Should it be against the law for dealerships to mark up prices
#11
RE: Should it be against the law for dealerships to mark up prices
Price controls should not be in effect, not in this country and not for discretionary items. In an open market, it's the consumers that set the price. If you don't like the markups, don't pay them. I bought my Mustang GT in 05 and the dealers were getting 2-5K over sticker. I refused to pay it and eventually found a dealer that would sell it at sticker. If you look around now, you can find new GTs well below sticker.
If people refuse to pay these ridiculous prices, the dealers will stop charging these markups.
If people refuse to pay these ridiculous prices, the dealers will stop charging these markups.
#12
RE: Should it be against the law for dealerships to mark up prices
I personally donth think it should be Illegal. Look at it from the dealer's perspective. If there are people out there willing to fork over the cash way over sticker, then why should they NOT sell the car for way over sticker. I ran into this when I looked at an '05 GT. The 2005's had just come out and the salesman could have given a crap that I was there and was totally unwilling to break from the $4000 "Market adjustment" tacked on to the $30,000 sticker. I just opted to wait and got an '06 for $2,000 under sticker plus my downpayment. Ended up with my dream car after all!
JMO
JMO
#13
RE: Should it be against the law for dealerships to mark up prices
ORIGINAL: TPony
The anti-dote to dealer mark up is consumer non-purchase. As long as we have folks willing to pay, they will sell. Supply - Demand, don't you think?
The anti-dote to dealer mark up is consumer non-purchase. As long as we have folks willing to pay, they will sell. Supply - Demand, don't you think?
#14
RE: Should it be against the law for dealerships to mark up prices
MSRP = Manufacturers suggested retail price. The key word is suggested. Sorry, but this is a free market, if you don't like it there's always China.
I personally wouldn't buy either a boss or shelby even at the MSRP.
I personally wouldn't buy either a boss or shelby even at the MSRP.
#15
RE: Should it be against the law for dealerships to mark up prices
ORIGINAL: HDmstng
What's scarier is that so far 4 out of 11 people who voted were in favor of price controls, dang didn't think the commies had that much of a hold on the US anymore. [sm=americanasmiley.gif]
What's scarier is that so far 4 out of 11 people who voted were in favor of price controls, dang didn't think the commies had that much of a hold on the US anymore. [sm=americanasmiley.gif]
#16
RE: Should it be against the law for dealerships to mark up prices
Of course it should not be against the law!!! We live in America, not Cuba, North Korea, or some other commie arm pit country!
It sucks for us without the play money, but that is the way it is. Freedom my friend!!! Enjoy it. It is an endangered commodity!
It sucks for us without the play money, but that is the way it is. Freedom my friend!!! Enjoy it. It is an endangered commodity!
#17
RE: Should it be against the law for dealerships to mark up prices
I understand the concept of free market; however, I'm asking myself why, if it'sillegal for people to "scalp" tickets to such eventsas football games, etc, then why is it legal for car dealers to scalp new car prices?I'm just curious because what I am understanding is that according to most people's philosophies if people are willing to pay $1000 extra for the tickets the free market society says it's ok?
#18
RE: Should it be against the law for dealerships to mark up prices
it's a bit complicated to explain on a message board but it has to do with "the product" and what is being purchased. A "ticket" has no intrinsic value, and it is just access to an event ( a service) which remains owned and controlled by the service provider until the service is delivered, at some point in the future.
With a car, you are not buying the car from Ford. You are buying the car, the product, from a store which has already bought the car from Ford. You are not the customer of Ford; the dealer is the customer of Ford. You are the customer of the dealer, who has invested in his inventory and who has the right to maximize his return on his investment.
Yes a scalper may have invested in inventory also but his inventory has no intrinsic value and he owns nothing. Different economics, different rules.
With a car, you are not buying the car from Ford. You are buying the car, the product, from a store which has already bought the car from Ford. You are not the customer of Ford; the dealer is the customer of Ford. You are the customer of the dealer, who has invested in his inventory and who has the right to maximize his return on his investment.
Yes a scalper may have invested in inventory also but his inventory has no intrinsic value and he owns nothing. Different economics, different rules.
#19
RE: Should it be against the law for dealerships to mark up prices
ORIGINAL: Trapeze
I understand the concept of free market; however, I'm asking myself why, if it'sillegal for people to "scalp" tickets to such eventsas football games, etc, then why is it legal for car dealers to scalp new car prices?I'm just curious because what I am understanding is that according to most people's philosophies if people are willing to pay $1000 extra for the tickets the free market society says it's ok?
I understand the concept of free market; however, I'm asking myself why, if it'sillegal for people to "scalp" tickets to such eventsas football games, etc, then why is it legal for car dealers to scalp new car prices?I'm just curious because what I am understanding is that according to most people's philosophies if people are willing to pay $1000 extra for the tickets the free market society says it's ok?
#20
RE: Should it be against the law for dealerships to mark up prices
yes, I think of scalping as just the selling of tickets by some dude in front of the venue. But beieve me there is plenty of markup in the ticket business and it is legal. Just go to Razorgator or any of the online ticket brokers. Here's what they are asking for Chargers tickets:
http://www.razorgator.com/tickets/sports/football/nfl/san-diego-chargers-tickets/?performance=3598535|1
Think those are face values?
I guess the only way to look at it is that having the government try to regulate the price of a few thousand cars is a waste of time. Of course, if Ford had any sense, they'd make more of these cars so they could make more $ instead of the dealers getting all the extra cash! The car company doesn't see any of the markup, right?
http://www.razorgator.com/tickets/sports/football/nfl/san-diego-chargers-tickets/?performance=3598535|1
Think those are face values?
I guess the only way to look at it is that having the government try to regulate the price of a few thousand cars is a waste of time. Of course, if Ford had any sense, they'd make more of these cars so they could make more $ instead of the dealers getting all the extra cash! The car company doesn't see any of the markup, right?