Originally Posted By: apwillard1986
Originally Posted By: turtlevette
I think dealerships are an albatross for manufacturers. If someone is dumb enough to pay 10k over sticker they'll take it. Every other thing in the world we buy has a reasonable and logical price without the games.
Fire the dealers. Price the product reasonably as a take it or leave it. If we bought cars like we buy everything else, I don't think the public would be so apprehensive.
I'll drive the wheels off my stuff before I go back for more abuse.
You don’t want to buy cars like you buy everything else. The average retail markup on new cars is 2-5%. That assumes a customer pays sticker which almost no one does. For comparison the average retail markup on “everything else” is:
Clothing: 100+%
Shoes: 100+%
Cell Phones: 8%
Furniture: 200+%
Grocery: 10+%
Medication: 200+%
I do agree that the best practice is to buy a vehicle and keep it. It is the soundest financial decision. Due to improvements in manufacturing, materials, and engineering, modern vehicles have the capacity to reliably last a very long time. I treat my vehicles like appliances. I buy them, take care of them as well as possible, and replace them when they wear out.
Except 100% or 200% markup on a $30 sweater isn't going to change my financial picture like say 100% markup on a Camry.
(I tend to buy from LL Bean, they have tall sizes and the stuff is good quality at a competitive price
)
Each market has chosen it's means of selling. I do realize dealers have a significant investment in facilities, floor planning inventory, training techs, etc.
I also suspect that for every one of us who buys at or below invoice minus rebates and brings in our own financing, there are folks who show up with a low credit score and are simply hoping the dealership can get them bought by a bank or CU. They don't really care what the price is. If they can get approved for a note they can afford, they'll buy the car.
So for those who need the dealerships connections with the money people, the dealership is the place for them.