Can we stop with the discounts already?
Discounts exist for 2 reasons:
- People want them
- Dealers know this
If we stop giving discount on non-limited production vehicles, we would return to MSRP or higher. If multiple don’t people want a vehicle, you wait for factory orders and wait your turn like in the good old days. You know, 12 months ago…
Sorry for the rant but I’ve been looking around and seeing YouTube videos of people getting discounts for basic cars, it’s their money sure customers are getting used to this and are less likely to go back to MSRP pricing.
I am mostly joking, but the market giveth and the market taketh. But for the most part it is a wash IMO if you have a trade-in since those prices are inflated too. It just hurts if you are trying to lease.
It won’t be as bad as you think. Banks have lending guidelines and won’t loan out a certain amount over the vehicle’s MSRP or book value. Sometimes the approved amount is lower with sub-prime lending. So if a bank approves someone for 100% of the MSRP, the customer still have to put down the markup and taxes/fees.