What’s with all the car dealer add-ons?

[Northofu1]

Originally Posted by notanlines

Dan, maybe you could sell your house, Toronto prices being what they are, and THEN you could buy a new truck.
As a side note, our friends up in Wasaga Beach area just sold their rental property for $4,000 MORE than asking price, no agent. The young couple who bought the property are going to commute to Toronto. They said even with combined income they could afford nothing in Toronto. Crazy times!

Dear Jim,
I am writing you this letter to inform you that houses in the GTA (Greater Toronto Area) are selling at 400 to 500,000 over asking. We're not NYC but we are the financial capital of Canada. Wasaga Beach is an hour and a half each way on a sweet stretch of highway I refer to as the Indy 400. I drove that for almost 30 years, I have road rage PTSD. I am not very fond of this province and hope to retire in New Brunswick. The people in Southern Ontario are rude, ultra competitive , snobby, entitled and just full of s*&t. They can keep it.
Also, my truck has 20,000 miles on it. I don't need one thanks

In finishing I thank you for your concern.
You're going to buy the first beer
Yours truly,

[Jimmy240]

I'm no newbie when it comes to dealership antics, but I was surprised today when visiting a dealership. The Girlfriend is currently looking for a new SUV (worst time ever) due to her car being on its last leg. So, we’ve been test driving a bunch of SUVs (3rd row midsize). Today we went to a local dealership just to test drive and while test driving, we noticed they had a “adjusted market value” $5,000 add-on below the MSRP on all the vehicles. I couldn’t believe it. Now don’t get me wrong, I’ve seen this before on specialty vehicles (Hellcat demon, Ford GT, ZR1 Corvette) when they first come out, but to see this on an everyday nothing new SUV. Just asinine!!!

[JRTJH]

I was reading an article a bit ago detailing Ford's new plan to ship "chipless trucks" to dealerships rather than let them sit in a football field near the assembly plant. Plan is to start with Rangers, follow with F150's and finally SuperDuty models. When chips come in, the dealership will "finish the assembly and deliver the truck"...

https://www.ford-trucks.com/articles...coming-months/

If you think about it, it makes sense that customers would have vehicles to look at when shopping, dealerships could prioritize installation of chips on sold vehicles rather than Ford "projecting which ones to ship as chips arrive" and since the trucks are going to "ship to dealerships anyway" better to start shipping to keep the transports working rather than lay them all off and have to "find them to rehire" when chips come in....

Surprising to find a comment in the article about the cost of new vehicles. Currently, the report shows an average increase over last year of $6400 per vehicle. Last year the average price per unit sold was $47800. This year, the per unit price is up to $54200. So the "add-on charges" are definitely being "added on".....

https://www.ford-trucks.com/articles...chip-shipment/

[jasin1]

Originally Posted by JRTJH

I was reading an article a bit ago detailing Ford's new plan to ship "chipless trucks" to dealerships rather than let them sit in a football field near the assembly plant. Plan is to start with Rangers, follow with F150's and finally SuperDuty models. When chips come in, the dealership will "finish the assembly and deliver the truck"...

https://www.ford-trucks.com/articles...coming-months/

If you think about it, it makes sense that customers would have vehicles to look at when shopping, dealerships could prioritize installation of chips on sold vehicles rather than Ford "projecting which ones to ship as chips arrive" and since the trucks are going to "ship to dealerships anyway" better to start shipping to keep the transports working rather than lay them all off and have to "find them to rehire" when chips come in....

Surprising to find a comment in the article about the cost of new vehicles. Currently, the report shows an average increase over last year of $6400 per vehicle. Last year the average price per unit sold was $47800. This year, the per unit price is up to $54200. So the "add-on charges" are definitely being "added on".....

https://www.ford-trucks.com/articles...chip-shipment/

Wonder how much damage they are causing dragging these vehicles all around the lot and the storage facilities…do you think the trucks will start up and drive short distances? Maybe they developed a “master chip” for the delivery drivers to move vehicles around similar to the master keys they used to use to offload cars and trucks

[flybouy]

I read that artical as well. Kinda suprised it took them this long to figure out or implement what seems like a "no brainer". They have to be paying for the extra storage space while dealer lots set open. Transportation costs are only going to increase with the current rediculouse fuel inflation. Just a guess znd strictly a guess but seems logical to me that a bunchnof lawyers and bean counters had to renegotiate the terms on existing agreements between the dealers association and the manufacturer.

