Quote:
Originally Posted by nis350
guess the $35K mark-up doesn't help.... 
the entire car market is kinda f'ed with all these crazy mark-ups from the stealerships. saw some C8 Z06 with $50 to $60k mark-ups. |
In a "normal" market, your comment on mark-up's would be somewhat valid. In the current market (post-COVID, Feds raising rates, Feds fighting inflation, supply chain issues, production issues, etc.), there is still limited supply and the demand is still a bit higher than the amount of inventory that is available.
One of the biggest items that is still facing a shortage is semi-conductor chips. Neon gas is needed for production of these. Guess who supplies 70% of the global supply for Neon gas? Ukraine, in which they are currently fighting a war. Guess what is not happening? Production of Neon gas. So guess what chain of events this causes? Shortage of semi-conductors and, subsequently, cars. What happens when you have more demand than supply? Pricing goes up. Dealers are NOT making as much profit as you think, esp. when you include inflation into the equation.
Quote:
Originally Posted by Bonzo
More funny news. The yellow Z is STILL sitting up at the auction house! Saw it this morning. That means nobody, not even at auction, wanted the thing for 2 auction cycles now.
I hope people who paid markup for their cars have a lot of money to burn because my gut tells me that was money better put down a toilet. My gut tells me Zs will be sitting around at dealers collecting dust very soon. Once the initial demand dies down, dealers will have a hard time selling them without big discounts. These are all just my opinions of course. Time will tell if I'm right or wrong.
I'm really not sure Nissan did themselves any favors with this car. I find it kind of sad really.
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The other side of this equation is timing. With the Feds fighting inflation by raising rates, it's going to be alot more expensive to borrow. And with inflation eroding buying power, your money won't go as far as it used to. Companies still have to meet their bottom line, and when production costs go up, they in turn have to relay these expenses onto the consumer. Consumers now are focused (or should be) on necessities vs. wants.
I think it's a bad time to get into unnecessary debt and a bad time for companies to come out with a new product and hoping it sells.