Local auto dealers say the rise in sales could be a sign that the economy is picking up.
Hedrick's Chevrolet says it's seeing a steady increase.
Brett Hedrick, Hedrick's Chevrolet: "You would think that only the economical cars would be seeing increases with the gas prices, but we see that people are going back to finding the car that they really need and really want."
The California New Car Dealers association says a jump in new car sales this year would mark a third straight year of annual increases.
Here are the best sellers so far this year. Chrysler sales are up well over 200%. Kia is up over 80%. Jeep is close to 40%, and Volkswagen and Mazda are approaching a 35% increase.
But here in the central valley, it's all about the truck.
Hedrick: "Our Silverado pickup is the #1 selling truck in the central valley. So, you always say, as long as the Silverado is selling, business is good."
For actual fee-paid registrations, DMV showed a slight decrease in its numbers from 2010 to 2011.
TV ad for the late 80's Isuzu Impulse turbo featuring the notorius Joe Isuzu. Includes the catch phrase "Faster than a speeding... Well ...
R car dealers pricing their hybrid cars higher to get most ofthe fuelsavings based on current high gas prices?
Mar 31, 2008 by heeltap | Posted in Buying & Selling
Such pricing is called "opportunity cost pricing" based on your other vehicle alternatives which are gas guzzlers running only on high-priced gasoline blends or diesel alternatives. Of course there are other factors that affect prices--and many have been mentioned--but I want an answer to my Question which is very specific!
I consider the attribution of higher "first costs" like initial design and manufacturing associated with the initial hybrid models as bogus given the huge past profits of the US Car Industry and all the subsidies given to them! The computer and other electronics industry faces those same costs and they manage to supply better products at lower prices. Car costs keep going up and up no matter what and that tells me something else is at the root cause.
Working at Toyota, we have the largest selection of different Hybrid models and also the number one hybrid in the world (verified by Consumer Reports), the Toyota Prius. Thus we do a very very very large volume of hybrid sells. This month (march) alone, we sold a record 72 Prius vehicles and 113 Hybrid vehicles all together. For a vehicle that is normally higher priced, that is an amazing amount of vehicles sold, and that is only at our Dealership in Ft Myers Florida.
Hybrid MSRP's do tend to start out quite a lot higher than the gas models due, though the Prius does not have this distinction because it never had a gas model. The reason that Hybrids are higher priced than the gas models is simply because of the cost of manufactoring the vehicle, along with a little markup because of the demand. The hybrid engine is not that cheap, but at this moment with Hybrids being so new, we are actually still paying for the designing and testing costs of the vehicle. This actually happens on all new models. Thats why first year vehicles rarely have rebates but models that have been around for a few years do have rebates.
Another thing that is raising the cost of Hybrids is because of Demand. And with steadily rising gas prices, comes steadily rising demand. As with our dealerships example, we ran out of hybrids and had waiting lists for them when they made it into the dealership, so we started charging more. Customers were gladly paying from 1500 to 4000 dollars over the normal msrp, simply to have a hybrid as soon as possible.
So in answer to why the price of hybrids is more, there are a few factors.
It costs a hell of a lot to test and design the new technology and someone has to pay for it.. thats us, the consumers.
The manufactoring and parts to hybrids are more costly and its reflected in the price.
And great demand is causing the prices to rise as dealers struggle to supply the vehicles.
Fl Car Guy | Mar 31, 2008
My husband asked the same question last night. He thinks it's done to boost the economy.
shernette84 | Mar 31, 2008
its coz they cost more 2 design n manufacture
kat_s1 | Mar 31, 2008
Hi, car dealers price their cars according to supply and demand usually. As the new hybrids hit the streets, and the dealers, certain models may only have a limited number shipped to a particular dealer. So, if 50 people express interest in a certain car and the dealer knows he is only going to get 5 models of that car, he is going to ask for as much as he can get. Lots of high end car dealers do it, Ferrari,Rolls, etc. This happens a lot in the car business. You have MSRP.....the suggested retail price, but a franchised car dealer doesn't have to stick to any guidelines....he is in business to make money and some dealers will sell a car for more than MSRP because they can...supply and demand. He probably already knows what "market value" is on a specific car. You'll see it on Ebay a lot....a new car model is hyped up for a few months, certain dealers get the first ones, and those cars are on Ebay......they are looking for the buyer who will pay more just to have it first. The worst part is...even if you pay $3,000 more than MSRP when new, the car will still depreciate, you'll never get that premium you paid back. And, of course, the new toyota Prius is expensive as it is, $25,000 is a lot of money for a small car that gets 45-50 mpg. Consider this aspect....a new toyota Corolla is about the same size and priced around $15,000 new. It gets about 30 or so mpg. $10,000 in cash will buy a lot of gas, even if it goes up to $4 a gallon soon. I do think the hybrids are a good idea, but paying so much money up front for one doesn't make sense to me. So, until the world runs out of oil, or the price goes up to $10 a gallon for fuel, most people will stick by their internal combustion engines. I myself will only go electric or solar by force.......it's not in my budget to buy a "green" car.
