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      01-20-2022, 10:03 AM   #23
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Originally Posted by Luminor513 View Post
That's one way to look at it. Or another is that profit margins are motivating this. When an industry is seeing once in a lifetime/historically high profits, what would be the motivation to go back to the pre-Covid business model where it was common place to see 12-14% off MSRP on most vehicles. Or maybe it's just that a lot more people want cars now. Maybe your right. 🤔
I would say it is a combination of the two. Once the shortage is there and they realize they can profit from it look out.
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      01-23-2022, 12:26 AM   #24
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Do any of you know if there's a link on this forum to the 2020 report... ?

Sure would love to see these numbers side by side for comparison sake.
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      01-23-2022, 09:35 AM   #25
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Quote:
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Originally Posted by Luminor513 View Post
This just proves there is no "shortage" of cars. Simply dealers realizing this new way to sell cars yields significantly higher profit margins.
You missed a step. All the people who wanted/needed a car in 2020 once supply dried up are also chasing product that 2021 buyers need/want. That’s where the shortage comes in.
There is always a shortage as long as demand is one more than supply. What the manufactures have been able to do well is to drum up demand with the chip shortage messaging (including selectively removing features and increasing profit margin).

I bet if you did a survey, most people would likely believe that car production was down due to the chip shortage, not up!

Great time to be in the auto or chip industry.
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