Car Discounts Aren’t Coming Back After Pandemic, AutoNation Says

https://www.bloomberg.com/news/articles/2022-02-17/car-discounts-aren-t-coming-back-after-pandemic-autonation-says?utm_campaign=mb&utm_medium=newsletter&utm_source=morning_brew

I guess we’ll hack elsewhere :joy:

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Just more of the “will never be the same” nonsense. Clicking links like that only encourages them. :smiley:

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As if a ‘dealer’ can predict the flow. They are a lagging indicator.
Their statement really is ‘we won’t lower prices until people start shopping at the competitors’

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Its a chicken v. the egg situation. Dealers aren’t going to lower prices until customers can cross shop but customers wont cross shop until they see better prices but better prices wont appear until dealers want to lower their prices… One variable is how car manufacturers are going to react to this, are they going to let dealers continue to tact on 10K to RAV4 or will the race to the bottom on price come back?

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Another reason

No, it’s called a Free Market.
9 guys collude to keep prices high. Sells X cars total
1 guy lowers the price slightly, sells X*2 cars by himself.

another guy of the 9 decides to do the same thing, sells X/2 by himself.
repeat, repeat

Eventually the last guy either goes out of business or is so lucrative that he can keep his prices high and only the rich / people who like his service.

That’s a blip in the year worldwide sense. No chips is one thing, a single ship? A blip.

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Media is always trying to convince us of a ‘new normal’. This is just another example.

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On certain lines I’m already practically at BCV pricing….The programs just aren’t as generous…

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Some people say there is going to be a surplus heading into 2024

I think the $ definitely got devalued - inventory will definitely return to normal - but the literal $ amount will go up

Wall Street was the first to raise salaries

It’s a game of semantics with Autonation

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Stickers will keep going up until even absurd prices can show a nominal “discount” on the paperwork.

Some sucker will pay $120k for something as basic as a Suburban because the sticker was $130.

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Isn’t AutoNation heavy into setting up regional monopolies to combat devaluation? At least here in South Florida, for example, the Benz dealers don’t compete with each other because they’re all AutoNation shops, nor do they compete with the other brands also owned by AutoNation. Good C-class discounts were difficult three years ago when my lease started, and I presume impossible today (not that the car I want, the 2022 C-class, is even available yet and has no official MSRP).

SFL has traditionally been a rough market for buyers pretty much perpetually so no surprise there.

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I also live in SF. My MB GLC300 lease is up in Dec. I’m thinking of getting pricing from non AN dealer even if I go out of state to try an avoid the inflated pricing. The other choice is buying a Volvo with the overseas buy program which offers a 7% discount. MB has dropped that program.

AN BMW dealers were the cheapest when we leased a 3 series loaner a few months ago. I wouldn’t necessarily rule out a dealer group, unless they universally throw a bunch of unnecessary crap on their cars, like the Arrowhead dealers in AZ.

For 7% discount it’s not worth the hassle.

By the time December comes around you’ll find something suitable without having to pick a brand and do overseas delivery just to get 7% off

Why not? It is not about the money for everyone. I did ED-BMW several years back. If they still had it, I would take whatever discount they had and would do a trip there again. It was/is a great experience.

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He’s indicated that it’s about the discount for him

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Enough about the Felicity Ace burning in the Atlantic already.

Worst case scenario, you’re talking 4,000ish units VAG vehicles potentially tarnished. The auto group delivered nearly 9,000,000 units worldwide last year. Thats a rounding error.

The amount of ridiculous, stupid chatter this event has enabled is pathetic. This has - and will continue to have - absolutely nothing to do with the auto market on a global scale.

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Little more than the discount for me. Many years ago (1960’s) I did overseas delivery. Drove all over the EU (think I did 3000 miles, I was a lot younger) Car was insured and no hassle with rental cars, etc. This time the big difference for me is that my daughter lived in Sweden for 5 yrs and now is living in Spain. So for me it could make a lot of sense getting a made to order car with whatever whips & whistles I want. Drive it for a month and pick it up at the dealer when I get back. Just something to think about since the auto industry is playing games.

Given the current pricing craziness and the fact that my lease expires in a month I think I’m stuck with buying out my lease, eating the sales tax and disposition fee, and waiting a year or two for sanity to prevail.