sweetromanticgirl4u | Mar 31, 2008
well it depends if you are going to keep the car for a long time or not, even with the prius, the car starts at right under $23,000 for a base one and say the new 2008 malibu starts at $19,995, so there is a $3,000 price difference. now say the prius gets twice the gas mileage than the malibu, at say $1600. annual fuel cost for the malibu if it costs you half as much per year it would not come in as a savings until your fourth year. So if you are leasing, it is stupid or even if you trade it within the 4 years it is a loss, but if you keep it you might be ok, well unless the battery goes bad then you are left with a bill for about $4-5,000.00 or a 2,900lb paperweight
let me know what you think gabrielt@christensonchevy.com
gtamayo1 | Apr 01, 2008
When do the car dealers reduce their prices due to cars being a year older?
Apr 06, 2008 by mm | Posted in Buying & Selling
I'm looking at buying a used car that costs too much, in my opinion. Since the 2009's are coming, i was wondering if that's when car dealers reduce the price of their used cars. If not then, what does it happen?
if it is a used car, then the dealer owns it for a fixed amount, regardless of what is happening in the new car arena. If I, as a dealer, buy a car for $10k, then I own it for 10K today, next month, and until it sells.
As a used car, most managers want it on the lot no more than 60 days. There are some exceptions - I know one used car manager who kept a 350Z over 19 months (idiot). Typically the dealership wants to operate on a 60 or 90 day turn.
I would not expect it to be there when the 09s come out. After all, it is a used car, and the only one he has. So, when its gone its gone. Go in and work your best possible deal. If possible, shop for financing and get that pre-approved. Most banks will tell you what the low and high value of that car are, so you can shop informed.
Good luck
xx_satanic_mechanic_xx | Apr 06, 2008
ANY price is negotiable, ANYTIME. Don't wait. Go in and tell them you want the price reduced and you will buy now.
Paul | Apr 06, 2008
it happens every 3 months. every three months the prices are reduced.
Con Man50(aka connor y.) | Apr 06, 2008
When the newer model comes out, It will reduce with every year older it gets.
Daniel F | Apr 06, 2008
They usually try to move cars off near the end of the year. Why don't you just look at an 07 of the same car?
Chad D | Apr 06, 2008
The market value of a used car changes continously as the car ages. This means that every month, their value declines. It doesn't mean dealers reduce the price of their inventory every month.
The advertised price for almost all dealers is way above market value - this allows them to offer you a trade-in of $2000 on a vehicle you know is only worth $1500. Great deal? Not on your life! The $2000 they offered is only off an inflated price - they may actually be giving you $0.
Dealers are aware of the market value but the objective of most dealers is to allow you to pay the absolute maximum you are willing to pay.
There are model year price implications but this only applies to new cars.
Used Car Guru | Apr 06, 2008
Look on www.motortrends to find out if there are any rebates from the manufacturer. There should be some on the 2008's now... They get better later in the year...
Look on ww.edmunds.com to find out invoice, the price the dealer pays...
The best day to buy a car, is 12/31/????... They want to bring there number's up for the end of the year... The last day of the month is good too, for the same reason, as well as on Sundays... This is when the Ads end, and it's the weekend... Go in at like 5pm on these days... so you are one of the last ones out... They want as many deals as they can get on these days and are more apt to giving you a better deal...
Trish | Apr 06, 2008
how much higher are car dealers asking prices then would they will take?
Feb 22, 2010 by BIG BOBBY | Posted in Buying & Selling
Do car dealers list cars a certain amount of money over what they will take or does it depend on the car? I am looking at a 18,000 dollar car what do you think I could talk them down to? thanks its an 05 F150 supercrew XLT with 67k if that matters. thanks
You need to look at Craiglist and match that model. When you have found it look at the price, then look up trade in value, then look up blu book and NADA. Take all of those numbers to the dealer and meet him in the middle.
