Big 3s next move.
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Post Fiend
Joined: Feb 2004
Posts: 5,378
Likes: 3
From: nebraska
Big 3s next move.
Hey guys what I have been reading around the net that auto sales for the month off October are way off an maybe the worst ever. I wonder what will happen next. More incentives. A new gimmick off some kind. Jeff or Ernie can you chime in on this. How are sales at your particular dealerships for the month. It will be interesting to see what happens when Nov 1 or 2nd roll around.
Lead Driver
Joined: Apr 2002
Posts: 7,746
Likes: 7
From: Tampa Bay, FL USA
(Okay, in my best Eli Wallach mock-Hispanic voice)
"Sales?! I dunt need no stinkin' sales!"
Seriously, it's the slowest I've ever seen (I wouldn't be offering $500 below invoice, or talking to you here on a Saturday, if it were otherwise). Detroit really shot itself in the foot with this summer's employee-pricing promotion. People are now used to the "incredible deal," so now they're waiting for the next "incredible deal." The manufacturers will have to do SOMETHING, but I'm just not sure what.
I do have to add this: those that have already placed an order with me (or are about to) will make out the best. They're getting the benefit of $500 below invoice AND a guaranteed rebate. Does anyone think rebates are going to go DOWN at this point? Might my $500 below invoice have to come to an end? Think about it.
"Sales?! I dunt need no stinkin' sales!"
Seriously, it's the slowest I've ever seen (I wouldn't be offering $500 below invoice, or talking to you here on a Saturday, if it were otherwise). Detroit really shot itself in the foot with this summer's employee-pricing promotion. People are now used to the "incredible deal," so now they're waiting for the next "incredible deal." The manufacturers will have to do SOMETHING, but I'm just not sure what.
I do have to add this: those that have already placed an order with me (or are about to) will make out the best. They're getting the benefit of $500 below invoice AND a guaranteed rebate. Does anyone think rebates are going to go DOWN at this point? Might my $500 below invoice have to come to an end? Think about it.
Guest
Joined: Nov 2004
Posts: 7,988
Likes: 55
From: north west new jersey
great words jeff. sales were so bad i went back to vw to earn a paycheck. their sales are so far off the big wigs from germany are hitting every dealer in the counrty to try and find out whats up. as i'm now with voa they even asked feild techs what they thought was needed to bring back sales.
i'm seeing mopar add's around here with 0% again from some dealers plus up to $4.500.00 in rebates. wonder whats hitting next myself.
i'm seeing mopar add's around here with 0% again from some dealers plus up to $4.500.00 in rebates. wonder whats hitting next myself.
Elder User
Joined: Mar 2005
Posts: 735
Likes: 1
From: SW Iowa
coming next?
Seeins how the big three started this price thing with the buying public, I'd expect more of the same, 'cause the buyers now expect it and will wait for the discounting to begin rather than buy now and risk paying too much. I'm a bit suprised the corps are waiting, well not really, as I think they are negotiating with the unions and don't want to have sales ticking right along and at the same time ask angry union representatives to swallow cuts in pay and benefits.
Lead Driver
Joined: Apr 2002
Posts: 7,746
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From: Tampa Bay, FL USA
What I'd like to see Ford do is this:
On January 1st, they make a new year's resolution to offer fair pricing to everyone. Take the MSRP and cut out the fat (if my dealership can figure out how to do it, then certainly Ford can, too), take out the rebates and say, "there, that's the price." Then, the most important part: stick to it. Don't cave in because people don't believe it at first (of course they don't, Detroit has zero credibility right now, so it takes time to earn it back), or because dealers whine or competitor X offers rebates. This will only work if they start showing some backbone.
Do I think Ford will do it? Not in a million years.
On January 1st, they make a new year's resolution to offer fair pricing to everyone. Take the MSRP and cut out the fat (if my dealership can figure out how to do it, then certainly Ford can, too), take out the rebates and say, "there, that's the price." Then, the most important part: stick to it. Don't cave in because people don't believe it at first (of course they don't, Detroit has zero credibility right now, so it takes time to earn it back), or because dealers whine or competitor X offers rebates. This will only work if they start showing some backbone.
