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Thoughts on new and used car market?


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Hi all, 

Ordered a Rav 4 Hybrid for the wife around 18 months ago at $52k. No correspondence from the dealer apart from quarterly updates on its arrival. Today I get a call saying it's here, but guess what, we want another $7.5k, because it's the newer model and has more features. Pretty annoying as I wasn't notified once of this increase and it has left a bit of a sour taste in my mouth. 

Given the current rate rises and noticing the the decline in the P-car sales I'm starting to think, should I just say stick it and wait a few months, for something used, or just suck it up and pay it. 

I'm suprised that they can do this, as I've signed a contract of sale at $52,000.

Not in urgent need of the car and it will be a cash purchase.

What is everyone's thoughts on where the market is heading. 

Any advice would be great. 

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Sounds like rampant opportunism - I'd be closely reading the contract and throwing my toys out of the pram before I accepted that as an outcome.

11 minutes ago, wilson59 said:

Just get it. Not many deals out there to be had and used car market you will not save a thing. They will sell that car no problem if you don't take it.

Huh -  the dealer has an obligation to fulfil the contract.

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15 minutes ago, mrar said:

We signed up for Gx 2wd hybrid in the Saturn blue no options back end of July last year, was warned about the extra cost at the time of around $1800 as was going to 2023 (my) build. Anyway original signed deal was $41713.27 drive away. Spoke with dealer back in January car was due to arrive in Freo 14th Feb so likely delivery end of this month early March. New price was disclosed through email @ $45224 (with a discount).

Was a bit pissed, but costs are rising, managed to have a rear cargo mat and front mud flaps that I was going to buy later anyway included at no cost.

So around seven months from order to delivery... if I get the call to collect in next week or so.

I am sure if you cancel the deal they will more than likely sell your car to someone else and make more dollars out of that that deal.

 

 

 

Most likely will sell to someone else and make more you're right, but at this stage it's been Almost 2 years, we are no longer desperate for the car, although it would be handy. 

It's just more what is the purpose of a contact of sale. We were not notified of any price rises whatsoever either. I would have thought there'd have to be something there to back the consumer. 

It's not more finding a good deal on a used car at the moment. I've noticed with P-cars, there are alot of price drops. Particularly 996 GT3s which I'm following. I think it's only a matter of time before it trickles down to other cars that are inflated. Rates are rising and consumer spending is definitely dropping. I've noticed a few colleuges at work who are a bit younger have had to sell an investment property and another sell a car to keep up with the payments. 

I'm not thinking it will happen overnight, but it does look quite gloomy and it might be a good idea to have some cash on hand. 

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Toyota has the longest wait times of all the major manufacturers in Australia. I saw some commentary late last year that globally they're not expecting supply issues to normalise until late 23. 

Not many options in that segment for hybrid Japanese or Korean models either.  If you can forego hybrid you'll get better value there IMO. 

 

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I’m a GM at a Toyota dealership and we waited 14 months for our new Rav4 Hybrid but this sounds like blatant price gouging to me. If you PM me a copy of the original contract I’d be happy to advise you on what price increases you need to pay and what ones you are price protected for. 

In terms of the market, I’d expected it to have slowed by now but it hasn’t. Our new car order bank is huge and although we are starting to get some cancellations there’s always people further down the queue that we can offer the car to. The challenge is keeping customers updated with the very little information we receive. I watch the Porsche market daily and priced are coming down but when things get tight toys are the first thing to go. 

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Does feel no different to building a house- I don’t know how you can get someone to sign a price for a product in the future with so many variables that can quickly rise. 
 

I guess one positive to think about is the current car that you have how much is that worth today compared to when you put the signature for this new car? Or if not rise how much it didn’t drop by? 
 

tough call but it’s market rates for today just gotta weigh up how much you want it and see where you can find a win somewhere else- as they say you win some you loose some .

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 That's price gouging!!

 $7500? If it was a grand or so you'd wear it, yet I'd tell them to f..k off with $7500, as you signed the contract at that price regardless of future inflation and higher costs.

 Why didn't they factor inflation in with their market forecasting crystal ball? 