War Pig | Feb 22, 2010
95% of the time cars are listed higher than the minimum amount a dealer would take for that vehicle. The whole idea is that the dealerships need to make a profit in order to pay all their bills and stay open. That's where negotiating comes in. The dealership will not accept an offer less than what they paid for the car, that is a given, but they also won't tell you what they paid for that vehicle either. The amount of play you have on a car also depends on how long the dealership has had that car and how new it is. For example on a brand new 2010 car you have far less room to move than on a 2009 car of the same type, just because the 2009 has been around longer. The same goes for used cars, the longer they sit, the more the dealer is willing to move to get it out of there so they can bring in something else.
What's more important than the asking price for the vehicle you are looking at is how much you are willing to spend. For example, with the 18,000 car you are looking at, lets say you don't want to spend more than 17,000 on it. When they come back with an offer (more often than not, their first offer price will be lower than their advertised price), lets say they come back offering 17,400. Just return an offer of 16,000 or something like that. It's lower than their offer, but also lower than what you want to spend too. They are trying to get as much as they can for the car, you should try to spend as little as you can. Just keep going back and forth until you are at a number that you both feel is fair. Keep in mind, there is a point where if you and the dealership are not seeing eye-to-eye on the price, they will flat out back away and not negotiate anymore. If it looks as though the dealership isn't going to budge that far on a price after two or three tries, chances are you are getting close to their minimum and they just don't have the room to move anymore.
Always look up NADA book values, Kelly Blue Book values, and Edmunds.com values for the vehicles you are looking at. Remember to look at the SUGGESTED RETAIL PRICE, not the average trade in values or private party values as they will be off when dealing with dealerships. Print off the Edmunds, KBB, and NADA pages and bring them with you to the dealership, that way if they are being tough guys on the price you have that ammunition to turn around and show them. Keep in mind, they can turn around and use that trick on you, so if you mention you saw a value $2000 less than what you actually saw on KBB, they will turn around and pull up the KBB page to see if you are right and can call your bluff.
xerowun | Feb 22, 2010
How can i talk car dealers into bring down car prices?
Mar 30, 2007 by wonder819 | Posted in Buying & Selling
I plan on going to a used car company and need some pointers
ok heres what you do
1. if you plan on trading in a vehicle never tell them your going to trade it off till after the price of the new car is met
2. dont act to excited to get it
3 put it in the sun to see if you can see any dents or scratches to try talking down the price
4 check carfax to make sure you aint buying a dud
5.if trading in a car, dont tell them how much you want for it make them make you an offer and make sure its at least what kbb.com is at
6. tell them no u can do better and start walking out, if they want to sell a car they will reoffer
just make sure you get what you want for a trade in if your trading in, if buying used out right never give what they ask because it aint like its a new sticker price because they definetly paid thousands below for the car and some come from auctions and buy it even cheaper so talk them down that way. also just make sure you get a good interest rate based on your credit because some make money off interest and thats another way for them to make up for the money you think they nocked off. when you think your getting a great deal your really not. anyways have any other question email back because ive been exsperienced in used car sales and never have paid kbb.com price of what its worth for a car. i usely get cars a couple grand lower then blue book
celicagts001 | Mar 30, 2007
What does the heading FWP stand for on a car dealers listing of prices for a car?
Jan 25, 2006 by ygehrich | Posted in Buying & Selling
The salesman told me it stood for dealer invoice price but all of the online services show invoice sinificantly lower. I think it must be the same as TMV which is the prevailing price.
FWP stands for (F)actory (W)holesale (P)rice. Actual dealer cost is the FWP minus the Dealer Holdback which is around 5%of the FWP and less the finance charge which varies depending on how long the car is on the dealers lot(The sooner he sells the car the more finance charge he will get back).
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OregonLive.comUsed car dealers say they're paying about 20-percent to 30-percent more for their inventory and many are passing a percentage of those higher prices on to Dealers Blame 'Clunkers' for Spike in Used Car PricesWas "Cash For Clunkers" a Clunker?Cash for clunkers still causing problemsall 19 news articles »
Some dealers have stopped buying cars at auction because prices have become so outrageous. Why so high: More motorists are hanging on to their clunkers and more »
