Even with a personal fold-up scooter, many people simply don't have time to wait for buses, subways, or Lyft/Uber/Cab vehicles to arrive....or want to pay their ever-growing fares/charges.....or sometimes be out in the weather.....or be stuck if buses and trains break down (which, in my area, happens like clockwork). We have become an auto-based society for a reason.....and, in most cases (although, yes, there are exceptions), a new vehicle is preferable to a used one.

 

I just helped my daughter find a new Hyundai Tucson and it was an eye-opening experience. Tried using a car buying service through my insurance provider and got the usual immediate flood of texts and e-mails from dealerships "really wanting to earn your business". First sales rep I engaged with who sent me the picture of the car they had with the TrueCar price from the buying service, replied that the car was already gone and did we want to order something from another dealership. I asked if the TrueCar price would still be honored and she informed that the sales manager said they wouldn't have honored it for the original vehicle because "we don't have to..."

They are making no bones about the fact that they charge whatever they want and find buyers so no haggling on price in this market. We found a dealer in a less population dense area of our state and got a great deal anyway so you can still find some gems if you hunt around a bit.

 

The market is not going to settle down, lol. The population of the US and the world is exploding, and the demand is only going to increase. Manufacturers are going to raise their prices, and squeeze independent dealers out of the market. Prices will only go up.

 

if you watch any episodes of Electrified Garage you see EVs have modules go bad, charging limit gremlins and cooling snafus! The main manufacturer wants to fix those issues with a whole new part! Imagine your radio **** breaks and the fix is a whole new dash! Kinda overkill in my opinion but you don’t have to buy their brand.


Individual battery cell chart

Battery pack out of the Model S. Lotsa modules

Another repair. Just a snapped connector. The fix a whole new battery pack!
EG footage

 

The market WILL calm down, and consumers will forget about this.

I don't blame dealers for charging over MSRP if they can. No different than me wanting them to sell me a car for under MSRP when supply and demand is on my side.

 

I find a dealer that scalps its customers at this time like this an organization worth forgetting. I picked up my 2021 Lexus gx at sticker, and got free cargo Matt’s thrown in.

 

The market may calm down, but prices are not going down, at least not on new cars. Used car prices will surely go down.

 

If that used car was $17,000 pre-chip shortage, and $20,000 now; and dealers are tacking on a $3,000 "market adjustment", the difference between new and used is the same. Not sure why it's perfectly fine to buy a used car at a higher price just because that's the "market price", but paying a "market adjustment" on a new car is heresy.

 

Sure MSRP won't go down. But eliminating "market adjustments" is, in fact, new car prices going down. If next year, you can negotiate down from MSRP, then yes, new car prices will have gone down.

 

I dont think this will happen, manufacturers will have to raise MSRPs.

 

The prices consumers are paying absolutely will because supply will catch up to demand and we wont have markups and we'll be able to negotiate off of MSRP again. MSRPs wont come down no.

 

I checked a couple sites that give you used car values. My 14' is350 with 203,000 miles is worth nearly $10k lmfao. Don't get me wrong, it drives like the day I drove it off the lot new but I wouldn't pay ten grand for my car or any car with 203k on the clock.

 

On the contrary, price elasticity of demand is that you can markup only to a certain percentage and after that you can't raise the cost of goods. You would have buyers but the pool is reduced and people who can postpone spending will absolutely do that.
For me who is an ardent fan of the LS, I started looking for something else as I'm not interested in overpaying. This is just one perspective.

 

А lot of other stuff needs to come down too - metals, electronics, shipping, etc. I don't see it happening anytime soon, unless there is a huge economic crash and we enter a depression. We'll see what happens, but I strongly believe manufacturers will simply increase MSRPs very substantially.

 

If supply doesnt catchup, then that possibly means someone is not gonna have a job. I already see lot of dealer lots empty, that means the salesperson commissions needs to come from somewhere -- strange times ahead.