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| No, not like Bill Clinton  |
It was, literally losing money to sell them. | |||
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| Member |
My wife and I just had to go through this. We needed a new car,as the price of used cars was insane,especially the ones we saw had high mileage for only being a couple years old. Anyway, we went to a couple dealers and finally found the one she really wanted since I mentioned it to her. Haggling was a joke as MSRP isn't where you started but MSRP and AMV-adjusted market value. The few dealers we went to wouldn't budge off the MSRP, something I never thought I would pay and actually turned us away when I went lower than MSRP. We wound up getting an ok deal but the way things are now, who knows how many more cars will be made anytime soon and the prices will only go higher. Craziness all the way around. | |||
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I Deal In Lead |
I've purchased 7 new cars from dealerships in my life. Not one of them went like that. I went in, knew what I liked before I got there and found a vehicle that was the way I liked it, did the deal and drove away. Never got in any kind of a hassle ever. In fact, the only one that didn't go perfectly was in 1976 when I went in with a list of options I wanted, including color and the dealer guy said, "I've seen this combo somewhere before. I'll be right back." He came back and said they had that exact truck with the exact options but the only difference was that it was metallic copper instead of red and then he said that they had received $1,000.00 down when a guy ordered it, then the guy disappeared and they couldn't find him so I could have the truck for MSRP minus the $1,000.00 that was already paid. This was a new 1976 F150 FWD with a ton of options. MSRP was something like $7900.00 and I got it for $6900.00 OTD.This message has been edited. Last edited by: Flash-LB, | |||
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| Big Stack |
On the last point you're correct, the profit on the actual sale of a new car is the least profitable thing a dealer does. It's basically a loss leader, to get customers to buy financing, service, insurance type products (think extended warranties). They make more money off used cars than they do new cars. But given the relationship between the dealers and the manufacturers the game is going to go back to what it was, because the makers aren't going to limit their production.
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| Big Stack |
Note that Saturn failed. But if you don't want to haggle, you don't have to. Walk in and tell them you're willing to pay sticker (including the added dealer mark up items they often stick on.) Any dealer will be happy to do the deal, and you'll get no static. Of course you'll be paying more than you'd have to if you did your homework and negotiated, possibly bye thousands of dollars.
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Member |
GM dumped Saturn, but it wasn't because of its one-price, no-haggle policy. Risking thread drift, but following the "pay more if you want to" theory and offering something else to get fired up about, there's this article from The Drive, claiming GM expects car buyers to pay an extra $135 monthly for subscriptions. God bless America. | |||
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Down the Rabbit Hole |
Subscriptions are where we're headed unfortunately. Corporate America wants it and young people will jump all over it for a number of reasons. We are moving toward a Rent/Lease/Subscription based economy.  Diligentia, Vis, Celeritas "People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf." -- George Orwell | |||
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Member |
At my church’s thrift stores, certain cultures attempt to negotiate prices on everything. We explain prices are fixed, and posted, and no haggling. These facts do not dissuade those of certain cultures from repeatedly trying to purchase for less than the posted price. The key is to manage the expectations of the dealerships and the customers. If we could get the dealers to be a true retailer, with cost plus pricing, and sales or discounts on some normal basis, I think everyone would benefit. You own too many cars, you decrease the prices to move the inventory. Just like Walmart. CarMax pays a known and uniform commission to salespeople, regardless of vehicle price. This makes it simpler for everyone. The work to sell the car is the same. Making sales increases income. CarMax separates the acquisition of inventory from the sale of inventory. There are no links between what you trade in, so to speak, and the selling price of the car. Totally separate departments. Anyway, I think car sales will soon be fixed prices. Finally. It’s about time. ------- Trying to simplify my life... | |||
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Hop head  |
I bought a new 1993 Saturn they were selling out so fast I had to order one, and I paid what they asked, great car, for 55K,, the electrical gremlins got in the car, Saturn died because GM lost it's mind on what Saturn was, and started importing Opels and diluting the brand, back on course, I paid asking for the Saturn, when I bought my first Cooper, I was able to negotiate because it was used, the second one I bought I had to find (via the company website) and paid to have it delivered to the local dealer, then it was sticker less a few percent (3% maybe) since I was a returning customer , the CPO used Civic I now drive, I offered less than asking, (even tried the price match to a similar civic at another dealer) and was given a few hundred off, and that was it this was pre Cooties (2018) my oldest niece just bought a Nissan, from Carmax she went to one branch in Roanoke and made an offer (reasonable) and was told no, she went to lynchburg and did the same and offer was accepted, https://chandlersfirearms.com/chesterfield-armament/ | |||
