[jmcbrew]

Yeah, you can say “supply and demand”… but the companies we are dealing with control the supply. Same reason oil companies have thousands of land leases that they aren’t drilling on. Why spend the time and money to increase supply and bring your own price down when people are still buying the product at an inflated price?

I’m not saying it won’t normalize… but it’ll happen when it makes more sense for the car companies to bring supply up and prices back down. It won’t happen out of the kindness of their hearts.

 

[LakeLady]

When I bought my new 2023 Bolt EV, I found one on the lot in Dearborn, MI. I paid the MSRP price, no markup and no wait. The price I paid was the same price as several 2019 Bolts were selling for, including one with 50k miles and another with an accident in it's history. I realize that the price drop GM gave was responsible in part to this situation, but the dealers with the 2019 cars were disbelieving that I could get a brand new car for the same price. It did require a little road trip, but it was well worth it! So not all dealers are doing the 'markup' game.

 

[Packard V8]

We just printed $6.2 trillion of new money, a 40 percent increase, between February 2020 and February 2022 and we're surprised demand for most goods is temporarily exceeding supply? That we're experiencing inflation? "I am shocked, shocked to find that gambling is going on in here."

jack viens

 

[mrT]

When I called the dealer at the end of Dec, they said no markups, then I went in on the 1st of January, and guess what, oh sorry the manager decided we'll be marking them up $1000. I was kind of annoyed, but I had the costco coupon and I also worked at a university and got another $500 off so it evened out. I bought it because I didn't want to order one somewhere else not knowing when it would be ready. When Chevy emailed me a survey, I gave them my input. It wasn't good. I also told them with **** like this, Tesla will win unless Chevy will sell directly to the consumer.

 

[jrfk2]

I wanted a '23 Bolt but wasn't going to pay a markup. Last March my son needed a new car and wanted an Impreza (which I drove at the time). Luckily found one at the local dealership "in transit" without a markup with color/options he liked. Put a deposit on it but paid MSRP (which I'm not used to doing, I like to haggle ). One dealership was charging $6k markup.

In December I found a Chevy dealer with a Bolt in the color/trim/package I wanted, 200 miles away, but no markup listed. So made a deal to put a deposit on it, if they sold it in December, I get the deposit back, otherwise I buy in January to qualify for the Fed tax credit.
Then after xmas they put a $2500 markup on the two Bolts they had. I contacted my salesman, told him i was retired/on fixed income and couldn't afford a markup, and that there wasn;t one when I put the deposit on it. He 'went to bat" for me, got them to resind the markup but I had to buy by Jan 3rd for it to count for their 2022 sales. Agreed to that.

After buying it I checked the dealer site again, markup was now $5000 and they sold the other one like mine. And most dealerships either have a markup, or say "contact dealer" for final price.

In the end, its supply & demand .. right now with being able to get the full Fed tax Credit until they finalize the battery requirements in March .. even bigger demand than just the limits removed for how many cars sold.

 

[GregBrew]

Open-market economics.

 

[p7wang]

I think Elon panicking and lowering price started a trend here and in China. Just got spammed by Sondor and Segway 3-4 times each this morning. I then unsubscribed from their mailing list.

Not everyone has cash on hand to buy cars. I am hearing banks are more reluctant to loan now, that will take care of the demand side. Not sure you can reduce supply unless you idle your plants, sit on your hands, and wait for stock price to drop due to operating losses.

 

[drmoose00]

I think Elon panicking and lowering price started a trend here and in China. Just got spammed by Sondor and Segway 3-4 times each this morning. I then unsubscribed from their mailing list.

Not everyone has cash on hand to buy cars. I am hearing banks are more reluctant to loan now, that will take care of the demand side. Not sure you can reduce supply unless you idle your plants, sit on your hands, and wait for stock price to drop due to operating losses.

Tesla cutting prices should theoretically help with the markups. I know the premier+ Sun/ sound I have is 8-9k cheaper than the base 3. But if my dealer would add a 3-5k markup, that difference is significantly less. I don’t want a 3 really, but it’s probably a better value for a few K more, in terms of range and charge speed, as well as resale, if one considers that markup is not recoupable on resale/trade-in. I know I’ll be mentioning this option if my dealer tries any shenanigans.

