ADM fatigue may have finally occurred.

[Braderick]

Perhaps the current purchase climate is changing seasons.

https://www.thedrive.com/news/44964...rtages-rage-and-high-prices-scare-buyers-away

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[Naranjita]

Yep. Only so many desperate buyers or those able/willing to pay high ADM's. Once dealers run out of those folks, sales will start dropping on the high ADM units. No choice but to start reducing the ADM's to sell that inventory vehicle. Hopefully it will come down fast. But I think it will be slow and model dependent.

 

[Angry Hippo]

ADMs aren't going anywhere. Because dealers are selling fewer vehicles they must, MUST get a better price for them (or cut costs elsewhere).

Lower income folks truly can't pay the marksups and are being forced into "deals" like the used 2017 Rav4 for 23.9K I passed today (didn't see the odo, but even if it was very low it wouldn't be worth it).

I bought 2013 CX-5 about 18 months ago for 15k with 80,000 miles and 1 owner clean history. A similar vehicle would easily fetch 19, 20k+ today.

 

[RebellaE]

It seems interesting to me that they equate low sales to ADMs and not the fact that there's no inventory....even though they say there's very little inventory.
There's no way its an either/or situation. If people don't have to buy a car, they are waiting for ADMs to go away. But if the car you want (Maverick, iD4, RAV4 Prime, etc.) just isn't available, you have to wait as well.

 

[Billy]

I saw a "Manager's Special" yesterday for "$23,494" instead of other cars near it for "$23,495".

 

[Decayed]

Everything goes in cycles. The nature of the beast is that prices go up fast but come down slow. It will be a tough market until the supply issues resolve.

 

[Dun4791]

ADMs aren't going anywhere. Because dealers are selling fewer vehicles they must, MUST get a better price for them (or cut costs elsewhere).

Lower income folks truly can't pay the marksups and are being forced into "deals" like the used 2017 Rav4 for 23.9K I passed today (didn't see the odo, but even if it was very low it wouldn't be worth it).

I bought 2013 CX-5 about 18 months ago for 15k with 80,000 miles and 1 owner clean history. A similar vehicle would easily fetch 19, 20k+ today.

You forgot about one demographic. The ones who won’t pay ADM no matter what. I will never pay ADM on any vehicle. To me it’s two groups of people who do pay…. Rich people who don’t care about money and impatient people.

 

[Angry Hippo]

You forgot about one demographic. The ones who won’t pay ADM no matter what. I will never pay ADM on any vehicle. To me it’s two groups of people who do pay…. Rich people who don’t care about money and impatient people.

So God willing these supply chain shortages clear up and in a year or two we're all back to normal... but suppose the shortages don't ease anytime soon?

I'm of the mindset that paying 5K ADM above MSRP is a bargain compared to what they'll want to charge for vehicles if I wait 2-5 years to buy another. Look at the price increases just year over year on the Maverick. A sunroof went from a ~600 option to a ~1000 option. I don't think that is the end of the price increases.

Hopefully I'm wrong. I really hope I am... I hope I feel stupid for paying 5k ADM 2 years from now... but I get a feeling I'll look back and think that I made out like a bandit.

 

[Dun4791]

So God willing these supply chain shortages clear up and in a year or two we're all back to normal... but suppose the shortages don't ease anytime soon?

I'm of the mindset that paying 5K ADM above MSRP is a bargain compared to what they'll want to charge for vehicles if I wait 2-5 years to buy another. Look at the price increases just year over year on the Maverick. A sunroof went from a ~600 option to a ~1000 option. I don't think that is the end of the price increases.

Hopefully I'm wrong. I really hope I am... I hope I feel stupid for paying 5k ADM 2 years from now... but I get a feeling I'll look back and think that I made out like a bandit.

Pretty simple, just keep the car you have now. Always financially smarter to keep and fix than buy new anyway.

 

[Angry Hippo]

Pretty simple, just keep the car you have now. Always financially smarter to keep and fix than buy new anyway.

It's always simple until you're in an accident (at fault or not) or the engine/tranny blows.

Or what if your current car sucks?

In my line of work (repairman) any savings from a vehicle rapidly evaporate if you start having to cancel appointments because your vehicle is always needing work done on it.

I had an 06 Sportage V6 that seemed like every month it was something new. I once got stuck about 2 hours outside Santa Fe. Took forever for a tow truck to come. Once the sun went down and it started to get cold things got a bit scary. It was then I realized the value of a newer, more reliable vehicle. -Priceless.

 

[Mavman123]

So God willing these supply chain shortages clear up and in a year or two we're all back to normal... but suppose the shortages don't ease anytime soon?

I'm of the mindset that paying 5K ADM above MSRP is a bargain compared to what they'll want to charge for vehicles if I wait 2-5 years to buy another. Look at the price increases just year over year on the Maverick. A sunroof went from a ~600 option to a ~1000 option. I don't think that is the end of the price increases.

Hopefully I'm wrong. I really hope I am... I hope I feel stupid for paying 5k ADM 2 years from now... but I get a feeling I'll look back and think that I made out like a bandit.

I'll play devil's advocate with you and ask 5 years ago how much did the cheapest hybrid cost? Typically 4 to 7k over the equivalent gasoline model. Now look at the hybrid Maverick at 21k

 

[jbpoole]

You forgot about one demographic. The ones who won’t pay ADM no matter what. I will never pay ADM on any vehicle. To me it’s two groups of people who do pay…. Rich people who don’t care about money and impatient people.

Gotta have it.

Gotta have it NOW!!!

 

[Angry Hippo]

I'll play devil's advocate with you and ask 5 years ago how much did the cheapest hybrid cost? Typically 4 to 7k over the equivalent gasoline model. Now look at the hybrid Maverick at 21k

Street price - 21k +10k

 

[Dun4791]

It's always simple until you're in an accident (at fault or not) or the engine/tranny blows.

Or what if your current car sucks?

In my line of work (repairman) any savings from a vehicle rapidly evaporate if you start having to cancel appointments because your vehicle is always needing work done on it.

I had an 06 Sportage V6 that seemed like every month it was something new. I once got stuck about 2 hours outside Santa Fe. Took forever for a tow truck to come. Once the sun went down and it started to get cold things got a bit scary. It was then I realized the value of a newer, more reliable vehicle. -Priceless.

Then find a vehicle with no ADM. seems simple to me. Be open to a different brand. For instance there’s no ADm on Santa Cruz now. Lots of competition out there, let it work to your advantage

 

[Angry Hippo]

Then find a vehicle with no ADM. seems simple to me. Be open to a different brand. For instance there’s no ADm on Santa Cruz now. Lots of competition out there, let it work to your advantage

Do you understand that even if you're "only" paying MSRP your vehicle is still marked up?

At this point you're really just arguing about how much you're willing to have your vehicle marked up. You're not going to have a choice to avoid it completely.

I looked into a Santa Cruz. I called a few places. The lower trims were at MSRP (who pays sticker price for a Hyundai???) and any models with the 2.5 turbo were 5k ADM. Almost none of them were actually on the lot. All "to be reserved" with a non-refundable deposit.

I found a 2022 Ranger on a dealer's lot (it was the ONLY one they had). Price was MSRP. When I was walking away I got offered a whopping 1k off. (35k instead of 36k)

Even if I could get a Santa Cruz without ADM... I'd gladly pay 5k not to be stuck in a Santa Cruz.

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