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SVTPerformance's Chain of Restaurants
Road Side Pub
Current New Vehicle Market
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<blockquote data-quote="VRYALT3R3D" data-source="post: 16707589" data-attributes="member: 131770"><p>[USER=190070]@Klaus[/USER] </p><p></p><p></p><p></p><p></p><p>Rising costs to consumers will not "decimate" demand for vehicles. The supply issue overrides all.</p><p></p><p>According to KBB, the ATP hit a record high of ~$45k. Likewise, incentive spending by manufacturers are at their lowest level in years. People aren't even requesting longer terms. You know why? Because their trade-ins are worth significantly more than a year ago.</p><p></p><p>A rate hike won't cause manufacturers to boost incentives or customers at dealerships to rethink a purchase. A first move of interest rates definitely won't cause anything to happen because the supply is so tight. It would take multiple rate moves before incentive spending changes. Otherwise there is no impetus to change incentive spending. There is enough excess demand.</p><p></p><p></p><p></p><p>Automakers are prioritizing semiconductors for high-margin vehicles.</p><p></p><p></p><p></p><p>Operating profit margin.</p><p></p><p></p><p></p><p>It is absolutely true. The business model is changing. Try and keep up.</p></blockquote><p></p>
[QUOTE="VRYALT3R3D, post: 16707589, member: 131770"] [USER=190070]@Klaus[/USER] Rising costs to consumers will not "decimate" demand for vehicles. The supply issue overrides all. According to KBB, the ATP hit a record high of ~$45k. Likewise, incentive spending by manufacturers are at their lowest level in years. People aren't even requesting longer terms. You know why? Because their trade-ins are worth significantly more than a year ago. A rate hike won't cause manufacturers to boost incentives or customers at dealerships to rethink a purchase. A first move of interest rates definitely won't cause anything to happen because the supply is so tight. It would take multiple rate moves before incentive spending changes. Otherwise there is no impetus to change incentive spending. There is enough excess demand. Automakers are prioritizing semiconductors for high-margin vehicles. Operating profit margin. It is absolutely true. The business model is changing. Try and keep up. [/QUOTE]
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SVTPerformance's Chain of Restaurants
Road Side Pub
Current New Vehicle Market
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