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One more reason to flush the dealer system

Guns_N_Rosaries

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I begrudgingly understand paying MSRP during supply shortages, but I'll walk everywhere before I pay a cent over it to greedy dealers, and make sure I never buy a vehicle in the future from a place that does that.
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Hockeypilot44

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I ordered my Gladiator in Jan 2020 and took delivery in April 2020. Paid 6 percent under invoice plus another $3000 off due to the incentive. Ended up at 13 percent under MSRP. Same dealer now is unwilling to negotiate. MSRP plus $5000 dealer mark-up fee on every vehicle on lot. I paid $41k for a $48k truck that would now cost me over $55k.
 

Gren71

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I ordered my Gladiator in Jan 2020 and took delivery in April 2020. Paid 6 percent under invoice plus another $3000 off due to the incentive. Ended up at 13 percent under MSRP. Same dealer now is unwilling to negotiate. MSRP plus $5000 dealer mark-up fee on every vehicle on lot. I paid $41k for a $48k truck that would now cost me over $55k.
gross

i definatley missed the boat on the trade in process. earlier this year guys were getting great value and still paying under MSRP on new on the lot JTs.

shoulda, woulda, coulda
 

Challenger85

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Meanwhile I was out the door on a 21’ Mojave 15K under MSRP.
 

dcmdon

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I don't have a problem with it.

You win some you lose some. Nobody is forcing you to take the deal. The Mojave I ordered from Gupton had a 63K MSRP. My dealer wanted $65k for it. Gupton sold it to me for $57k.

If I didn't have a discounting dealer as an option, I'd have hung onto my 14 year old Volvo for another year until things settled down.

My wife wants to replace her Volvo wagon with something with 3 rows. She doesn't know if she wants a Benz wagon (The only 3 row wagon left) or some kind of 3 row SUV. Either way, her car is "only" 7 years old with "only" 75k miles so there is no urgency. We will wait this bubble out.
 

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Sponge60

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I've had lots of new vehicles over the years. Only paid sticker on one, and that was in 09, when the new body 2010 Camaro came out. Paying sticker hurt my feelings, but other dealerships were charging over sticker, some well over, so all in all I didn't feel like I was gouged.

I just got a 21 JT and paid a little over invoice from my dealer. I let them do the lift, wheels and tires. So that was a bump for them. Guess it all washes out.

Eliminating the dealer network is not a viable option. Sometimes you just gotta shop.
 

Casique

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I'm in the same boat. Trying to buy a car (Kia Soul) for my daughter in college, she's riding a bicycle right now. Tried to deal with four dealers in Virginia and Florida, no one is interested in dealing to sell a car. Ok, I can wait, what goes up comes down. She's getting great exercise anyway, lol.
 

MrFlinestone

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It may not meet all the definitions of a monopoly but it’s certainly not an open market. Dealerships actively take legal measures to prevent competition. That’s why Tesla can’t sell directly to consumers on most states.
 

Merrick

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It's profiteering.
It's not profiteering. It's supply and demand. Profiteering is on staples such as food, gas, etc.

Last time I checked, a new Jeep wasn't a staple.

They have something you want that is in short supply. You either pay what they ask or wait.
 

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iammacey

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It may not meet all the definitions of a monopoly but it’s certainly not an open market. Dealerships actively take legal measures to prevent competition. That’s why Tesla can’t sell directly to consumers on most states.
The federal measures in place were originally designed for the right reason. If you or I wanted to open a Jeep dealership, we wouldn't want Stellantis opening a dealership next door.

I agree, it can be a frustrating model. Especially for high demand cars, limited production, or during periods like we are experiencing now.

You can't have a free, open, market and dictate pricing.

The Tesla model can work, but it also means no discounts. Everything is full MSRP (most of the time. There are some discounts available on cars. It's not a negotiation, but a set discount to move select inventory)

I don't mind the dealer model as it relates to the purchase process, negotiation, ADMs, etc... I despise the dealer model when it comes to service and support.

No simple fix here though. With Lucid, Ineos, Rivian, Tesla, etc... All getting into the game in the US, this will continue to be discussed and debated though.
 

Higher_Ground

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I don't know that I agree, but perhaps there's a minor amount of truth to the idea that we are in a global state of emergency and that prices are rising based on that emergency's ongoing effects.

That being said I think the previous post was correct in that the type of markup we see right now is not indicative of price gouging.

Gas going up 15% when there's a hurricane is normal. Gas jumping 300% is not. If/when you see Jeeps being sold at 3x MSRP we have a serious problem.
 

CMac

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Profiteering: the practice of making or seeking to make an excessive or unfair profit, especially illegally or in a black market.

No.

A 20% premium ? Illegal ? Gimme a break.

Buying food, water, and generators and selling at triple the retail price to hungry families in a hurricane aftermath is profiteering.

Didn't say it was "nice". But it is simply supply and demand. Nothing more.
Agree with this sentiment, 100 percent.
 

MrFlinestone

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The federal measures in place were originally designed for the right reason. If you or I wanted to open a Jeep dealership, we wouldn't want Stellantis opening a dealership next door.

I agree, it can be a frustrating model. Especially for high demand cars, limited production, or during periods like we are experiencing now.

You can't have a free, open, market and dictate pricing.

The Tesla model can work, but it also means no discounts. Everything is full MSRP (most of the time. There are some discounts available on cars. It's not a negotiation, but a set discount to move select inventory)

I don't mind the dealer model as it relates to the purchase process, negotiation, ADMs, etc... I despise the dealer model when it comes to service and support.

No simple fix here though. With Lucid, Ineos, Rivian, Tesla, etc... All getting into the game in the US, this will continue to be discussed and debated though.
I did a quick read on this and what I found is that the dealership model was established to allow manufacturers to focus on building and dealers can focus on selling. That model is about 100 years old and with technology today we don’t (in my opinion need dealers).
You suggest that a direct sales model will be full MSRP, but I’d counter that direct sales will always be cheaper. Margins on new cars are not big so it’s in the dealers best interest to get the biggest up charge they can get away with.
I’m aware that everyone has to make money and if I owned a dealership I’d push to make more profit. I just believe in regulated capitalism to ensure healthy competition is available.
 

iammacey

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I did a quick read on this and what I found is that the dealership model was established to allow manufacturers to focus on building and dealers can focus on selling. That model is about 100 years old and with technology today we don’t (in my opinion need dealers).
You suggest that a direct sales model will be full MSRP, but I’d counter that direct sales will always be cheaper. Margins on new cars are not big so it’s in the dealers best interest to get the biggest up charge they can get away with.
I’m aware that everyone has to make money and if I owned a dealership I’d push to make more profit. I just believe in regulated capitalism to ensure healthy competition is available.
I'm not being combative. Just clarifying. What I said was the Tesla model is full MSRP. They don't negotiate. There is no opportunity to go into a Tesla showroom and pay less than MSRP.

Beyond that, yes, the dealer model is very old. And, in many ways, outdated. Almost everything we buy is done through a reseller while also being available directly. In all of those examples, the reseller consistently has the better pricing, better promos, etc... Often, those promos are supported and funded by the manufacturer, just like with autos.

I'm not saying there isn't a better way. There could be. What it would absolutely ensure, however, is competitive pricing between manufacturers, but not for the same product. I can shop hundreds of Jeep dealers currently for aggressive pricing, if I have to buy through Jeep directly, that leverage goes away.
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