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While dealers are greedy lining their pockets with the stupid markups (and dumb consumers among us), the auto industry as a whole is in trouble. First there's the shortage, supply chain issues, and then dealer markup on vehicles that are already expensive to begin with. Add in the high monthly payments for those that did buy new, and this all doesn't look good.
I don't think the industry as a whole is in trouble. Demand is high, and there is pent up demand from the past few years. The automobile industry has proven to be extremely resilient. But I do think change is coming. I commented in another thread that I think there's value in the franchise-dealer model, but they're not making a good case for themselves. Financing and leasing dynamics will likely shift as well, leasing is already less prevalent as payments have gone up.
Long established dealer networks won't be shaken easily, and in most states there is legislative support for them. I do think it's possible though that they overplay their hand with these markups - which are tough on consumers and provide no benefits to manufacturers either, if anything, they only slow sales, plus if you overpay, I can imagine many buyers will be less forgiving of a car's shortcomings, and all vehicles have issues of some kind.
Tesla sells direct to consumer and Ford has announced that their EV business will be direct to consumer - does anyone know if Ford is already selling the Mustang Mach-e direct to consumer?
The only thing that will stop sales is a nationwide recession. As long people have jobs, demand will exceed supply.
I agree. However, you might also want to calculate in (or out) the "retiree" market. We may want a new car, and may still think like we did, when we working, and bringing in a paycheck. We could still afford a new car every once in a while, even though retired, but that was under the formal, "normal" circumstances. Under today's conditions, we opting to keep what we have....at least I am.
I agree. However, you might also want to calculate in (or out) the "retiree" market. We may want a new car, and may still think like we did, when we working, and bringing in a paycheck. We could still afford a new car every once in a while, even though retired, but that was under the formal, "normal" circumstances. Under today's conditions, we opting to keep what we have....at least I am.
I think car ownership eventually will go down, I don't think many people really own their cars. They have car payments and fewer people today fully paid off their car before they trade in for another. That's what's keeping the car industry going.
Eventually we're moving to pure leasing as cars become too expensive to own and retain. Majority of people don't want the hassle of keeping an old car running as long as they pay a small monthly fee to keep leasing a car for a few years and trade in another.
Majority of luxury car makers are trying out car subscriptions where they cover the entire cost for just a monthly fee. It hasn't trickled down yet to affordable rates yet but most people don't realize they should just do a lease or subscription than financing and getting into negative equity.
The only thing that will stop sales is a nationwide recession. As long people have jobs, demand will exceed supply.
This.
We've been through this before multiple times. What I don't see happening again is the manufacturers having a 150 day supply of vehicles in inventory like has happened in the past (although I may end up being wrong).
I do see that ordering a car will likely come back into fashion again for those who absolutely don't have to have a vehicle today.
I think car ownership eventually will go down, I don't think many people really own their cars. They have car payments and fewer people today fully paid off their car before they trade in for another. That's what's keeping the car industry going.
Eventually we're moving to pure leasing as cars become too expensive to own and retain. Majority of people don't want the hassle of keeping an old car running as long as they pay a small monthly fee to keep leasing a car for a few years and trade in another.
Majority of luxury car makers are trying out car subscriptions where they cover the entire cost for just a monthly fee. It hasn't trickled down yet to affordable rates yet but most people don't realize they should just do a lease or subscription than financing and getting into negative equity.
You must live in a BIG city.
U.S. car ownership isn’t going anywhere. I will OWN cars for as long as I live.
While dealers are greedy lining their pockets with the stupid markups (and dumb consumers among us), the auto industry as a whole is in trouble. First there's the shortage, supply chain issues, and then dealer markup on vehicles that are already expensive to begin with. Add in the high monthly payments for those that did buy new, and this all doesn't look good.
Totally disagree that car manufacturers are in trouble.
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