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How much in profits!

Stormtrooper1320

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#2
That's a smart business decision right there. :rolleyes::rolleyes:

Dodge could sew up that market segment and generate other sales in Australia, but instead chooses to sit out.

So typical.
 

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#3
Can someone give me cliff notes lol
 
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Thread Starter #4

Speedy!

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#5
That seems high to me based on the current car market and all the shortages.
 

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#6
When you don’t sell much last year, then compare 2021 sales volume to 2020 the year over year numbers looks great.
 
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Piening2150

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#7
Plus the cars (mostly Ram trucks) that are being sold are doing so without a mountain of cash rebates. I think you'd find there are also a crapload more custom factory orders vs prior years. When there's slim pickings on the lot (and no incentives) might as well order exactly what you want. And when someone custom orders they are far less likely to walk away from the deal.
 

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#8
Plus the cars (mostly Ram trucks) that are being sold are doing so without a mountain of cash rebates. I think you'd find there are also a crapload more custom factory orders vs prior years. When there's slim pickings on the lot (and no incentives) might as well order exactly what you want. And when someone custom orders they are far less likely to walk away from the deal.
Exactly that, no more incentives.

This is very bad in the short term, if manufacturers cut lot times for vehicles it means a constant supply issue and when demand outpaces supply it's a GG.

I am helping a family member shop a kia carnival minivan and they are going for over $6k above sticker.

Take a look around the internet and you will see hellcats with adm, f-150s with adm, and a ton of regular cars with adm, and throughout the board almost 0 in lease or apr credit, there is loyalty for some manufacturers, and then always military and college but that's it.

Low rebates + controlled supply = massive profits for the dealer, manufacturers are changing their gameplan a bit short term as well.

I expect the effects of chip shortage to last into 2023 and have an effect on used cars until production stabilizes.

I think used car prices will come back to earth in the next 6-8 months but they will still be higher than pre pandemic prices.

Almost a perfect storm, covid cuts production causing chip production to be cut causing irreparable damage to the supply line.... or at least unfixable in the short term.
 

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#9
These numbers are confusing to many being they have produced 700,000 less units so far the first 2 qtrs of this year. But yet are reporting these profits and they claim the merger has saved them monies as well. But a big butt you have to think how these profits came to be with so much supply issues. And yes the rebates are gone but damn your telling me take away rebates and you have big profits on huge loss of production? Guess these manufacturers need to stop appeasing all these unions and shut down productions more often😁. And yes dealers are making record profits on less vehicles sold also. Wow who would have thought idling so many hands would enrich so many more than otherwise normalcy in the markets. I was at the so called largest east coast Ford Truck dealer here in Fl the other day. They have a huge amount of Truck inventory for sure compared to any other Ford dealer I know of. I spoke with a finance director just about these conversations and the full retail plus ADM. He told me banks are getting very nervous on vehicles being financed at MSRP. and in some cases the ADM. The banks will finance up to 140% of a vehicles MSRP which he said is becoming more challenging due to banks not approving these types of deals. But at the same time their sales are at record profits due to no Discounts. And he even admits those who are buying these cars are going to be buried in negative equity in the years to come when the market stabilizes. I have friends who sell cars and have doubled their incomes in the last 18 months. Some are now making 250K-300K. And many are making double the Money Selling half the cars meaning they still make the same income with half the work. Just insane times we all are witnessing and we all know the heyday ride on record profits in any industry eventually comes to an end. And usually it reverses to the total opposite of record loses which then bleeds away all the record profits.
 

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#10
This is why you cannot buy into the hype for the housing or car markets. Everyone who is financing these things during the bubble are doomed when it pops, and the gov won’t be there to help the people, only the businesses.
We are heading into a housing market crisis where people paid 2x what their house is worth, they’ll have negative equity 5-10 years into a 30yr mortgage and they’re screwed.
Same goes for everyone paying ADM on cars… that shit isn’t going to be worth more tomorrow just because there is demand today. 140% of MSRP… think about what someone has to do to get into a car these days.

