View Full Version : Automobile Market



okatty
04-10-2023, 05:31 PM
I have not bought a car for several years (pre-pandemic). My daughter is in town and has been looking at cars in Austin. We went to Battison Honda today to look at their CRV Hybrid Sport inventory. The MSRP was $34,300. Battison has it priced at over $40k for “dealer accessories” like paint protection, mats, etc. WOW. I asked the guy if he’d take full sticker in cash today and he just laughed.

I guess the only good thing is her 2017 Ford Escape is still worth almost what we paid for it in 2018.

Pete
04-10-2023, 05:49 PM
^

This sort of gouging has been going on for decades. The TruCoat scene in Fargo is one of the most cringy yet relatable experiences for anyone who has ever bought a new car.

There is a reason dealership owners generally live like royalty.


The old dealer model is yet another relic that the EV movement needs to vanquish.

Jersey Boss
04-10-2023, 06:39 PM
I have not bought a car for several years (pre-pandemic). My daughter is in town and has been looking at cars in Austin. We went to Battison Honda today to look at their CRV Hybrid Sport inventory. The MSRP was $34,300. Battison has it priced at over $40k for “dealer accessories” like paint protection, mats, etc. WOW. I asked the guy if he’d take full sticker in cash today and he just laughed.

I guess the only good thing is her 2017 Ford Escape is still worth almost what we paid for it in 2018.

Offering to pay in cash is a negative to the dealer. They make money on financing.

okatty
04-10-2023, 07:26 PM
They were not going to sell it on any basis at MSRP - financed or cash.

Trip
04-10-2023, 07:32 PM
If you can wait a few weeks, try towards the end of the month. May have just been another sales tactic, but when I bought my car on January 30th I had several salesmen state they were particularly open to a reasonable offer so they could book it for that month. I told them I was not going to pay for any of the dealer extras (they'd only added a few grand's worth, not as bad as what you observed at Battison), and they gave it to me at MSRP plus transportation costs. BTW, I did not pay cash, but I had my financing pre-arranged - so they made no money off the financing.

Trip
04-10-2023, 07:34 PM
I should say MSRP plus transportation costs and doc fees (which were in the mid range of what other dealers were charging for the paperwork). Edmond Hyundai, 2023 Palisade for what it's worth.

okatty
04-10-2023, 07:43 PM
^I agree with you on the end of month strategy, and your experience is more what I was expecting.

warreng88
04-11-2023, 07:52 AM
My brother worked in used cars for a while and said a lot of the dealers get kickbacks from financing and you might be able to find a better deal if you finance it. That's what I did in 2019. I had cash to purchase a 2017 Accord from Fowler, but financed $10,000 and then paid it off six months later. Not sure if I would have gotten a better deal had I financed the whole thing or a worse deal if I paid cash for the whole thing, but the price was lesser than most of the other cars. Now, that was pre-covid. I don't even want to know what buying a new/used car is like today.

FighttheGoodFight
04-11-2023, 07:54 AM
Also sometimes worth using Costco Auto to get OTD quotes and all that. A place to start negotiation at least.

Anonymous.
04-11-2023, 08:43 AM
Yes it is widely known that showing up with cash or your own financing puts you at an automatic disadvantage on price negotiation. Just go through their financing then pay off the entire loan.

Like Pete said, dealership tactics are ridiculous and I will be happy to see those industry games die. Think about how insane it is to be forced to pay for dealer added rubber mats when the manufacturer ones are sitting in the trunk.

Pete
04-11-2023, 08:48 AM
Car dealerships are like other fading, government-protected semi-monopolies like cable TV: They have treated consumers so incredibly badly for so long that as soon as there is a decent alternative, business will be happily taken elsewhere never to return.

SEMIweather
04-11-2023, 08:57 AM
I was able to purchase a 2023 Corolla for MSRP without add-ons at Janzen Toyota up in Stillwater last month; granted, this was after placing a deposit to reserve a vehicle and then waiting a month or so for them to get a car allocated which matched my specifications, rather than buying one directly off of the lot. Jim Norton Toyota would not sell me one at MSRP without add-ons even under those circumstances. My experience is of course entirely anecdotal, but might be worth it to work with dealerships in smaller markets, particularly if you’re willing to wait a little while to “order” a car.

FighttheGoodFight
04-11-2023, 09:04 AM
Dont you worry car manufactures will soon figure out car "subscriptions" (leases) and just have everyone paying monthly for life like a cell phone. Volvo has been trying it for some time rolling in car insurance, the lease and any other fees into one payment.

