How To Turn a $40k Truck Into a $50k Truck

Built2Ride · Jun 12, 2023

batacoma said: ↑

Toyota has you covered.

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Better have the TRD imprint on that paper or I ain’t wipin!

goingplacesanddoingstuff · Jun 13, 2023

Firn said: ↑

Yes.

The price of a vehicle isn't determined by each step just adding their cost. Point being, you don't get to the final cost simply by adding up each layer. If buyers will pay $50k then Toyota will sell it for $50k, they are not going to sell it for less just to be your friend.

But, if they CAN sell direct they may undercut their dealers to drive them out, now they get the full amount rather than a piece of it. That lowers price in the short term but in the long term it reduces competition which will ultimately raise prices. Remember, the dealers compete amongst themselves for your business, that

Firn said: ↑

Yes.

The price of a vehicle isn't determined by each step just adding their cost. Point being, you don't get to the final cost simply by adding up each layer. If buyers will pay $50k then Toyota will sell it for $50k, they are not going to sell it for less just to be your friend.

But, if they CAN sell direct they may undercut their dealers to drive them out, now they get the full amount rather than a piece of it. That lowers price in the short term but in the long term it reduces competition which will ultimately raise prices. Remember, the dealers compete amongst themselves for your business, that competition lowers price overall.

Remember when you could go to a dealer and haggle, and walk out buying a truck below MSRP? That IS that competition. Dealer A haggles because they would rather sell it to you than have you walk down the street and buy from Dealer B. Take out the dealers and who are you haggling against? Toyota corporate? (remember, you already have choice of different brands).

Bottom line, when the manufacture sells direct there is less competition trying to sell you a car, less competition drives up prices in a free market. Yes, the car dealer network isn't perfect free market but it is closer to a free market than direct to consumer sales is.
Click to expand...

Click to expand...

Firn said: ↑

Yes.

The price of a vehicle isn't determined by each step just adding their cost. Point being, you don't get to the final cost simply by adding up each layer. If buyers will pay $50k then Toyota will sell it for $50k, they are not going to sell it for less just to be your friend.

But, if they CAN sell direct they may undercut their dealers to drive them out, now they get the full amount rather than a piece of it. That lowers price in the short term but in the long term it reduces competition which will ultimately raise prices. Remember, the dealers compete amongst themselves for your business, that competition lowers price overall.

Remember when you could go to a dealer and haggle, and walk out buying a truck below MSRP? That IS that competition. Dealer A haggles because they would rather sell it to you than have you walk down the street and buy from Dealer B. Take out the dealers and who are you haggling against? Toyota corporate? (remember, you already have choice of different brands).

Bottom line, when the manufacture sells direct there is less competition trying to sell you a car, less competition drives up prices in a free market. Yes, the car dealer network isn't perfect free market but it is closer to a free market than direct to consumer sales is.
Click to expand...

Lack of dealerships doesn’t increase prices in any other commodity, why should it be so with cars? You can buy an nvidia GPU straight from nvidia, or you can buy it at microcenter or Newegg. There’s plenty of competition.

Laws that force car sales through dealerships reduces competition. Without dealership laws, the manufacturer, local/online resellers, and dealerships can all compete to sell the same cars. Cars become like literally any other commodity, like TVs or shoes.

We should be able to order brand new cars online shipped to our front doors, just like ordering a couch from Overstock.

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How To Turn a $40k Truck Into a $50k Truck

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