New car gouging

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.
There used to be a decent amount of 3-5g deals
The buyer would look for new used cars not in the nada book yet. The bank would finance “like invoice” or 100% of the new car msrp
Find a used one at auction cheap
19,000 mile Dodge 200 ex rental
Then a sucker, usually someone who doesn’t think his credit is good enough to buy.
Boom
Now dealers just keep most of it by playing with the numbers
 
Here is the list of vehicles I’d consider buying under the current market conditions

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They take turns? I've never noticed.... Seems to me they all swarm at once when someone walks in the door.
And how does the customer pick ? I've never seen this happen anyway.... If you're out in the lot looking, one salesperson will wander out, not all of them running towards you.
 
Why expect them not to gouge?
I think different states actually have definitions or thresholds of what constitutes "price gouging". In Ohio, it came up on 9/11/2001 when a gas station more than doubled the price of their fuel. They were charging $8-10/gallon. It made the local news, the state attorney general got wind of it, and his office simply reached out to the station and made them an offer... Fix their prices or face prosecution. They fixed their prices.
 
If you buy outta state don't you have to pay registration twice? And maybe sales tax?
I know CA customers used to buy in Oregon to save tax (or registration, dunno). CA somehow put a stop to that.
 
And how does the customer pick ? I've never seen this happen anyway.... If you're out in the lot looking, one salesperson will wander out, not all of them running towards you.
It’s called the UP system when used.
Whoever is up (his turn) goes outside alone and meets the next customer.
Pretty rare.
Most is closest to the customer wins
 
They are all operating that way now. Supply and demand. High demand for cars + low supply = prices increase.
Tonight I tried to find "her" Avalon on their website but you have to register to see their cars. On another site I found an Avalon at their dealership with the msrp listed and their price was $5k more. I found other Toyota dealerships in the area listing msrp as the price, no markup. Now if they would really sell you one for msrp is another question.
 
Let's see:

$43,600 MSRP
$2,180 tax
$800 doc fee
$100 tag fee

That's $46,680. "Almost" $50k.

Not including all weather mats, mud guards, wheel locks, or anything else.

So is it price gouging? Or are we not getting the full story?
$49999 before tax, title and fees smartguy.
 
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
But nothing here prevents you from going to the dealer with pre-approved financing.

Knowing dealers do this, if someone goes to the dealer without getting financing pre-approved have no one to blame but themselves.

One is not forced to take what the dealer offers with respect to financing as well.

Can’t fix the sleezy, but the buyer can prepare for the experience so they don’t go in totally blind.
 
Tonight I tried to find "her" Avalon on their website but you have to register to see their cars. On another site I found an Avalon at their dealership with the msrp listed and their price was $5k more. I found other Toyota dealerships in the area listing msrp as the price, no markup. Now if they would really sell you one for msrp is another question.
Costco car sales will get you a price with no hassle.
Or you can just do what I do: email or call every dealership's Internet sales guy and let them fight it out.

And don't forget to check with Lexus. You might be surprised. ES300h baby!
Good luck.
 
What happened to your girlfriend is not unusual . I've read several stories just this week of the same thing happening to others . It's not gouging , it's capitalism . Look at real estate when people get into a bidding war over a house . Is the seller gouging ? No contract , no deal .
I can't imagine someone trying to buy a new vehicle right now anyway . You would have to live under a rock to not expect to pay MSRP + .
When we went in the dealership in late July, word about how bad the parts shortage would be. They were offering $1k off 2021's. They only had hybrids in stock. We asked them what was coming in and the only ones coming were 22's. They found one of the color she wanted scheduled to be built the last week in August. She put money down but there wasn't a sales contract because there wasn't a vin number on the car. We didn't expect to get any kind of deal just msrp. End of August the car wasn't built. Dealer said it was pushed back to end of Sept. In the meantime I'm reading all these articles about the chip shortages etc. Car arrives at dealer Friday eve. They call her Sat am and said if she wants the car she had better get up there now! On the way there she calls the sales woman and asks what the price is. She told them forget it and turned around and went home.
She only wanted a new one after she found out that this is the last year for Avalons. She really likes them. Toyotas Avalon sales dipped under 20000 a year is the reason they canceled them. The Avalon really has no competitors in my mind. They compare it to Sonatas and Nissan Maximas. I guess they are going the way of the Oldsmobile.
 
Car dealers are the cheapest most corrupt people on the planet.
Why expect them not to gouge?

Good prosecutor could convict them of the Racketeer Influenced and Corrupt Organizations Act.




Description​

We bought her current car from them and were happy with the deal. She liked the no nonsense sales woman.
 
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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.
They told us that every truck that coms in at least 6 of the cars were already sold. So they are selling off the production schedule.
 
If you buy outta state don't you have to pay registration twice? And maybe sales tax?
I know CA customers used to buy in Oregon to save tax (or registration, dunno). CA somehow put a stop to that.
You have to pay tax and registration in the state you are registering in.
 
If you buy outta state don't you have to pay registration twice? And maybe sales tax?
I know CA customers used to buy in Oregon to save tax (or registration, dunno). CA somehow put a stop to that.
California started checking vehicle registrations against owner's driver's license info. That's how they stopped it. I got a California tag renewal-after moving to Utah and not even notifying California I or the vehicle moved. Of course by that time the vehicle had Utah plates. They have ways....
 
She liked the no nonsense sales woman.
I'm not defending this sales lady but you can be certain that it wasn't her that jacked the price up. She was just the messenger in this situation and lost a "done deal" if the original conditions were kept in place.
 
You have to pay tax and registration in the state you are registering in.
In 2019 I wanted to surprise my sister with a new car. At the dealership we had to pay tax and registration for CA. Patty and her family live in Gig Harbor, WA. They had to pay WA registration a week later at home. I was not happy. CA registration was like $700. WA did not make them pay sales tax.
 
In 2019 I wanted to surprise my sister with a new car. At the dealership we had to pay tax and registration for CA. Patty and her family live in Gig Harbor, WA. They had to pay WA registration a week later at home. I was not happy. CA registration was like $700. WA did not make them pay sales tax.
If I remember correctly, out of state buyers of California cars have to have them delivered to a state line to avoid taxes and registration.

My Wife's Acura came from Sacramento. Flew into Sacramento, Uber to the dealership, and had to pay a driver and a chase car to drive me to Reno to avoid paying California tax and registration. I was not allowed to drive the car to Reno, the contracted "driver" had to.
 
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