Rising Gas Prices = More Ecomodder Interest?

[rmay635703]

Saving money on purchases does not mean anything goes in the bank

Aka being frugal may be necessary to survive Stagflation gate

[67-ls1]

Auto financing is the only way car companies are viable. If customers had to pay cash car companies wouldn’t be in business.

[redpoint5]

Originally Posted by 67-ls1

Auto financing is the only way car companies are viable. If customers had to pay cash car companies wouldn’t be in business.

I doubt that's true. There's plenty of profit built into most models. Financing is bonus money.

[freebeard]

Best comparison, for some one who cares, would be GM manufacturing vs GMAC (now Ally_Financial.

[67-ls1]

Originally Posted by redpoint5

I doubt that's true. There's plenty of profit built into most models. Financing is bonus money.

Yes there is “profit” billed into each model but the corporate overhead is mind boggling.

In 2018 Ford sold 2,490,175 cars and had a PROFIT before taxes of $4.335 billion. That’s a little over $1700 per car profit BEFORE taxes. And that’s corporation wide so that’s parts too.

Note this does not include dealers who’s profits are not part of “Ford”.

If there was no such thing as auto financing who could afford $50k pickup trucks? Not many people.

Side note: Cummins purchased back all of their distributors in the USA and formed a new profit center called “Distribution”. They wanted those profits from their former distributors at the corporate level, not having all their distributors turning into multi-millionaires.

[redpoint5]

Originally Posted by 67-ls1

Yes there is “profit” billed into each model but the corporate overhead is mind boggling.

In 2018 Ford sold 2,490,175 cars and had a PROFIT before taxes of $4.335 billion. That’s a little over $1700 per car profit BEFORE taxes. And that’s corporation wide so that’s parts too.

Note this does not include dealers who’s profits are not part of “Ford”.

If there was no such thing as auto financing who could afford $50k pickup trucks? Not many people.

Side note: Cummins purchased back all of their distributors in the USA and formed a new profit center called “Distribution”. They wanted those profits from their former distributors at the corporate level, not having all their distributors turning into multi-millionaires.

What percent go with manufacturer financing (is that different than dealer)? Usually people are picking between 0% APR, or cash back from the manufacturer.

The Tesla direct to customer model will supersede the legacy model of independent dealerships. That middleman takes too much of the pie.

[67-ls1]

The Tesla direct to customer model will supersede the legacy model of independent dealerships. That middleman takes too much of the pie.[/QUOTE]

Exactly what Cummins thought.

[Hersbird]

Tesla needs to get way more stores. It's one thing to own the stores when you have 500 in the whole world and only 100 service centers. Ford has 5000 of each in just the US alone. Even in a big city having a Tesla service center isn't compelling if it's a 2 hour drive away in traffic as most big cities will have 10 Ford service centers in that same radius, one will be 10-20 mins away.

[Isaac Zachary]

If I bought a new vehicle it might be from GM because GM is the only one with a dealership/service center within an hour from my place. If there's a recall or problem covered by the warranty it's kind of a pain to have to drive or have the car towed to a place that might be two or three hours away.

On the other hand, the way GM has handled the Bolt fires is kind of uninspiring. And Tesla hasn't had the best customer service either, even if they were close.

When I had a problem with the Leaf I had to drive it over an hour away to a Nissan dealer, who then told me that they couldn't do the work there since they weren't EV certified after I had not only made the appointment weeks earlier, but had made it to the appointment at the dealership after battling a snowstorm.

[redpoint5]

I imagine the typical repair experience is a bit better with Tesla than GM. The techs working for Tesla know that product and don't deal with any others. GM mechanics mostly know nothing and their incompetence is obvious on forums. If a battery issue is suspected, it shouldn't require the customer giving the mechanic a printout of voltages to inspire the mechanic to investigate various battery parameters.

I'd prefer to have a mobile mechanic dispatched to me than to bring my car in somewhere. I've never brought my (company) car anywhere and spent less than a few hours there. I couldn't get wiper blades changed in less than a couple hours. At least if the mechanic comes to me, it's their time they're wasting.

All of this is speculation though because I've never brought a car I owned in for anything and never had major car issues, or things I couldn't easily fix myself. When I purchase a vehicle, I don't want a relationship with the dealer; I want to never see them again.