Taking 50% year over year in 2021 does NOT come close to exceeding capacity seen in the chart I posted.
Current New Vehicle Market
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Taking 50% year over year in 2021 does NOT come close to exceeding capacity seen in the chart I posted.
Prices for consumer goods rarely come down significantly without some change in quality. Personally, I would rather have a better car and pay a little more for it than to have a lower priced vehicle and less quality.
I don’t object to MRSP’s those in normal times are generally negotiable. i do strongly object to ADM’s but I do understand the reasoning behind why some dealers feel the need to apply them
I don’t object to MRSP’s those in normal times are generally negotiable. i do strongly object to ADM’s but I do understand the reasoning behind why some dealers feel the need to apply them
Please refer to the top graph.
What are you talking about? Did you now change over to used car sales? I have no idea. I thought this was about new car sales.
Time will tell!
Wait, you're saying that new and used car prices aren't directly correlated?
Don't know about this. So I am being told their are 10-20K ADM's on Mach E's. Additionally I saw they are going up 1 and 2K next year. Also being told Ford is going to be making 200k of these things soon. Looks likely to me that the true sales prices will go down at some point. Unless all that I noted above is bullshit - it was in another thread.
I'd be curious to see your metrics around number of vehicles sold and average transaction price for say 2019 vs 2021. I feel like if your selling the same number of vehicles at a higher transaction price then the market obviously supports higher prices and $12k off msrp for an f series is a thing of the past. Also, my guess is at the same time the average loan term increased between 2019 and 2021 though.
It isn't the sole reason, but it is a significant factor. There will be a lot more chips used in cars in the future and it is already a significant cost in cars.
You shouldn't count on car prices being down once the chip shortage eases. All of the major OEMs have strong pricing power given the tight inventory. Before COVID started, Ford had around 75 days of inventory on dealership's lots but they will never do that again. Jim Farley already announced that: "We are really committed to going to an order-based system and keeping inventories at 50 to 60 days' supply.”
Ford is incentivizing customers to order their cars and not buy off the lot. Likewise, when dealerships order cars, they are guessing what their inventory mix should be. When customers order cars, there is no guessing. This reduces floorplan costs at the dealerships and empowers dealers to have a stronger bottom line. This is why prices won't go down and inventory will never be the same.
WTF? No one is arguing current new car prices are high, inventory is low and used car prices are high too. Please focus on the discussion at hand.
The market will CORRECT ITSELF. That is my argument. You are saying the market will never go back to a plentiful supply, rebates, easy pricing and an excess.
I disagree.
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My individual store.
Volume is down 8.2% (new car/truck sales from 2019 to 2021.
The average sales price in 2019 was $38,306.16, this year, its $44,411.55.
These numbers are slightly skewed though. This goes off sales price. The rebate difference between 2019 and 2021 is crazy big. Unfortunately I'm not 100% sure how to accurately depict that from my financial statements. I can on a monthly basis, but not yearly.
So just sales price has gone up $6,100. I would guess that rebates on average have gone down $2-3,000 per transaction, so the true spread is closer to $9,000.
I was right that Trump will never be your President again
Holy shit.
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No reason to get frustrated.
The OEMs have already come out and said they are committing to more of an order to build process and won't have the excess inventory sitting around.
So, focus on that.
I do like the idea of ordering a new vehicle the way you want it. I would like to see a return to the old days where you could order exactly what you wanted, not just “packages” of options. I would like to see a dealer have a couple of different demos of each model and you order accordingly and in 4 to 6 weeks your vehicle arrives. I think once you order, you should be committed to the sale unless the vehicle doesn’t match the order sheet.
No. Ford, along with other OEMs have also as recently as this year stated they need the dealer body. They plan on allowing each dealer to have a handful of vehicles on hand to show and to sell if the situation doesn't allow for a 4-6 WEEK wait on a vehicle.
The mega dealers are up in arms because their massive inventory advantage is going away.
EDITED: Originally I typo-d and said months instead of weeks.
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That's where everyone is headed.
There won't be a list of alacarte options though. That would take too much time on the assembly line, and slow down the process. OEMs try to package as much together based on prior year's sales history in order to have a cookie cutter vehicle trim line.
It sounds good on paper but remains to be proven by a long shot. You've been drinking their kool-aid too long,
Cool, not a huge difference in volume and my guess is if you had the inventory, you could have at least matched 2019. This could support the theory of huge incentives disappearing.
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