Anonymous.
04-11-2023, 09:17 AM
Dont you worry car manufactures will soon figure out car "subscriptions" (leases) and just have everyone paying monthly for life like a cell phone. Volvo has been trying it for some time rolling in car insurance, the lease and any other fees into one payment.

Yes, this is already happening. Several car brands require subscriptions to an app that enables remote start and lock/unlock from anywhere etc.

This will only get worse. Manufacturers are realizing they can now just build every car model with the same hardware. But the ability to access the features from that hardware are done using over-the-air software updates. Imagine buying a car with heated and cooled seats, but the feature is only turned on if you pay $10 a month... forever.

gjl
04-11-2023, 10:00 AM
I have had incredible experiences dealing with Bob Moore dealerships and recently Wilson Cadillac/GMC in Stillwater. No funny business whatsoever.

MagzOK
04-11-2023, 10:12 AM
I have had incredible experiences dealing with Bob Moore dealerships and recently Wilson Cadillac/GMC in Stillwater. No funny business whatsoever.

Yes, we bought from Bob Moore Mazda and had a really great experience that will make it easy to go back when we want another.

Dob Hooligan
04-11-2023, 10:40 AM
I don't see how the car buying experience is going to become less expensive. A direct from the carmaker model isn't going to give up revenue. They will make it from you just like a dealer will, except they might label it differently. If a legacy carmaker has 4 franchise dealers in OKC, then those dealers will work to sell you a car using some kind of reason to buy from them. Usually price. If an EV carmaker sells factory direct, then they have zero reason to "sell" you (assuming you are going to buy that brand of EV regardless).

Pete
04-11-2023, 10:44 AM
I don't see how the car buying experience is going to become less expensive. A direct from the carmaker model isn't going to give up revenue. They will make it from you just like a dealer will, except they might label it differently. If a legacy carmaker has 4 franchise dealers in OKC, then those dealers will work to sell you a car using some kind of reason to buy from them. Usually price. If an EV carmaker sells factory direct, then they have zero reason to "sell" you (assuming you are going to buy that brand of EV regardless).

But the dealer is just a middleman taking a big cut.

Eliminate that and the manufacturers can charge the customer what they currently charge the dealers.

Car companies have plenty of competition from competing brands without the antiquated dealership model. Every single car and truck have dozens of direct competitors.

chssooner
04-11-2023, 11:40 AM
But the dealer is just a middleman taking a big cut.

Eliminate that and the manufacturers can charge the customer what they currently charge the dealers.

Car companies have plenty of competition from competing brands without the antiquated dealership model. Every single car and truck have dozens of direct competitors.

I think he is saying that those direct to buyer models will just label what other car dealers call "middle costs" and call them something else.

I don't fully agree, but can see what he means. I am with you on dealerships being antiquated. But they are pretty powerful, in most states. I think Oklahoma has quite a few lawmakers who are, or at least were, dealership owners. So I don't see it changing here, unfortunately.

Pete
04-11-2023, 12:09 PM
Car sellers are subject to competitive market forces and dealerships just add a layer of expense.

We are getting ready to have an avalanche of new makers coming to market and none of them are going to be using the old dealership business model.

If the government would stop protecting car dealers and allow direct sales (like Tesla already offers) you'd see market efficiencies drive consumer costs down, not up.


It shouldn't be necessary to explain how the government passing and maintaining protectionist laws is very bad for the consumer.

Dob Hooligan
04-11-2023, 12:43 PM
Car sellers are subject to competitive market forces and dealerships just add a layer of expense.

We are getting ready to have an avalanche of new makers coming to market and none of them are going to be using the old dealership business model.

If the government would stop protecting car dealers and allow direct sales (like Tesla already offers) you'd see market efficiencies drive consumer costs down, not up.


It shouldn't be necessary to explain how the government passing and maintaining protectionist laws is very bad for the consumer.

I don't think Tesla has done anything to reduce customer costs. They are more fully engaged in legal price fixing than any other car maker today. I don't see anything in Mr. Musk's profile that makes me think he is going to do anything to make my life less expensive if I buy a car straight from his factory instead of a local dealer.

Pete
04-11-2023, 12:53 PM
I don't think Tesla has done anything to reduce customer costs. They are more fully engaged in legal price fixing than any other car maker today. I don't see anything in Mr. Musk's profile that makes me think he is going to do anything to make my life less expensive if I buy a car straight from his factory instead of a local dealer.

Tesla is just the first, a semi-monopoly in its own right.

