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Palm Beach Tiger
LSU Fan
Orlando, Florida
Member since Jan 2007
29240 posts

With Car Dealerships exploiting consumers by selling well over MSRP

Why is there not more selling direct from the manufacturer like Tesla? Went to 3 dealers over the weekend and left pissed off at all 3. Charging $8k over MSRP because there are ……….less intellectual people that will pay it. Not sure it will ever come back down with the devaluation of the Dollar………I think its likely MSRP just goes up to meet the demand price.
This post was edited on 5/2 at 10:41 am


Thib-a-doe Tiger
LSU Fan
Member since Nov 2012
33661 posts

The manufacturer gets paid when the vehicle hits the lot. They have literally 0 incentive to do this


I figured a more......intellectual person would know this.
This post was edited on 5/2 at 10:41 am


Palm Beach Tiger
LSU Fan
Orlando, Florida
Member since Jan 2007
29240 posts

Selling twice as many cars is not incentive?


SuperSaint
New Orleans Pelicans Fan
Sorting Out OT BS Since '2007'
Member since Sep 2007
128872 posts

Explain how it’s exploiting? You aren’t required to buy that Ridgeline from them.


OysterPoBoy
USA Fan
City of St. George
Member since Jul 2013
28301 posts

The manufacturer won't knock off 5k if your wife gives them a bj on the test ride.


Thib-a-doe Tiger
LSU Fan
Member since Nov 2012
33661 posts

quote:

Selling twice as many cars is not incentive?




Based on what data? Will more people enter the car market because they get rid of dealerships? More people start frickin' to celebrate the demise of dealerships, resulting in more future people? Where's the data?


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63
Palm Beach Tiger
LSU Fan
Orlando, Florida
Member since Jan 2007
29240 posts

So now that we know who works at car dealerships……. Lol.


VolsOut4Harambe
Atlanta Braves Fan
Atlanta, GA
Member since Sep 2017
11626 posts

Car stealerships can go to hell. Outdated business model.


lsufan1971
LSU Fan
Zachary
Member since Nov 2003
13292 posts
 Online 

,Talked to a Chevy dealer owner a few months ago. He said he has made more money in the last 2 years that he has in 25 years.


Thib-a-doe Tiger
LSU Fan
Member since Nov 2012
33661 posts

quote:

So now that we know who works at car dealerships……. Lol.




If pointing out flawed logic puts you in the car business, then I guess let me hit the lot


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37
crimsonsaint
LA-Monroe Fan
Member since Nov 2009
36730 posts
 Online 

quote:

The manufacturer gets paid when the vehicle hits the lot. They have literally 0 incentive to do this


I think manufacturers like repeat customers.

quote:

Car manufacturers have begun asking dealerships to take it easy on the price gouging. General Motors made its plea last week and Ford has followed up by reiterating its own concerns during the company’s Q4 2021 earnings report. The Oval is worried that dealer markups are tainting its relationship with customers, with top executives making casual references to the trend back in November. Ford CEO Jim Farley is now telling dealers that they need to cut it out lest they be punished by the manufacturer.


CarRamrod
USA Fan
Spurbury, VT
Member since Dec 2006
55752 posts

quote:


The manufacturer gets paid when the vehicle hits the lot. They have literally 0 incentive to do this


I figured a more......intellectual person would know this
they would get paid right then if people were allowed to order direct.


Thib-a-doe Tiger
LSU Fan
Member since Nov 2012
33661 posts

quote:

I think manufacturers like repeat customers.




Who do you think buys the most vehicles from them? And by the most, I mean all


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46
SuperSaint
New Orleans Pelicans Fan
Sorting Out OT BS Since '2007'
Member since Sep 2007
128872 posts

quote:

Talked to a Chevy dealer owner a few months ago. He said he has made more money in the last 2 years that he has in 25 years.
majority of people earned more the last 2 years. Typical earning trajectory for the majority fwiw


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343
billjamin
LSU Fan
Houston
Member since Jun 2019
5371 posts

Stealerships are the Realtors of the car world.

But to answer your question, there's a lot of power in that dealers and the manufacturers don't want to piss them off. Also some states prohibit direct sales (i.e. Texas)
This post was edited on 5/2 at 10:50 am


Palm Beach Tiger
LSU Fan
Orlando, Florida
Member since Jan 2007
29240 posts

quote:

explain how it’s exploiting? You aren’t required to buy that Ridgeline from them


I understand how sales work. People are paying these prices, which in itself another issue. But marking up a vehicle 20%, from the manufacturer's recommended dealer price, higher than its ever been marked up in the history of selling cars is exploiting consumers. Just my opinion.


WilsonPickett
LSU Fan
St Amant, LA
Member since Oct 2009
1444 posts

It’s illegal in most states to sell direct to consumer for car manufacturers. Even if it wasn’t most like the layers of shite it puts between them and the consumer when shite goes wrong.


Weekend Warrior79
LSU Fan
Member since Aug 2014
11408 posts

Dealerships are allocated so many vehicles/models. If they are able to sell them before the hit the lot, they still have to wait in the que to get more cars.

Also, as far as I was aware of dealerships always priced over MSRP as this gave them additional wiggle room, and more profit for those that don't negotiate. With the way cars are moving, and limited supply, where is the incentive for them to change?


Thib-a-doe Tiger
LSU Fan
Member since Nov 2012
33661 posts

quote:

they would get paid right then if people were allowed to order direct.



And would have to open repair/servicing facilities, hire staff and provide benefits to man them, not be able to use the dealer as a middleman in a dispute, etc.


I'm sure grandpa would love to drive 12 hours to his nearest Ford servicing facility for a recall.




lsupride87
LSU Fan
Member since Dec 2007
82715 posts
 Online 

quote:

Also some states prohibit direct sales (i.e. Texas)

I think all but 11 states prohibits direct sales


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