Hurray GM

I just read that GM will not assign vehicles to dealers that add price over mrsp. Hope other dealers get told the same thing !!!!

 

A link would be helpful. I assume you're referencing this: https://www.motortrend.com/news/gm-letter-dealer-markup-msrp/

Ford had made some "rules" for the Bronco that ended up being largely toothless. I assume this will be much the same. The automakers usually back down to the big dealerships.

 

General Automotive | Tacoma World

 

If I knew how to post a link I would have but I'm old and not to computer friendly LOL !!! It was on MSN this morning.

 

When supply is lower and demand stays the same bad things happen. Hopefully things in the world go back to normal soon.

 

This is the new normal. They aren't going back to Pre-covid

 

Hopefully that's not true.

 

This happened in the gun world and many dealers went under because we didn’t stand for it. Should do the same for car dealerships.

 

Dealership will have a friend buy at msrp then they will sell it as “used” at astronomical prices through a 3rd party LLC or consignment.

 

GM is notorious for always offering big discounts on new trucks. Last 2 trucks I had were GMs and both came with pretty decent discounts. Anywhere from 3k to 6k off msrp. They do this to attract the buyer into thinking they are getting a good deal and gives us the warm fuzzy feeling that we saved some money.

When I was shopping full size trucks, Dodge and Ford both did this as well.

So now they just stay firm at MSRP and everyone thinks they are a good brand by not adding money to the MSRP for "market correction" but in fact they are making more money off us consumers just like everyone else.

 

Ctrl-C, Ctrl-V

Copy, paste.

 

If people stop paying over MSRP then the dealers will have to adjust. The supply isn't even as low as the dealerships say. People are buying vehicles like crazy right now. "They" aren't doing anything other than charging what the stupid public is paying. If people stopped blowing their wads over a truck on a lot then the ADMs would come back down.

The dealerships are definitely taking advantage but the customers are going for it and overpaying. We are a "want it now" society.

The link I posted above has the list of vehicles that GM says not to gouge on. The fact is all those vehicles are on the upper end. No one is being "gouged" because no one needs a new Corvette or Hummer. The customer is only gouging themselves.

It's the trickle down effect that's gouging people. The dude trying to buy a 1995 Pontiac to get to work because his current vehicle literally won't make it is the one being gouged.

 

The supply up here in the northeast is pretty damn low. Barely any tacomas or 4runners on the lot.

 

The amount of new cars on lots here is very low also.

 

Interesting that the vehicles on the list that @DingleTower are either a Corvette, or an EV. Looks more like steering people in a certain direction than for any reason that has to do with customer care, "rewarding" certain purchases.

 

Same here...but it's not because Toyota isn't making trucks. Toyota sold 238,806 Tacomas in 2020. They sold 252,520 in 2021. Supply increased over the past year. So did demand. But the demand isn't because people are needing trucks so bad all of the sudden. It's a want thing.

 

I can tell you I want a bronco, but I'm not going to pay twenty thousand over MSRP for a vehicle. I also don't want a first model year vehicle. I think people paying that much for them have way more money than sense.

 

Dealers can get around this by adding options and charging what they feel those are worth.

As for MSRP? Manufacturers SUGGESTED retail price. That one word changes everything.

Like my buddy who is a new car manager at a large dealership said.....I can either make a small profit on a lot of vehicles or a big profit on a few vehicles. When there is no inventory the latter applies.

Dealerships are businesses just like any other business. They have to turn a profit.

 

dealers make their cash on service, as so I am told (as well as financing and add ons). Here is one example... dealer trying to sell me brakes today. I can get all the parts OEM for approx $1200 and these still have 5-10k on them.