Thoughts on current markup environment?

Rebates and incentives won't return until the supply heavily outpaces demand again like it was up through 2020. Heck, in summer 2021 I special ordered a new truck and got 6% under invoice price. So just in the last 6 months this has all happened. It'll go back to normal in a couple of years.

For now, buying used is the way to go. A used one will depreciate much more slowly over the next 5 years than a new one will. With the mark-up they're putting on new ones, as soon as the market crashes those buyers will be SCREWED and will have a ton of negative equity immediately, unless they could afford to do a 2-3 year loan.

 

this. There’s a BIG auto finance bubble right now and it’s going to be ugly when, not if, it bursts

 

I’m waiting for my 22Camry XSE to be built. No I don’t need another car but I’m replacing my old work car to something newer. I’m not paying for a used car when there asking the same price for a new car as long as you can get it for msrp. I’m herring this will probably go on for another year or 2 from salesman I know. It definitely not a good cituation if you need to buy a truck now. Or even a car depending what your looking for.

 

Just started going down that path last night. Might be the best option. If you're going to pay a premium, might as well be on CPO.

 

its getting to a point where now i kind of regret not paying 64k for a LR PRO my dealer had a while back.

 

I recently bought my 2021 used with 7000 miles on it. I got a good deal, but normally wouldn't have paid as much. I did because my Tacoma was totaled and I got like $7K more than I originally paid for it back in 2016. So for me it was kind of a wash price wise. I made up extra money on the original vehicle but I just had to give it right back to get one right now. If that situation hadn't happened, then we probably would have just kept the Tacoma.

 

I keep seeing 2018 1794's & 2019 1794's for $45000 - $58000 depending on mileage.

I am going to wait a while longer.

I just cannot get over a 4-5 year old vehicle for at or over sticker price when new.

I just cannot do it..............."yet"

 

So get a '22 for how much?

 

True, once all the thousands of vehicles sitting in random parking lots across the country get microchips...the market is going to be flooded with vehicles. Prices will plummet. People buying now will be stuck with $70 k vehicles worth $40k. It's gonna be nasty

 

I’m no economist, but these are weird times indeed. Inflation, supply and demand and partly FOMO. Dealers will keep marking things up as long as people keep buying.

My brother works for a powersports dealer and they’ve already sold their 2022 allotment of seadoos and most all their snowmobiles. He said MSRP isn’t even a starting point anymore. I asked him how they set their prices and basically as high as they can go before people stop buying. He routinely sells $100k+ boats via email, no negotiation.

Sells Seadoos sight-unseen for basically anything they want, buyers don’t even question pricing anymore.

I see how inflation can affect necessary goods and services (food, gas, etc) but non-necessary luxury items? I think that is more FOMO and psychological.

 

Yep and this is also a piece of the puzzle that CAUSES the economic crash. Back in the 2000s banks were giving loans to any warm body that walked in, trying to line their pockets and keep money flowing. When things went tits up in '08 suddenly those people couldn't afford the payments anymore and they folded like a cheap lawn chair. It was like walking up to a bon fire and throwing gasoline on it.