re: Ford CEO is going to kill his own Company.

The value is the competition that drives the price down for the customer. Up until the inventory shortage most dealers lost money when they sold a new car. Inventory levels will get back to normal then it will be like before where the dealerships are undercutting each other Just to get the money from the lender.

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Who's gonna do their warranty work?

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They’ll figure it out or die. That’s how markets work.

Here is a dirty little secret, dealers really don’t make much off selling new cars. They make their money on trade ins and repairs. My dad was used car VP for a bunch of dealership in the NW. and he more profits for the dealerships on selling used cars at one location than they did selling cars at all the locations put together. He used to rag the new car VP all the time that his only use to the company was to get him trade ins to sell

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Here is a dirty little secret, dealers really don’t make much off selling new cars. They make their money on trade ins and repairs.

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Yep. Right now is very unusual.

*They do make money in the finance office on new cars for the suckers that have the dealer get financing. Along with the paint sealer, Scotchguard, undercoating, etc, etc.

I started buying those warranties when I realized I can get them at deep deep discounts by negotiating then down to around 50% off.

Things that have paid for themselves to far:

1. Windshield replacement and callibration-$900
2. Replacement key-$200
3. Blown out tire and bent rim. Replaced- $750
4. Patch work and replacement of 2 tires.- $500.

So yeah, I don't exactly believe there's value in buying at face value, if you can negotiate them down, there is a point where value can be had.

Yeah, if you can negotiate it down extended warranties can be ok. Depends on how long you plan to keep it as well.

With all the electronics in the typical car today they are going to be hell down the road.

For those that don't know concerning financing, if the dealer arranges it they typically hold a point to point and half that is kicked back by the bank.

This board seems to hate my approach to buying cars. I've always negotiated each aspect independently. It's worked for us. And we only buy if 0% is offered. Yes, I still negotiate the price down. I'm not forfeiting money by taking the 0%. It can be done. You just have to learn to control the deal on your terms. It took me getting fleeced 2 times before learning how and what to do.

This was all pre Covid though

Todays market is a different animal. I went in to discuss a new Suburban two weeks ago. Kind of played around with some figures and their approach was "pay the MSRP" and take available rebates.

I knew this was a suckers market immediately and promptly thanked them and walked.

I'll check back in 2-3 years when things return to normal.

What I was shocked by is they have 11 already sold and waiting for delivery. The guy showed me their order spreadsheet and prices- every one of those suckers paid full MSRP based off their sticker, invoice and their dealer paid price.

There wasn't a sold suburban under 78K on that sheet.

I never seen a dealer be so upfront showing me their data. It didn't matter though because there were no negotiations. This place was in Lafayette.

Showing you everyone paid sticker is a sales tactic. Plenty of people will just say frick it and sign as they "need" a Burb and it's the only way they can get one. "Everyone else paid it."



It sucks for those having to buy/lease right now. Although leases might not be bad. I haven't looked, but I can't imagine they are projecting residuals 3 years from now looking like the current used market. If they are typical, leases should be through the roof as well.