2019.

But if inventory is so low, why do they care if I walk in the door? They will sell that car (if it's even there and not "in transit"). And why wouldn't they give me a price over the phone so I can say "I'll take it" and put a deposit down on the spot so the car isn't gone when I get there? It makes no sense other than to flex and show they have the power. It's not good business sense whatsoever.

 

So if sales are down 25% overall, but prices are up where dealer and maker profits are up several times, where is the incentive for them to increase the supply and go back to dealing at razor thin profits? These prices are not transitory unless the whole economy collapses.

 

A dealers overhead (revenue needed to pay fixed costs) changes very little in todays market. Any savings from not carrying excess new vehicle inventory Is negated by increases used car costs.

If they get 60-80% of the inventory that they normally get and the days supply is in the single digits, dealer will make that revenue up. The Manufacturer has cut both consumer and dealer incentives. That money will be made up somewhere.

Salespeople while making more per car are making less because they can’t get the numbers they need to max out pay plans.

Customers love deals and incentives when business is slow. They love the increase in trade values. I have had two clients in the past 30 days that *****ed and complained about no discounts both go out and advertise the vehicle I just sold them at 35k and 40k over what they paid.

 

This is why I have never had any remorse whatsoever with being ruthless with car dealers in the past. Their job is to get as much money out of you as possible and into their pockets, by any means necessary within the law. My job when buying a car is keep as much of my money as possible.

 

ok but not every dealer is marking up. I’ve spoken to at least 2 that make it a policy not to add a market adjustment. Assuming all dealers are out to screw you is like assume all customers are jerks

 

Thats the issue, dealer profits are not up. I have talked to several dealership GMs and their profits are down because of lack of volume.

 

I will never pay over MSRP. Happy I got my new suv when I did.

but remember, the economy is doing really really well lol

 

It is doing really well, its actually doing too well.

 

It is actually doing very well despite inflation and inventory shortages. Employment and consumer demand is at an all time high. The company I work for can't find enough people to hire, and we have to pay them extremely well just to retain them. The housing market is booming, yeah, I would say the economy is doing well

 

15 months ago most people were saying they wouldnt pay MSRP. Lot of them have changed their stance on that.

 

Some have no choice. Some have to turn their leases in. Some just can’t say no to spending. Good for them. I would never ever pay over MSRP.

 

I wouldn’t. I think the vast majority of us in here are in comfortable bubbles. 100%+ increase in fuel prices plus inflation highest in 50 years…. We on here for the most part can weather it, the less fortunate not so much. It’s people in vehicles like this, this picture I snapped, that worry me with $4-6 gas:



I never try to pity anyone but I’d be shocked if the driver of that old truck averages more than 11MPG or so. It’s these people who this is all killing, the expensive gas. While the majority of us on here just roll our eyes at the pump.

 

"I think the vast majority of us in here are in comfortable bubbles" The economy always goes through cycles, up's and downs. It does produce "bubbles" that eventually pop, and yes, we are in one. I've been through 5 in my lifetime, but the economy always recovers. The issue that a lot face is that they are not part of the "new economy". The highest paid jobs are in tech, or you need a college degree to enter other professional fields like finance or real estate. Blue collar jobs have suffered because they have moved overseas. Although the service industry is booming, at least here. Anyway, I get what your saying, and I feel for those people, but the reality is that jobs have moved to tech or other professional fields, like it or not. None of us can no longer rely on the factory job your father and grandfather took after high school. And when this bubble pops, I'll just ride it out like I did the last 5

 

Right I'm not debating whether Silicon Valley tech is this or that. I just mean us in here, ClubLexus members, for the most part are in comfortable bubbles. I'm already used to the $4 gas, though I don't like it. But it doesn't affect my life. Some people can't even afford to get to the gas station to buy said $4 gas. I'm not trying to get too far into the economy bc it will get booted. But you for example, you do own a Tesla correct? Many drive very expensive, multiple vehicles on here. The gas bill isn't a problem.

 

How do you know that guy can't shoulder $4-6 a gallon gas? That could be his banging around truck