Canada BS thread

IMO they basically steered the used vehicle prices way high. The worse part is people have been paying these prices so they're making big money per vehicle. Especially trade-ins they had before the market blew up.

 

Not E rated, but I’m getting the Wildpeaks for $190 / Can - dealer price matched local tire shop. So getting them installed prior to taking it at dealer.

 

So many white Tundras out there for sale. What's up with that?

 

Service is almost 70% of their profit.

 

It's the top selling color of all vehicles.

I don't have anything against them but I've never owned one and probably never will.

 

Apparently most people like to show how dirty they can be.

 

Yeah not my thing but seems like more white Tundras than other truck brands.

 

If I look out the window at work, I can see 50+ white F150s. LOL. The white F150 is the ubiquitous work truck.

 

an acquaintance of mine who worked the industry for years told me a dealership on average:
50% parts/service
30% finance/warranty/rustproofing, etc
15% used cars
5% new cars

grain of salt as I don’t really trust anyone in the car industry. I get it, everyone needs to eat but I have a hard time believing only 1-3k is made on a new car. If you watch shark tank, cost to make is a buck, wholesale for 2, retail for 4.

so…. Tundra 12k to make, dealer pays 25k and sells for 50k. I don’t believe a business can survive with less than a 40% margin.

usually the less often you buy something, the higher the margin. Groceries have low margin but you buy every week.

furniture is huge markup.

 

I think they only hiccup to that theory is that dealerships essentially buy the vehicles themselves. So while 2k on a Tundra seems very fishy, I'd bet it's not 20k. And what keeps the margin down is that all area dealers (so the 10ish in the Edmonton area) would all buy from the same port and get the same price - so the list price of all 10 dealers needs to be similar since I'd easily drive 3 hours to save 500 bucks.

Any advertised rebates - so the 10-15k you used to see on the domestics - came from the manufacturer themselves and didn't cut into what the dealer made. With the lack of supply that's what has disappeared - so while the manufacturers are selling fewer vehicles, they're still making good money because they aren't doing those rebates anymore. And dealers are taking the hit because if they made 2k per vehicle before, they're still making 2k per vehicle even with so many less being moved.

 

Yeah, basically the dealerships are middlemen/resellers. They ‘buy’ the vehicles from the manufacturer under contract for $x per unit /model. Then ‘mark up’ for their profit & sell them to us. I think the mark up is what gets us to msrp which is likely part of the contract with the manufacturer.

so they get ‘exclusivity’ to sell new vehicles from x brand by agreeing to the arrangement/contract. My understanding…Loosely anyway.

 

So who is winning at manufacturing now, and getting vehicles finished? Toyota must be back of the pack.

 

I doubt it - was just at a Dodge dealership talking with them and it was 3-4 month wait time for a Big Horn 2500 Gas without the sport appearance package (not colour matched). They didn't even have any Big Horn 2500 to sit in on the lot to get a feel for the interior.

 

I was at Toyota yesterday and they had about 15 vehicles and maybe half Toyota.

 

Heartland Ford is the same way - front row along the highway has a Jeep, a Tundra, an F150, and a Mustang. Up until this year it was half F150, half Super Dutys all the time. They get a truck in with 5 or 6 trucks on it and those 5 or 6 are off the lot in 3 days max. Be interesting to see if manufacturers go back to full gas once this chip shortage is solved - dealers may be hurting, but the manufacturers have to be loving sales at MSRP before the vehicles are even delivered.

 

And that's why vehicle production will never go back to the way it was. At best the manufacturer will produce 60% of pre pandemic levels. This was already spoken by the heads of GM and Mercedes.

https://fordauthority.com/2021/06/ford-inventory-levels-will-not-return-to-pre-pandemic-highs/

https://www.newsbreak.com/news/2525...inventory-won-t-return-to-pre-pandemic-levels

 

I think there's going to be a lot of buyers regret when the market settles down and people realize how much they overpaid for new and especially used.

 

I can’t remember the last time prices came down on anything

 

Trade in values are insane though too when buying a new car. Sure you're paying $10k more for the new vehicle but you're getting 10k more for the trade. For example 1.5 years ago we bought my wife a Ram 1500 for $45k and change before fees/taxes - we just traded it in on a Durango and got $48k for trade value. 1.5 years later and a truck that blends in since it's not a special trim appreciates is crazy.

The one huge surprise I got was new 2022 Dodge vehicles could only get 3.99% financing. Want to finance over 36 months - 3.99%, go for 96 months 3.99%. Since when does Chrysler products never have 0% financing? We ended up getting a 2021 because it still had 0.49% financing. If that trend doesn't reverse dealerships are going to start hurting - My draw to new vehicles was the lower financing, but if they're going to be 3.99% then I'll go to the bank and pay cash price to the dealer or buy used.

 

For anyone else looking at a 2nd Gen. There's more and more popping up on Kijiji.

 

Yeah that might be the best thing going now is getting a lot on your trade in.

 

That's all that's keeping buying new cars a possibility. If it ever goes back to lower trade values (relative to MSRP) but no MSRP discounts like it used to be then it'll be a long time before I buy new again. There's some real instability in the new car market right now, and manufacturers are playing around with what can they get away with. Selling at MSRP didn't slow people down, so let's try higher interest financing.

 

Yeah every time I walk into a dealership I think about how high there overhead is. It has to be way up there.

 

Have you heard anything about Charlesglen in CGY?

 

i boughta certified used tundra from them a few years back.

 

How was your experience? Are there others you can rate around there?

 

Saw a few third gens at Gateway Toyota today but I didn't stop to check any of them out.

 

I sat in one and it feels less roomy to me than the gen 2.

 

A co-worker purchased a Tacoma there and was very pleased. She came from a BMW and is picky!