Monday, March 27, 2023

Private Vehicle Prices May drop but Volume is Still Booming For Fleet Sales


Pretty much just as I predicted most manufacturers are dragging their feet before dropping the outrageous prices they got used to over the last few years. I know many still want to blame Dealerships but trust me here the lion's share of over pricing is not their doing. I am sure there are many less than honest dealerships around that just love to add in some useless hidden cost scam but the manufacturers just love to pass the buck and leave dealerships holding the bag to take the blame for their slime ball calls too. Trust me it's the financial sector that has destroyed dealerships and forced most of this across the board dishonesty in my opinion.

Most dealerships are now forced to a specific bottom line by the finance holders (the car business has gone about 3 steps beyond floor financing anymore) before they can sell and these same financial speculators are also forcing big time up selling on both the vehicles and for the employees too, whether they be a young naive sales person or a new totally green service writer.  

I see it everyday.

The manufacturers will lie about price fixing and claim MSRP's etc. are all the dealership's fault but trust me they quietly love to raise delivery prices to the dealers and then expect them to eat the losses. If you think it would get any better if they did away with dealerships just imagine driving 300+ miles to pick up your new car at the regional Democratic Metroplex and population center and start figuring out how many new taxes and addons they will have in a few months as you wait for your ordered vehicle to come. 

A sales model without the dealerships will be a service and support slaughter fest for individual consumers. Especially those outside the Democratic 15 minute city base strongholds. There will be absolutely zero quality control at the very least. And no sympathy for parts delays due to a recall either I assure you of that. NO matter how far away in flyover land you live.

Those manufacturers promise the dealerships more MSRP profits to try and get the dealerships to order more stock models. It's a selling point not dealership greed more than anything else.

Regardless and despite all the hype about new car sales dropping these manufacturers have two years worth of fleet sales to fall back on and they are pushing it hard. If you can't count on private sales you can always count on the Government to spend until it hurts everyone and that is just what I am seeing the last few weeks. 

I had only Sunday's off over the last 3 weeks and it has been mostly fleet sales coming in. A lot of fleet vehicles which are usually lower price per unit sure but they are moving fast as all these little schools, county commissioner of this or that and all haven't had new vehicles in two years now and they are due.  Just ask em.

Bottom line I am still calling it that we will not see significant new vehicle price drops until the various manufacturers have saturated the neglected government fleet sale market. We might see a few lower base models come online however but they don't wanna lower the prices on their higher end stuff until they have to.

I got a feeling it's gonna be a busy Summer for me the way this is going.


Keep Prepping Everyone!!!!


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