The Future Trend = MSRP + ADM

[Sdctcher]

"Car Makers are Blaming Dealers for Inflating Prices"

https://qz.com/2124564/ford-gm-are-cracking-down-on-dealers-for-inflating-prices/

"Whereas it was once rare for dealers to sell cars above their sticker price, that trend started to reverse last year. 80.3% of car sales in the US went for more than their suggested retail price this past January, compared to just 0.2% of car sales in 2019."

Market disruptions, parts shortages, and auto dealer greediness are all responsible for reported excessive mark ups in both new and used vehicle retail prices, including those now occurring for the Ford Lightning.

But consumers will have little control in the near future. It is mostly Supply versus Demand.

Factors that CAN control the trend include buyers shopping for the best deal (MSRP or least ADM), finding local ethical dealers, auto and supply companies ramping up supply with new technology and new factories (probably not becoming effective for 2-5 years), and strategic lawsuits against excessive ADM.

Government controls may lesson the trend in the short run but will only serve to further restrict available supply and extend the trend for a longer period of time. Market forces are hard to defeat.

Sponsored

 

[sotek2345]

This is a trend I don't see continuing for the long term. It is driven by the current supply crunch. That will take time to clear, but it will clear. In a few years, I can see prices sticking closer to MSRP (less discounts), but ADM will be limited to low production models/trims like it always has been.

 

[metroshot]

This is a trend I don't see continuing for the long term. It is driven by the current supply crunch. That will take time to clear, but it will clear. In a few years, I can see prices sticking closer to MSRP (less discounts), but ADM will be limited to low production models/trims like it always has been.

Agree - as the supply chains returns, lot inventory increases, and demand decreases we will see some normalcy on most vehicles.

High demand vehicles will ALWAYS command an ADM due to limited supply and willingness to pay.

I just pinged my BMW dealer and inquired about the X5 PHEV and he said they are all selling at $5K over MSRP at a minimum - if he can locate one....

 

[F150ROD]

Dealers are blaming consumers for paying it.

 

[Brocked]

The prices are just supply and demand. We are all paying more for bread too. That being said, this will last for a good while longer I’m afraid.

 

[Sdctcher]

That is what I am saying. Everyone is blaming everyone else when actually it all is a 'Normal Free Market' adjustment that is underway.

There are extremes like the Dealer charging +ADM $30,000 and Dealers staying at MSRP (or even under) to maintain market share.

But the trend overall will become the 'New Normal' until the market stabilizes as @sotek2345 and @metroshot have stated.

The consumer strategy should be to recognize this and find ways around it. And understand that when buying (any product) they must keep a written record and not accept ANY Verbal promises. Protect Thyself.

It is much like Black Friday Sales. We know going in that Demand will exceed Supply so we develop a Game Plan.

And find a Relationship of Trust. Not Hugs and Kisses but people that can be trusted as we trusted those in the old days with just a handshake.

Just my opinion.

 

[Fordskeptic]

If dealer is transparent upfront that's one thing, but surprise ADM and Add-ons is a totally different thing in my view. The former is arguably supply and demand, the latter is greed and unethical.

 

[Nevadajack]

That is what I am saying. Everyone is blaming everyone else when actually it all is a 'Normal Free Market' adjustment that is underway.

There are extremes like the Dealer charging +ADM $30,000 and Dealers staying at MSRP (or even under) to maintain market share.

But the trend overall will become the 'New Normal' until the market stabilizes as @sotek2345 and @metroshot have stated.

The consumer strategy should be to recognize this and find ways around it. And understand that when buying (any product) they must keep a written record and not accept ANY Verbal promises. Protect Thyself.

It is much like Black Friday Sales. We know going in that Demand will exceed Supply so we develop a Game Plan.

And find a Relationship of Trust. Not Hugs and Kisses but people that can be trusted as we trusted those in the old days with just a handshake.

Just my opinion.

Think the "normal free market" (if we can even call it that) ended in 2019.
This market is an anomaly created by politics and massive government spending. IMO

Sponsored