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Cake day: October 20th, 2023

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  • The why: dealerships have fixed operating costs. If there’s low supply/demand, they have to mark up to keep their doors open. It’s stupid but it is legitimate. Toyota has been doing this to an unneccesary extreme though. JLR San Diego doesn’t mark up, has a much smaller customer base, and thin sales margins so it’s clearly still possible to operate with out markups, you just need a crazy good service department (they don’t, it’s a scam, avoid at all costs).

    The alternative: they could not do markups, do only service profits, and take a loss and attempt to write it off on their taxes, however they would be forced to lay people off.

    The sad reality is we are going to all sit through this for the next few years since no one wants to do anything to address shortage issues because “money”. Why spend money to fix the problem when you can use it as your 24/7 scapegoat?

    An extreme again will be watching companies Land Rover stop existing by the end of the decade. Their supply chain has ground to a full halt, and they already weren’t very profitable. This Truely may be their last generation (notice how they were supposed to release an EV this year but still haven’t with a month remaining? They have no money, no supply, nothing). Chrysler and Fiat may follow suit, along with Lincoln if they keep pushing out lemons.

    This is not going to be a good car decade.