Age of your vehicle hits record in USA

[Hards Alumni]

No wonder MU's endowment sucks ass, hey?

I know you're being facetious, but big name schools will always get the big donations... which increases their endowment... which increases the interest gained... etc.

Gotta have money to make money.  A tale as old as time.

[The Sultan]

Ya can't make big donations if you are spending money on cars.

[Spotcheck Billy]

If you buy a reliable car, any repairs you might need are going to be way less than a new car payment. Also, 1 year old cars are pretty hard to come by.

I usually buy a 2 or 3 year old car and drive it until it dies.

We bought our 2019 Kona used with 700 miles on it less than 6 months after it was 1st sold. Just coincidence that the 1st buyer felt it was too small for her needs.

[buckchuckler]

The "M" in MSRP stands for manufacturer. If you want to pay MSRP, I promise I'll sell you a car and we never have to interact. Deal?

Hahah.  No kidding.  If you took dealers out, everyone would pay the same price, but it would be much higher.  The reasons manufacturers can't sell direct is for price fixing.  If the manufacturers were the only ones who could sell their cars, the price would essentially be fixed, because you couldn't go across town for leverage.  Maybe you could go from the Ford store, to the GM, to the Ram or whatever, but essentially the prices would be fixed.

[Hards Alumni]

Hahah.  No kidding.  If you took dealers out, everyone would pay the same price, but it would be much higher.  The reasons manufacturers can't sell direct is for price fixing.  If the manufacturers were the only ones who could sell their cars, the price would essentially be fixed, because you couldn't go across town for leverage.  Maybe you could go from the Ford store, to the GM, to the Ram or whatever, but essentially the prices would be fixed.

Is this really a thing?  I find it hard to believe that the only industry where this is the case is automobiles.

We don't have problems with airlines price fixing, etc.

Can you elaborate?

[buckchuckler]

Then name your 'fun' car so we can compare..  Mazda makes fun, reliable, good looking cars for reasonable prices.

In no particular order, my favorites have been for sheer driving joy, the Pontiac Trans Am and the Dodge Charger R/T.  I have to say though, I think my favorite was my Wrangler. 

[buckchuckler]

Is this really a thing?  I find it hard to believe that the only industry where this is the case is automobiles.

We don't have problems with airlines price fixing, etc.

Can you elaborate?

That's the basis for the law.  Not saying it still makes a ton of sense, but that's government for you.

[Frenns Liquor Depot]

That's not how it works guys.  Every business has an MSRP if they sell through a channel with an implied profit.  The reason it is MSRP is that the manufacturer cannot legally set prices for a retailer.  Those decisions are the sole discretion of that retailer

If the manufacturer wants to drive more volume, they fund promotions.  Again though it is the retailers discretion on what price is set and what promotions are run.  And yes, most categories compete on price against competition, but also retailers compete (think TGT vs WMT on laundry detergent).

Where a mfg has channels that add value they purposely don't compete directly as it is difficult to both sell to and compete with  your customers.  If a mfg sold 'direct' the pricing would likely be dictated based on the way it is today.  Volume and profit targets. 

So the question is, does the dealer add anything to the customer to justify their profit.  Also why is this mandated and not a decision for the manufacturer like other categories.

[buckchuckler]

Where a mfg has channels that add value they purposely don't compete directly as it is difficult to both sell to and compete with  your customers.  If a mfg sold 'direct' the pricing would likely be dictated based on the way it is today.  Volume and profit targets. 

I don't get what you are saying here?  Are you saying that dealerships don't compete with each other?  I must be misinterpreting what you are saying because that is straight bonkers. 

[Hards Alumni]

In no particular order, my favorites have been for sheer driving joy, the Pontiac Trans Am and the Dodge Charger R/T.  I have to say though, I think my favorite was my Wrangler.

Straight line speed over handling, got it. 

[Frenns Liquor Depot]

I don't get what you are saying here?  Are you saying that dealerships don't compete with each other?  I must be misinterpreting what you are saying because that is straight bonkers.

No they are.  I am saying a manufacturer in other categories (use laundry again) will not choose to sell direct and compete with its customers even if there is potential for more profit.

In the auto example it would be ford going direct in Milwaukee against its franchisees (if that were legal).

[MU Fan in Connecticut]

Tesla is trying that.   Currently outlawed in Michigan.

Same in Connecticut.  They've been trying to change but the auto dealerships will not accept.