New Hellcats that we’re selling in the low 50s last year are worth almost $70k today… no they’re not. But someone is willing to spend it today, so they’ll suffer as a result tomorrow.
 

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#11
This is why you cannot buy into the hype for the housing or car markets. Everyone who is financing these things during the bubble are doomed when it pops, and the gov won’t be there to help the people, only the businesses.
We are heading into a housing market crisis where people paid 2x what their house is worth, they’ll have negative equity 5-10 years into a 30yr mortgage and they’re screwed.
Same goes for everyone paying ADM on cars… that shit isn’t going to be worth more tomorrow just because there is demand today. 140% of MSRP… think about what someone has to do to get into a car these days.

New Hellcats that we’re selling in the low 50s last year are worth almost $70k today… no they’re not. But someone is willing to spend it today, so they’ll suffer as a result tomorrow.
Yes I agree and I am hearing the Cash out of houses is big again. And that’s making a lot of sense now to me being every where I travel a lot of people are paying for things with cash and writing a check. Wow beyond wow this is 2005-2006 all over again. And if true then it will take about 2 years for people to exhaust there cash outs of their homes and then realize they have to sell it. And or they no longer have any cash flow and are strapped with their debt and will start selling things. Yep the foreclosures, car repos and values of things going south is probably about 18 months away.
 

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#12
These numbers are confusing to many being they have produced 700,000 less units so far the first 2 qtrs of this year. But yet are reporting these profits and they claim the merger has saved them monies as well. But a big butt you have to think how these profits came to be with so much supply issues. And yes the rebates are gone but damn your telling me take away rebates and you have big profits on huge loss of production? Guess these manufacturers need to stop appeasing all these unions and shut down productions more often😁. And yes dealers are making record profits on less vehicles sold also. Wow who would have thought idling so many hands would enrich so many more than otherwise normalcy in the markets. I was at the so called largest east coast Ford Truck dealer here in Fl the other day. They have a huge amount of Truck inventory for sure compared to any other Ford dealer I know of. I spoke with a finance director just about these conversations and the full retail plus ADM. He told me banks are getting very nervous on vehicles being financed at MSRP. and in some cases the ADM. The banks will finance up to 140% of a vehicles MSRP which he said is becoming more challenging due to banks not approving these types of deals. But at the same time their sales are at record profits due to no Discounts. And he even admits those who are buying these cars are going to be buried in negative equity in the years to come when the market stabilizes. I have friends who sell cars and have doubled their incomes in the last 18 months. Some are now making 250K-300K. And many are making double the Money Selling half the cars meaning they still make the same income with half the work. Just insane times we all are witnessing and we all know the heyday ride on record profits in any industry eventually comes to an end. And usually it reverses to the total opposite of record loses which then bleeds away all the record profits.
Some ram and ford manufacturer rebates were almost $10k including everything.

That's why we lease baby!

As much as I'm against adm you can bury it in lease use it as a tax writeoff and walk away in 3 years.

But yes you are pretty much correct, adm on a car means you are buried unless it's a special edition porsche, ferrari, or anything really really special, I think the c8 counts as that. I knew many who paid 5 and 10 over on c8s and now those c8s are worth close to 100k partly due to demand and partly due to GM increased the price for c8s in the future.

I was glad to walk away with two f-150s in may at msrp cause now those platinum powerboosts are minimum 5k over and up to 10k over msrp.
 

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#13
This is why you cannot buy into the hype for the housing or car markets. Everyone who is financing these things during the bubble are doomed when it pops, and the gov won’t be there to help the people, only the businesses.
We are heading into a housing market crisis where people paid 2x what their house is worth, they’ll have negative equity 5-10 years into a 30yr mortgage and they’re screwed.
Same goes for everyone paying ADM on cars… that shit isn’t going to be worth more tomorrow just because there is demand today. 140% of MSRP… think about what someone has to do to get into a car these days.

