I'm at my Buick/Chevy/GMC dealership as I write this....getting the free complementary (first) oil-change/tire rotation done (GM gives you the first one free) and the jack-recall.......they have to order the new jack, which is not available yet, and by GM's policy, they take the old one out of the trunk, which they claim is unsafe to use.

But, as I looked around the place (I had not been there for a couple of months), it was obvious that inventory was way down...perhaps the lowest I had ever seen there. Yes, what you have been reading about (shortages/high-prices) is real. Even vehicles in stock that were formerly not in very high demand were marked up, on a second price-sticker, a minimum of 5K over list......."Adjusted Market Value". Some are marked up even more. And they are indeed selling them like that....it is clearly a Seller's Market. My salesman there (whom I have bought three Buicks from) said they (might) make an exception for me if I come up with my neighbor (who is on our Condo-Board)...she has an eight-year-old Outback that is getting unreliable (had major problems with CVT and wheel-bearings on recent long trips) and she wants to replace it if a suitable new vehicle can be found for her in this tight market. She likes the Encore GX I have, but I told her I'm not sure how long the turbo-three engine will hold up on it.....that's clearly the vehicle's potential weak point, though mine is still basically brand-new, with only a few thousand miles on it, and I am not likely to wear it out with my type of driving.

Anyhow, folks, believe it. I know I'm talking about only one dealership in this thread, but, based also on what I've seen while browsing on-line at other dealerships, it clearly does seem to be a classic Seller's market. There is little or no reason to believe that most of the other local dealers are much if any different....particularly in this traditionally big-money/high-income/high-vehicle-sales area around D.C. I'm advising people, right now, to hold onto their present vehicles, if possible, and wait until we have a better market. The dealership says that they think, based on what they hear from GM, and supply of computer chips, that it will take about another year or so for the market to become stable again. I'll take that with a grain of salt......could be earlier, or later.

 

Sad if someone needs a needs a new car right now. Happy I don’t have to return a lease and go through the process of having to deal with all that. I’m fortunate I don’t need a new car either.

Your friend is far better off fixing the Outback. Wheel bearings are not terribly expensive compared to the cost of a mark up. CVT transmissions cost less than that dealer mark up adjustment

 

Fortunately, the bearings didn't come totally out of her pocket. She had an extended warranty, and Subaru itself covers them to 8/100. Her Outback has more than the 100K limit, but, the extended warranty covered half of the bill anyway. The CVT transmission also crapped out on her last long trip (she had to have it replaced down in FL)...but Subaru covered that. I heard that Subaru, for a while, was using the same CVT-suppler as Nissan, which had a whole slew of unreliable CVTs. Whether they still do, on new Subarus, I don't know.

Be glad you got your new 4Runner when you did.....as I am with my Encore GX.

.................same with you and your LC, bitkahuna, if you are reading this thread.

 

I guess it works out if someone like me sold my leased car for a profit. It was expected that the profit will be used to subsidize the new car.

 

Good point. And I also forgot to add that trade-in-values are also way up on older vehicles. Still, dealerships appear to have the upper-hand on most deals.

 

as an owner of a 14 outback (wife's ride), i understand the worry of the CVT but i agree it's worth fixing if it's only wheel bearings rather than paying over MSRP for a vehicle.

 

CVTs are not without merit. They are light, compact, space-efficient, simple to produce/install, fuel-efficient, and, in some cases, can be made to imitate traditional stepped-gears. But some of them, particularly without reprogramming, have weird-feeling road-manners, and the potential durability of the small drive-belts has always been an issue, particularly with higher-torque engines.


Is your wife thinking of a new vehicle right now? I think you and I can both agree that this may not be the best time.

 

I saw this at a Nissan dealer - $4,995 added to the price of a $21,000 Versa - it's insane that they would mark up an "affordable" car 25%. Many buyers of economy cars struggle to be ablt to afford the car itself, so to tack on that much is just offensive.

My neighbor went with his daughter this weekend to buy a Nissan Kicks (different dealer than I went to) - that had a $3,000 "market adjustment". He got them down to $500 over MSRP.

I went with my MIL this weekend to buy a (pre-owned) Corolla. The salesman said every incoming Toyota is sold before it hits the dealer lot. His next customer was there to put down a deposit on a RAV4 that won't be in until mid- to late-October.

 

$4995 is just a fancy way of charging 5K without it SOUNDING like 5K.


The Kicks has a fair amount of competition.....even in a seller's market. The small-crossover market probably has more choices right now than any other segment of the industry....assuming, of course, that those vehicles (C-HR, Trailblazer, Kona, Soul, EcoSport, etc....) are actually available for sale. That may (?) be why the dealership came down to $500+

And, BTW, if they took that new Kicks home......Congratulations.

 

I feel very lucky I have 2 years before I have to make any vehicle purchases.

If you shop around though there absolutely are dealers that are not charging over list. When I was helping my friend replace her CX-5 we found some Toyota dealers were chargine $5-7.5K over sticker on Venzas and some were charging MSRP. We actually wound up getting her replacement CX-5 a little under list, so it worked out.

I would imagine there are GM dealers in the area that aren't charging over MSRP

 

Yes dealerships have the upper hand. Dont trade in your vehicle to a dealer. Sell it privately or to places like Carvana if you dont want the hassle.

 

You usually lease, though. Aren't lease-prices usually set more by the manufacturer (and, perhaps, by the bank) than the dealerships themselves?


How long ago was that? I was referring to what is likely to be encountered today.

And, like with tex, congratulations to your friend's new CX-5.

 

Three weeks ago. Nothing has changed in 3 weeks.

 

I was editing my comments when you replied. I had to re-space the quotes.

 

No, a lease is negotiated just like a purchase. The more negotiated off the vehicle, the lower the lease payments, typically. Residual values and money factors are set by the manufacturer and change monthly, they have an impact too. An impact of this market is that manufacturers are not pricing residuals and money factors as aggressively so coupled with the fact that there are no discounts to be had, leases are WAY more expensive. If I were leasing my same cars again right now, I bet the Pacifica would be $200 more a month than it is, or more, and the S560 would be $600-700 more a month.

Dealers are also padding profit into inflated money factors also, which drives up lease payments.