That is changing and fast, hence multiple Tesla price cuts already this year.

chssooner
04-11-2023, 01:13 PM
Tesla is just the first, a semi-monopoly in its own right.

That is changing and fast, hence multiple Tesla price cuts already this year.

I think they are lowering them for another reason: lowering demand, as prices have escalated due to inflation. Not bashing, but it seems a lot of these direct to buyer companies are struggling. Rivian is slow. Canoo, who knows. Polestar, slow. Lucid, expensive as heck.

https://thehill.com/policy/transportation/automobiles/3812238-why-tesla-is-dropping-prices-across-the-us/

KTB
04-11-2023, 01:45 PM
The best thing about purchasing a Tesla is that everyone else that purchased that vehicle on that day paid the same price. No haggling with salesmen for hours and you don' have to worry about them sliding something in at the last minute like the Fargo True Coat. I wasn't in there more than a couple minutes because everything is done with the app. I don't feel like I have to get the best price in the country, but I also don't want to feel ripped off. Most cars on the lot locally have a $2000 upcharge for accessories you may or may not want (tint, tracker, coatings, nitrogen, wheel locks). I haven't set foot in a dealership in the last 10 years without already having the deal and financing done. I'd email every internet manager at every dealership in OK, TX, and KS, and see if someone will deal that has either inventory or allocation.

OKCRealtor
04-11-2023, 02:33 PM
I would be pretty upset if I were a recent Tesla buyer or owner with them slashing costs several times now. The value of your vehicle has tanked, but they were cool before everyone had them.

FighttheGoodFight
04-11-2023, 02:47 PM
I would be pretty upset if I were a recent Tesla buyer or owner with them slashing costs several times now. The value of your vehicle has tanked, but they were cool before everyone had them.

Eh people got too used to cars being an appreciating asset for a while there with the wild car market. Now they will go back to losing 30% when you drive off the lot.

Pete
04-11-2023, 02:51 PM
I would be pretty upset if I were a recent Tesla buyer or owner with them slashing costs several times now. The value of your vehicle has tanked, but they were cool before everyone had them.

This just looks bad because of their direct-sales model.

Effectively, all dealers lower their prices as the current models wane in popularity. Tesla's biggest issue is the lack of new products.

This is yet another area where the Koreans are just killing everyone. They have a constant parade of newly revised vehicles, already a good selection of EVs, and scores more almost ready to roll out: 11 additional by 2030 to join their numerous current industry-leading models.

okatty
04-11-2023, 03:46 PM
Yes, we bought from Bob Moore Mazda and had a really great experience that will make it easy to go back when we want another.

Went over to Bob Moore Mazda today and agree it was night and day a more pleasant experience than Battison Honda. Didn’t actually purchase, but the experience was very good and my daughter could end up making a deal on an SUV there.

April in the Plaza
04-11-2023, 04:23 PM
Will be very interesting to see what happens with the dealership floor pan situation. Capital One just got out of the market, and inventory levels are already very tight.

Trip
04-11-2023, 05:09 PM
I'm going to echo Pete's comment about the Koreans as one who is thoroughly impressed with his new Hyundai Palisade - and the proverbial icing is I was able to get a seemingly loaded AWD version (XRT trim) for a little over $45k. Now, someone remind me to comment again in 10 years!

FighttheGoodFight
04-12-2023, 07:38 AM
I'm going to echo Pete's comment about the Koreans as one who is thoroughly impressed with his new Hyundai Palisade - and the proverbial icing is I was able to get a seemingly loaded AWD version (XRT trim) for a little over $45k. Now, someone remind me to comment again in 10 years!

The Genesis line is tremendous. The problem (which is starting to be fixed) is the dealers for Hyundai and Kia are all "buy here pay here" crap dealerships. I think I told this before but I went to test a Kia Stinger a few years back and they were trying to get me to do a credit check before even letting me sit in it. Turned me off to their own line after that. Hopefully they have corrected that. I know Genesis has since they now have their own dealers and not on the Hyundai lots.

Pete
04-12-2023, 07:54 AM
^

OKC will be one of the first cities to get a dedicated Genesis dealership which is under construction near Memorial and Broadway Extension:

https://www.okctalk.com/showthread.php?t=46878&p=1200499#post1200499

SEMIweather
04-12-2023, 08:52 AM
Does anyone have the latest on what Kia and Hyundai are doing to make their vehicles less vulnerable to theft? I know that some models are susceptible to the point of some companies refusing to insure them under certain circumstances.

fortpatches
04-12-2023, 08:54 AM
Does anyone have the latest on what Kia and Hyundai are doing to make their vehicles less vulnerable to theft? I know that some models are susceptible to the point of some companies refusing to insure them under certain circumstances.

