What is a reasonable dealer fee?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Tell them you'd gladly pay the dealer fee if they discount the selling price of the car by the same amount.

In a normal market this is a fine strategy, but this is a seller's market and they'll probably tell you to go kick rocks. The dealer isn't going to sweat the car sitting another few days before a less-discerning buyer comes along and pays full freight with a smile.

It is only a sellers market if you go in the dealer saying you need a car instead of wanting a car, once they know you need one, it is their advantage.

No, it's a sellers market because supply is severely constrained. Again, this is a valid strategy for when supply is not constrained. While inventory is still this low, even if you play coy with them, they know full well that tomorrow or Friday someone more desperate/less discerning than you will walk through the doors. They'll happily sit on the car for another few days to earn an extra $1,000. The calculus will change once inventory catches up again, but that hasn't happened yet.

[Anonymous]

Any thoughts on when inventory will pick up? We’re looking for a new vehicle but don’t *need* one, so could stand to wait.

[Anonymous]

Anonymous wrote:Any thoughts on when inventory will pick up? We’re looking for a new vehicle but don’t *need* one, so could stand to wait.

Making predictions is hard, especially those about the future. My gut feeling says to wait it out if you can, but it could be at least another year or two before the supply chain kinks currently constraining manufacturing are worked out, and it's not hard to envision a scenario in which things get even worse (prolonged/worsened war in Ukraine, COVID surges, bottlenecks at ports, etc).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Tell them you'd gladly pay the dealer fee if they discount the selling price of the car by the same amount.

In a normal market this is a fine strategy, but this is a seller's market and they'll probably tell you to go kick rocks. The dealer isn't going to sweat the car sitting another few days before a less-discerning buyer comes along and pays full freight with a smile.

It is only a sellers market if you go in the dealer saying you need a car instead of wanting a car, once they know you need one, it is their advantage.

No, it's a sellers market because supply is severely constrained. Again, this is a valid strategy for when supply is not constrained. While inventory is still this low, even if you play coy with them, they know full well that tomorrow or Friday someone more desperate/less discerning than you will walk through the doors. They'll happily sit on the car for another few days to earn an extra $1,000. The calculus will change once inventory catches up again, but that hasn't happened yet.

I don’t know. I just bought a new car, and yes inventory was very slim but they are VERY eager to sell it to me. I got below MSRP out the door. But, you have to be willing to walk away. They will call back. If you’re a serious buyer you can still get a fine deal in this market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Tell them you'd gladly pay the dealer fee if they discount the selling price of the car by the same amount.

In a normal market this is a fine strategy, but this is a seller's market and they'll probably tell you to go kick rocks. The dealer isn't going to sweat the car sitting another few days before a less-discerning buyer comes along and pays full freight with a smile.

It is only a sellers market if you go in the dealer saying you need a car instead of wanting a car, once they know you need one, it is their advantage.

No, it's a sellers market because supply is severely constrained. Again, this is a valid strategy for when supply is not constrained. While inventory is still this low, even if you play coy with them, they know full well that tomorrow or Friday someone more desperate/less discerning than you will walk through the doors. They'll happily sit on the car for another few days to earn an extra $1,000. The calculus will change once inventory catches up again, but that hasn't happened yet.

I don’t know. I just bought a new car, and yes inventory was very slim but they are VERY eager to sell it to me. I got below MSRP out the door. But, you have to be willing to walk away. They will call back. If you’re a serious buyer you can still get a fine deal in this market.

What make PP?

[Anonymous]

Anonymous wrote:Any thoughts on when inventory will pick up? We’re looking for a new vehicle but don’t *need* one, so could stand to wait.

I think things will loosen up a bit over the next year but only so much: The past 24 months have shaken up a lot of things, including the car market. Chip shortages, etc left carmakers with lower volumes and car dealers with fewer cars on the lot. Weird things started to happen in the used car market as dealers offered big bucks for used cars so that they would have something to sell.

In 2021 carmaker profits went way up and car dealers are experiencing all time record profits. The genie is out of the bottle: instead of chasing volume and routinely cutting thousands off the MSRP, the industry discovered the law of supply and demand:" sell fewer vehicles and make a lot more money.

[Anonymous]

Anonymous wrote:Any thoughts on when inventory will pick up? We’re looking for a new vehicle but don’t *need* one, so could stand to wait.

We just ordered a high demand car at MSRP for delivery sometime in December. It's also a brand that lost a bunch of cars in the boat fire recently so not a lot of inventory. Getting MSRP seemed like enough of a deal compared to what is available on the lot so we went for it.