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If dealer is offering deep discounts and incentives, there may be a reason
Go shopping for a Dodge Ram, and you may find a $4,500 factory incentive awaits. On top of that, it's likely a dealer will give you an all-smiles, deep-discount price that's lower by thousands more.
Despite these inducements, Rams are languishing on lots. Nationwide dealers reported a 117-day inventory as of Nov. 1, according to Automotive News. Jonathan Banks, senior director of the Automotive Leasing Guide-affiliated ALG Consulting Group, says that excess dealer inventory is a leading indicator that it's time not just for more incentives but possibly a price cut.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by John1960
If dealer is offering deep discounts and incentives, there may be a reason
Go shopping for a Dodge Ram, and you may find a $4,500 factory incentive awaits. On top of that, it's likely a dealer will give you an all-smiles, deep-discount price that's lower by thousands more.
Despite these inducements, Rams are languishing on lots. Nationwide dealers reported a 117-day inventory as of Nov. 1, according to Automotive News. Jonathan Banks, senior director of the Automotive Leasing Guide-affiliated ALG Consulting Group, says that excess dealer inventory is a leading indicator that it's time not just for more incentives but possibly a price cut.
If GM wants to sell those 5 models - which are all big V8 driven vehicles- they are going to have to offer something like free gas for 2 or 3 years to get people to buy them. The days of such vehicles are limited anyway.
If GM wants to sell those 5 models - which are all big V8 driven vehicles- they are going to have to offer something like free gas for 2 or 3 years to get people to buy them. The days of such vehicles are limited anyway.
Those 5 aren't all GM's. They're an even mix of Ford, GM and Dodge.
For most of the vehicles listed the issue is weight more than engine size. A Corvette has a 6.3 liter V8 and gets about 30mpg highway, in large part because that huge torquey V8 allows it to lope down the highway at barely over 1500rpm. It also helps that a Corvette weighs only 3200lbs unlike the 4,000 and 5,000lb vehicles listed in the article.
If I understand it correctely, I don't like how they defined "overpriced" - list price vs. actual selling price w/ discounts, etc vs demand, etc. Who cares about list price? Who pays list price for an auto?
What really matters is the sales price vs. the profit margin the car dealer makes on the car. In other words - how much is the dealer making on the car? how much did it take the car manufacturer to produce the car + typical overhead? are you overpaying for the car based on the quality and amenities of the car? An overpriced car is one, due to demand or pricing strategy, in which you are paying way over the expected profit margin to purchase.
An example of this, typically was (maybe still is) SUV's. Truck-based ancient suspensions, bad handling, poor design. Very cheap to make and the car manufacturers were making a ton of profit on them. People were stupid enough to buy those and pay wayyyy over what they cost to make.
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