Why arent leases cheaper now?

The many, many franchise dealers that every OEM insisted be a certain size, aesthetic (brand standard colors and furniture in many cases), with a minimum number of service bays to sell and service the maximum number of customers in their assigned geography.

10,000 dealers made huge investments, mostly out of their pockets, for the right to buy and sell these cars. They’re all optimized for scale.

About same timeframe as a Tesla, rivian, lucid

can those dealers sue mercedes

Dealers sue OEMs all the time.

Can any be sued right now, for this? Probably not. If they aren’t producing at capacity after the shortages, by choice? Absolutely.

There are different manufacturers when everyone can not produce enough prices will go up. Thats what a shortage does.

But as a manufacturer you cant control others.
Lets say VW wants to build less and price high then Honda or Toyota will build more and undercut them.

In ofher words if there is opportunity someone will chime in and reduce prices if competition exist. You know other companies have capacity too and once one of them resolves their issues they will take more from the pie. Thats the incentive to solve issues If you sit still and others start producing more you will end up with low prices and lost market share.

1 Like

It will be interesting to see what the next decade or so brings and whether other car manufacturers move toward direct to consumer sales…

https://electrek.co/2021/03/29/rivian-and-lucid-motors-sued-by-illinois-automotive-dealers/

Or: it’s actually worse for consumers because the OEMs sell to 5 cartels (pun intended) who own 99% of the dealer points and don’t have to negotiate.

Or just one cartel (Amazon)… :hushed:

In this case it’s Auto Nation, Lithia, Penske, Sonic, and a few others. We’re still early in the business cycle for car dealerships, the franchise wars are just getting started.

1 Like

Berkshire Hathaway. :eyes:

2 Likes

Never bring a railroad to a gun fight

3 Likes

Wow! Some great feedback. This thread is on fire. Thanks

I periodically flip through this forum and I have yet to see one single person get a better deal on something other than an LT1 or a 4XE than I did in October

$419 (including tax in the one of the highest taxed states), no money down at all, got $7100 check back on a $47k+ SUV

What’s going on? Is it still that hard to negotiate? I’m surprised Aronchi doesn’t have great deals anymore…

Correct, we all made the decision for no more good deals.

13 Likes

Too much demand AND not enough supply.

If you are asking whether the markets have turned, no.

If you’re asking whether there were ANY “deals” (below MSRP and/or incentives), there were a handful, not always reproducible then, certainly not now.

4.15% is not “one of the highest”. Tax on the full selling price makes it so. Though it is lower than 9-10% on rental in other states.

You have a less than 1% lease with taxes rolled in and think you got a bad deal???

Rerun your numbers at msrp and see what your broker did for you.

I’ve worked with aronchi nothing but a pleasure to deal with

2 Likes

1% means nothing

You never did tell anyone what the deal you got in October was. You obfuscated the key piece: The value of your trade-in applied towards your lease.

For all anyone knows there have been plenty of better deals even this terrible market.

1 Like

You just posted this to tell/remind how good of a deal you got???

You also wrote they realized “they shouldnt have given that number” that means it is a one time mistake, not replicable.

I got the one pay lease MF on 36 month lease for my 4xe. It was probably a mistake by salesman but they honored it. I didnt even mention it on 4xe topic. Let alone open topics to brag about it every year. If it is not replicaple wont help anyone.

1 Like