Shocked by the pricing of the new Cars

Cerino2000 said:

I was going to say the markets crashing in everyone’s view but the dealers, I’m not really seeing prices affected there just yet. Some of the wholesale is dropping though in certain areas. I absolutely believe a reckoning is coming and as far as I am concerned it’s about fkn time. The dealers have been swimming in cash the last few years so they can keep their tears when the bottom falls out. Big reckoning coming for all the people that recklessly fed the frenzy overpaying for cars they just had to have in the last two years and now they are VERY upside down on (Hello Millennials…time for a good lesson!) This is just the start. Once the dealers finally concede that the market is tanking they won’t want to give shit for a trade in and then the snowball REALLY starts growing. Time to get out the popcorn!

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At some point these dealers are going to have to face the reality of they paid high prices now they're going to have to let it go for losses because the bottom finally fell out. Anyone thinking the bottom was never going to fall out is just an idiot

NeverEnough said:

At some point these dealers are going to have to face the reality of they paid high prices now they're going to have to let it go for losses because the bottom finally fell out. Anyone thinking the bottom was never going to fall out is just an idiot

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Exactly…They got plenty of record profits in the last two years. Party’s over.

Will be interesting to see how the manufacturers handle this. They clearly have seen what happens if they keep supply low. Record profits for them too. The old way of doing business may not come back.

they still have revenue goals they have to meet.. if they cant do it with markups, volume will need to increase.

tesla has tried to get ahead of that by lowering prices

Yeah its' getting wild out there. I didn't expect the allocations to still be here at this time, it's the dealers holding out with the high ADMs making this happen. If it was all MSRP deals they would all be gone. I think eventually they(the dealers) will crack and start selling at MSRP if they aren't moving these cars with the 30k over sticker crap.

srt_blubyu said:

they still have revenue goals they have to meet.. if they cant do it with markups, volume will need to increase.

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Or lower their expectations.

Cerino2000 said:

Or lower their expectations.

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Well, yes, they have revenue targets but more importantly actual earnings. They mostly hit the latter with increased pricing through the pandemic and likely into the first part of this year. If they miss on earnings that creates a cascade of lower stock prices (there already miserable for the big 3) and changes in head count and management as they answer to the BOD and shareholders. Never seen a company shrink it's sales as a sustainable business strategy. The fixed cost is just that and they have things like pension obligations. If you invested in the big three five years ago your stock price is basically flat. You did make a dividend but it was not a growth business. The CEO's all say that electrification is the path to future growth and earnings. Sure. This frenzy of HC sales is just a death rattle for Dodge then hard realities.

bingo

JMAbacus said:

As documented on this board all new car pricing has gone up significantly over the past three years. The analysis showed however that the Dodge price increases where far beyond the domestic competitors. Guess it's the popularity of the models in combination with the limited numbers with 23 being the last. Maybe they need the seed money for the electric transition. Don't know the details but I see them going out of business (not Ram or Jeep) shortly regardless of what Stellantis says about allowing some long runway to reach profitability. They've had years to develop an EV or Hybrid or new platform and have not done Jack. Will join that long list of failed American car brands. Buick can't be far behind.

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It's simply more greed

Polara71 said:

Funny how " it needs to stop" is said by those who have their car from a few years back. That's when they paid an insane amount.

It's called Capitalism. If it's too expensive don't buy it.

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Define "a few years back"
In 2018, I bought mine new for $10k under MSRP (Paid $64k.) If I were in the market today for a Hellcat, I'd look for something else. $90-100k+ for these cars? LMFAO GFY

Thank you...

AND in 18 people said you were nuts for paying that. It's all cyclical.

It's also all relative. Now we buyers are lining up to pay those prices plus crazy ADM that we keep bitching about. All relative. Deep pockets offer the ability be irrational lol.