[jasin1]

https://www.freep.com/story/money/ca...ge/8045805002/

In related news GM is forgoing some of the truck options due to the chip shortage ….including the “steering wheel option”. Trucks left in production will be fitted with a “tiller” handle similar to sailboats…gm hopes to have steering wheels again for its late 2022 -23 model year

[flybouy]

I think the best current option is the " Don't buy now option". Seems like all you have to do in this country is start a rumor of "limited or dwindling supply" to creat a gold rush like fever of people in a panic to buy.

[travelin texans]

I'm curious how the lending institutions are looking at financing a brand new incomplete truck that's already, or VERY soon will be, a model year old. The manufacturers better be ready to deal on them or they'll be sitting on the lots as long as they were in the weeds.
Personally I'd have to pass on one of those trucks & wait a year or 2 to get a new model factory complete that's hasn't already sat outside in the weeds for the last several months as habitat for who knows what kind of critters.

[flybouy]

Besides the price premiums, I wouldn't be willing to purchase a truck that's been setting out in heat for months on end with birds using the paint for target practice, critters homesteading, and every non treated metal surface getting a head start on rusting.

I've noticed a marked increase in failures of electronics and other products that I've purchased over the past year. I refuse to accept even the "relativly inexpensive" items and return them for a refund (easy to do with Amazon), but I often wonder how many people just "eat the loss" and throw stuff away.

My point in all of this is that I'm not sure how long I would wait to purchase a new vehichle but I can tell uou it wouldn't be a "class of '20 or '21 graduate ".

[JRTJH]

Originally Posted by travelin texans

I'm curious how the lending institutions are looking at financing a brand new incomplete truck that's already, or VERY soon will be, a model year old. The manufacturers better be ready to deal on them or they'll be sitting on the lots as long as they were in the weeds.
Personally I'd have to pass on one of those trucks & wait a year or 2 to get a new model factory complete that's hasn't already sat outside in the weeds for the last several months as habitat for who knows what kind of critters.

Most (maybe all) of the automobile manufacturers have access to "in house financing", so the "lending institutions" are pretty much "directed by the same CEO and Board that is making the decisions on what to ship and what to charge. I agree, sooner or later, when prices return to "normal", all these inflated contracts are going to be upside down and somebody is going to lose a significant sum of cash on all or most of them.... I'll go "out on a limb" and project that it won't be the lending institutions. In 2 or 3 years, try to trade that new truck in on a newer one and I'd guess the trade in value will be "eaten by the owner, not by the lender"....

About the only "risk to the lender" is if the purchaser doesn't make payments on time. With the federal funding to individuals rising on a weekly basis (so it seems), there's a ready supply of cash for those who are not working and a surplus of cash for those who are still drawing a paycheck. So the "lender's risk" is being underwritten by the feds, in a round about way..... Have you got your "child care check" this month ??? Neither have I .....

[flybouy]

To John's point, I predict in 2 or 3 years there will be a plethora of "take over payments" sales going on. The original owner will eat the loss on the upfront interest payments and the "unwitting" person taking over the payments will still be paying full price but think they are "getting a great deal". One thing uou can bet on is the financial institutions eill not loose money. All uou have to do is look back at the last housing boom and bust and how the government bailed out the banks. The taxpayer's always have, and always will "foot the bill".

[jasin1]

Originally Posted by JRTJH

Most (maybe all) of the automobile manufacturers have access to "in house financing", so the "lending institutions" are pretty much "directed by the same CEO and Board that is making the decisions on what to ship and what to charge. I agree, sooner or later, when prices return to "normal", all these inflated contracts are going to be upside down and somebody is going to lose a significant sum of cash on all or most of them.... I'll go "out on a limb" and project that it won't be the lending institutions. In 2 or 3 years, try to trade that new truck in on a newer one and I'd guess the trade in value will be "eaten by the owner, not by the lender"....

About the only "risk to the lender" is if the purchaser doesn't make payments on time. With the federal funding to individuals rising on a weekly basis (so it seems), there's a ready supply of cash for those who are not working and a surplus of cash for those who are still drawing a paycheck. So the "lender's risk" is being underwritten by the feds, in a round about way..... Have you got your "child care check" this month ??? Neither have I .....