[buckchuckler]

No they are.  I am saying a manufacturer in other categories (use laundry again) will not choose to sell direct and compete with its customers even if there is potential for more profit.

In the auto example it would be ford going direct in Milwaukee against its franchisees (if that were legal).

Ah, correct.  Yes. 

Dealers don't even really make their money based on individual units.  They make money based on reaching program goals.  Going back to an earlier point, it would make no sense for a dealer to park a customer for 5 hours because they were paying cash.  Yeah of course they make money on financing, but they (for the most part) want to get customers in and out to get to the next customer.  Slowing down the process just to spite a customer would be spiting themselves and screwing their sales people/ managers/ F&I people

[MU Fan in Connecticut]

That's not how it works guys.  Every business has an MSRP if they sell through a channel with an implied profit.  The reason it is MSRP is that the manufacturer cannot legally set prices for a retailer.  Those decisions are the sole discretion of that retailer

If the manufacturer wants to drive more volume, they fund promotions.  Again though it is the retailers discretion on what price is set and what promotions are run.  And yes, most categories compete on price against competition, but also retailers compete (think TGT vs WMT on laundry detergent).

Where a mfg has channels that add value they purposely don't compete directly as it is difficult to both sell to and compete with  your customers.  If a mfg sold 'direct' the pricing would likely be dictated based on the way it is today.  Volume and profit targets. 

So the question is, does the dealer add anything to the customer to justify their profit.  Also why is this mandated and not a decision for the manufacturer like other categories.

Wasn't that the deal when GM founded Saturn.  There was one price for whatever model you bought and that was it.

[The Sultan]

No they are.  I am saying a manufacturer in other categories (use laundry again) will not choose to sell direct and compete with its customers even if there is potential for more profit.

In the auto example it would be ford going direct in Milwaukee against its franchisees (if that were legal).

IOW, a car manufacturer is going to be more profitable in the long run if it focuses on making cars and leaving the selling to those who specialize in that.  Just like P&G doesn't sell its products directly, but uses retail stores to do so.

[buckchuckler]

Straight line speed over handling, got it. 

That freaking Charger handled like a million bucks.  And it certainly didn't lack anything in straight line speed either.

[Hards Alumni]

That freaking Charger handled like a million bucks.  And it certainly didn't lack anything in straight line speed either.

Have chick zip you around in their mx5... then you can see how a car can really handle. 

[buckchuckler]

Have chick zip you around in their mx5... then you can see how a car can really handle. 

Oh, I've driven one, the Fiat version anyways.  And they're neat little things.  But comparing it to a Charger is like saying a great HS running back could out maneuver an NFL back.

A nice thing about the Chargers is that they are a bit heavy for a muscle car, which maybe hurts a little in straight acceleration, but it sure helps it handle.  And it handles great, even at high speeds. 

I'd also wager that the Charger is a fair bit better in the snow.

[Coleman]

Scoop company cars

[Coleman]

The "M" in MSRP stands for manufacturer. If you want to pay MSRP, I promise I'll sell you a car and we never have to interact. Deal?

Yes but if dealer didn't have to get a cut, MSRP would be lower.

Seriously what value does a dealer add?

[shoothoops]

 NM

[Coleman]

Ah, correct.  Yes. 

Dealers don't even really make their money based on individual units.  They make money based on reaching program goals.  Going back to an earlier point, it would make no sense for a dealer to park a customer for 5 hours because they were paying cash.  Yeah of course they make money on financing, but they (for the most part) want to get customers in and out to get to the next customer.  Slowing down the process just to spite a customer would be spiting themselves and screwing their sales people/ managers/ F&I people

You'd think, wouldn't ya? Didn't happen that way though.

[buckchuckler]

You'd think, wouldn't ya? Didn't happen that way though.

I would, yeah, obviously there can be exceptions.  But especially if you were a t the dealer on like a Saturday, when they were busy, a 5 hr experience isn't outside the norm. 

I'm not saying they didn't do that to you.  Maybe they did because of some vendetta.  But on the whole, the dealership wants you in and out to be able to have another customer.

[Hards Alumni]

I recently very randomly watched the Paul Rudd (minor role) film "The Perks of being a Wallflower" after passing it numerous times on Netflix. I knew nothing about it. Enjoyed the film as well as the music.

[shoothoops]

Whoops clicked wrong thread. My bad.