My friend paid 5k over for the new sedona couple of months ago. I thought that was crazy

 

People over at Telluride forums usually will say, "well, I paid 2k over MSRP but still a good deal because this car should be priced 10k more for what it is"

 

agree. At least in the old days, between CR and Edmunds, you could see invoice, manufacturer to dealer incentives (at least the known ones) and manufacturer to customer rebates and really get some idea of the base .

 

people can rationalize and brag about anything.

 

For over thirty years I've taken pride in studying and executing below MSRP pricing on the cars I've bought (leased) for myself, family members, and friends. I cannot wrap my head around today's MSRP thing. If I have to wait, I will do my best to wait. The thing is, I have a feeling it will end up being like how CA gas prices are. Once they raise it for whatever temporary excuse, it never goes back.

It's probably already been covered somewhere else, but how hard is it to build enough chips to meet demand? What is so wild about these chips they cannot set up shop and have things rolling in a few months? It seems most other mechanical and technical objects are now being built to meet demand... but not the chips after a year and a half. Hmmm

 

It's because the supply comes from China, and due to worker shortages (COVID) they are backed up, as well as ports here in the US which also don't have enough workers. This summer I was in Newport Beach...literally on the beach and we could see the container ships backed up all the way from Long Beach

 

I think those were all reasons a year or half a year ago, but too much time has passed since it all started. Nearly all the electronic products I sell at my business come from China. We are not having any delays or issues getting anything in anymore. I'm starting to think the manufacturers like the MSRP thing. The problem should have corrected itself by now.

 

I can't argue with you there. They have found their gravy train

 

I could sell my 460 to carmax for $6000 more than I paid. The dollar is dropping so fast it makes great sense to buy at any price you can get since you won't loose money anyway with these interest rates.

 

If you actually can actually get 6K more for your 460 than you paid for it, you will probably have made a decent profit even after the Capital-Gains tax. Most taxpayers will not be paying any more than 15-20% of that, at most, in taxes, meaning that you will still pocket a good $4800 or more. That will make a decent down-payment on any vehicle you might want to replace the 460 with.....although a number of people who had LS460s are not very thrilled with its LS500 replacement.

 

i have a feeling that manufacturers are going to slow down their production to keep the prices up. they found the recipe. why kill themselves building more cars and sell at discount, when they can build less cars and charge more?

with all kind of changes, a lot of dealerships are making more money the past 2 years

 

You raise a (potentially) valid point, Henry, but at least some of that depends on if people start keeping their old vehicles longer to compensate for production-cutbacks, problems in shopping for new ones, low supply, or less-income because of their job and economic conditions. I suspect we are going to see signifcantly less shopping just to keep up with the Jones's, or because one simply has to have the latest model of something....particularly if the Jones's themselves can no longer easily get it.

 

until one manufacturer says im going to produce more and sell at a discount and undercut the competition

 

There is also the existence of collusion/price-fixing laws. Manufacturers cannot legally collude or agree to joint-production cutbacks simply to try and control market-pricing. Although it is sometimes difficult to prove, when it has been proven, Executives have gone to prison for it.

 

I have no reason to sell it, plus I would private sale it for 1000 under dealer retail and minimize taxes further. The 460 is my daily to keep miles off the German