Talked to a few local Norcal Dealers and the waiting list is LONG. If they’re already marking up IS350’s by $5k then surely the IS500 will have at least a $10k market. The hype is real and there are people (jn Norcal anyways) that are willing to pay $10k+ market.

 

It's important to remember that MSRP is just a suggestion. It's not a hard number and you nor the dealership are bound by it. The new car dealer is an independent business that has already bought the vehicle. that means they have absolute freedom to price and sell the car at any price they like.

 

https://apnews.com/article/auto-pric...8886893c787891


The global parts shortage involves not just computer chips. Automakers are starting to see shortages of wiring harnesses, plastics and glass, too.

 

^^ Gheez, we may all need to start considering buying horses to move around again!

 

thats unbelievable, I was told that recent freeze over in TX affected foam manufacturing. Affects a lot of domestically built cars. I thought we would somewhat see light as the end of the tunnel around this time and things will be good in December to get a new Lexus. Unfortunately i have more time then money so I’ll wait for the well off fellas to buy in the hype.

 

Toyota is cutting production by 40% for the remainder of the year.

It might be much higher in the U.S. though. I believe they are reducing US market from 140k to 60kish. Could go even lower. These are desperate times. Germans will be even more affected.
-China controls Flow of rare earth minerals, Taiwan is the greatest producer of chips in the world by far. Dwarfing everyone else.
-China wants to take Taiwan, even by invasion.
-Market is now choked in Asia East.
-Covid ruined global shipping times
-Human labor at all time low globally due to Covid19 and other factors.
-Will take Samsung investing billions of dollars 10 years to get to current level of production TSMC is at.
-USA has no path to ramp up this level of production.
-Taliban now controls 3 trillion dollars worth of lithium and rare earth minerals.
-America holds sanctions against Taliban
-China is aiding Taliban, soon China controls 99% of market. They currently hold at least 80% of Rare earth
-America confused and still bickering while The west coast burns, east coast sinks and the economy plummets.
-Germany not even making V8s due to parts shortage, how do you think their chip sourcing and logistics go? Very bad

So many think it will be fixed by January but they are dead wrong. The car market is F'd up for awhile. So cool cars are going to be hard to come by these days. prices just got worse for everything.

Unfortunately potato chips are about the only chips that the US is still manufacturing. Outsourcing everything was a great idea wasn't it?

Auto Manufacturers have realized that by keeping supply very low they don't need rebates and incentives. If you look at their profits over the last year, profit is up even though they are selling fewer cars. They are also able to raise prices and push people into more expensive vehicles due to demand and by not having excess stock of lower cost vehicles that have little to no profit (and might even be a loss for them if they have to push big incentives to sell them).

Expect more car manufacturers to follow. Makes sense. Keep demand up by low supply and make more money.

 

Even used 2021 IS 350's are selling for their original MSRP.

https://www.cars.com/shopping/result...ice_min=&makes[]=lexus&maximum_distance=all&mileage_max=&models[]=lexus-is_350&page_size=20&sort=best_match_desc&stock_type=used&year_max=2021&year_min=2021&zip=90280

 

Cars use the chips in a variety of electronics systems. One car part could use 50 to 150 chips depending on the complexity of the part.

 

^^ I certainly understand the complexity of cars and the importance computer chips play in them but how could they have allowed this crisis to get sooooo out of control? I mean I could see a problem half way trough the pandemic but I would have expected things to return to semi normal by now. I guess this will have ripple effects throughout the economy

 

So when the factories restarted, the stronger-than-expected demand for new vehicles outpaced production and has yet to catch up.
"Automakers and suppliers that use chips contacted their chipmakers and put back their orders," Krebs said. "By then, chip capacity was consumed by other businesses — phones, computers, video games — as people worked and schooled at home."

 

I've already had 2 dealers promise me in writing they will not sell the IS500 for above MSRP so I'm not worried at all. Notice most of the people here speculating on markups have the 2021 IS350. They're clearly hoping for a markup so they can feel good about their purchase. It's why GaryJG spends his time all day looking at marked up listings on a car he already owns. I'm not even a psychologist.

 

It is important to remember that dealerships can only get what WE allow them to get above MSRP (or whatever point above invoice). If we all decide to not pay a dime above MSRP, they will have to sell them at MSRP or less. But then, there's always someone who wants the latest new shiny thing and and is willing to pay too much for it. WE are the ones who enable dealerships to screw us over.

 

There are half a dozen Lexus dealers with 100 miles so I doubt there will be any mark up at all.

 

I'm actually looking because I've been offered $42,000 for it and I would like a different color. But the problem is they won't deal on another. All marked up. With that being said, you're absolutely right about not being a psychologist. Which is good, because you got it all wrong. I have always felt good about my purchases. Regardless of it they are marked up or not. I'm very happy averaging 18% off MSRP on my last 4 Lexus's. May not be the greatest. But I'm happy none the less. And that's all that matters to me.

If the 300's and 350's are still marked up by the time the IS 500 comes out, I can almost certainly guarantee you that the IS 500 will be too.

Remember that a promise is not legally binding, but a contract is. There are no legal repercussions for breaking one the way there are for breaching a contract. A promise becomes a contract only under very particular circumstances. The person to whom you made the promise must take reasonably foreseeable action to his or her detriment on the basis of the promise that you made, and the person's reliance on your promise must cause him or her a financial injury.

Also your ignorance and envy is still showing.. just saying....

 

https://www.autonews.com/sales/how-m...oiled-industry