Typical of big business though isn't it? 🖕

 

 

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Although they’re basically a rolling clown show, when Tesla jumped up their prices, I still got our Model Y for the price I’d ordered it at - not only that, I actually changed the order and they still did honoured the old price based on my order date. I don’t see why Toyota don’t do the same?

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6 hours ago, 911 said:

Hi all, 

Ordered a Rav 4 Hybrid for the wife around 18 months ago at $52k. No correspondence from the dealer apart from quarterly updates on its arrival. Today I get a call saying it's here, but guess what, we want another $7.5k, because it's the newer model and has more features. Pretty annoying as I wasn't notified once of this increase and it has left a bit of a sour taste in my mouth. 

Given the current rate rises and noticing the the decline in the P-car sales I'm starting to think, should I just say stick it and wait a few months, for something used, or just suck it up and pay it. 

I'm suprised that they can do this, as I've signed a contract of sale at $52,000.

Not in urgent need of the car and it will be a cash purchase.

What is everyone's thoughts on where the market is heading. 

Any advice would be great. 

Unfair Contract Terms worth a read as I assume its a standard form contract. 

https://www.consumer.vic.gov.au/products-and-services/business-practices/contracts/unfair-contract-terms

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2 hours ago, GT3MEZ said:

Fun times ahead. I am interested in this atm;

https://www.carsales.com.au/cars/details/2018-porsche-911-gt2-rs-991-ii-auto-my19/OAG-AD-21654601/?Cr=7

AM sure it would have started with an "8" if it was listed 6 months ago.

They'll drop back where they were prior to covid imo. $600-700k.

Back to the issue at hand, if you have a signed contract they have to honour the agreed price. They can ask you to pay more, but you are within your rights to hold them to the original deal, assuming the contract has no break clauses in it.

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 Being in the building game, if any business or individual contractor upped their quote by $7500, 9/10 the client will go elsewhere. I've seen it done by companies I've worked for, and they wonder why they lost the job 😅

 Sounds like the retail side of the car industry are just capitalising on supply v demand, and they know they can have people by the giblets with a backlog of eager customers ready to cut someone's lunch. 

 I don't care what anyone thinks, but that's unethical...regardless of any documents that state otherwise

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31 minutes ago, Yeatesy said:

Unlike the building industry were builders have had to absorb price increases the car industry has this covered in the terms and conditions section of the contract.

This is from a VACC new vehicle sales contract, it may vary outside of Victoria though. 

383A8996-2C15-4ED9-9CB6-07C64B6EDCBA.jpeg

So pretty simple . You don’t have to buy the car if you do t like the price increase you can get out of the contract . Good stuff 

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Those conditions of contract still place a material obligation on the Dealer - it is far from just saying the price has gone by $x,

I'd be asking the dealer to evidence the change in their cost price and MRRP at the point of contract and when the car arrived to justify the $7500.

I'd be asking the dealer to evidence just what reasonable endeavour they undertook (if any) to notify the purchaser of any changes as they became aware of those changes - it is unlikely they worked there was a change in their cost or MRRP when they notified you.

Maybe the dealer figure is legit, but in my mind the Dealer has not satisfied the obligation they contracted into, and if not I know what remedy I would be chasing.

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3 hours ago, LeeM said:

I don't care what anyone thinks, but that's unethical...regardless of any documents that state otherwise

Lee ... I agree with you. But just to play Devils Advocate for a minute ..

How does it play out when the dealer sells you the car at the original agreed price, then you proceed to sell it for a handsome profit as your needs have changed and you no longer need the car??

Unethical this way around??

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36 minutes ago, Dreamr said:

Lee ... I agree with you. But just to play Devils Advocate for a minute ..

How does it play out when the dealer sells you the car at the original agreed price, then you proceed to sell it for a handsome profit as your needs have changed and you no longer need the car??

Unethical this way around??

 Ooh that's a toughy, and a fair point...to a point  😁

Unethical? Not sure that would be the word I'm looking for from a private seller, so I'll say that's more like opportunism if it's just flipping it, yet I understand what you mean.

 I just feel that the business should honour the original contract, or at the very most a much smaller extra charge...like a grand or so

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