Do I think Ford will do it? Not in a million years.
Postmaster
Joined: Dec 2003
Posts: 3,130
Likes: 3
From: Massachusetts
Can I tell you how refreshing that would be. Buying a vehicle is the only thing where at most dealers, everone pays a different price. The price is set by how good of a negotiator the buyer is. There are so many ways a buyer can "think" they got a deal but in reality they got low balled on thier trade or what have you.
There is a Dodge dealer near me that has a saying of "rock bottom price". On every window sticker, they have tier price under the MSRP total. This is the price that everone pays. It is just another way to steal more money from the buyer. Thier "rock bottom price" on every vehice on the lot ranged $500-750 below MSRP. An then when you callenged the so called "rock bottom price" the sales staff always got defensive about the price. After a few years and probably making thousands off uneducated buyers, the dropped that fancy slogan.
Jeff, when the time comes to replace my 03' super duty, they way you and your company does business, can count on me driving from Western Massachusetts to New York the coduct a transaction the way it should be done.
There is a Dodge dealer near me that has a saying of "rock bottom price". On every window sticker, they have tier price under the MSRP total. This is the price that everone pays. It is just another way to steal more money from the buyer. Thier "rock bottom price" on every vehice on the lot ranged $500-750 below MSRP. An then when you callenged the so called "rock bottom price" the sales staff always got defensive about the price. After a few years and probably making thousands off uneducated buyers, the dropped that fancy slogan.
Jeff, when the time comes to replace my 03' super duty, they way you and your company does business, can count on me driving from Western Massachusetts to New York the coduct a transaction the way it should be done.
Guest
Joined: Nov 2004
Posts: 7,988
Likes: 55
From: north west new jersey
boy jeff do i hear you big time. the u.s. auto makers better do some thing fast about price and the very big on the american buyers mind Q CONTROL .
i see the one toyota dealer and lexus across the highway each selling some thing like 300 cars each a month and work with a man who just purchased his first toyota this past year 20k now never back for a wareenty problem. that would sure do us some good a vechicle with no problems. but so far i have to say my super duty has not had a single problem. but then it was built on a wed.
i see the one toyota dealer and lexus across the highway each selling some thing like 300 cars each a month and work with a man who just purchased his first toyota this past year 20k now never back for a wareenty problem. that would sure do us some good a vechicle with no problems. but so far i have to say my super duty has not had a single problem. but then it was built on a wed.
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Senior User
Joined: Apr 2004
Posts: 110
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From: Cincinnati (Clifton)
Originally Posted by boxcar1974
Can I tell you how refreshing that would be. Buying a vehicle is the only thing where at most dealers, everone pays a different price. The price is set by how good of a negotiator the buyer is. There are so many ways a buyer can "think" they got a deal but in reality they got low balled on thier trade or what have you.
That is why I ordered a truck from Jeff recently. I don't have to bounce from dealer to dealer negotiating the same deal again and again, dealing with different sales guys with different deals and attitudes. Weighing the trouble to drive 8 hours and back for a straight forward deal vs. the hassle of dealing with confusing negotiations around town, I would rather take the road trip.
Doesn't Saturn have no-haggle pricing?
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Only hope is for gas prices to go down, because domestic cars can't compete with important. Pretty much any Toyota, Honda and Nissan car is better than most of domestic cars. If prices of gas do down, sales of Trucks and SUVs will go up again.
Freshman User
Joined: Oct 2005
Posts: 31
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From: louisville ky.
i know this much ..that we are all in trouble at ford and gm. we were told that ford is goin to have to close 6 plants starting 1/ 06 its starting to look a lot like the 80s over again only we as american car makers cant rebound like we did back then ,theres just too much competition and with nissan and toyota comin on the market with severe intensity against our super duty we are in for a rocky road and we at ford all know whats comin