Quote:
Originally Posted by zx10guy
Those that have some financial literacy will walk away from such increases in price due to a tariff. I get swallowing the increase if you're fully aware of the increase and make the conscious decision to still pay it.
But I see this as nothing more than those mark ups people were paying during Covid. Many of the mark ups were insane; some exceeding what is being projected here. So I do expect sales to possibly take a hit, I don't think it's going to be that bad as many people lose their minds when it comes to buying cars.
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Financial literacy has very little to do in this particular context. It’s more about desire vs affordability. The cost increase is a fixed condition, it’s your choice to buy or walk away. Own the perfect M4 that you’ve been waiting or never. Simple. And if you think waiting it out will help the price to drop? No it won’t. There’s always going to be certain percentage of demand no matter how much more it costs, rich people everywhere. Dealers are not going to bring standard builds as much as previously. For those ordered custom builds, it’s secure for dealer to bring it in because stated in contract of the tariff term otherwise lose deposit, dealer turns around sells to another buyer. Still wins. What dealer wouldn’t do is, lose money on the car because they paid tariff for you. They aren’t stupid. If the demand from consumers takes a hit, dealers purchase will align or further reduce so they can jack up the price even more. Just as you said, the markups during Covid was caused by shortage of everything. So of the supply is lower than demand, it’s a good position for dealers to jack up prices further. But Covid can go away, will trump lower or remove tariff for as long as he is president? Probably not