Toyota Deals

[MattB]

I have a sneaking suspicion that car dealers have us right where they want us. During covid they had limited supply and marked up vehicles with a "market adjustment" for the shortfall and made money hand over fist. I think the car dealership model with lots of vehicles to choose from on the lot is a thing of the past. Limit supply, screw everyone who needs a vehicle with a BS "market adjustment" for the lack of supply and increased demand and have virtually no inventory overhead on their floorplan. The vehicles the dealerships had didn't cost them more, but they charged $5,000-$10,000 or more for these "market adjustments" and had less money in them and less work to do, less overhead with their floorplan, etc. Now you order, pay top dollar, get shafted with the "market adjustment" and wait for your vehicle to arrive. I may be wrong, but I foresee this being the new auto dealership model.

Most dealerships have large fixed costs like building leases and salaries that still needed to be covered, and they had to try to make ends meet based on substantially lower sales volumes. My sense is that notions that dealerships were making money hand over fist and that market adjustments were BS are false.

 

[william schmaltz]

not sure if it's been said yet but try toyotathon sales drive event. the commercials imply it's the best time to buy a Toyota

I got sent to HR yesterday for wishing our secretary Happy Hondadays. Apparently the owners only celebrate Toyotathon. Typical closed-minded Toyota people thinking they're the only ones that matter this time of year.

 

[MattB]

I remember seeing somewhere that Ford was sitting on a bunch of 2020/2021 F150 waiting on parts before they could deliver. Do you know if there is truth to that?

It was in the news that BMW sold some vehicles without touchscreen functionality because they could not get the semiconductor to make them work. Not sure about Ford, but definitely possible that was the case.

 

[PNW bow hunter]

Most dealerships have large fixed costs like building leases and salaries that still needed to be covered, and they had to try to make ends meet based on substantially lower sales volumes. My sense is that notions that dealerships were making money hand over fist and that market adjustments were BS are false.

The second half of 2020, all of 2021 , and the first half of 2022 were extremely good to car dealerships.

For some the great increase in business the second half of 2020, just got them out of the hole from the bad first half.

At least in my region 2021 was a record breaking year for pretty much all auto dealerships.

I know owners of several new car franchise stores that have been around since as long as the the 70’s, and lots of independent used car dealers also.

The good times were gone by the second half of 2022 for many. Now back to survival mode.

 

[Customweld]

It was in the news that BMW sold some vehicles without touchscreen functionality because they could not get the semiconductor to make them work. Not sure about Ford, but definitely possible that was the case.

Interesting enough Micron is laying off 10 percent of their workforce due to low demand of chips. Weird times.