 

[Packard V8]

but it’s probably a better value for a few K more, in terms of range and charge speed, as well as resale, if one considers that markup is not recoupable on resale/trade-in.

Yes, No, Maybe. As mentioned here several times, the long wait-times and dealer markups pulled up the price of used cars to in some cases more than the owner paid originally. Should one be able to walk in and buy new at MSRP or less, then the used/trade-in bonus goes away.

jack vines

 

[JRRF]

I met a part owner of a dealership on the weekend and I was showing my displeasure over dealer markups.
He simply told me that because customers have paid and keep paying these markups, there's no real rush for a dealership to load up on inventory. A salesperson is making enormous commissions by selling one car instead of a few.
He says the current admin and their policies have made all this possible.
Also there's no consumer outcry therefore no Congressional oversight.

Demand is already softening. Anybody who didn't have to have a new car right now, should be waiting. Heck, if you order one now and get it in May you might be paying below MSRP. Dealers are scum! They will get their comeuppance when manufacturers remove them from the sales equation. Ford is already working on this, and the pure EV brands are never going to sell at dealers.

 

[Jerry Duke]

Demand is already softening. Anybody who didn't have to have a new car right now, should be waiting. Heck, if you order one now and get it in May you might be paying below MSRP. Dealers are scum! They will get their comeuppance when manufacturers remove them from the sales equation. Ford is already working on this, and the pure EV brands are never going to sell at dealers.

I am not taking up for dealers, but Ford is not doing away with dealers. They are letting them decide which of three dealer models they want.
Traditional dealer, no EV's for now.
E-Ford - full EV line. Cars are orders online and shipped the the dealers service center. A lot like the Tesla model
And last truck dealers.
Or at least thats the 3 models as I understood them.

 

[Gizmodo]

Markups are Evil, but not universal. I picked up my Bolt EUV Premier about 6 hours ago. Bought it at MSRP and got $1,000 more on my trade-in than a couple of Kia dealers were offering me on a much more expensive car.

 

[DAC17]

Don't bet on markups staying for the long term. Everything comes back to normal eventually. Maybe another year for certain models. Many have already gone away.

 

[Vaughan Pratt]

Yes you have a point ^^^^ there but where do you stop. Just make two pints and sell them for 12500. You only need two customers, no staff and 3 hours work then. How do you know at what price they will keep coming back? How many and for how long are they going to be OK with your price increase? It's complicated for sure.

You have a fascinating theory of pubs.

You're assuming your two customers are going to your pub to drink beer. The two of them can do that just as well at the home of either of them.

People don't go to pubs to drink beer, any more than people of a few centuries ago went to coffee houses to drink coffee.

 

[GregBrew]

You have a fascinating theory of pubs.

You're assuming your two customers are going to your pub to drink beer. The two of them can do that just as well at the home of either of them.

People don't go to pubs to drink beer, any more than people of a few centuries ago went to coffee houses to drink coffee.

When I was in Amsterdam a few years ago, I certainly didn't go to a "coffee shop" for coffee...

 

[JDPaskal]

What are they going there for then? The post I was replying to with my silly reply was suggesting to raise the price high enough and loose 50% of the customers. Where do they go? What were they doing there in the first place....lol

 

[jblache]

Local high volume dealer contacted yesterday to inquire if I was still interested in the Bolt EUV. He has a black Premier Redline with sun & sound plus super cruise coming to the dealership. Everything sounded good. Car was not spoken for. Estimated arrival in 2 months. If I ordered now, wait time 4 months to one year. Then he dropped the bomb. $5,000 market adjustment. Told him I was surprised since Tesla had big price cut, ID4 selling at MSRP or slightly below and KIA/Hyundai selling below MSRP. He responded that demand was up and supply constricted so price was adjusted appropriately. Told him to pound sand since he was in M3 pricing territory. I really hate the dealers! There is something to admire with Tesla sales model. GM being GM again…….

 

[neutrondrip]

To be fair to GM, dealers aren't a part of GM, they operate independently.

 

[JDPaskal]

If demand is so high why are they contacting you? Vehicle should already be sold.... their just vultures looking for the kill.

 

[Peter131]

Wait a minute, Teslas have always been overpriced.