Pricing, markup, direct vs. dealers
Lexus Champion
Joined: Apr 2007
Posts: 11,041
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From: Southeastern PA
I normally would agree with you, but now we see real dollars that dealerships in the middle are costing consumers. That markup is basically a "dealer fee" where the consumer could just buy the vehicle directly from the manufacturer and save that $10-12,000. If this continues past this period, this WILL get the eyes of the justice department I promise you.
This is costing consumers TONS of money, and thats not going to continue forever without regulation.
This is costing consumers TONS of money, and thats not going to continue forever without regulation.
BUT--how many jobs are there at local car dealers? It's not that easy politically for DOJ to just obliterate an entire industry. The analogy is the talk of congress taking away 1031 exchanges - it would put small companies, and branches of larger companies, out of business.
Lexus Fanatic
Joined: May 2012
Posts: 68,631
Likes: 4,045
From: Maryland
Yeah, ok, if DOJ gets involved, maybe that's where we end up; not just by a grassroots consumer movement.
BUT--how many jobs are there at local car dealers? It's not that easy politically for DOJ to just obliterate an entire industry. The analogy is the talk of congress taking away 1031 exchanges - it would put small companies, and branches of larger companies, out of business.
BUT--how many jobs are there at local car dealers? It's not that easy politically for DOJ to just obliterate an entire industry. The analogy is the talk of congress taking away 1031 exchanges - it would put small companies, and branches of larger companies, out of business.
Its like the action being taken against my industry for commission structures etc.
Not sure why car dealers are being singled out, when real world inflation is over 50% since the start of the pandemic, why not regulate everything else - food, restaurants, construction materials, real estate.
Lexus Champion
Joined: Oct 2019
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From: California
Lexus Fanatic
Joined: May 2012
Posts: 68,631
Likes: 4,045
From: Maryland
Car dealers aren't being singled out, they are simply the topic of this thread.
And there are anti price-gouging regulations in all of those industries.
Lexus Fanatic
Joined: May 2012
Posts: 68,631
Likes: 4,045
From: Maryland
Here's an article from Ward's Auto on the subject:
https://www.wardsauto.com/dealers/de...ngerous-ground
https://www.wardsauto.com/dealers/de...ngerous-ground
Vehicle markups are not because of inflation. Vehicle MSRPs rise because of inflation, but dealers are absolutely fleecing customers right now, and they have a free ticket to do so because buyers can't buy direct from the manufacturer. Thats an anti-consumer sweetheart deal that is going to get the attention of the DOJ.
Car dealers aren't being singled out, they are simply the topic of this thread.
And there are anti price-gouging regulations in all of those industries.
Car dealers aren't being singled out, they are simply the topic of this thread.
And there are anti price-gouging regulations in all of those industries.
Lexus Fanatic
Joined: May 2012
Posts: 68,631
Likes: 4,045
From: Maryland
It's free market, and cars are items of luxury. Everything is up because of inflation, and even if DOJ gets involved, they'll just restructure how these markups are being applied. Honestly, I'd much rather the manufacturers would already up their MSRP 25-50%, it would be far more honest and would properly record on the inflation stats.
And we would be way better off paying the ADMs in the MSRP. For instance if you lease, ADMs kill the lease payment because they aren't residualized.
looked up a new S580 - it's $180,000 (176,000 CHF)
https://en.comparis.ch/carfinder/mar.../show/28365320
Lexus Champion
Joined: Apr 2007
Posts: 11,041
Likes: 98
From: Southeastern PA
Well there's no MSRP on those examples. But appliances, furniture and apparel, maybe....
I normally would agree with you, but now we see real dollars that dealerships in the middle are costing consumers. That markup is basically a "dealer fee" where the consumer could just buy the vehicle directly from the manufacturer and save that $10-12,000. If this continues past this period, this WILL get the eyes of the justice department I promise you.
This is costing consumers TONS of money, and thats not going to continue forever without regulation.
This is costing consumers TONS of money, and thats not going to continue forever without regulation.
oh wait, the movie studies totally steal almost all ticket revenue, so the movie theaters have no choice but to charge a fortune for junk food, drinks, and now alcohol.
Lexus Champion
Joined: Jan 2012
Posts: 17,083
Likes: 512
From: Knoxville, TN
So wait, now people are just ordering cars directly from Ford, etc.? Or that's what they want to do?
Like I've said, I bought my LS a decade ago from a small, easy lot and my truck from my close friend's business so I have no idea what buying a car is like these days at a dealer.
exactly... what about regulating movie theater popcorn prices, they've been ripping people off for years. oh wait, the movie studies totally steal almost all ticket revenue, so the movie theaters have no choice but to charge a fortune for junk food, drinks, and now alcohol.
Movie theaters get ZERO money from movies, it's 100% from concessions. A buddy of mine used to be a manager at Regal. I don't go to movies anymore but when I used to I'd get refreshments, large stuff for refills. Who cares.
Like I've said, I bought my LS a decade ago from a small, easy lot and my truck from my close friend's business so I have no idea what buying a car is like these days at a dealer.
exactly... what about regulating movie theater popcorn prices, they've been ripping people off for years.
oh wait, the movie studies totally steal almost all ticket revenue, so the movie theaters have no choice but to charge a fortune for junk food, drinks, and now alcohol.Last edited by AJT123; May 3, 2022 at 06:23 AM.