Decades ago, I took a class in advertising and one of the crazier things I recall after all these years was that some advertising is primarily aimed at current owners - to enhance brand satisfaction-- rather than prospective buyers. That was the auto market. Of course, nobody is inspired to buy any car based on a TV ad - just read this thread and you see that. CR ratings, test drives, etc. But being happy with current car definitely impacts what you buy next.
There is another segment that is primarily aimed at making employees of a company feel proud.
With that said, I get very annoyed by the ads period!
My best guess is that auto companies continue to advertise not only because of prior ad buys but also to inform consumers of new developments in car technology & introduction of hybrid & electric vehicles.
Why local auto dealerships continue to buy probably is a result of co-op advertising dollars with the company as well as prior ad buys made well in advance of any known shortages. Also, local dealers are making substantial profits on used car sales even though pre-owned car supply is also down. I have seen signs posted: We will beat any CarMax offer for your vehicle.
Also, it may be an opportunity for car companies & car dealerships to get rid of their prior backlog of poor selling models now that consumers have fewer options to consider.
Some dealers are receiving Honda CR-Vs. I have been told that they sell at full MSRP within days of arrival. If interested, just need to let local Honda dealers know & get your name & contact information on a list of prospective purchasers. Many reserve incoming inventory by signing a sales contract for a specific vehicle (VIN number which specifies the model, color, and options of the particular car) and placing a deposit of $1,000 or so.
We visited a Jeep dealer yesterday to test drive a Grand Cherokee SUV. Dealer told us that all vehicles are MSRP plus at least a $4,000 premium. Unfortunately, some of the new Grand Cherokees have a rotary gear selector.
Jeep also offers the Jeep Gladiator which combines the Jeep Wrangler with a pick-up truck bed. Tough looking vehicle suitable for off-roading. Consumer Reports gives the Gladiator very positive reviews. Looks intimidating with deep tread tires. Handling is clumsy, however, according to the CR review.
P.S. My wife test drove a Subaru Ascent SUV (three rows of seats) with second row Captain’s Chairs. Loved it. Even though the dealer had four 2022s on the lot with 2 more arriving soon, price was a non-negotiable MSRP plus $2,500. Other Subaru dealers in area are not adding any premium to the MSRP, but they do not have any new vehicles available.
Since Subaru lowered prices last year, the premium of $2,500 does not engender anger as prices seem reasonable & resale value is the best in the industry according to CR. All of the Subaru Ascents in this dealer’s inventory come to a total walk-out price of about $52,000-$53,000 including the $2,500 premium surcharge (market adjustment).
Interesting to hear of the markups by multiple brands. I had mostly been following Toyota for the last year or 2 and see the constant complaints of markups on the RAV4 Prime. Those started before the current chip shortage though.
@fendergirl@Publisher both my D’s have an Outlander Sport. One is a 2011 or 2012 model, the other a 2016 I think. They both love their car. Their Mitzu dealership has been outstanding. The body of both cars looks as good as day 1. Good gas mileage, few repairs beyond maintenance, good warranty. Both bought certified pre-owned.
Jeep Gladiator. Easy to understand why CR likes this combination Jeep wrangler with a pick-up bed. very easy to drive. Comfortable, yet rugged.
Honda Ridgeline. Was fine, but not as impressive as the Subaru Ascent. Plus, we have little use for a pick-up bed.
Honda CR-V EX (second highest trim level). Was pleasantly surprised. Comfortable, roomy, adequate power, great seats, and well thought out placement of the gear selector. Loved it. If we decide to purchase two new vehicles this week, then we will get the Honda CR-V as the second SUV. Total cost at MSRP plus tax, title, etc = $34,000. History of outstanding resale value. Just arrived today & will probably be sold in a day or two. (The base level seats are not as comfortable or as supportive as are the seats in the top two trims.)
The new hybrid Honda CR-V has push button gear selector. The 2021 gas version has the traditional stick gear selector.
P.S. The Honda dealer had a used (pre-owned) Mitsubishi Outlander which was quickly sold.
Question, to those of you who buy new cars. I bought the extended warranty on my RAV4 Hybrid, and have another week or so to cancel, which I am considering. This gives me 8 years, 75,000 miles. As a friend noted, they tell you it is a great vehicle, till it comes time to sell the extended warranty. Any hints on which way to waffle, for or against?
We had never bought the extended warranty on our cars until we bought our last car. It’s a Subaru Crosstrek plug in hybrid. We went back and forth and still don’t know if it will be worth it. If you threaten to cancel maybe they will lower the price.
Seems to me that an extended warranty is basically an expectation that the vehicle will be unreliable beyond the included warranty. But would you choose to buy such a vehicle in the first place?
We bought an extended warranty for our Prius Prime, 10 years, 100K miles. The replacement parts and servicing for electronics are so expensive and likely to die before the 10 years are up, judging from our other household electronics.
I also am interested in an extended warranty IF offered by the car manufacturer (in this case Subaru). Depends upon cost of the extended warranty & upon how many years you expect to keep this car.
If the extended warranty company is not the manufacturer or a subsidiary of the manufacturer, then I would not buy it. Many car warranty companies are scam-like operations.
Is the extended warranty transferable to a subsequent buyer ? If so, then it should make the vehicle easier to sell in the future.
Kept one of our last SUVs for over 18 years. An extended warranty from the manufacturer of the car would have been quite useful even though it was an outstanding vehicle.
P.S. I have been told that Hyundai’s former 100,000 mile warranty was NOT transferable to a subsequent buyer of the vehicle.
Also, not all extended warranties are created equal. I bought mine when I bought my car and dealer assured me that they will make any and all repairs, deal with warranty company and charge me $0. Any other company and I’d have to deal with the company. I wanted the peace of mind and just bought it.
If the extended warranty is not offered by the car manufacturer, then I would be hesitant to purchase it. Interested, but cautious.
I agree that long-term peace of mind is desirable, but some non-manufacturer related warranty companies are scams and have been portrayed on news expose shows like 20/20.
Question for those wanting extended warranties: out of the cars that you have had, how many have cost more in repairs that would have been covered by an extended warranty but not the included factory warranty than the cost of an extended warranty?
I helped my mother buy a used car about 8 weeks ago and I guess we got lucky. After looking for a few weeks, what she wanted popped up on Autotrader and we traveled about an hour, out of state, and purchased that day.
We had stopped by webuyanycar that morning and returned to drop off her old car, as their offer was 2.5x the trade-in offer.
I look now, and the same car is $2-3k more (on a $22k cost).
I looked up the car I bought used in February 2019 and the same car is now more than I paid. It looks like the price on my car now with 60k miles and 5 years old would be the same as I paid when it had 31k and was 2.5 years old.
Fortunately, none of our cars are up for replacement for at least two years.