People should stop buying cars unless it’s an urgent need. The dealers get used to selling cars at msrp or even higher now and it may take longer to normalize even the supply issues are resolved.
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Question in General.
I’m looking for lease from last 2 months. Prices seems to be higher then last year (after searching on LH forum)
Most of the cars are bring sold for 5% off of MSRP.
Earlier that used to be 10 to 12 %.
Any specific reason ?
Yes. Inventory shortages due to chip shortage, labor shortage, etc. There’s about a bazillion threads on this right now.
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Global chip shortage.
I’m in the same boat. I actually need to pick up 2 cars (1 for me and 1 for our nanny)… It doens’t look like the shortage is going to end any time soon so i may just have to bite the bullet and pay the premium…ugg
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Was reading article on chip shortage just now.
It says : it might last whole 2021.
Nvdia CEO said it will last until mid of next year.
There is an entire thread about the ongoing shortages (semiconductors, foam, third-party sub-assemblies, etc) with some brand-specific updates
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It even comes with advice on what bidet to buy!!!
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why was this deleted??? i was going to give it all of the likes.
no ragrets…
I was referencing the title of another thread that was closed, they moved it into this one. Out of context it makes me look like I’m retarded lol
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not at all. i got the reference. all of the likes.
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Is there any way to tell now how many car manufacturers now are selling cars today at MSRP?
Can we guesstimate that it’s now 50%- 75% of the industry?
Every dealership I have called up says cars are being sold at MSRP.
I would suspect that every brand has dealers selling cars over MSRP currently and every brand has dealers selling cars under MSRP.
Well, except maybe Tesla.
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I just saw a quote the other day from a customer on a BMW M850 GC that was $7k off plus $11k rebate. Granted this was not an in-stock car, so who knows if they would have done that deal for something on the ground.
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I’m really curious to see what’s happening with the average finance term, which was already stretching to nausea-inducing highs.
What’s the Average Length of a Car Loan?
New-car financing
The portion of new-car loans with terms of 85 to 96 months increased to 4.8% in Q2 2020, from 1.3% in Q2 2019, while the percentage of loans with terms ranging from 73 to 84 months also rose, to 35.1% from 31.1%.
Accompanying those increases was a reduction in the portion of new-car loans with terms ranging from 49 to 60 months, which fell to 15.7% from 19.7% in Q2 2019, and a lesser decline in the portion of loans with 61-to-72-month terms, which fell from 40.6% in 2019 to 39.9% in Q2 2020.
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I remember crossing this very Rubicon c. 2007. 84 month terms are not also 0%
Obviously Porsche is a little different given the customer base, but a lot more cash deals than normal with very few leases and financing.
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That’s an interesting perspective. I know Jeep dealers were discounting orders more than in stock units but my local BMW dealership GSM told me that they’d rather discount an in stock (if they intend to discount at all that is) car and make a sale vs ordering it and selling it 1-2 months from now.
Any term length metrics would be for customers who get a loan, not for all customers where cash buyers are also averaged in with a term of zero months.
Jeep orders don’t come out of their standard allocation allotment, so they’re motivated to discount orders differently than in stock units.