[Flick Lives]

A New York City man expressed his truckin’ outrage on social media this week after he found a 2021 Ford Bronco at the Old Bridge dealer with a manufacturer’s suggested retail price of $34,855 being sold instead for $49,855 – a “market adjustment” of $15,000.

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I’m not sure when this auto lunacy ends, but it will eventually end. Two things...
1. People purchasing cars 50% over list, especially if they take an auto loan, are going to be severely underwater if they try and trade in the car before the loan is paid in full.
2. I hope people remember the dealerships who gouged people and shop elsewhere in the future.

[NetAddicted]

What are used cars selling for?

[nicollo]

I’m not sure when this auto lunacy ends...
1. People purchasing cars 50% over list, especially if they take an auto loan

Like housing, automobile pricing is financial- and not market-driven. Higher interest rates will drive down prices. Additionally, further market resets will drive up down-payments for both autos and houses, which will further drive prices downward

In 1919, GM finally figured out how to beat the Model T: financing. GM didn't invent it, but it was the first to standardize and market it nationally. Ford hated banks, so he just dropped the T price downward hoping to compete with the higher prices of GM cars that were priced monthly/annually. Ford finally gave up in '26, following Chevrolet's ascension to no. 1 seller with a price several hundred more than the T but with more features and affordable payments.

So, when monthlies rise, prices will drop.

[glorgau]

Can’t really blame the stealership if someone is willing to pay that.

[TexasGator]

“People purchasing cars 50% over list, especially if they take an auto loan, are going to be severely underwater “

You can’t finance the markup.