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Originally Posted by BillR
(Post 2635395)
By charging over retail, dealers screw themselves AND the mfg. When Ford brought out the GT, dealer greed set in and they wanted $20K - $50K over retail. Well the cars didn't sell well. So they slowed and then stopped production because demand wasn't there. Demand wasn't there because the dealers inflated the price so much, no one with a brain would buy one.
Look @ Challengers right now. Dealers are doing same thing and they have cars ready to drive off right now. Yes the economy is playing a big part, even more reason to not be greedy. Put them at retail and the inventory will move. |
Originally Posted by Hot Knots
(Post 2640438)
More towing power, better fuel mileage, bulletproof motor, exhaust brake(on the 6.7)...what's not to like??
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I try to refrain from commenting on all of the dealer ripping people off comments on this board but sometimes I can't help myself. You guys would never think of asking the manager at Best Buy to display his cost on that new big screen and proceed to tell him that based on your research you are willing to give him fifty dollars over his cost. They would laugh you out of the store. If some of you guys gave your broker 40k to invest and six maybe eight months or sometimes even a year later he said I think your going to be really happy, I made you three hundred on the 40K. Would you keep your money with him? The point is that dealers work on smaller margins than most businesses in the world. Is it just by chance that they are going out of business at an alarming rate? The bottom line is that, yes the Chargers will be under MSRP in the near future, but some people want one now and that is the current market. The 2008 models are also a numbered limited run vs. the 2009 which will more than likely have three times the production numbers of the 08's. Bottom line, the 08 will always be worth more than that discounted 09 that you waited for the great deal on.
P.S. I am not a new car dealer!!!! |
That car looks great in 1/4 views, but the profile is fugly.
IMHO. Now, the Camaro on the other hand. :cool: |
Originally Posted by Chuck
(Post 2640543)
I try to refrain from commenting on all of the dealer ripping people off comments on this board but sometimes I can't help myself. You guys would never think of asking the manager at Best Buy to display his cost on that new big screen and proceed to tell him that based on your research you are willing to give him fifty dollars over his cost. They would laugh you out of the store. If some of you guys gave your broker 40k to invest and six maybe eight months or sometimes even a year later he said I think your going to be really happy, I made you three hundred on the 40K. Would you keep your money with him? The point is that dealers work on smaller margins than most businesses in the world. Is it just by chance that they are going out of business at an alarming rate? The bottom line is that, yes the Chargers will be under MSRP in the near future, but some people want one now and that is the current market. The 2008 models are also a numbered limited run vs. the 2009 which will more than likely have three times the production numbers of the 08's. Bottom line, the 08 will always be worth more than that discounted 09 that you waited for the great deal on.
P.S. I am not a new car dealer!!!! I respect what you are saying..the point is times are tough at the moment..The dealers here are trying to sell them for 7-10k over and still has 3 on the lot..His comment to me is I thought these were so hot..My point is..yes..if you have to have it now and are willing to pay X over msrp..so be it..the problem is they are not moving like expected..so lower the price to x over msrp or even msrp which is still a great profit and move on to the next one. Thats all some of us are saying. Mine is ordered, and I did pay less than msrp, and Im thankful for that. |
Originally Posted by Chuck
(Post 2640543)
I try to refrain from commenting on all of the dealer ripping people off comments on this board but sometimes I can't help myself. You guys would never think of asking the manager at Best Buy to display his cost on that new big screen and proceed to tell him that based on your research you are willing to give him fifty dollars over his cost. They would laugh you out of the store. If some of you guys gave your broker 40k to invest and six maybe eight months or sometimes even a year later he said I think your going to be really happy, I made you three hundred on the 40K. Would you keep your money with him? The point is that dealers work on smaller margins than most businesses in the world. Is it just by chance that they are going out of business at an alarming rate? The bottom line is that, yes the Chargers will be under MSRP in the near future, but some people want one now and that is the current market. The 2008 models are also a numbered limited run vs. the 2009 which will more than likely have three times the production numbers of the 08's. Bottom line, the 08 will always be worth more than that discounted 09 that you waited for the great deal on.
P.S. I am not a new car dealer!!!! As far as car dealers folding, a very large Chevy store just closed its doors after 25+ years. Owner is a multi-franchise dealer and wants to sell the land for a bigger profit than car business would have generated. New dealerships have massive overhead and floorplans forced on them by the manufacturers so if sales volume drops they can get real expensive to operate. |
I am not ssaying that charging over MSRP is a good idea, but I am saying that I don't think there is anything wrong with that. How many times do we see some guy whining on here that everyone is lowballing him on his boat, and everyone chimes in and says.... its only worth what someone is willing to write a check for. It does work both ways guys.
As far as the tv comparison goes, there is no federal law required to post an MSRP. The tv is marked up according to what the market will pay as determined by the current market conditions. |
Chuck, I'm with you all the way in your posts and I couldn't have said it any better. Most of you know that I'm not a new car dealer either, but I do work with them on a daily basis as a wholesaler and broker and I'll tell you this, they are getting their azzes beat right now.
The manufacturers have cut their profit margins so slim that they can't make any money on a new car. There's also the dealer down the street that will sell it for $100 less. Then, you have people wanting to trade in their trucks and SUV's and can't believe what the dealer is offering them. Hell, what dealer wants to throw the dice on these babies that are dropping everyday in price. I rep a lot of vehicles at different auctions for dealers and let me say this, some are taking a beating on vehicles that they traded 3 or 4 weeks ago, if in fact, I can sell them. The one thing that always pissed me off was that the new car manufacturers give their dealer invoice prices to everyone. WTF?? They're everywhere, newsprint, magazines, internet, public restrooms, just seeing if you're paying attention. Anyway, this is pure stupidity and always has been. Try and find out the invoice on that Cig, Nor-Tech, Searay, etc. or a washer, refrigerator or a freakin' mattress. Now this one kills me. I sold a car to a guy who works for a major mattress chain. We got to talking and got around to what a mattress cost, because I was saying that I sometimes see 3 different stores right in a row. How can they make any money when their on top of each other. He tells me that some of the mattress sets that he sells for $3000 cost the store about $800(depending on the manufacturer). Nice profit. A car dealer makes nowhere near that much on a new car. AND compare the investment in their showrooms. Back to the over list prices. Hey, if something is in demand and you can get a ton of money for it RIGHT NOW.....then You, Me, the Dealer are all going to take it. But I also agree that if a dealer has these cars sitting and is not moving them at over list, he better wise up. Because like all the others that were being sold over list at one time ALL COME DOWN eventually. |
Invoices are public info but there is hold back, and the profit centers in F&I and parts and service. Your argument seems to indicate that when times are good, the dealers won't use the ADMs which we all know is not the case.
The biggest and most successful dealers up here are the ones that have a consistent mark-up over invoice on their entire line whether that is 3,5, 700 or 1500 (or whatever)over invoice. People tend to hate the haggling and the trade-off tag teaming. I am with Jupiter. I either wait, pre-order or make a few calls. GT 500s were $30,000 over MSRP up here. A day on the internet found the one I wanted for MSRP. I have a hard time feeling sympathy for dealers who do ADMs. As I said you can shear a sheep over and over but cut him only once. |
Originally Posted by 2112
(Post 2640442)
Its a Dodge?:party-smiley-004:
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