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| Member |
That's the growth problem I mentioned. Saturn started importing Opel as their "next step up" car for the loyals to move into because it hadn't planned for its next models. Without those Opel imports, Saturn loyals were moving into Oldsmobile (often at the risk of being seen driving "the old man car"), or into other brands. God bless America. | |||
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| Little ray of sunshine  |
I kind of like bargaining over the price. But this thread shows why car dealers might be smart to eliminate the practice. But you know what - they do. They create ruses like "friends and family" or "internet sales managers" who do give you a no-haggle price, but one which is higher than you could get with some bargaining. But, if it is worth paying a little more to not bargain, I guess everyone is happy. The fish is mute, expressionless. The fish doesn't think because the fish knows everything. | |||
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| Member |
So, I looked at a Honda Pilot this weekend. Honda dealers in my area have always been bad about dealer add-ons but now it's absolutely insane. They had $5k worth of dealer installed nonsense. Here's some highlights for your entertainment. Wheel Locks - $300 Pin Strip - $300 Infotainment Protective Glass Screen - $200 Floor Mats -$400 Cargo Mat - $400 Nitrogen (in tires) - $300 Window Tint-$600 Lo Jack - $1,50 And several other things adding up to $5k of crap with outrageous markups. I told the salesperson to make me an offer without any add ons. He said the price was firm and that most dealers everywhere are adding a $5k upcharge to their popular inventon. And he's right, every mid sized suv I found had at least $4k added to the msrp and no one will discount it. So I'll just wait it out. Maybe some day prices will come back down or maybe not. No one's life, liberty or property is safe while the legislature is in session.- Mark Twain | |||
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| Get my pies outta the oven!  |
Holy crap! Yes, this is a TERRIBLE time to be looking for a car, new OR used. Best bet is to wait all this madness out, it's not sustainable just like the housing market. I'm hearing horror stories of people getting in wrecks with newer cars and the insurance company totals the car and pays out for what it's "worth" and then the person can't even get anything close to what they had for the money they got from insurance because prices have gotten so out of control. | |||
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| Member |
And several other things adding up to $5k of crap with outrageous markups. I told the salesperson to make me an offer without any add ons. He said the price was firm and that most dealers everywhere are adding a $5k upcharge to their popular inventon. And he's right, every mid sized suv I found had at least $4k added to the msrp and no one will discount it. So I'll just wait it out. Maybe some day prices will come back down or maybe not. ^^^^^^^^^^^^^^^^ People have long memories. Price gouging pure and simple. There are laws against that in a natural disaster. Before these laws were passed a local Otasco was selling chainsaws for double the price after a major hurricane. Out of business a year later. I think of that when I drive by their old place of business which is now some kind of retail business. People remember kindness as well. | |||
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Member |
When I sold my Genesis last fall. I was walking around the lot. They had a Escalade with MSRP @ $100K + Dealer Mark up of $20K right on the sticker. My jaw freaking dropped! Train how you intend to Fight Remember - Training is not sparring. Sparring is not fighting. Fighting is not combat. | |||
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quarter MOA visionary |
No matter how you break it out - it's supply vs demand. Negotiated deal vs standard pricing will not change that. Some may actually like to negotiate as it makes them "feel" good about a deal and others do not wish to go through the ordeal and that is understandable. Bottom line is that when the economy changes and raw materials are flowing again the supply will rise and the prices will drop. Nothing is forever. | |||
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| Member |
No. It is supply and demand PLUS greed in this case. I do not see surcharges of eggs or bacon or other foodstuffs. The car business is different. | |||
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| quarter MOA visionary |
Yes it is a different business but as Gordon Gecko said "Greed is Good".  Actually it isn't greed as you perceive it ~ it is survival and an adjustment based on the reasons I previously mentioned. We may not like it now but are we going to cry when the business cycle swings the other way? | |||
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| Get my pies outta the oven! |
I heard something that the used car market is going to be absolutely flooded with used cars after Brandon's economy finally crashes and all these dummies paying $600-$700 a month for a car not worth anywhere near that are going to lose them to the repo man. | |||
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| Member |
[quote]Yes it is a different business but as Gordon Gecko said "Greed is Good". Actually it isn't greed as you perceive it ~ it is survival and an adjustment based on the reasons I previously mentioned. We may not like it now but are we going to cry when the business cycle swings the other way? ^^^^^^^^^^ Good the next car salesman gets a thorough DRE and gets charged four hundred bucks for it. Just making up for inflation. | |||
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