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Discussion Starter · #1 ·
89510


(Reuters) - Many U.S. consumers are willing to pay $5,000 more than the sticker price of a new vehicle, as a global semiconductor chip shortage has led to a supply crunch at a time when demand for cars is soaring, a poll by research firm Cox Automotive found.
The chip shortage has forced car manufacturers to idle factories and cut production, which has created a scarcity for new vehicles in the market, sending prices of both new and used vehicles surging.
“More than 40% of car shoppers are willing to pay above manufacturer suggested retail price right now, and those willing to pay over MSRP are willing to accept a 12% premium,” Cox Automotive said on Wednesday.
While vehicle inventory is tight, access to auto loans has become more available for shoppers, further boosting demand, the research firm said.
Reuters
 

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over 40% are willing to? lmfao

god, people gotta just stop feeding the machine unless absolutely necessary if they are in a bind.

most of these people probably don't need new cars, and the bubble's going to burst and everyone's going to be upside down, bigtime in another 1-2-3 years or whenever.
 

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Discussion Starter · #4 ·
over 40% are willing to? lmfao
More like 60% in TFL! :p

This time next year, there will be articles how >40% of people are upside down on their loans, as they try to unload their cars.
Yup.

Advertised BMW lease payments are about $100-200 more a month over this time last year. So you might get crazy good trade-in value, but pay more in terms of new car price. Local Audi dealership is completely out of Q3 and Q7. BMW dealers here are running low on X1 and X2.
It's crazy times that we live in, that's for sure.

It's a great time to sell a car, but not to buy one, used or new.
 

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sooooo I should sell my 2010 GTI now, and hold off till next year to buy a replacement? :unsure:
 
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Discussion Starter · #7 ·
sooooo I should sell my 2010 GTI now, and hold off till next year to buy a replacement? :unsure:
Just make sure that you have another DD you can drive meanwhile. Used car market is crazy good, so you will make a fat profit on your 2010, but could lose money on buying a new GTI.
 

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In my nearly 30 years of driving and car ownership there has only been one time where we "needed" a car right now. We totalled one in an accident and wanted to replace it soon. Even then, we had just bought a 3rd car the month prior so we were able to put that into service until we figured out what we wanted. I can't believe that 40% of the new car buying public absolutely has to have a brand new car right this minute.
 

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Discussion Starter · #9 · (Edited)
In my nearly 30 years of driving and car ownership there has only been one time where we "needed" a car right now. We totalled one in an accident and wanted to replace it soon. Even then, we had just bought a 3rd car the month prior so we were able to put that into service until we figured out what we wanted. I can't believe that 40% of the new car buying public absolutely has to have a brand new car right this minute.
Yeah, 40% is hard to believe. But there are always people that absolutely needs cars due to vehicle loss from accidents and thefts. Also with used car values going through the roof might encourage folks to trade in early. But all their gains in trade in will be offset by price gouding on new.
 

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In my nearly 30 years of driving and car ownership there has only been one time where we "needed" a car right now. We totalled one in an accident and wanted to replace it soon. Even then, we had just bought a 3rd car the month prior so we were able to put that into service until we figured out what we wanted. I can't believe that 40% of the new car buying public absolutely has to have a brand new car right this minute.
How many people leasing have their leases ending and need to replace their cars? That’s where we are. If your lease is over not a lot of ways around it unless you’re going to go without.
 

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My buddy's business facilitates dealer trades for Ford dealers, the dealers are selling new vehicles to each other at $2k or $3k over MSRP. And these aren't Shelby Mustangs or Raptors - we're talking Escapes, Explorers and Expeditions.

There has never been a better time to not buy anything.
 

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"but my neighbors and a bunch of people on the internet are getting new cars, I should too!"
 

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How many people leasing have their leases ending and need to replace their cars? That’s where we are. If your lease is over not a lot of ways around it unless you’re going to go without.
As far as I know, leasees have the option to buy the car they were just leasing. Not dependent on supply and you have a contractually stated price.
 

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over 40% are willing to? lmfao

god, people gotta just stop feeding the machine unless absolutely necessary if they are in a bind.

most of these people probably don't need new cars, and the bubble's going to burst and everyone's going to be upside down, bigtime in another 1-2-3 years or whenever.
people want what they cant have lol

fwiw we just got a crazy deal on our new cx-5 lease last week. so not sure why anyone would be paying 5k above MSRP. unless it's just typical BS headline.

i do know that certain rav4 models are so hot that dealers werent discount even before chip shortage.
 

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How many people leasing have their leases ending and need to replace their cars? That’s where we are. If your lease is over not a lot of ways around it unless you’re going to go without.
With the high used car values, most of the folks can just buy their car at, or in some cases, well below market value. As long as you're not buying out something in the 5er/A6/E-Class segment, I'd think you are in decent shape in most cases.
 

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Meanwhile, here's my local Honda dealer's markup on their CTR LE
What the hell, they added another "D&H" for $599? MSRP already includes $995 for Destination & Handling. That's the real con here!

I wonder what they'll actually sell it for. My store asked for, and received, $15k over sticker on our CTR LE.
 

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Just Milking my Carrot in the Honda break room.
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My store asked for, and received, $15k over sticker on our CTR LE.
That's what they'll sell for. You'd have to be some true Honda fanboi to spend $70k on a yellow Civic.
 
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