The manufacturers over produced into the downturn and it was a pitifully slow recovery. But even with all that diesel prices took off and never looked back.
But your point is valid if the supply lines straighten out just in time for a recession.
Current New Vehicle Market
- Thread starter 13COBRA
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The manufacturers over produced into the downturn and it was a pitifully slow recovery. But even with all that diesel prices took off and never looked back.
But your point is valid if the supply lines straighten out just in time for a recession.
What would a Lariat F450 run me?
I haven’t got it yet. Just bought it online yesterday haha.Awesome man me too! How do you like it?
I picked mine up 12/31 and it’s my DD.
Just turned 1500mi and it’s a blast.
Like most things I drive I still think it needs 100hp more at least
-J
I’m also quite surprised at the number of dealerships who begged me to finance instead of paying cash. I know they get a kickback but it made me wonder how much.
Daily Mail
Car dealers raising prices up to 82% above retail price
Ronny Reyes For Dailymail.Com - Yesterday 7:49 PMFour fifths of Americans who bought a car from a dealership last year paid more than the sticker price - a 276-fold increase in just two years.
A new study from auto market research firm Edmunds showed that only 3 per cent of cars bought at American dealerships were sold over the manufacturers' suggested retail price (MSRP) at the start of 2021.
The trend slowly rose by May before skyrocketing up to 82 per cent in January 2022, a 276-fold increase since the 0.3 percent in 2020.
Ford saw an average of $163 add-on to MSRP in 2021, although one Seattle woman told the Washington Post she'd been warned she'd have to pay $12,000 over the list price for one of the firm's hybrid pick-up trucks, prompting her to abandon the purchase.
GM's Chevrolet and GMC brands saw markups of $625 and $677, respectively.
GMC's prestige Cadillac line saw an average of $4,048 last month. Kia, Hyundai's popular bargain brand, saw an average mark up of $2,289.
On average, the new markup on cars have cost consumers an extra $728, with shoppers reporting that electric vehicles and hybrids are being sold at an additional $10,000 or more.
© Provided by Daily MailOnly about 3 per cent of cars sold at dealerships were marked up at the start of 2021. By January 2022, 82 percent of cars sold were marked up
© Provided by Daily MailFord saw an average of $163 add-on to MSRP in 2021, with some popular models, like the Maverick (above) getting marked up by as a high as $12,000
© Provided by Daily MailGM's Chevrolet and GMC brands saw markups of $625 and $677, respectively. It's Cadillac line saw an average of $4,048 last month
Ford said they would withhold deliveries of their most popular vehicles, including the new F-150 Lightning pickup and other electric vehicles, from dealerships that are overcharging the cars.
ord said they would withhold deliveries of their most popular vehicles, including the new F-150 Lightning pickup and other electric vehicles, from dealerships that are overcharging the cars.
Ford spokesman Said Deep told the Washington Post that the company is worried about how the markups would affect their new electric cars and hybrids as they try to compete with Tesla, who leads the market in electric vehicles.
'The Lightning is a big deal for us,' Deep said. 'It's a leap ahead in innovation for any of our trucks. It plays such a critical role for our brand and all our dealerships.'
Ford CEO Jim Farley told investors at a January conference that about 10 per cent of the company's nearly 3,000 dealerships in the US have been consistently pricing vehicles above MSRP in 2021.
GM did not immediately respond to DailyMail.com's request for comment.
Hyundai said it 'consistently reminds its dealers of the need for complete transparency' on pricing and 'strongly reinforce
'We strongly discourage our dealers from charging prices above MSRP,' the company said in a statement.
Legacy car manufacturers in the US are bound by laws forcing them to sell the vehicles through dealerships, with those middle men and women adding on a mark-up to profit from the sale.
Newer firms including Tesla and Rivian sell direct to customers, cutting out that markup. Legacy brands are now keen to follow suit, although are said to be aware that they risk losing the knowledge and skill of dealers who close sales for them.
© Provided by Daily MailHyundai saw its popular Kia bargain brand get marked up by $2,289 on average
© Provided by Daily MailFord is worried that the surge in mark ups will hurt the company's reputation and launch of its new line of electric cars to complete with Tesla's models (pictured)
© Provided by Daily MailFord estimated that about 10 per cent of the company's nearly 3,000 dealerships in the US have been consistently pricing vehicles above MSRP in 2021.
David Eagle, a Los Angeles-based auto broker who helps shoppers negotiate the price on electric vehicles and hybrids, told the Post that he's had trouble finding good prices for his customers in the past year.
