That’s what I’m referring to when I talk about price wars & selling more units. More towards manufacturers not dealers.
But they may have already done so pre-dealership visits (i.e. - YouTube, Cars.com, otherwebsites etc.).
Some are tied to a specific badge but those are not the buyers a manufacturer is usually vying for. They don’t spend millions of dollars in marketing to bring the brand lover to the dealership it’s to bring the ones not tied to a specific brand.
Rolex ADs dont have the inventory to sell! They also have waitlists that span months-years. Kind of like your store.
Different leadership, different time, different philosophies.
You’d be surprised how many people don’t know and don’t care about rebates and are only payment shopping. If they get their payment, they don’t care how it happens…in their mind, they got a good deal.
What you are overlooking, and what many people on this site overlook is that not everyone leases, and not everyone is a savvy internet shopper. Sure, it’s better today than it was 20 years ago, but there are plenty of people that just walk into a dealership to see what’s going on, and end up leaving in a car. This site is a small fraction of the buying public.
Virtually everyone here that has reached out to me when I could get 12% off on an Audi, or 10% off on a BMW scoffs when I say sticker price now less rebates. Outside of this site, many say “where do I sign?”
You’re right & i am aware that most people are payment shopping, but that’s exactly my point.
Manufacturers have offered those rebates to attract those buyers. The price conscious ones.
If they want to keep those “buyers” in the eco system & their plan to increase the prices alienates those buyers then what will they do?
Again that doesn’t explain the need to offer discounts (pre-pandemic) to attract buyers, why not just forget the small fraction?
Right now, they have no need to discount or offer incentives, as noted by the lots all across the country. If everyone is groomed that this is the way it is, and inventories stay low, what choice do they have? They either buy, or shop used.
The only way it changes, especially in the short-term, is if everyone simply stops buying cars and inventory starts to rot on lots. That hasn’t happened yet, and doesn’t look to anytime soon. People that are passing up on MSRP today are losing the car they are looking at this afternoon. Then they’re out of luck, have to wait or they have to change their expectations
For every 20 dealers that show you the door, there’s 1 that’s willing to drop their pants. (At least that was the case pre-pandemic)
I know you’re talking about the general consumer who would never approach 20 dealers, much less 2, but I guess I’m looking at this from the point of view of a savvy shopper who’s in tune with this site - as the impact to that consumer is who I’m most concerned with.
I somewhat recently went to re-test drive an M340i and see what dealers where looking like. The salesman was going on about how everything was MSRP and that it’s better “for the world,” and how this is the only industry where you can pull up and negotiate like this, how you can’t do that with other high end stuff like TVs and fridges, etc etc.
I kinda got his point I guess. Trying to see it from his perspective. The price is what the price is.
Then he got mad at me when I told him I wasn’t going to pay his $399 window etch fee 
Yeah right now no need cuz every manufacturer is in somewhat same boat.
Yeah & if the newer cars are out of reach & people go used, manufacturers don’t make $$.
Just picked up an Air-King (only a month wait) and on the waitlist for a white dial Explorer 2, which is about a year. The secondary market is amazing though. I can sell mine for $3k-$4k over what I bought it for, although I don’t have any intention of doing that. Makes it a little tougher with P-cars since sales tax can be in the tens of thousands compared to a few hundred with a Rolex.
No one is concerned with what the lowest bidder will pay anymore. Everyone wants to chase the whales. Besides, it will come to a point eventually where everyone is one price and the “savvy” shopper will be as common as a gas engine. Not saying savvy shoppers will be extinct, but if everyone is at one price (most consumers don’t want to negotiate) and no excess inventory (custom orders are the future too), how do you get a deal worth the time investment without it being a demo vehicle?
Usually, the third party reviewers are not discussing price other than the starting price or as built price and focus on value. So to address your first point, manufacturers will instead focus on value for money rather than price wars. Kinda like how everyone complains that blind sport is standard in a Kia but not a Macan.
Funny enough you can negotiate if it isn’t a big box store. There is a very large company near me that sells almost everything and you can negotiate with them. I have had a few friends buy new Apple products at a discount.
You can absolutely negotiate on TV pricing. Now if you walk into a best buy and only buy a TV and nothing else, you probably won’t be very successful in negotiating anything, but if you bundle it with other products/services, you can absolutely negotiate some discounts.
This sales guy was just making excuses to try and discourage the practice of negotiating… They’re good at that…
somewhat True. I was just talking about the cross shopping part where you no longer need to visit the dealership to cross shop or to decide on the vehicle you want.
but the other aspect is when you are on cars.com or edmunds.com & you see 4 different prices from 4 different dealers, maybe that impacts who you go to.
And you can also negotiate on high-ish end home fixtures, too.
Yup… furniture
@wtwo3 @justsharing @wam22 Oh for sure. Man, most things in life are negotiable. But it does confirm where the mindset is for these dealers. I’m sure my salesman is spewing out the narrative that his GM is pushing.
“We deserve MSRP! No discounts!” 
But How will that be controlled by the manufacturer when 5 dealers within 50 mile radius trying to make the sale? Cuz they don’t make money if they don’t sell the car.
But they also don’t make $ if they don’t sell a profit per unit, if they can’t make a volume bonus. I assume dealers hear whispers of what other dealers are offering. I don’t know much about sales, but I assume a “race-to-the-bottom” is a zero-sum (or worse) game?
Pretty sure the money folks in my county (Marin) are all using brokers, and are not wasting their own time running car spreadsheets. So they are still not grossly overpaying.
I used to be in sales (long time ago).
a dealer only cares about what “WE” can sell & how much money “WE” can make.
You do not care what the “manufacturer” wants to do or what their goal is unless that goal aligns with your goal of making $$.
absolutely, you sent secret shoppers to other dealers in the area, cold called etc just to find out what they were doing that day/week/month etc.
It won’t. You also don’t need 6 BMW or 15 Chevy stores in a market anymore. Just like the rest of capitalism, the strong will survive and the weak will get snuffed out. If it’s a 1 price fits all game everywhere, a consumer will likely go where it’s the most convenient. If they know everyone is selling at the same price, what advantage do they have of cross-shopping at that point?
And when the concierge arrives and demonstrates your new car/truck, and that becomes the norm, even the ‘convenience’ evaporates.