I work for a Toyota dealer in a large metro dealership. Lots if “regular” people still buy new cars.
Being in the
business you can correct me if my observations are wrong.
Car dealers have fewer employees, have less competition, get closer to list price, have their high prices closer to used car prices making them easier to consider, have made good annual returns.
Used cars are still priced much higher than in previous years and consumers maintain them better.
Wages have gone up and loans are still relatively low as a percentage of income.
Dealers like the low volume but it does hurt the sales staff numbers.
Many average buyers are so stunned by used prices that new seems a better investment.
I think most new car buyers are payment shoppers with little savings. At one time, my sister was paying $550 a month for a used truck because she kept rolling negative equity. She finally downsized last year to a 2009 Civic with a 72 month loan. All that matters is the payment.
Most shoppers with a $777 payment went into the dealership not willing to pay over $500 a month.
What is your employers added mark up over sticker price?