More secret price increases?

[BrokerThis]

Okay that makes more sense lol

As long as the dealer has it as retail sold order and in your name, and GM is still holding true to the order pricing honor they currently have going, then you should be price locked.

 

[Polo08816]

Actually, the site I posted said it’s CPI (consumer price index) of the current month compared to CPI of the previous month…now, CPI may actually an annualized number, but the info I posted was the %increase in CPI from month to month.

Edit: I just educated myself. CPI is a 12month number. So, yes, it’s a backward looking 12 month period, of increase…my bad. Now back to the hidden price increases (although going back to 2-3% inflation is fine with me too! )

Let’s just say the 6-8% inflation rate is severely under what it actually is

The Fed is going to need to keep going to get inflation back to 2-3% and there's going to be pain. A "soft landing" is out the window at this point.

 

[66 Galaxie]

Looking like more of a crash landing at this point…

If I were ordering now I would order from a few dealers and do my best to make sure price was set and would be honored. Then I would go with the first one that arrived or the one which the dealer actually honors the original price.

 

[bunky319]

Looking like more of a crash landing at this point…

If I were ordering now I would order from a few dealers and do my best to make sure price was set and would be honored. Then I would go with the first one that arrived or the one which the dealer actually honors the original price.

That's exactly what I'm doing. I have orders in at two different dealers, one is an SLT with Luxury package and Max tow, another is a base Denali. Both orders should be price protected but time will tell if/when the orders actually get fulfilled.

The other sad thing happening now is that while GM continues to raise prices on the new vehicles, my trade-in value keeps falling. My average trade-in value with NADA has gone down $4K since last April. You wonder how long this paradox can continue....

 

[Polo08816]

That's exactly what I'm doing. I have orders in at two different dealers, one is an SLT with Luxury package and Max tow, another is a base Denali. Both orders should be price protected but time will tell if/when the orders actually get fulfilled.

The other sad thing happening now is that while GM continues to raise prices on the new vehicles, my trade-in value keeps falling. My average trade-in value with NADA has gone down $4K since last April. You wonder how long this paradox can continue....

I don't think they will be able to forever. Some manufacturers are having problems with having too much inventory.

There are quite a few Volvo SUVs in dealer inventory - it's too expensive for what it is. For example, Prestige Volvo in NJ has over 30 XC40s and over 80 XC60s in dealer inventory.

Stellantis will get to that point as well.

GM and Ford aren't immune. At some point, they will feel the heat as demand decreases and supply improves.

I think this is part of the reason why there are so many vehicle being built with ridiculous constraints. These OEMs know that the music is about to stop so it's a race to get as much inventory retailed as possible even if it means building "incomplete" vehicles.

Only these OEMs truly know what the backlog of vehicles is right now as well as how quickly that backlog is decreasing. My guess is that the backlog is shorter than most think it is and the OEMs are tracking those trends. Once inventory starts building on dealer lots, they will go back to producing more complete vehicles instead of rushing to get half baked inventory out to market.

I think there's a good chance cars built during this pandemic and sat on a lot for 6+ months waiting to be completed while getting rat-f*cked are going to be lemons.

 

[NIevo]

Inflation is 6%, not going up 6% monthly. last month it was up 0.4% if I recall. On a $75K vehicle, that would be a $300 increase.

Yeah, if you believe it's 6% a year then I've got a bridge to sell you.

 

[StephenPT]

I wonder if these price increases give GM wiggle room to offer incentives when the time comes. "$5K off MSRP!!!" Sounds good to the consumer, but the reality is they've raised the prices at least by that much in the last 6 months.

 

[grouch]

Market forces drive most pricing. Right now, there is great demand. When demand degradation sets in, prices will soften and incentives may make a return. It's like the price of gasoline and diesel. When everybody cut back on driving, prices began to drop. Part of that though was all the oil producers were holding back their production for a better price. When the price dropped, people began to drive more and the price is starting to inch up.Several of my cousins work in the oil fields and one in a refinery so I'm hearing that when oil prices got soft, the tanks got emptied.

The market in general is beginning to soften. In addition, manufacturers are starting to look to the future. The drive to luxoboats has a lot of vehicles sitting for lack of parts. Ford for instance has filled the parking lots at the Louisville speedway with partially finished F series trucks. One part they can't get enough of is the blue oval grill emblem. This is one reason why Ford, as well as GM, are looking to source parts onshore.

The future market is also a factor. I know this is a GM forum but I don't have information on GM's plans. Ford though is adopting a 3 tiered sales system for dealers. Top tier is the Ford E+ (I think). It will entail a Ford dealer to spend anywhere from $500,000 to $1.2 million in remodeling. They will sell the electric vehicles and will be required to install charging stations for ALL makes and models. Yes, this includes Tesla's. The prices will also be LOCKED into what the dealer advertises. No bumping it up to make a few extra bucks when the customer is standing there.

Next will be the Blue Oval dealers. Basically, the dealer as it sits today. Then there will be the dealer who many deals in commercial vehicles. I wouldn't be surprised to see GM do something similar down the road.

Dealers jacking the prices up have been the bane of manufacturers in the lasy couple of years. I have a Mazda CX-5 and when it was in for service, I wandered around the lot. Their one new car at that time had a $4000 market adjustment. The next time I was in, there were FOUR new cars. Along with 10 or so used ones. None of the new cars had market adjustments. Evidently Mazda didn't want to alienate future buyers.

 

[Z15]

The local dealer got in a 2023 Yukon XL Denali Ultimate with a sticker of $98,500 and there were multiple buyers interested. DDS friend said he was ready to pay sticker but someone else got it. He looking for another but can't find one.

 

[Jeff O]

Inflation is 6%, not going up 6% monthly. last month it was up 0.4% if I recall. On a $75K vehicle, that would be a $300 increase.

0.4% ??? You must have got that from some lying politician's camp

Not to stray off topic here but these percentages are annualized. Inflation is always expressed “over the last 12 months”. So 8.36% on August 31 is not that prices went up by 8.36% in August, but went up by that much compared to August one year before.

Wether you agree how it’s being calculated, just know that on a macro scale it will never be an accurate representation of everyone’s individual situation but at least it’s a baseline we can measure and compare over periods of time.

The 8% thing is a government calculation and averages many matierials, products and commodities. Trying to use it relative to car prices is a useless exercise. Anyhow, do you really believe govt stats?