That seems to apply to certain 2015-2019 Kia and Hyundai models?

>Some 2015 through 2019 Hyundai and Kia models are roughly twice as likely to be stolen as other vehicles of similar age, because many of them lack some of the basic auto theft prevention technology included in most other vehicles in those years, according to the HLDI (Highway Loss Data Institute).Specifically, these SUVs and cars don’t have electronic immobilizers, which rely on a computer chip in the car and another in the key that communicate to confirm that the key really belongs to that vehicle. Without the right key, an immobilizer should do just that – stop the car from moving.

FighttheGoodFight
04-12-2023, 09:00 AM
Yes it was only older models. Newer ones have immobilizers. Weirdest way to save a buck.

SEMIweather
04-12-2023, 09:22 AM
Yes it was only older models. Newer ones have immobilizers. Weirdest way to save a buck.

Yeah. That would be my main concern about buying from either of those manufacturers, but good to hear that they have seemed to rectify the situation.

Dob Hooligan
04-12-2023, 09:57 AM
Yeah. That would be my main concern about buying from either of those manufacturers, but good to hear that they have seemed to rectify the situation.

My biggest concern is the fire issue. Electrical gremlins have led to two different recalls and instructions to park the vehicle outside. When I see stories about cars burning in parking garages lately, I notice Hyundai/Kia are most commonly the cause.

rtz
04-12-2023, 01:25 PM
What's keeping the electric cars from China from being sold here?

chssooner
04-12-2023, 01:46 PM
What's keeping the electric cars from China from being sold here?

The 7th word in your question. We can't even have an app created by Chinese people (TikTok). You think an electric car will ever be sold here?

Jersey Boss
04-12-2023, 02:20 PM
The 7th word in your question. We can't even have an app created by Chinese people (TikTok). You think an electric car will ever be sold here?

Other than we do have that app and have had it for years.

chssooner
04-12-2023, 05:14 PM
Other than we do have that app and have had it for years.

Yeah, but government officials and employees have been banning it left and right.

TheTravellers
04-12-2023, 06:02 PM
The 7th word in your question. We can't even have an app created by Chinese people (TikTok). You think an electric car will ever be sold here?

The 2024 MINI electric (I believe that's when it'll start) will be built in China, for the most part, instead of Oxford. Not sure how many will make it to the US, my 2022 is one of about 3000 MINI SEs here in the US. Of course, that's not a Chinese owned brand, but still...

April in the Plaza
04-13-2023, 07:33 PM
I was thinking about buying a new Tesla suv (or something similar) but Genesis is releasing the most gorgeous coupe SUV I've ever seen. So, I'm now patiently waiting for those boys to release it.

https://www.youtube.com/watch?v=5UFpsHzZpEM&ab_channel=Raiti%27sRides

FighttheGoodFight
04-14-2023, 08:44 AM
I was thinking about buying a new Tesla suv (or something similar) but Genesis is releasing the most gorgeous coupe SUV I've ever seen. So, I'm now patiently waiting for those boys to release it.

https://www.youtube.com/watch?v=5UFpsHzZpEM&ab_channel=Raiti%27sRides

I highly recommend the Genesis. Give them a test drive. They are a very luxurious car. Downside is the prices are out of wack (but all cars are ATM).

KTB
04-14-2023, 11:38 AM
That Genesis SUV coupe is beautiful. I don't see an EV option so I don't think it would be comparable to Tesla but it I like it better than the German options in its class. I love my Tesla but that SUV would be very tempting if they electrify it. It for sure looks better than the Tesla.

HOT ROD
04-14-2023, 11:55 AM
The 7th word in your question. We can't even have an app created by Chinese people (TikTok). You think an electric car will ever be sold here?

To be fair, China bans ALL U.S. and Western-world apps within China, including the app in question - TikTok. Any Western app/software must adhere to CCP censorship to be made available in China (and even then a Chinese knock-off will be 'created' and kick you out of that market anyway). Why should the U.S. allow Chinese apps, let alone those (all of them) with security traps that can take over people's phones and allow the CCP to track dissidents or influence outcomes.

With all of that in mind, can you even conceive driving a Chinese made car? I've done so (in China), trust me - it's not something that should be considered here (esp when we're concerned about Kias) and we shouldn't be allowing their apps let alone products.