New Hellcats that we’re selling in the low 50s last year are worth almost $70k today… no they’re not. But someone is willing to spend it today, so they’ll suffer as a result tomorrow.
Was thinking this very thing the other day. How the hell are people going to do it when their appraised values drop by 50-100k on their homes down the road and theyre completely upsidown? And youre spot on with the auto market too. $70k Hellcats just arent. In the next 4-5 yrs there are going to be a lot of losses due to people running around blowing their cash and over-using all of their credit now. People need to settle down. It's ridiculous tbh.
Now I gotta run, wife told me we need to go stock up on toilet paper...ya know - shortages n all...
 

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#14
Same deal with GM
They shut down plants that make cars with smaller margins.
Funnel resources to the high profit cars
Low inventory, cheap money, and high demand. The big American companies can sidestep the UAW right now too.

Perfect storm to set profit records
 

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Yes I agree and I am hearing the Cash out of houses is big again. And that’s making a lot of sense now to me being every where I travel a lot of people are paying for things with cash and writing a check. Wow beyond wow this is 2005-2006 all over again. And if true then it will take about 2 years for people to exhaust there cash outs of their homes and then realize they have to sell it. And or they no longer have any cash flow and are strapped with their debt and will start selling things. Yep the foreclosures, car repos and values of things going south is probably about 18 months away.
And I am patiently waiting to pounce on deals.

I saw the value of my house on zillow the other day and laughed. Its damn near double what I paid in 2014 for it. Tempted to sell, but I don't want a mortgage payment anymore.
 

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#16
This is gonna keep going for a while. It won’t drop anytime soon. People will always make stupid financial decisions regardless of the current state of economy or their own financial situations. And the banks don’t care how much they lend. They own all the property and vehicles anyway. Plus they got all the money to lend on practically no interest themselves. It’s a win win for them. This time when mass foreclosures end up coming they won’t be as inclined to sell these homes on the foreclosure market. They will keep them and rent them out to the same people who defaulted and are broke.

big business will become the new landlords. It’s happening now anyway, they are buying up all the houses now.

as for the automakers and their record profits, it makes perfect sense. they are no longer offering incentives or rebates and they raised their prices across the board. they are getting more than ever for each car they pump out. and the dealerships are jacking their prices through the roof taking advantage of the situation as well.

im in retail of fancy luxury items also, and this is no different. usually we sell between 35-50 percent margins and we are consistently at 70 percent margins across the board. thats well over double the money. we are recording record profits as well. its crazy for sure. but as long as your not a jackass sheep buying into the mess you can read whats going on and actually make a bunch of money right now.
 

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#17
Good thing their still raking in covid subsidies too...
 
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vortecd

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Thread Starter #18
all I see is when companies are making billions in profit, they are charging to much. Remember seeing those numbers in oil and thought gas could be $1 and they still would make money
 

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#19
Same deal with GM
They shut down plants that make cars with smaller margins.
Funnel resources to the high profit cars
Low inventory, cheap money, and high demand. The big American companies can sidestep the UAW right now too.

Perfect storm to set profit records
America makes its money off trucks, suvs and performance vehicles, its almost a no brainer.

If it weren't for hellcats the charger would be long dead or only available as a fleet vehicle, challenger still retains that retro look but look at the dart.

Ford pretty much axed all cars, gm the same, fca had done in most of their product too.

It's just smart business practice, I don't blame them.

The low inventory and chip shortage is infuriating because of how people act like wild animals and start paying thousands over adm.
 

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#20
I've always lived by the premise that it's not about having what you want, but wanting what you have. Has worked pretty good so far. I'll never pay ADM or anything like that. People who do are just plain dumb.

Years ago we had a guy on the old Challenger forum that paid some stupid amount of ADM on his 2008 SRT8 Challenger the first year they came out. I remember him bragging about getting one of the first ones and "it only cost me $20K over sticker". I thought what an idiot. Then 3 years later he was trying to sell it and getting offers of like $28 - $30K and was going on and on about how much he had paid for it. :rolleyes:
 


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