Why have consumers let the price of New vehicles get out of control? I know this is a free market but most items that are marked up 300% or more will not sell because common sense kicks in. I think this is why Ford is in trouble...What do you think?
2007-01-25 06:56:25 · 14 answers · asked by B C 2 in Cars & Transportation ➔ Buying & Selling
Yes prices are getting out of hand! It's also ridiculous how much the value decreases once you drive that pricey car off the lot!
2007-01-25 07:06:09 · answer #1 · answered by me_csun 2 · 3⤊ 0⤋
I do feel that the price of cars are excessive. Lets take a car that has a Base MSRP of 30K (As shown on the manufacturers website). The dealer invoice was probably 25-26K. The car did not "cost" 20K to produce. So first you get hustled by the manufacturer. Then the average car that costs 30K will not be sold by the dealer for MSRP, especially if there is any kind of demand for that vehicle. they will mark it up another 20% because people will pay for it. So a car that has a Base MSRP of 30K will cost you 35-36K.
example the Toyota FJ cruiser has an MSRP of a little over 23K for the high end model. Dealers will sell this truck for over 30K, because there is a demand for it. It is all supply and demand. If the supply is low and the demand is high then the price goes through the roof.
2007-01-25 17:24:11 · answer #2 · answered by realeizen 2 · 1⤊ 0⤋
First off, as mentioned, the mark up on new cars is not anywhere near what you're imagining. And I'm sure you're not alone in your ideas of what car dealers make. Many consumers are under the same impression you are. For most domestic and non-luxury imports you're looking at a 3-8% margin between MSRP and invoice. If there were 300% mark-up, there'd be a lot of doctors applying at my dealership for a job so they could increase their way of living!
Secondly, car prices really have not increased greatly in the last 20 years when compared to the economy. At our Lincoln/Mercury dealership for example, most of our cars are about $2,000-3000 higher than they were 10 years ago. And take into account the amount of technological advances made during those ten years. And this marginal increase in MSRP's is pretty steady across the board of manufacturers.
Now, some manufacturers have abandoned low-priced, entry-level type of vehicles over the last decade. This can lead some consumers to believe that cars are going up. Take for example the Ford Escort. A good, very reliable car that RETAILED with all available options for under $14,000. It's now gone, and the closest vehicle in it's place in the Ford line is the Focus, which can retail for as high as $20,000. Leading many to view this as cars increasing in price. However, even with the disappearance of a car like the Escort, comes the introduction of the Kia's, Suzuki's, and Hyundai's that all fill that low MSRP market.
2007-01-25 16:50:53 · answer #3 · answered by Jeff K 3 · 0⤊ 2⤋
Quote:
Car Salesman William S. " By what we get paid on, why can't i afford a yacht and a mansion and a few concubines? i been doin this two whole years now, and by your math, i should be pushing bill gates for the richest man"
Lets see...If I Watch TV for an hour...there will be 30 minutes of car advertisements...Local dealers in my area buy prime real estate and set up "Mega Malls" everywhere with overpriced cars & trucks as far as the eye can see. I bet they do own Yacht's because they don't sweat buying Superbowl Ad's at a Million dollars a second. You only need to look at the $$$ they spend to see how much the mark up is ...Truth known it's probably more than 300%. BC...Your pee brain is working correctly because they ARE overpriced and even though I could afford it I will not be taken like a fool.
2007-01-25 16:08:33 · answer #4 · answered by Travis C. 1 · 3⤊ 0⤋
where in the hell did you get the notion that a car is marked up 300%???? i sell new fords, and i can assure you, the amount of gross 'front end' profit is no where near 2/3 of the car's selling price. if that were really true, and the amount of profit, of course, is what we get paid on, why can't i afford a yacht and a mansion and a few concubines? i been doin this two whole years now, and by your math, i should be pushing bill gates for the richest man in the world title.
seriously, though, the amount of research, technology, and progress made in new cars in the last 20-30 years is amazing. how do you think we figured out how to keep your little pea brain from rattling around in your skull should you have an accident? research, development, and progress. none of which are free.
to answer your question, no, i don't feel new cars are over priced, and, in fact, i feel they sell for far less than they are worth.
2007-01-25 15:16:49 · answer #5 · answered by michael_oxgood 4 · 0⤊ 4⤋
Yes they use Robots,assemble them in Mexico, and still they go up a $1000 every year. Its not the electronics from Taiwan as they claim that's makes them expensive. Its the C.E.O.s greedy salaries. P.C.s started out high like microwaves,now they are cheap.
Workers need to hang those C.E.O.s by their ties. Like Snap On Tools shutting down a small Union plant,that only made one dollar and hour more than non union. Dirty Dogs will stop at nothing to fatten their wallets.
2007-01-25 15:05:55 · answer #6 · answered by Anonymous · 2⤊ 0⤋
I think it's a totally unrealistic price for a new Vehicle. I haven't ever be able to have a new one, and I can't ever see that changing.
Same issue with housing, a morgage is unattainable, a home of my own impossible to have. It's not right, everybody needs a place to live, why is it only some can say it's theirs?
2007-01-25 15:08:29 · answer #7 · answered by Honey W 4 · 3⤊ 0⤋
You should know that ford means - Fix Or Repair Daily! Because of thet the Ford is in trouble.
2007-01-25 15:19:29 · answer #8 · answered by back_shark 2 · 2⤊ 1⤋
What is excessive? I paid $57k for my Mercedes SLK. I wanted a unique car and paid for it. It is stylish, fast, fun to drive, and has amenities that no other car had.
Whats excessive is the price for my F350 truck. It was $55k and it is a pick up truck. Yes, it is a big hulking 4x4 diesel crew cab long bed lifted 6" and equipped with a lot of custom equipment, IT gets bad mileage, is hard to drive, and terrifies other drivers. Would I do it all over again, hell yes!
2007-01-25 15:06:56 · answer #9 · answered by yes_its_me 7 · 0⤊ 3⤋
yes. when you can go abroad and buy it cheaper.i thought being part of common market would change things but politisions and goverment 2 greedy
2007-01-25 15:10:07 · answer #10 · answered by robert w 1 · 3⤊ 0⤋