I saw this video from Ben Hardy and it brought a smile to my face.
Only reason i get angry about the car pricing situation is that it really is unfair and we can do better in 2022.
What i’ve learned is that car valuations are set by:
- those with the lowest cost basis
- those who are the most desperate.
If i pay 75k for a 100k, and you pay 110k for a 100k car. When i sell for 65k, I set the market for you. Just like when someone walks into dealer and pays 5k over sticker, he sets the base for the rest of us.
This sets the depreciation schedule for all of us.
We are all here at leasehacker, because we like getting a new vehicle every 3 years or so, and all these dopes screwed things up for all of us.
But heres the good news that Ben didn’t tell you. Auto makers do have a minimum output level they have to hit. Why? because “assets” on their balance sheet like machines, warehouses, parts, etc… have a operating expense floor. So if vehicles aren’t made and sold the noose starts to tighen in the C suite, because quarterly earnings set borrowing costs, bonuses, etc…
Anyways, thanks for reading my rant.
TLDR: I am going to dealers this weekend and going to ask for 20% off cars I wanted. I know they won’t sell it to me. but sales folks are humans too, when they see 50 people come in, and walk out with nothing, it’ll reset expectations for them and the dealership. and if enough of us can hold a dealership saleless for 1-2 months, the discounts will come rushing back in.