I posted before I thought gap insurance should be something people consider if they are buying this year…i don’t get it myself but unless someone puts $20000 or $30000 down on a new truck they might find themselves in a hole if the truck gets totaled…the insurance company only will pay what they think a truck is worth and not a super inflated price…I wonder what the depreciation is on trucks right now?

[CampNBrew2]

I've been wanting (needing) to upgrade to 3/4 ton. I don't need a brand new truck but used are actually more $. I don't need a diesel but it seems that gassers are a very rare breed unless getting a stripped work truck.
Not sure the new (minus the BS markup) prices will go down and for darn sure my 2014 trucks value will! Can currently get close what I paid new for it.
As mentioned, all that I have found have already been spoken for- Though nobody can answer why if it's spoken for it's still there for me to shop for LOL.

[JRTJH]

Originally Posted by CampNBrew2

I've been wanting (needing) to upgrade to 3/4 ton. I don't need a brand new truck but used are actually more $. I don't need a diesel but it seems that gassers are a very rare breed unless getting a stripped work truck.
Not sure the new (minus the BS markup) prices will go down and for darn sure my 2014 trucks value will! Can currently get close what I paid new for it.
As mentioned, all that I have found have already been spoken for- Though nobody can answer why if it's spoken for it's still there for me to shop for LOL.

I was in the Ford "quick lane" getting an oil change a couple days ago and out of "sheer boredom" I decided to walk the lot. A "sort of medium sized Ford dealer" and there were 6 used half ton trucks on the lot, no HD trucks of any brand and only two XL half ton "work trucks" sitting on the new vehicle side of the lot. Both were marked SOLD and both were "contract ordered vehicles for the city public works department. No new trucks on the lot of any size and if I remember, only a couple of Escapes and a Mustang I-4 EcoBoost coupe.

[bcintx]

When I ordered my new truck the first question I asked was if they were going to try and put an addendum on it. They said no. We shall see what happens when it finally gets delivered. Even at msrp as long as trade values don't go down too much I will have a substantial down payment and considerably more truck for the same monthly payment.

[foldbak]

Supply and demand. Folsom Lake RV has 20 units on a 400 unit lot..... Toyota and GMC are calling me asking to buy my vehicles due to lack of inventory. Sad times.

[jamtracy]

I agree. We ordered and luckily got our 2021 Duramax dually this past December. MSRP was 83,300 we got it for 73,500. This was with employee pricing, cash incentive and 1k off for being a costco member.
Now where I live in northern CA they are priced 5-10k over MSRP with no added options and no wheeling and dealing cause they don’t stay on the lot.
When our truck came in there was 5 people trying to buy it. Lol

[jamtracy]

Originally Posted by Jimmy240

I'm no newbie when it comes to dealership antics, but I was surprised today when visiting a dealership. The Girlfriend is currently looking for a new SUV (worst time ever) due to her car being on its last leg. So, we’ve been test driving a bunch of SUVs (3rd row midsize). Today we went to a local dealership just to test drive and while test driving, we noticed they had a “adjusted market value” $5,000 add-on below the MSRP on all the vehicles. I couldn’t believe it. Now don’t get me wrong, I’ve seen this before on specialty vehicles (Hellcat demon, Ford GT, ZR1 Corvette) when they first come out, but to see this on an everyday nothing new SUV. Just asinine!!!

I went 7 seater Subaru Acsent in March 2021 6K under MSRP. Don't know what they are now but it was a good deal and with zero interest loan made it a great deal for me. First Subaru for me and I really like it.

[jamtracy]

Originally Posted by bcintx

When I ordered my new truck the first question I asked was if they were going to try and put an addendum on it. They said no. We shall see what happens when it finally gets delivered. Even at msrp as long as trade values don't go down too much I will have a substantial down payment and considerably more truck for the same monthly payment.

When we ordered a new truck in 2015 they ended up cutting our trade by 2K. We were not happy but we didn't have much choice and bought it anyways.
We ordered a 2021 late last year and got it in January this year. This time we sold our truck ourselves as to not let this happen again. We got a super deal on our new truck and couldn't be more happier.

[Jimmy240]

Originally Posted by jamtracy

I went 7 seater Subaru Acsent in March 2021 6K under MSRP. Don't know what they are now but it was a good deal and with zero interest loan made it a great deal for me. First Subaru for me and I really like it.

I looked at those and they seemed to be pretty nice as far as options and price. BUT, gf said no, sooo I have to move on. 😂