Why new cars are mostly higher trims? (vehicle, brake, chip)

[jimmybirdie]

I was approved for a new company car, the Nissan Pathfinder SV. There are 4 trims S, SV, SL and Platinum.

The dealer that is going to provide the car to me in the last few months has had only the SL and Platinum trims on the lot. Currently there are 30 2023 Nissan Pathfinders on the lot and all of them are SL and Platinum trims.

Is this similar to other car makers? Are they prioritizing higher trim models for higher profit due to the limited number of chips?

[notnamed]

Yeah, more profit.

Though with the chip shortage those higher trims have been coming with deleted features making them not so "high".

[RetireinPA]

its far far easier to build, and to automate to build simpler models. that is why all cars now get power locks, windows, brake and air, the days of bazillions of combos and secret rules gets rid of the 'delete radio and able to order better axle ratio'


ETA: as more and more cars go to subscriptions, they can build a loaded car and only unlock features if you pay a monthly, they can make AC once again 'optional', the cool radio, 'beepy things' etc.


that nets the manu real time cash on hand and is becoming more and more attractive in the premium makers

[kwong7]

I'd say it's partly due to the higher profit margin of selling higher trims, but also a foolish consumer who became a sucker for financial engineering, and finally the complete imbalance of supply and demand. It wasn't that long ago that dealers had to clear out their old inventory.

[Hemlock140]

They also do bundling of features for that reason. For example when we bought our 2020 Outback we didn't want a moonroof,
but had to get it (and pay for it) to get the hands-free rear cargo door. If you go onto any manufacturer site and choose "build" you will often ask for an inexpensive accessory or feature and it will pop up and tell you that it requires another expensive "group."

[jimmybirdie]

I have checked another dealer that could work with Donlen (fleet car management company) and all 45 Pathfinders on the lot are also SL (leather) and Platinum trims. It is ridiculous. My company doesn't budge when I ask for an SL trim.

[OutdoorLover]

Originally Posted by Hemlock140

They also do bundling of features for that reason. For example when we bought our 2020 Outback we didn't want a moonroof,
but had to get it (and pay for it) to get the hands-free rear cargo door. If you go onto any manufacturer site and choose "build" you will often ask for an inexpensive accessory or feature and it will pop up and tell you that it requires another expensive "group."

Yes, when I bought my Forester in early 2019, I at first ran the build process on the Subaru website. When I got to the dealer though, I found that the vehicles generally had a good deal of extra crap I didn't necessarily deem essential. In theory I could have ordered a vehicle with exactly the configuration I wanted and waited, but I felt like I could drive a bit of a deal with them excited about getting the deal right then and there, drawn from their stock, so I went ahead with that. I wound up getting a top trim plus options vehicle. I haven't really regretted it to be honest, as even stuff like the heated steering wheel is nice to have once you start to use it. But if I could have magically just gotten whatever I wanted on the spot, I'd have picked out a car that listed for $3K-$4K less.

[notnamed]

Originally Posted by Hemlock140

They also do bundling of features for that reason. For example when we bought our 2020 Outback we didn't want a moonroof,
but had to get it (and pay for it) to get the hands-free rear cargo door. If you go onto any manufacturer site and choose "build" you will often ask for an inexpensive accessory or feature and it will pop up and tell you that it requires another expensive "group."

Then you get to Mini which boasts of 10 million combinations you can build with all their individual options. But BMW has been reigning that in lately accelerated by the chip/supply issues.

[PacoMartin]

Originally Posted by jimmybirdie

Is this similar to other car makers? Are they prioritizing higher trim models for higher profit due to the limited number of chips?

Of course. I was looking at a entry level car, and I noticed that the standard trims and choices could add up to 50% more than the "poverty-spec" version they advertised. MSRP for the 2023 model year:

1. $19,795 0%
2. $20,295 3%
3. $21,095 7%
4. $21,595 9%
5. $23,195 17%
6. $23,645 19%
7. $23,695 20%
8. $23,995 21%
9. $24,595 24%
10. $24,795 25%
11. $24,995 26%
12. $25,095 27%
13. $26,145 32%
14. $27,395 38%
15. $27,995 41%
16. $29,495 49%

The dealer is quick to tell you that they only sell vehicles at MSRP with no "Additional Dealer Markup", but in addition to only high level trims they also include multiple options that I can't live without.

This game has been going on for decades, but it seems to have gotten much more intense.

I have a 16 year old sticker for the same car listed above that was bought off the lot

• $17,995 MSRP (the poverty spec MSRP has increased by only $1800 or 10% in 16 years, which is a rate far below inflation)
• $800 Automatic Transmission
• $75 cargo tray
• $625 destination and delivery

And the dealer ofered a $2000 discount since the car had sat on the lot for several months.

[MKTwet]

It's what the dealer orders in order to pad up the MSRP. If a car lists for $20k on the mfg website but shows up on the dealer lot for $35k after all the bells and whistles installed and they don't have the basic trim at all.

The only way to get a basic trim is to have someone look up the inventory around the country and find a basic trim in stock at a dealer. Usually it is in a state where the cost of living is low so they have to carry lower value cars.