Discounts on new car purchases might be history

Interesting speculation and hopefully will not happen: https://www.thedrive.com/news/44355/new-car-discounts-may-never-return-after-the-pandemic

 

Wishful & flawed thinking on the part of the auto industry. There are only so many suckers that'll fork over full MSRP (or more). That, and having a low supply on hand at dealerships guarantees a lower volume each year versus what could've transpired (e.g. 12.7 million units/yr vs 17.4).

 

Sounds like a better strategy, but historically the automakers overproduced to keep their plants busy. I remember buying two Jeeps and the salesmen both times walked me along rows of new stock. They were perpetually desperate to unload inventory.


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People seem to be keeping thier cars for longer periods of time. Heck I bought my wife a brand new minivan back in 2012..and we still have it. Still in great shape and has never given us an issue. So it will stay around a bit longer then normal.

My truck which I bought brand new in Feb 2019 may go before the van does. I love the thing tho that's the biggest problem for me.

Currently price shopping for an EV. I hate just giving the government massive tax dollars just because I need to transport myself places..in order to pay more tax..

 

The second it slows the discounts will be back. In fact it is starting. Add in a geopolitical instability and the markets can turn in your favor any second.

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$500 off MSRP isn’t much… but yes, the tide will turn. Add in higher interest rates, and the easing of the chip shortage.


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two weeks ago I inquired about a brz to race in a scca touring class. I got statements like Msrp + $5000.

 

I just bought my daughter a brand new 2022 Acura RDX, loaded and most dealers still wanted $5K over sticker. Called another dealer an hour from us in North Jersey and got it for $1K over sticker so maybe its beginning to slow down. Mind you it was the only one in stock so you'd think they could have asked for the same 5K over?

 

For about the last month, Toyota has been running a "Reserve your Toyota" ad on the TV around here. No mention of price or delivering dealer complications. My take is that they are trying to presell vehicles still in or entering the factory production queue.

 

My F-350 and Navigator were ordered Dec. 14th. I received the order received email, but still have not gotten an email that a VIN was assigned or production started on either.

 

True- Since you mentioned Jeeps, I also recall those days- and not that long ago.

I'm currently shopping for a 2022 StinGrey 2-Door Rubicon with manual trans- Should be easy right?

Not ONE available anywhere within 250 miles of Denver- Closest in stock unit is in LA (only cause I plugged in Vegas zip code into locator).

And they want over MSRP to order one! Mind you I took the 458 to run around and shop since it was a nice weekend and plan to trade Jetta and pay cash for the difference so easy sale. If anyone reasonably close had one on the lot or confirmed inbound I would have done the deal Saturday.

Just crazy and personifies your point and that of the overall thread. I think things will normalize to some extent but agree the days of deep negotiation for "normal" cars are probably over.

 

Manufactures and dealers have learned to exist in this shortage. With electric cars on the horizon the automotive industry will need to make more gross profit on the sales of vehicles as the profits from services etc. will be less. There had been talk before all of this as to how the car industry was going to adapt. Cars being sold at MSRP or close and limited supply will be the norm,.

 

Every car salesman/broker I know has been suddenly parroting this this week. I see it as things are slowing down and they’re all trying to stoke demand through fear. Time will tell.

 

Last fall, I took a Toyota in for routine service and while waiting, chatted with an idle car salesman. He stated that Toyota was telling them (at that time) that deliveries to dealers would not get back to normal until 2023.

 

https://www.kbb.com/car-news/car-discounts-not-coming-back-says-largest-dealership-group/?utm_source=sendinblue&utm_campaign=022222%20Daily%20Independent&utm_medium=email

 

Just read that due to Russia's invasion of Ukraine that VW and BMW were suspending production. Apparently wiring harnesses come out of Ukraine...

Porsche dealer today said something similar. The pipeline is slowing.

https://www.nytimes.com/2022/03/01/business/volkswagen-bmw-autos-germany-ukraine.html