Once upon a time, Chevrolet was meant to cater to budget-conscious buyers. Out of all of GM’s multiple brands, it offered some of the most affordable vehicles, not only from the automotive giant but on the market. This is no longer the case as the average transaction price has now surpassed $50,000.
This morning USD$50,000 is equal to $61,787.50 Canadian Dollars.
Due to supply chain issues, you’ll notice that dealer lots are mostly empty these days. Manufacturers are not offering incentives to sell vehicles, they don’t need to as the demand has outstripped available supply. And due to low volumes, dealerships are marking up the price and not negotiating. They are trying to squeeze out every bit of profit possible from their limited amount of inventory.
In recent months, two different Ford dealers refused to sell me a new vehicle unless I financed it through them. Dealers receive a kickback from the finance company and this is another way to squeeze out every available dollar out of the customer. Another thing they do is add low cost / high-priced accessories the customer didn’t ask for or want in an effort to jack up the sale price and increase their profit margin. It feels like soon they might offer to deliver the vehicle to your house so when you’re not looking they can go through your chesterfield looking for loose change.
The need for dealerships is limited now that customers can order vehicles online, with the accessories they want, directly from the manufacturer. This needs to be accelerated as dealers have become a barrier to new vehicle sales. A couple of months ago, I was ready to dump my Toyota and purchase a new Ford. My first ever. Even as I was being forced to finance the purchase. However, dealers didn’t want to order the configuration I desire, one that is available on the manufacture’s site. They are allotted a limited number and want to maximize their margins with those. So, I still drive the Toyota.