Interesting info from dealer about current state of new car market

[rydfree]

This dealer was that small dealer model just trying to serve it's community while the larger dealers getting proportionately larger allocations are working the system.

I'm sure they are just trying to serve the community 20k ADM at a time .

At least GM put out a press release that said brokered high demand vehicles will not have the factory warranty

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[Peter949]

Agreed. I am curious to see how sticker prices respond in a couple of years. Sticker prices have far outpaced inflation. The vindictive side of me can't wait to see some dealers shutter.

Ya, wouldn't mind stealerships go out of business for those rediclouse bs market adjustment fees.

 

[DonB]

New car dealerships have never made much profit in new car sales, if any. The real money makers in dealerships are in finance, service, parts and the body shop. The used car side of the lot generally comes in at a distant fifth place.
With that said, these dealers who look around and see covid, clamp downs, along with a recession and think,
"Hey! Let's hose down all of our neighbors who've supported us all these years with markups and overpriced bullshit!"

These stores, their management and sales clowns need to burn.
To the ground.
Salt the earth where they stood.

 

[F150stxguy]

I’ve still got my trusty 2013 Texas bought (zero rust) 120,000 mile 2.5 Ford Eacape. I think I’ll hold onto it for another year until the market cools and the new Ranger arrives. The ONLY thing I wanted Ford to do is make the body aluminum with the 6g. Seeing all the rust buckets around me makes me sad.

 

[Jason B]

Stopped by a regional Ford dealer on my way back from business trip today. They had 5 broncos in stock, two of which were new 2022 four door squatch package. One hard top and one soft top. One used two door in the bunch. Was nice to get to see them up close. I inquired about how they came by so many and salesman said they had a broker acquiring them for the dealer. Basically the broker casts a wide net across a region and offers MSRP plus for any unclaimed bronco orders. Broker buys them up then re-sales them to the dealer that placed a order with broker. Dealer in turn buys from broker and puts on lot for sale as "used". He also acknowledged many dealers were receiving new vehicles and immediately running through the auto auction. The independent broker scenario just doesn't stick out as bad to the general public. I was wondering how there were so many "used" vehicles with less than 50 miles on them showing up and having Carfax auction/broker history

Really? A mark up by the broker on a vehicle that was already marked up by the original dealer, then marked up by the receiving dealer then sold as 'used' is good for the buyers? Plus, insurance rates and warranties may change for 'used' vehicles.

 

[California]

New car dealerships have never made much profit in new car sales, if any. The real money makers in dealerships are in finance, service, parts and the body shop. The used car side of the lot generally comes in at a distant fifth place.
With that said, these dealers who look around and see covid, clamp downs, along with a recession and think,
"Hey! Let's hose down all of our neighbors who've supported us all these years with markups and overpriced bullshit!"

These stores, their management and sales clowns need to burn.
To the ground.
Salt the earth where they stood.

It's business. Don't take it personally. You act like they're harvesting dolphins in their tuna nets.

 

[DonB]

It's business. Don't take it personally. You act like they're harvesting dolphins in their tuna nets.

It's my wallet, Yeah, I believe I'll take it personally. You enjoy getting run over by yourself.

 

[EJH]

I’ve still got my trusty 2013 Texas bought (zero rust) 120,000 mile 2.5 Ford Eacape. I think I’ll hold onto it for another year until the market cools and the new Ranger arrives. The ONLY thing I wanted Ford to do is make the body aluminum with the 6g. Seeing all the rust buckets around me makes me sad.

Aluminum is a mixed bag, IMHO.

You can't PDR aluminum as easily to repair small to medium dents and dings.

Our 5G Rangers have aluminum hoods and tailgates already. The hood is super fragile and dents easy. I had one good dent repaired via PDR by a skilled individual, but also had two other PDR companies refuse to attempt it.

I would not want aluminum doors, side panels, roof, etc. Any light impact would dent them, where steel bounces back.

 

[DonB]

This sounds difficult for you. I'll move on.

That would be good choice.

 

[Zaph]

Aluminum is a mixed bag, IMHO.

You can't PDR aluminum as easily to repair small to medium dents and dings.

Our 5G Rangers have aluminum hoods and tailgates already. The hood is super fragile and dents easy. I had one good dent repaired via PDR by a skilled individual, but also had two other PDR companies refuse to attempt it.

I would not want aluminum doors, side panels, roof, etc. Any light impact would dent them, where steel bounces back.

I'll take it a step further. I want stainless steel! Would be nice to have on a long term vehicle here in salty Wisconsin. The strength, the corrosion resistance. So... what's the adder for that? ?

 

[JasonTremor]

I'm sure they are just trying to serve the community 20k ADM at a time .

At least GM put out a press release that said brokered high demand vehicles will not have the factory warranty

I didn't even ask what the price was on them as I knew at that point they were above MSRP and I don't play that game. I did just check their inventory and they have sold one so far.

Really? A mark up by the broker on a vehicle that was already marked up by the original dealer, then marked up by the receiving dealer then sold as 'used' is good for the buyers? Plus, insurance rates and warranties may change for 'used' vehicles.

Don't get me wrong, it's not good for any buyers of a new vehicle. It is less visible to the general public in how they are using brokers, as the Carfax generally shows a prior individual owner and not an auction in the owner history.

However, until people stop paying inflated prices for vehicles, bad actors will continue to profit.

 

[Peragrin]

In about a year the car market will plummet. Interest rates are high pricing out buyers and defaults with repos will began because people bought cars with the stimilus checks and now can't afford them. Supply chain will eventually catch up.

hate to tell you this but stimulus funds ran dry 2 years ago, and most people have spent that money 12-18 months ago. very few people where in a spot to cash in on both stimulus checks and jobs, etc. to store up anything significant once expenses started hitting it.

however interest rates are hitting hard, as well as inflation. It is inflaton holding the prices up, and as such they won't be coming back down for a decade, (after adjustments at least)

I'll take it a step further. I want stainless steel! Would be nice to have on a long term vehicle here in salty Wisconsin. The strength, the corrosion resistance. So... what's the adder for that? ?

I actually learned something interesting. Stainless steel can rust.

you have to physically and electrically isolate stainless steel from all other steel in the truck(like the frame) otherwise the standard steel will begin to corrode the stainless. Since all vehicles use the body as the electrical ground the stainless will literally rust out faster than painted regular steel.

 

[F150stxguy]

Aluminum is a mixed bag, IMHO.

You can't PDR aluminum as easily to repair small to medium dents and dings.

Our 5G Rangers have aluminum hoods and tailgates already. The hood is super fragile and dents easy. I had one good dent repaired via PDR by a skilled individual, but also had two other PDR companies refuse to attempt it.

I would not want aluminum doors, side panels, roof, etc. Any light impact would dent them, where steel bounces back.

Interestingly enough, when I had my f150 in Texas for a couple of years, I went through a few major hail storms. Not small hail, big hail. Hail that dented others’ vehicles in which mine had zero dents. Whether that’s the way Ford did it or aluminum in and of itself I don’t know, or even if I got lucky, I just know I would rather have the weight savings and oxidative abilities, especially long term and now living in a salt heavy winter state.

But I hear ya about shops and aluminum. I had a pretty significant bang up shortly after purchasing, and Geico took forever to find a qualified shop willing to take on the work.

 

[California]

That would be good choice.

 

[ControlNode]

And this is where Ford's proposed plan to only offer warranty to the original buyer could help. A car with 50 miles and no warranty (other than possible federally required one like emissions system) should not be worth near as much as an actual new car with the warranty.

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