krschee

it's official. lexus sales continue to suck, and dealers continue to demand top dollar for cars. it's pretty clear that the former is the direct cause of the latter.

http://lexusenthusiast.com/2011/07/0...-sales-report/

*Batman*

You completely missed the point of the article and reached an incorrect conclusion.

Sales do not suck because dealers are asking too much money.

Sales are low because they don't have enough cars. Supply is reduced substantially due to the earthquake. Because they have more buyers, and a shortage of cars, they are able to ask top dollar.

The OP doesn't stand a chance of getting the car at the price he wants. Not given the shortage of Lexus vehicles.

krschee

edit: rather, how does one conclude that there are more buyers?

*Batman*

I wasn't saying demand has gone up in absolute terms, I was saying that demand is higher relative to supply because supply is substantially down.

krschee

sure, but how do you know that demand has not decreased at the same rate as supply?

this is all based on assumption and conjecture, which makes your conclusion just as flawed as mine. and this is my point: that dealers are using this theorized assumption--that supply has decreased faster than demand--and are using this to justify higher prices. but they don't have a shred of evidence to back it up.

if demand was truly at the same levels pre-earthquake, then why are dealers still sending CPO GS's the auction after sitting on the lot for 6 weeks? why are GS 460s sitting on the market for 40, 60, 100+ days? (check www.cargurus.com) these are not junk, salvage cars either. dealers are inflating prices and artificially creating a sense of increased demand.

designo

iTrader: (6)

I don't know about these dealers, but I would think that liquidating stocks and showin good revenue and turnover in my financials every quarter would help... rather than sit on liabilities trying to make a buck or two extra!

Ashdaddy

Batman is absolutely right on this one... There is a much higher demand than stock on used vehicles now. Because of that, dealers CAN ask more for vehicles. The dealers are not sitting on inventory, they are selling whatever vehicles they can get very quickly at top dollar. They just can't get enough cars.

*Batman*

Its common sense. Plus the car market is perfectly competitive. If you can't get a car at the price you want, it's because you aren't offering enough.