Car prices and sales models

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IS-SV

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Low supply / /high demand coming out of Covid,for now...
 

Levi

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semiconductors shortage could also be a reason, with increased delays buyers might be looking for young used cars. old used cars are in oversupply, no one knows what to do with them, too valuable for dismantling, to expensive and outdated for use.
 

bogglo

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Works both ways, though......high trade-in values, high new-vehicle prices.
it's crazy. Wife totaled her car 2007 Pearl white Lexus GS350 with 85k miles on it. bought the car for 13k in 2018 insurance pay out was around 14k. I was excited for the payout but the other side of that coin is getting a new car to replace it almost impossible.
 

Will1991

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@bogglo , first off all, hope that your wife is well. As far as the car goes, may I suggest the... IS500? đŸ˜‡

On a more serious note, I really think you should give the ES300h a try.
 
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bogglo

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@bogglo , first off all, hope that your wife is well. As far the car goes, may I suggest the... IS500? đŸ˜‡

On a more serious note, I really think you should give the ES300h a try.
She came out without a scratch thanks for asking. She's currently driving my 2014 GS F sport, and she complains that it's too racy for her so I Know for sure she don't want the IS500. She wants to go SUV now so I've been looking at the RX. Me on the other hand If the used market stays the way it is I might trade the 2014 GS in for a GSF or IS500 if the price is reasonable.
 

NXracer

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The new inventory situation for Lexus is insane currently. Some models have shrunken to 1/10th the size they were during the same period in 2020. December to Remember started in Nov last year, yet we see crickets currently.

Naturally the used car market will be insane for the rest of the year.
 

mikeavelli

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The new inventory situation for Lexus is insane currently. Some models have shrunken to 1/10th the size they were during the same period in 2020. December to Remember started in Nov last year, yet we see crickets currently.

Naturally the used car market will be insane for the rest of the year.

it’s crazy to see pics at dealerships with like 5 cars.
 

NXracer

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it’s crazy to see pics at dealerships with like 5 cars.
Any Lexus dealers doing ADM? Many Toyota dealers can't help themselves.
View attachment 5217
Lexus dealers were doing ADM last year around this time. GXes are commanding 4runner like premiums...Bravo to the GX but who would have though that would be a thing!

Its a weird time to be in the market but not everyone is equally effected.

Buyers with no trade-ins and/or urgency to get into are basically the worst off new or used.
Buyers with trade-ins tbh are basically unaffected. You get screwed with the new car while the trade-in has more equity then ever before.

This is a generalization and we discuss specifics over pm if anyones interested.

What I have to ask though is, has the one price system alot of folks have been clamoring for buying a car any less painful numbers wise?
 

IS-SV

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What I have to ask though is, has the one price system alot of folks have been clamoring for buying a car any less painful numbers wise?
Yes, when backed up by automaker‘s stores and employees that work directly for automaker (not cheating franchised dealerships), it’s less painful. And those with trades still get to enjoy current high trade in values.
 

NXracer

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Yes, when backed up by automaker‘s stores and employees that work directly for automaker (not cheating franchised dealerships), it’s less painful. And those with trades still get to enjoy current high trade in values.
I beg to differ. Let me preface this with I think that either solution has its bad players and one side is doing a great job marketing at any given time.

i don't think Carmax, Carvana, Tesla, and Autonation has solved the core issues that effect customers. In the case of Carmax and Carvana like companies the sheer amount of capital reserves they have to outbid everyone has allowed select sellers (dealer and end customer) to profit on their trades while simultaneously outpricing a great chunk of the market. Used Dodge Journeys have trade in value above what they paid for!

In terms of companies that have gone to the one price model, mainly Tesla, yes they have removed the middle man etc shifting the once lost power lost by mfgs currently in franchise agreements back to the mfg. But has that allowed customers into the cost savings by having another mouth at the table to feed. Not really. Tesla prices have risen quite drastically just like the mfgs who are in franchise agreements.

This type of startup behavior is pretty funny that folks buy into it (thank savy marketing). Ride the anger against industry stalwarts, with attractive pricing, then when you have enough marketshare turn into the company that consumer anger was directed to. Good luck pushing them on price.
 

IS-SV

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^ I beg to differ (having real experience in automotive industry) and very familiar with CarMax and Tesla. Not true, Tesla prices on volume models 3 and Y have NOT increased to same degree as Additional Dealer Markups at traditional franchised dealerships.
 

mmcartalk

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^ I beg to differ (having real experience in automotive industry) and very familiar with CarMax and Tesla. Not true, Tesla prices on volume models 3 and Y have NOT increased to same degree as Additional Dealer Markups at traditional franchised dealerships.
Since you say you are familiar with CarMax, what do you think of them in general? IMO, it seems to be one of the best places to get a used vehicle. Their excellent service facilities and showrooms are comparable to many of the better new-car dealerships (and here, in the D.C. area, we have some of the best dealerships on the East Coast). I also like their one-price/no-dicker system (comparable to the former Saturn and Scion), and their policy of printing everything on the price-sticker, with little or no hidden charges.
 

IS-SV

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Since you say you are familiar with CarMax, what do you think of them in general? IMO, it seems to be one of the best places to get a used vehicle. Their excellent service facilities and showrooms are comparable to many of the better new-car dealerships (and here, in the D.C. area, we have some of the best dealerships on the East Coast). I also like their one-price/no-dicker system (comparable to the former Saturn and Scion), and their policy of printing everything on the price-sticker, with little or no hidden charges.
To answer your questions, yes it is one of the better places to buy a used car. Therefore it's the biggest retailer of used cars in the US, and consistently profitable too. It's a well run business. Service centers are mediocre, anything very technical is sent over to new car dealership service centers. Yes, the one price full disclosure sticker price is their universal business practice. Certainly more transparency than most through the entire buying process. CarMax has economies of scale that others can't touch. AutoNation's half assed attempt to copy CarMax's used car business is weak btw. CarMax isn't the cheapest place to buy a used car, and it's still up to the consumer/buyer to comb their inventory and buy the car the is the best value since no 2 cars are identical.