He said that the market suffered greatly in the start of the pandemic in 2020 as dealers sat on cars for months on end before people began buying cars again in 2021, with 15 million vehicles sold last year, a slight increase from the 14.6 million sold in 2020.
Eagle added that dealers are also raising prices to cope with short supplies as microchip shortages have left car manufacturers hampered.
Jeff Aiosa, who owns a Mercedes-Benz dealership in New London, Connecticut, told the Post that dealers don't have much of a choice but to mark up the cars amid fewer sales.
'I think that a lot of the high line luxury buyers understand that, 'Look, your volumes are down and you historically always discount,' Aiosa said.
'If we need now to pay a little bit of an upcharge for something that we want and need right now, we understand that that's the environment that we're in. And you have to stay in business, and we want you to stay in business because we don't want to come back and see the lights off and not be able to service our car.'
90% of businesses had their best year ever last year. They aren't slowing down on spending.
I just added on about 22,000 squarefeet 3 or 4 years...am going to break ground on 15k more this year.
A lot. And a long ass wait.
Sent from my Potato
when ordering the TRX i mentioned i had my own financing and they completely walked back the discounts lol. So finance with them, then promptly refinance it is.
Congrats on the hawk btw, that was not a bad deal. Saw one yesterday at a dealer marked for 140k
Wow, that's good news Nick.
I'm glad to hear that. We need some positivity in our lives.
I just saw a local Lexus dealer commercial during the Superbowl and the last screen shot said they have never/will never charge over MSRP.
Now it’s being advertised!
Crazy times.
-J
Now it’s being advertised!
Crazy times.
-J
I mean, how often do you really hear people say "I really want a lexus"
Early 90s and 2000s when they put 2jz’s in them lol
@13COBRA will the new addition be more service bays, office, storage, combination of these ?
What is your construction cost per sq ft now compared to the last addition ?
What is your construction cost per sq ft now compared to the last addition ?
Yes, adding more bays and a storage room.
It's a tough comparison, because the last addition was offices. The first addition was about $65/square foot, while this one will be about $51 or so...but in reality, if I would have done the service expansion 4 years ago, it would be closer to the $30 mark.
@13COBRA I know it was probably mentioned recently but what is the current timeframe on builds for a '22 F250 or F350 Tremor?
What's that, like a 15k adm +/- options. Insanity
The New York Times
Autonation Says Half of the Cars Arriving at Dealers Are Already Sold
Neal E. Boudette - 57m ago© Alyssa Schukar for The New York Times
The tight supplies of new and used cars that have damped auto sales and pushed prices higher have not eased and are likely to linger well into this year, according to AutoNation, the country’s largest automotive retailer.
Half of all new Chevrolets, Fords, Toyotas and other major brands arriving on dealer lots in the next 90 days are already sold, AutoNation said. The market is even tighter for luxury cars: Nearly three out of four of those cars arriving at dealers in the next three months will be “presold” — meaning a customer has paid a deposit and is waiting to buy the car as soon as it arrives.
“This tight-inventory situation is going to be around certainly through the first half,” said AutoNation’s chief executive, Mike Manley. “I’m hoping we do see some improvement in the second half.”
Selling cars before they arrive from the assembly plant is a substantial change from the traditional industry practice of stocking dealers with hundreds or even thousands of vehicles that can sit for months before they are sold. It also means automakers will have a long road to restocking dealer lots with new vehicles.
The shortage stems from the early days of the pandemic, in 2020, when auto plants shut down for nearly two months. The problem was compounded by a shortage of computer chips, which has forced manufacturers over the last 12 months to idle plants temporarily for weeks at a time.
The tight supply has enabled dealers to sell cars at their full list price, or even more.
Those higher prices helped AutoNation reap record earnings in the final quarter of 2021, the company said Thursday. The company reported a profit of $387 million, more than double the profit from a year earlier. Revenue rose 14 percent, to $6.6 billion.
The profit jumped despite a 20 percent decline in sale of new cars, to 57,601, a reflection of the higher prices. Sales of used cars, prices of which have also risen substantially, increased 21 percent to 74,442.
Mr. Manley said it was difficult to forecast whether AutoNation could sustain such high profit levels this year. The supply of vehicles and the chances of increasing new-vehicle sales depend heavily on whether the computer chip shortage improves, as automakers are hoping. The Federal Reserve has also indicated that it is likely to raise interest rates, which would increase the cost of financing vehicle purchases.
“The profitability that we’ve been able to develop puts us in a good position,” he said. “But one thing I don’t want to predict is what’s going to happen in the full industry, because you have a lot of moving pieces.”
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