Electric Boat

Quote: kenarman

The problem with your theory is that the more cars a dealer has on the lot the more car he sells. This is a proven fact in the car industry. The manufacturers control most of what the dealers stock. They send them cars whether they want more or not. The dealers don't get to pick the models or accessories on many of these vehicles. If they don't sell the vehicle in a reasonable amount of time the manufacturer starts charging them for having the vehicle on their lot. The dealers lots act as a huge warehouse for the manufacturers to store vehicle and keep production at a set rate without layoffs.

This is what you sign up for when you take on a dealership.

I kind of mentioned that. What you state really started in the 70s. Lee Iacocca said clear to the dealers "you will carry the inventory, not us (Chrysler)." They did the same with the car rental companies they bought.

It will take balance. Factories work when they have predictable, stable orders. Customer demand is neither. Unless you force people to buy from dealer stock.

Quote: AZDuffman

I kind of mentioned that. What you state really started in the 70s. Lee Iacocca said clear to the dealers "you will carry the inventory, not us (Chrysler)." They did the same with the car rental companies they bought.

It will take balance. Factories work when they have predictable, stable orders. Customer demand is neither. Unless you force people to buy from dealer stock.

I buy a new car about every 18 months. The last one I bought was from dealer stock but probably the six before that were all custom ordered. The ones from Germany took between 5 and 7 weeks to get.

Quote: AZDuffman

Might end some of the bad buying decisions lots of people make.

It seems to me that automobile manufacturer profits are increasingly dependent on upgrades in trim levels and options. Most modela have some kind of top trim which is priced 50% higher than he base trim. A popular model like a Toyota Camry has about 8-10 different trims.

It seems to me that a lot of those extras are sold because those are the models that dealers order for their lots. For instance a 2023 Subaru Outback (including delivery fee) has 5 different options with a 182 hp engine and another 4 with a 260 hp engine so the MSRP ranges from:
182hp Base $29,620
182hp Touring $41,070
260hp Touring XT $43,520
So Base Trim to Touring Trim is an additional $11,450 and upgrading to the more powerful engine in Touring trim is an additional $2,450

The entry level Subaru Impreza Sedan has three trims with the option for 5 speed manual transmission in the base trim.  Prices are for 2023 and include delivery fee.  
152hp Base $20,815 5MT
152hp Base $22,115 CVT
152hp Premium $24,215 CVT
152hp Sport $25,615 CVT 4-wheel disc brakes, better tires, bigger wheels, Leather-wrapped steering wheel and shifter handle


I think people ordering online are much more likely to no choose the bells and whistles. Do I really want to pay and extra thousand dollar for Body-color folding side mirrors and Windshield wiper de-icer and heated side mirrors?

I realize that you could always pay for higher price options on cars even before WWII, but it seems to be more of a science today.

It used to be that when buying a new car you went to the dealer and once deciding on the model you listed all the features you wanted in it; the factory then built it to order giving you the engine, transmission, color, features and options you wanted.

My folks did this with a '62 Chevy and a '68 Chrysler.

Quote: missedhervee

It used to be that when buying a new car you went to the dealer and once deciding on the model you listed all the features you wanted in it; the factory then built it to order giving you the engine, transmission, color, features and options you wanted.

My folks did this with a '62 Chevy and a '68 Chrysler.

Making the customer feel like the salesperson has really gone out of the way for him is part of a sales tactic to get a customer to close the sale. Easiest to do when they’re on the lot.

Quote: rxwine

Making the customer feel like the salesperson has really gone out of the way for him is part of a sales tactic to get a customer to close the sale. Easiest to do when they’re on the lot.

You are absolutely correct.

I must be old fashioned. I can't imagine making a $45,000 impulse buy.

Quote: Pacomartin

It seems to me that automobile manufacturer profits are increasingly dependent on upgrades in trim levels and options. Most modela have some kind of top trim which is priced 50% higher than he base trim. A popular model like a Toyota Camry has about 8-10 different trims.

Trim levels are nothing new. Watch some "Motorweek" retro-reviews from the 80s and notice how the top level even then was 50% more than base. You would get say the "L" at the bottom with few on the lot and most going to fleets. Then the "LS" which most people bought, and an "LX" at the top.

What has changed is how many people will take nothing but the top level. Leasing adds to this. Why buy the "L" stripper when you can easily get a 3 year old "LX" with the toys?




I think people ordering online are much more likely to no choose the bells and whistles. Do I really want to pay and extra thousand dollar for Body-color folding side mirrors and Windshield wiper de-icer and heated side mirrors?

I realize that you could always pay for higher price options on cars even before WWII, but it seems to be more of a science today.

Quote: AZDuffman

I have shopped online for fun and after you pick what you want they say, "we have 10 on lots near you!"

My experience shows that they almost never have one exactly as optioned. Usually they will will 10 that match 90%. As I have said, I almost always order so that I get exactly what I want and nothing more.

BMW had a great program called European Delivery. They would pay for your flights and give you a hotel stipend to pick the car up in Germany. It was also cheaper because it bypassed some sort of import fee since you are picking it up in Germany. You then had the option to use the car for up to 30 days in Europe and then return it to the port for shipment. The shipping charge was built into the European Delivery service so not only did you get a nice vacation in Europe for a lesser price than you would pay in the U.S., they also shipped it home to you and delivered it to the nearest dealer.

The average man spends more time choosing his vehicle than he does a wife. This is reflected by the average vehicle is kept for 8.4 by the first time buyer and the average marriage lasts 8.2 years.

Quote: kenarman

The average man spends more time choosing his vehicle than he does a wife. This is reflected by the average vehicle is kept for 8.4 by the first time buyer and the average marriage lasts 8.2 years.

That surprises me. I had no idea the average person kept a new car for over 8 years. I am not surprised the average man keeps his wife for less than 8 years.