than the $41K that I made on my trade-in as a vehicle similar to mine with the same condition and MORE miles is selling for closer to $50K. As I have been monitoring the dealer's website, it looks like they added $8K to my trade-in. Oh well, at least they can try to make some money on my last car, not my new one. I think we need to keep things in perspective.

[SOCAL.M6.ZLE]

Yeah... When i purchased in December... i was seeing between $5k - 15k mark up for their 2022 new build ticket allocation. I ended up finding a 2021 that was ordered and left behind, and still had to pay $3k additional.



I agree, this is sad, and the manufactures should do something about it.

[TXCSSU]

Originally Posted by SOCAL.M6.ZLE

Yeah... When i purchased in December... i was seeing between $5k - 15k mark up for their 2022 new build ticket allocation. I ended up finding a 2021 that was ordered and left behind, and still had to pay $3k additional.



I agree, this is sad, and the manufactures should do something about it.

The chip makers have already said that the manufacturers are partly to blame. Having worked for a few chip manufacturers, I understand their vantagepoint. If they are also dealing with supply chain issues, and GM/Ford/etc. give them the lowest price for their microchips, meanwhile other products with higher profit margins are also in demand, what manufacturing do you think the chip manufacturers will be more focused on? I used to work for one such company that manufactured some low cost chips. They went under because it was not profitable to make the processors. I wonder if this might motivate the auto industry to just prop up their own semiconductor manufacturing.

Of course, there is ONE solution that I haven't seen anyone try, a rescue mission... Of course, you'll have to want a Porsche, VW, or Bentley...

https://www.thedrive.com/news/44382/...s-Bentleys-VWs.

[LT4Greg]

Supposedly GM is getting on to the dealers for price gouging but hasn’t done much good so far. I read that in the news a week or so ago.

[GOC]

You can just say no. The profitability of the dealership is none of my concern, the deal I get on my car is. For what it’s worth I bought my 22 under MSP from a decent independent dealership (not part of a chain)

Bear in mind, the service departments are always more lucrative than the new car division, dealers still have a high margin on the used cars they do/can sell and they do profit from the back end of in house finance as well as extras sold within the finance office. Domestic dealerships typically have a much healthier margin than imports on most new models plus destination and documentation fees.

These places are very well structured money making machines, I wouldn’t be shedding too many tears. The only people that really suffer here are the salesman or person(s) paying over the odds for what they get.

I have worked in the trade so do have some understanding on this.

[Jofu]

Originally Posted by kropscamaro16

yup just seen this zl1 1le today my buddy went to look at it had a 13k upcharge on it goodluck to them!


https://www.mossbroschevroletmorenov...2101743b47.htm

Yikes…. That’s actually why I ended up purchasing from Britain Chevy in Greenville, TX (intended plug! ), I saw a few dealerships locally and decided I didn’t want to play that game!

Geoff

[SATINSTEEL1LE]

Dealers are trying to survive right now. I get their reasons to add ADMs and weird aftermarket crap like "covid spray" to cars to fatten up their profits.

Not to mention you are all asking WAY over sticker for used cars you are trading in. Paying a couple over when they are giving you WAY over sticker for the new car is like having your cake and eating it too.

The only warning I can give you is the hard lesson that first year buyers of anticipated cars always learn years down the road. The market will adjust back down to normal. And when it does, the car you paid over sticker for will be worth a lot less than what it would normally and you are going to be in a serious negative equity situation. Those poor saps paying over sticker for mustang GTs are going to be hurting. Ford used to sell those for holdback and with rebates on top. That will return when stock comes back. And it will.

[jamala00]

Originally Posted by SATINSTEEL1LE

Dealers are trying to survive right now. I get their reasons to add ADMs and weird aftermarket crap like "covid spray" to cars to fatten up their profits.

Not to mention you are all asking WAY over sticker for used cars you are trading in. Paying a couple over when they are giving you WAY over sticker for the new car is like having your cake and eating it too.

The only warning I can give you is the hard lesson that first year buyers of anticipated cars always learn years down the road. The market will adjust back down to normal. And when it does, the car you paid over sticker for will be worth a lot less than what it would normally and you are going to be in a serious negative equity situation. Those poor saps paying over sticker for mustang GTs are going to be hurting. Ford used to sell those for holdback and with rebates on top. That will return when stock comes back. And it will.

Ya, they have to be hurting. I can't imagine you have 20 cars on the lot when the lot used to normally be full with 200+ new vehicles. Lots around here are empty. I sure am glad I'm not in the vehicle market right now. I can't blame the dealers for trying to make more money on the units they do have. It's no different then anyone on here selling their Camaro for the inflated used car prices.

[raptor5244]

Originally Posted by jamala00

Ya, they have to be hurting. I can't imagine you have 20 cars on the lot when the lot used to normally be full with 200+ new vehicles. Lots around here are empty. I sure am glad I'm not in the vehicle market right now. I can't blame the dealers for trying to make more money on the units they do have. It's no different then anyone on here selling their Camaro for the inflated used car prices.

Agreed, tough to stay in business when you don't have much to sell. I think the whole dealership model is going to change quite a bit as the industry shifts to EVs. EVs require much less servicing. No fluid changes, brake pads last 2-3 times as long, etc. Tires, but typically dealerships don't have the best prices on tires. Costco usually has better deals, manufacturer rebates and lifetime road hazard included. So, dealerships will basically be perform warranty work.

From a purchasing perspective, 95% of the process is done online now. When I bought my Tesla it took all of 15 minutes to take delivery since all you do is look over the car, transfer the tag and drive home. No one is pushing dent protection, undercoating, pin-striping, paint protection, etc.

From a service perspective, they come to you. They do things like tire rotations, replace a headlight, interior work, replace the 12v battery, etc. right in your drive way and you schedule this service right in the mobile app.

[TXCSSU]

Originally Posted by GOC

You can just say no. The profitability of the dealership is none of my concern, the deal I get on my car is. For what it’s worth I bought my 22 under MSP from a decent independent dealership (not part of a chain)

Bear in mind, the service departments are always more lucrative than the new car division, dealers still have a high margin on the used cars they do/can sell and they do profit from the back end of in house finance as well as extras sold within the finance office. Domestic dealerships typically have a much healthier margin than imports on most new models plus destination and documentation fees.

These places are very well structured money making machines, I wouldn’t be shedding too many tears. The only people that really suffer here are the salesman or person(s) paying over the odds for what they get.

I have worked in the trade so do have some understanding on this.

Now apply that indifference from the dealership's perspective, "I don't care if Joe Blow can't afford to pay the $10K markup that I put on this vehicle" and then we can understand the current market conditions.