A New Brand of Sticker Shock Hits the Car Market

[mahatmakanejeeves]

It used to be that nobody paid sticker price for a car—because they paid less. In today's topsy-turvy market, a whopping 82% of new car buyers paid more than MSRP.

Link to tweet

BUSINESS | AUTOS & TRANSPORTATION | AUTOS INDUSTRY

A New Brand of Sticker Shock Hits the Car Market

With vehicles in short supply, prices are skyrocketing. Last month, 82% of new-car buyers paid more than sticker price.

By Mike Colias and Nora Eckert
Feb. 26, 2022 12:00 am ET

How hard is it to buy a car today? For Kevin Peters, it recently involved a one-way flight and 330-mile road trip to avoid overpaying for a new truck.

Mr. Peters initially spent three weeks shopping around San Diego for a new F-150 Lariat pickup, only to encounter extra charges of $5,000 to $8,000 above the suggested retail price. He decided to fly to a dealership in Las Vegas, where he got what is considered a bargain: He paid the sticker price of $73,520.

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[no_hypocrisy]

1. Let me get this straight:

There are buyers who will pay almost $74,000 for a new car which may last somewhere between 150,000 and 225,000 miles if properly maintained. They won't keep it more than ten years. That's $7,400 (or more) a year just to own it. Add auto insurance, gas, repairs, maintenance, maybe repair for an accident.

No wonder used cars have increased their price so much.

[Casady1]

11. A well maintained car can last 300,000

My brother has a '93 Honda and I have a '94 Audi S4 He also has a Subaru. All these cars either have 300 or closing in on it. maintenance is the key. I'm not saying you are wrong that people will be getting rid of their cars but cars can really last a long time.

[no_hypocrisy]

14. I've had two Honda Accords and I concur with your opinion.

I suppose I'm addressing those who don't have Hondas and/or don't do their maintenance. I check my oil once a week as well as the fluids and hoses under the hood. Change the oil every 3,000 miles. Take it in when I see something, hear something, smell something, and/or feel weird vibrations.

IMO, a lot of people literally drive their vehicles into the ground.

[IbogaProject]

15. Lemons to Oranges comparison

This is an American Ford F150 the article is talking about. I'm not sure that will have the lifespan of the typical Toyota, or Honda, which have the highest percent of cars making it in the hundreds of thousands of miles. Maybe Ford's trucks are better than their cars, but many Fords have their catalytic converters fail soon after their warranty ends.

[JohnSJ]

2. That is because consumers are fucking idiots. Anyone paying more than MSRP is a fool.

Here in the Bay Area I can name several dealers who will not mark up their cars over MSRP

Another way is just order directly from the factory.

I blame the consumer more than the car dealers

[Ferrets are Cool]

12. This x 1000

[progree]

3. From Feb 4: Chip shortage forces Ford to cut production of F-150, Bronco and other

important vehicles

Ford is cutting vehicle production next week of several key products due to an ongoing global shortage of semiconductor chips.

Impacted products include the F-150 pickup, Mustang Mach-E electric crossover, Bronco SUV and other vehicles.

The cuts come a day after Ford significantly missed Wall Street’s earnings expectations due to supply chain issues, sending shares to tumble 9.7% on Friday.

https://www.cnbc.com/2022/02/04/chip-shortage-forces-ford-to-cut-production-of-f-150-bronco-suv.html

[mitch96]

9. "Chip shortage forces Ford to cut production".. I guess it's the old supply and demand thing

You want it? you pay for it if there are not many around...do your homework..YMMV
m

[orwell]

4. Here's a thought...

...don't buy a new car.

We have two cars. One is 21 years old. One is 15 years old. They both get over 45 miles a gallon. We bought them used over 10 years ago. We maintain or repair them when they need it. They both run just fine.

It's called supply AND DEMAND.

Stop buying what the price gougers are selling!

[Auggie]

13. +1

[Throck]

5. I know people who waited 8 months for delivery due to chips.

[progree]

6. Why buying a car is still such a miserable experience right now, MPR News, 2/8/22

https://www.mprnews.org/story/2022/02/08/npr-buying-a-car-chips-supply-chains

According to Kelley Blue Book, the average used car now sells for 42 percent more than before the pandemic. ((because of stupid consumers, so I've been told))

"The people who are looking for need-based transportation as opposed to want-base transportation — the folks who are looking for the traditional $10,000 or $12,000 car that has, you know, 95,000 or 105,000 miles — those folks are having a very difficult time in this market right now," says Matt Jones, head of communications at TrueCar.

It's still the supply chains

... And it's not just how many vehicles they're producing, but what kinds. Automakers have responded to the shortages by focusing on their most profitable cars, meaning the priciest ones.

and how the automakers are making great profits and its been great for the dealers too

Dealerships have also benefited. Scarcity has vehicles flying off the lot, and they, too, profit off the shift to up-market.

[mahatmakanejeeves]

7. Maybe he needs it for business, and he needs it today.

I don't know. I don't have access to the entire article without going through my library. Meanwhile, I'm doing some laundry, Vanguard came through with their 1099s, I have papers to recycle, I'm hungry ...

If I have the time ...

[ebbie15644]

8. If you absolutely don't need one, don't buy one

[progree]

10. Subthread: Warning about "out the door" price quote -- The dealers have a habit of adding on "fees"

Subthread on cars (#10 and #14 below it) - Warning about "out the door" price quote -- The dealers have a habit of adding on "fees" they "forgot" to add in.. The last dealer I dealt with kept on adding fees for bogus shit. A $300."disposition fee" for the trade in car... I HAD NO TRADE IN.. Your best weapon is to walk out the door if anything looks fishy. Drives them nuts.

Notes I made about the subthread at the time. The thread OP and most of the thread is about buying refrigerators

https://www.democraticunderground.com/10181628558#post10