> but the dealership wanted to charge me a $15k "dealership fee"
Do your scare quotes mean you think it's unreasonable? It's supply and demand, isn't it?
Do your scare quotes mean you think it's unreasonable? It's supply and demand, isn't it?
And it's not scare quotes, I'm just using the phrase that they used, which I had never heard of before.
And, it was unreasonable, because of some details which I did not include, which is that the specific vehicle was listed as for sale on their website for $40k, but only when I called did they say that it was actually only for sale for $55k. That's a bait and switch.
Didn't even try to negotiate the sticker price but, to my surprise, was about to get the price for some "factory installed options" (which included a first aid kit!) added to my trade-in. So the used car situation cuts both ways.
I was probably pretty lucky to get the car in "only" six weeks.
But didn't even try to get a hybrid or electric.
No, it's not reasonable when you're forced to go through a middleman who adds little to no value to the transaction and wants to take a massive cut. Ford is legitimately worried about dealership greed jeopardizing the success of the F-150 Lightning[1] and EV's in general, so they're moving towards direct to customer online sales for their EV's[2]. They've arguably been burned by greedy dealerships in the past with the Focus RS[3].
[1] https://www.thestreet.com/lifestyle/cars/ford-warns-dealers-...
[2] https://arstechnica.com/cars/2022/06/ford-wants-to-sell-evs-...
[3] https://www.thetruthaboutcars.com/2017/07/barks-bites-focus-...
$20k buys a lot of gas, and you get to finance it too.
All fees are a way of raising a price.
There is supposed to be a difference between markup and a fee. We don't have to hash out what exactly the difference is, just observe that there is a difference.
It's a common grift to hide part of the price in unadvertised "fees" so that consumers will have a harder time comparing options but it is just that, a grift. It's deception.
A per-transaction credit card fee doesn't raise the unit price. Getting hung up on the evolving details of gas stations and credit card processing isn't the point.
The dealership meets the market price, not sets it. If their fee was unreasonable people would buy other cars until the dealer dropped their prices to something reasonable.
Because my understanding is they own the cars, once they're delivered from the manufacturer. They own the asset.
Because the manaufacturer decided to not raise the price. This means the next person now has the ability to raise the price.
You also seem to forget the fact that much of those market conditions are a result of anti-competitive and anti-consumer laws guaranteeing their the status a middle men by force.
If for example consumers were able to buy directly from manufacturers but chose to pay more at a dealership because they thought the extra cost was worth some surplus value provided then you might have a point.
In my not so humble opinion, while the used market can do what it may, MSRP is MSRP. This goes for GPUs as much as it goes for cars. I understand shortages. I am ok with waiting lists. I do not appreciate profiteering. Any dealership that tried to stick me with such a markup not only would blow the sale, but would not get my business in the future.
The S stands for “suggested”, and that suggestion is based on an inherently fallible prediction of future market conditions.
> I do not appreciate profiteering.
Capitalism is profiteering. The MSRP is profiteering. The only difference is who is profiteering, and when.
I guess I don't get why people think they should be immune from paying a market price.
When you negotiate salary do you go for the most you can negotiate? Or do you accept minimum wage because someone somewhere suggested it to you? Why do you think any other transaction should be different? It's a brand new luxury SUV, it's not baby milk.
> MSRP is MSRP
Guess what... the MSRP includes profit (gasp!). As much profit as they thought they could get away with when it was set.
> Any dealership that tried to stick me with such a markup not only would blow the sale, but would not get my business in the future.
Ok so great this already limits how much they can charge. I guess someone else somewhere is willing the pay the price though, or they wouldn't charge it.
I think your logic is basically 'I don't want to pay that much'. Ok well they don't want to sell it for less, and it's their property. You'll have to go elsewhere. Sounds like you're happy with that so what's the problem?
Which is a completely valid reaction and the risk the dealership takes, and ultimately when the price rises to the point where they no longer attract buyers, the market corrects. That will be soon as the fed raises interest rates.
People here love passive aggression.