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Why are the dealers the bad guys for selling to the highest bidder when the manufacturer cannot produce enough of their product to meet demand? If you owned a dealership, how would you feel about all of this?
No I don't own a business. I just don't get the responses just dripping with hatred towards auto dealers. They are in business to make a profit, just like any other business.
How about if dealers made no money at all? Would that make you happy? Seems like a lot of risk running a business that large to not make any money. Would you run a business that made no money?
Look at it this way.. Would you feel better if there was no MSRP? Then there's really no mark up or discount to speak of. Its just the asking price that day.
How about if Ford's MSRP varied according to demand? Just like they do with MLB tickets. Nobody wants to see games against the KC Royals, but lots of people want to see the games against the Yankees. So start the MSRP at 85k until sales slow to 25 units a day. Then cut the MSRP and sell at that price until sales drop again.
Would you prefer the "Saturn" approach with one non-negotiable price? At that point you are starting to open the door to "vehicle scalping". First one to get there when they are available buys them all and resells for a higher price.
In the end all of the scenarios lead to the same result. The vehicle sells for what the market will bear. It varies some from dealer to dealer, but in the end they are all competing against each other to sell the same exact product.
That would make me very happy - I understand why they exist, but I wish they didn't.How about if dealers made no money at all? Would that make you happy?
No, but I also wouldn't run a business predicated on taking advantage of people.Would you run a business that made no money?
I would not; I much prefer the price be set by the manufacturer rather than an unnecessary middle man.Look at it this way.. Would you feel better if there was no MSRP?
That's why manufacturers incentives and dealer holdbacks exist.How about if Ford's MSRP varied according to demand?
This is exactly what's happening already.At that point you are starting to open the door to "vehicle scalping".
Eh, sort of. Dealer inventory manipulation has created significant volatility and delayed market equilibrium to the detriment of many potential buyers.In the end all of the scenarios lead to the same result. The vehicle sells for what the market will bear.
only $ucker$ pay m$rp+