New car gouging
- Thread starter loneryder
- Start date
Bull****
With all due respect, yes it is.
How not to overpay for a car is real simple - don’t pay the price they’re asking. Instead, shop around. There is nearly ALWAYS another dealership who’s willing to sell for less.
For example, my last 2 vehicles have been bought from out of state, because local dealers wouldn’t get right on the price, and/or didn’t have what I wanted.
If someone is not willing to put in the effort to send some emails, that’s on him.
A dealer adding on a surcharge may be irritating, but it’s not illegal, and it’s not gouging, either. You don’t HAVE to buy that specific vehicle. You can choose a different vehicle that’s not in such high demand.
Gouging is raising prices on something essential. You getting a specific brand and model of a vehicle is not essential.
I feel sorry for people who are paying exhorbitant prices on vehicles. I really do. Even if they have more money than sense.
All it takes is a little bit of time doing research, sending some emails, and fielding some phone calls.
Caveat emptor.
Paying a tiny salary plus commission to service writers to get them to sell you stuff you don’t need.
Finance office too. They may not tell you x bank offered you 6% if they can make more on the spread on a 8% loan
Inflating the cost of cars to avoid paying commission
Very obvious you have never owned a business.
I stand by my statement
And you have no idea about what I have owed or where I have worked.
You don’t know me. But I know the car business from the inside out
We are in unprecedented times, since perhaps WW2, which has produced a decimated supply chain. Manufacturer's costs have gone up. Critical parts are in short supply.
Dealers sales number in quantity of cars is way down. Supply is way down.
This is not just automobiles.
As far as car dealers, they are in the business of making money, just like everybody else. Like it or not.
If you are buying now, good luck. Personally, I try to establish business relationships.
Dealers sales number in quantity of cars is way down. Supply is way down.
This is not just automobiles.
As far as car dealers, they are in the business of making money, just like everybody else. Like it or not.
If you are buying now, good luck. Personally, I try to establish business relationships.
Date of purchase on my 2022 Honda Insight Sept 3.
"In transit"-- eta 10 days.
Cash purchase.
Took delivery 6 days early.
Add in escalating price of gasoline.
I fortunately had a great car buying experience.
"In transit"-- eta 10 days.
Cash purchase.
Took delivery 6 days early.
Add in escalating price of gasoline.
I fortunately had a great car buying experience.
I get making money.
The question is how.
They are all doing this now
What sears was doing
—
I bought my 90k car at an auction and immediately drained the radiator fluid and replaced.
Great service history on car fax
Took the car into the dealer for a warranty job and was hit with a $1800 urgent service plan.
I was told they tested the radiator fluid and it was old and needed to be replaced. Needed brakes
I’m still going on the brakes 30,000 miles later.
An old lady would have paid needlessly
This is that a female owned Volvo dealer
Same thing happened at the Pontiac dealer with a prior car
Attachments
I fully agree. The athletes go on strike and the fans say they will remember. They don’t. The politicians pull some stunts and the voters say they will vote them out. They don’t. The car dealers/sales people are selling with huge markup and the customers say they will remember. They won’t.
I don't know how car salespeople are paid but I'm pretty sure the largest chunk is based on commissions from car sales. You can't sell a car if you're not there at the car lot. I'd guess they take customers in order so you'd better not go the bathroom when it's getting close to 'your' turn to meet a potential customer.
The latest articles seem to say that they got rid of a lot of salespeople as part of the need for so many were that they were busy trying to drum up business. Now they don't have to and they're basically selling every car that comes into their lot. Just because they don't have any inventory doesn't mean they're not making any sales. The cars just aren't sitting on the lot like they used to. So the salesmen that are left are selling more cars per salesperson and the prices are higher so they're making a lot more money too.
I spoke to a woman last week whose husband is a GM for a dealership and she quit her job because her husband, "...has never made more money than he is right now". Whatever that means they seem to be doing well.
True
Although at the local Ford dealer
(30 odd stores) even if you sell at nada retail book they say no profit
highest book there isTake a car in trade for 10,000 and sell for 14,000 no profit
Used to be different
Very common now
They take turns? I've never noticed.... Seems to me they all swarm at once when someone walks in the door.
I like to take the long way to the Parts Dept. just for fun, through the showroom. But only if I remember to put on my dog-training padded arm protectors and leggings first!
GON
$100 Site Donor 2024
A course of action to possibly avoid the above MSRP markup is to shop for a new vehicle in a state that is continually losing population, hopefully a state with a larger population. One way to find this out is states that are losing congressional seats.
Illinois comes to mind. State lost a congressional seat, and has been losing population for years. Likely Illinois is not losing new car dealers. Seems that would be a state to be shopping for a new car. Same amount of new car dealers with a shrinking pool of buyers. States like Illinois, Ohio, Pennsylvania, West Virginia, and New York might be a better state to locate a new car at or near MSRP.
On the other hand, states that gained congressional seats might be states to avoid buying a new car. Gains in population, but likely not gains in new car dealers. States such as Texas, Florida, North Carolina, Colorado, Oregon, and Montana might be tougher states to find new cars.
Illinois comes to mind. State lost a congressional seat, and has been losing population for years. Likely Illinois is not losing new car dealers. Seems that would be a state to be shopping for a new car. Same amount of new car dealers with a shrinking pool of buyers. States like Illinois, Ohio, Pennsylvania, West Virginia, and New York might be a better state to locate a new car at or near MSRP.
On the other hand, states that gained congressional seats might be states to avoid buying a new car. Gains in population, but likely not gains in new car dealers. States such as Texas, Florida, North Carolina, Colorado, Oregon, and Montana might be tougher states to find new cars.
Some do
Some don’t
Many dealers “flood the floor” in season lay off and leave a skeleton crew in winter.
It all depends on the dealership
In sales, it's sometimes known as the 5k lunch. You go to lunch and you miss a client and you lose a sale to someone else which could have gotten you 5k.
