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Economies of Scale.
Wاat a crock of **** the world has become.
I don't think economies of scale has anything to do with dealer market ups right now. Economies of scale would have bring prices down, not up. This is a simple supply and demand issue. Dealers mark these cars up because there are people who are willing to pay for these prices. It is ridiculous but we live in a capitalist society and it is all about willingness to sell/pay.
I don't think economies of scale has anything to do with dealer market ups right now. Economies of scale would have bring prices down, not up. This is a simple supply and demand issue. Dealers mark these cars up because there are people who are willing to pay for these prices. It is ridiculous but we live in a capitalist society and it is all about willingness to sell/pay.
When dealers make $40-$50k market adjustments they aren’t really “adjustments”. They are shifting market segments of that vehicle. I don’t see cars flying off shelves right now either only that inventory is low in my area at least.
The average American salary is around $50k but the Average US car loan is around $30k. I don’t see who is buying $80k 4Runners and $96k RAV4 hybrids. I cannot imagine the predatory financing being made right now - like the $1200/mo lease on the 2022 ES350 I read on here.
When dealers make $40-$50k market adjustments they aren’t really “adjustments”. They are shifting market segments of that vehicle. I don’t see cars flying off shelves right now either only that inventory is low in my area at least.
The average American salary is around $50k but the Average US car loan is around $30k. I don’t see who is buying $80k 4Runners and $96k RAV4 hybrids. I cannot imagine the predatory financing being made right now - like the $1200/mo lease on the 2022 ES350 I read on here.
Inventory is low, therefore the dealers mark up the price of the car to cover costs. Before all of this craziness in supply chain, a dealership could have sold 10 cars, but now they only have 2 cars in stock, so they mark it up to make up the loss in profit of 8 cars. Like I said in my last post, this is a supply and demand phenomenon. There are people who are willing to pay the $1,200/mo lease on the 2022 ES350. If the person cannot afford or not willing to pay that price, then he/she don't have to get that 2022 ES350. Instead, go buy a used 2015 ES350 or whatever its in his/her price range.
It's just smart business. Why sell 10 cars when you can sell just 2. Supply and demands, I don't believe it. It's just what this sad world has come to. Why sell 3 houses when you can sell one for the same price. It's like that for everything now. Everything's gone up, but my paychecks still the same. I got a 2016 GSF, anyone wants to buy it for $90,000? Lol. It's got around 47K miles.
Two of my local dealerships have IS500 for msrp. And they have been here more than 2 weeks.
Not surprised. You live in a cold weather climate area. I bet if you were in say Florida or California, they'd probably be gone already. Other thing is that per usual, Lexus doesn't seem to do a good job marketing any of their high performance sedans all too well.
Not surprised. You live in a cold weather climate area. I bet if you were in say Florida or California, they'd probably be gone already. Other thing is that per usual, Lexus doesn't seem to do a good job marketing any of their high performance sedans all too well.
They've done a good job marketing the IS500 though.
They've done a good job marketing the IS500 though.
I dunno. Seems like everyone thinks it’s an M3 competitor. Same exact thing they all said about the GSF vs the M5. It’s getting old telling them it has a different target audience.
02-10-22 | 07:37 PM
Insane Dealer Markups in Los Angeles
