Toys4RJill

Toyota would be happy to take that second profit line for themselves if there were no dealers. People are willing to pay more that MSRP…so the dealers are charging it

tex2670

Yeah, it’s just amazing that they are so shocked when they get a customer that has the ability of independent thought and won’t just bow down to them.

AMIRZA786

If they had more customers like that, than they probably would pull less stunts like charging more on top of MSRP and all the hidden charges you don't see until signing. But to be fair, there are cases where maybe extra charges could be warranted, like a custom ordered car that's built to order. But that said, every Tesla, Polestar, and Rivian are built to order, and the only thing extra you pay for is color, wheels and some additional accessories that you the buyer chooses during the ordering process. And every cost item is disclosed up front, including taxes and destination fees before you even hit the buy button to put down your deposit. And you have the option to cancel the order as long as the vin number hasn't been assigned

JTMav

I agree, the phase “things will go back to normal” is just not true. We never “go back” to normal, this is normal for now. The Pandemic has made some long term changes in our economy. CT Jill is right too much money chasing too few goods and rates are heading higher which will cool down demand. Inflation is a killer tax on all of us and gives producers an opportunity to gouge us, which I see every day. Prices may come down a bit but not until rates have really started to make it painful to finance anything. Paying MSRP has become more acceptable by the buying public and I think it will be model specific regarding pricing, as long as there is competition among dealers the consumer stands a chance. The wild card for car pricing is the march towards electrification and the subsequent demand for said cars. That seems to be a tough thing to try and forecast.

the road goes on forever

tex2670

I have no idea where the industry will end up falling out, but I'm highly confident that it will be a long time before we get back to where it was in 2019, if that ever happens. These dealers will learn and adapt; if they see trends that customers will tolerate that will allow them to make more money, they aren't going to just give that up unless and until they have to.

Margate330

If all the manufacturers go sales direct, we are all screwed beyond imagination.

How will ypu shop around for the best price when the mfg sets the price?

No problem, go to Hyundai, oh wait,their prices suck too. Haha

Mike728

I bought a Tesla because dealers are doing the same with their EV's. It has nothing to do with what they're selling.

AMIRZA786

Great point. The dealership who told me that they needed to keep the lights on was a Hyundai dealership, I was interested in the Ioniq 5. They were asking for a $2500 ADM on the SEL. With all the markups, it was ending up more expensive than both the Model 3 and Model Y. I naturally walked away and got a much better deal with Tesla

JTMav

while things are always in flux, supply and demand are axiomatic. A fool and his money usually go separate ways. As long as people are willing to pay above MSRP why would a dealer not take advantage of that. Personally I’ve never wanted a specific car so much that I would pay a premium to MSRP, but if you have the money best of luck. Saw Kia EV 6 going for as much as $10k over and some complaining that they paid a premium price but didn’t get a premium experience at the dealer. Can’t make this stuff up.

AMIRZA786

Yep, I couldn't agree with you more!

Margate330

Hahahahaha
Serves them right. .

SW17LS

Honestly, I would rather pay it to Toyota.

Mike728

This is a great example for those that think cutting the dealer out won't save us money. There're actually rebates on the IONIQ 5 now. Demand must be lower, since they don't qualify for the tax rebate. The dealer I went to was adding a $1k mandatory "Protection" package to all of them, so the rebate was cut in half on the Limited I was looking at. Bring on the online model and cut out the middle man!

mmarshall

Not only that, but if only the manufacturers themselves are selling vehicles, who's going to service your vehicle during the warranty period? And who is going to do the actual warranty work itself? Tesla has company-owned stores that take care of that, but most vehicle-manufacturers don't....that's why they rely on privately-owned franchises.

You can get some things done at independent shops, but not warranty-work...except in an emergency, that usually has to be done by an authorized dealership.

SW17LS

Dealers will still service cars. Dealers make more money servicing cars anyways. Tesla has service centers.

“how do you shop around for the best price” nowadays you have to look around to pay MSRP. I’d rather just pay MSRP to the manufacturer if I’m going to have to work to pay that.