no. There is no price gouging. Don’t like it, don’t buy it. Pretty simple really.
Article: When Will Car Prices Come Back to Earth?
- Thread starter NorthernHawkeye
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no. There is no price gouging. Don’t like it, don’t buy it. Pretty simple really.
They already have. With the exception of a few, you have to go in and build your car then wait a few months for delivery. We are waiting right now— built it out in February and expect delivery in July.
There’s been talk for a while now that many manufacturers are going to greatly reduce their new car dealership footprint (admittedly I don’t know how all that works, but manufacturers do in a sense pay for or have costs associated which each dealership via incentives). Ford being one and Volvo being this way for quite some time. They want to be able to have some locations to showroom and allow people to test drive, but having two within 50 miles of each other (for example) is overkill.
Ford Moving toward Build-to-Order, Away from Packed Dealer Lots
'I know we're wasting money on incentives,' says CEO Jim Farley, acknowledging the way people buy cars and trucks is changing.
They can’t buy you up if you refuse to sell.
So are you refusing to compete with them because you think you can’t beat them?
You’re probably correct, if so.
No, the government’s role is to deter theft and fraud with the threat of prosecution.
How many competitors are in a given field of production is determined by the consumer in a capitalist economy, not by the government.
Fallacy.
While soft drink makers may compete with one another for your loyalty in their niche, the fact is all producers are competing for your limited funds. You could eschew soft drinks for tap water so you can spend more on gasoline or cat toys.
Prices are not arbitrary. Insofar as they are arrived at by freely made exchange they represent supply and demand.
When prices are rising across the board you’ll always find inflation of the money supply is the cause.
Our Federal Reserve promised this response 20 years ago:
What has this got to do with monetary policy? Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.
Mission Accomplished!
When there is a recession. Caused by too many people buying more house and car than the can truly afford.
too many people listen to realtors, car dealers, and lenders when it comes to payment amounts they can afford.
too many people listen to realtors, car dealers, and lenders when it comes to payment amounts they can afford.
yes. there is price gouging happening. I agree, don't like the price don't buy, that doesn't mean it's not price gouging, because it absolutely is.
The mean businesses always coming after you? Buy your vehicles from some rando on Craigslist
At some point the supply of new & used cars will surpass demand. At that point prices will decline. What other options will the mfg. & dealers have to spur demand?
What do logic and common sense tell you will happen to prices when the Federal Reserve increases their balance sheet from 3.76 trillion in September 2019 (when they stopped tapering and restarted QE) to 8.96 trillion today?
Agree. When the economic slow down occurs, dealers will go back to their lots having inventory. Currently, they don’t want inventory, they want orders for new vehicles as the way to do business with higher profit margins on these types of sales. Dealers pay interest on vehicles that sit on their lots past 90 days so with no inventory, they avoid any interest paid to the manufacturer.
Unfortunately, economic situation, supply and demand will drive the current price of vehicles, both new and used. Similar to the housing market. I’m glad I’m not in the market for either at this time and will wait for the market to be flooded with both in the next three to seven years when we see soft market conditions.
When you start seeming them in the lotsBased on those assessments, it looks like new cars will be in short supply well into 2024, and the number of used cars on the market could lag behind demand at least a couple of years beyond that. In other words, it's going to be a long time before both new and used car prices come down to anywhere near pre-COVID levels.
When Will Car Prices Come Back to Earth?
We talked with top industry analysts to find out when today’s soaring car prices might return to pre-pandemic levels—and their predictions aren’t pretty. That doesn't mean you can't still find a car you love, if you're flexible.www.caranddriver.com
You timed that purchase well. Must have received advice from @RileyHawk . He’s a wizard with things like this.
Just had to buy a new car since my company replaced the policy with an auto allowance. Worse part is the negotiating. There is none. Bought a 2022 Nissan Frontier Pro 4X. They didn't ask for more than sticker but they did tack on an additional $2,800 protection plan you had to accept or they couldn't sell the car. It's pretty sweet and the only new small pickup availble that I liked so I bought it.
If someone is willing to pay the asking price, it’s not gouging. Is it a fair price. It is if you completed the purchase. If you don’t like it, don’t buy. Prices are high and will remain high as long as supply is low and there are buyers willing to pay the asking price.
I’ve said it before on here…best gamble I ever took was to buy a couple new cars within a few weeks of the start of the pandemic for the no pics wife and I. Dealers were shitting their pants during the early days of Covid hysteria and I took it for all it was worth. If only all my other investment strategies were as frutiful.
Riley liquidated at the peak before the pandemic and reinvested at or near the bottom. Not sure what his day job is, but he should consider just trading from now on.
Yeah, so you can lose 25% value the minute you drive it off the lot.
There are plenty of steals in used cars out there if you look for them.
I spent a lot of time looking before making my purchase recently. With the car shortage, my new Lincoln was worth more than I paid for it when I drove it off the lot. I can easily make 10 to 15k profit selling it
I've seen private sellers on Facebook selling new vehicles, marked up significantly.
In a normal market there's lots of good prices on a new vehicle. I bought a new Ram in June of 2020 that's worth $15,000 more than I paid for it. Used cars are through the roof right now and in a year they'll lose well over 25%. People are going to be upside down on every used car getting financed right now.
Pretty unreasonable expectation for someone who can't afford a new car right now. And that still doesn't change the fact that car's value will plummet in a few months.
People shopping for a new car right now might need to expect to pay more than they would in a normal market, people buying used right now are getting ass raped.
I would rather have the cash to pay cash but borrow every penny and let the money ride in stock market.
I did that on my last car and my investment almost tripled.
never be scared to borrow money, especially if you have it.
I sold my Avalon for cash. Made a shite load. Cash sitting in my office safe was a good thing during pandemic
