optronix
Senior Member
This is what has me nervous until I sign paperwork. My last couple car buying adventures did not go so well. One dealer I was working with has already done this "escalating ADM" tactic, but at least they had enough decency to not take a deposit. This situation seems to be gearing up to piss a lot of people off.
It's going to catch up to these dealers, and my guess is sooner rather than later. Talking to my sales guy (who for now is super transparent and I really like...), he's already seeing it as a regular occurrence of people taking massive negative equity into more new car purchases from paying markups in the past couple years on "normal" cars. They may make a few bucks extra commission now, but when so many people are underwater on their financing they won't be buying cars later. It doesn't make sense.
Some dealers have realized this since the beginning but I feel like even they are starting to cave... it's like waiting in line and people keep shoving past you. You're trying to do the right thing but you can only take so much before you snap.
This cannot be good for the automotive industry, but who's going to step in and stop them? Manufacturers seem to be playing the whole "we discourage markups" (Jon Rivers has already said this in one of the FB groups...), but they are complicit in this shit; they could step in and force them to stop. But they're not. They seem to be trying to play the long game by incrementally raising MSRP, or like with the ITS, pricing it above expectations. Fed isn't going to do anything because the dealers are in their pockets.
This is all happening right before a paradigm shift for the industry in moving to electric too... does no one have the foresight to put the clamps on this shit before it spirals out of control? Hell it's probably already too late, and it's just a land grab to make as much money as they can now before everything freezes over.
It's going to catch up to these dealers, and my guess is sooner rather than later. Talking to my sales guy (who for now is super transparent and I really like...), he's already seeing it as a regular occurrence of people taking massive negative equity into more new car purchases from paying markups in the past couple years on "normal" cars. They may make a few bucks extra commission now, but when so many people are underwater on their financing they won't be buying cars later. It doesn't make sense.
Some dealers have realized this since the beginning but I feel like even they are starting to cave... it's like waiting in line and people keep shoving past you. You're trying to do the right thing but you can only take so much before you snap.
This cannot be good for the automotive industry, but who's going to step in and stop them? Manufacturers seem to be playing the whole "we discourage markups" (Jon Rivers has already said this in one of the FB groups...), but they are complicit in this shit; they could step in and force them to stop. But they're not. They seem to be trying to play the long game by incrementally raising MSRP, or like with the ITS, pricing it above expectations. Fed isn't going to do anything because the dealers are in their pockets.
This is all happening right before a paradigm shift for the industry in moving to electric too... does no one have the foresight to put the clamps on this shit before it spirals out of control? Hell it's probably already too late, and it's just a land grab to make as much money as they can now before everything freezes over.
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