Ask a car salesman

Well I guess an extra is only reasonable and of value if you want it. I can't perceive any of them actually increasing the re-sale to the point that the addition of this item that you don't really desire outweighs keeping your hard-earned in the bank. On the flip side however, if I'm spending $80,000 and really want the $2000 optional rally fun pack, then by Christ I'm getting my optional rally fun pack.

Rear wheel vs front wheel? I'm actually not a car fanatic, Formaldehyde is your man and he has his own thread. But under the vast majority of circumstances, rear wheel drive FTW. The best front wheel drive car I've driven in terms of fun factor is a Honda Integra type R....a truly uncompromising vehicle.
I know he prefers rear wheel drive already. You probably have plenty of experience too and I wanted your input. :) There aren't that many manufacturers left that haven't switched to front wheel drive.


Regarding the extras - of course it's personal preferences it comes down to, but if you start putting a car together in those 'design your car' services, it's pretty easy to end up with extras costing 25% of the total cost, or 20000$ in your example. This seems unreasonable. ..but I take it there are no particularly 'reasonable' extras except those that you as a customer are willing to pay for...
 
Yeah, well. Even I've heard of Holden.

Anything over 5 litres and/or 500 bhp is bound to pique my interest. But I wouldn't want to pay for the petrol to go far. Or even sit stationary in traffic with the engine idling, tbh.
 
"only milk should come in 2 litre variants"

:lol: that's a great line.

Where does Australia get most of it's oil from? Why is gas so cheap there?

Maybe a better question is, what do you pay for 1L?
 
"only milk should come in 2 litre variants"

:lol: that's a great line.

Where does Australia get most of it's oil from? Why is gas so cheap there?

Maybe a better question is, what do you pay for 1L?

No idea where we get our oil from? We're always one of the first to jump in the pool when it comes to joining you guys on some Middle Eastern military adventure, so I'd guess over there.

It's actually not cheap at all compared to The USA. Say $1.40 a litre and our dollars are pretty much at parity. But certainly the sheer driving distances that we do without thinking anything of it mean the car, and generally big cars, reign supreme. I doubt there are many countries where month in, month out, the best selling car in the country is a 3.8 litre full size sedan. But even that is changing and it would seem the love affair with 6 and 8 cylinder cars is cooling.

Shame really. We really do build a quality car. Both GM (Holden) and Ford Australia have a world class product but seem destined to go the way of poor old twinkles.
 
No idea where we get our oil from? We're always one of the first to jump in the pool when it comes to joining you guys on some Middle Eastern military adventure, so I'd guess over there.

It's actually not cheap at all compared to The USA. Say $1.40 a litre and our dollars are pretty much at parity. But certainly the sheer driving distances that we do without thinking anything of it mean the car, and generally big cars, reign supreme. I doubt there are many countries where month in, month out, the best selling car in the country is a 3.8 litre full size sedan. But even that is changing and it would seem the love affair with 6 and 8 cylinder cars is cooling.

Shame really. We really do build a quality car. Both GM (Holden) and Ford Australia have a world class product but seem destined to go the way of poor old twinkles.

I topped of the tank yesterday and payed $4.75 for 3.8L. So, I guess that's a little less than you pay. Our oil comes from Canada, Mexico, and Russia primarily. After that Saudi Arabia is the next largest supplier. In fact, Middle Eastern oil is far less than half of our consumption.

Did that sales estimate factor out fleet sales? Here in the US, the Ford Taurus was the #1 selling sedan for years and years, but that was primarily due to government and corporate fleets. Remove those, and the #1 sedan was the Toyota Camry. That's an interesting story right there, isnt' it?
 
£1.37= US$ 2.192 = A$ 2.1 a litre here. That's strange, I thought we'd be paying at least double, as it's traditionally been very highly taxed.
 
I never understood the price difference between the urban and suburban/rural areas. You'd think it'd be harder to get out to rural areas which would imply a price hike.

Then again maybe it has to do with more people buying from urban ones compared to rural ones, so they can get away with a higher price.
 
Hmm... didn't think of that, its a definite possibility.

Anyone know?
 
I never understood the price difference between the urban and suburban/rural areas. You'd think it'd be harder to get out to rural areas which would imply a price hike.

Then again maybe it has to do with more people buying from urban ones compared to rural ones, so they can get away with a higher price.

This is all my own half assed, rLF economics theory going on here, and i welcome being carved up by Cutlass, Integral et al.

The less competition that exists for a product, the less that the cost of supply tends to impact on the price and the more the price tends towards the highest price the market will bare (at which point the number of people simply dropping out of the market e.g catching public transport or seeking the product in what could be considered a competitor that operates outside the market in question, such as a petrol station 50km's away, begins to cost the supplier more money than lowering the price). There are less competitors entering the market who will still be profitable at a lower price.

The more competitors, the more suppliers are forced to consider lower margins to compete. Sure, if fuel costs me $1 dollar per litre and at $1.20 sell price I sell all I can supply and all buyers in the market are willing to purchase from me, if someone can freely enter the market and be profitable at $1.10, then I need to reconsider my strategy.

So the $1.00 cost price impacts more significantly on the ultimate market price in the second example while the highest price that the market will bear before those dropping out cost the seller money has a greater impact on the final price in the second example.

Feel free guys, rip in, I know I'm not qualified to make these claims and I genuinely look forward to a better explanation.
 
There's a lot that goes into retail pricing of gasoline. But generally the gas station itself doesn't make a lot on it. I think the average is like 6% or so of the sale price is the gas station revenue. The rest is up the chain, distributor, wholesaler, refiner, producer, and of course tax. (I just filled up at $3.73, btw, and I'm only 100 miles from Peter, so he's getting gouged. But he is getting gouged in no small part because of Sandy, and the fact that the distribution chain in the NY area took a beating.) In the US oil companies are supposed to be constrained on regional prices for anti-trust reason. But they aren't always controlled to the point where that helps the consumer. You'll notice that the highest prices, other things being equal, are the service areas on the highways, and the gas stations immediately off the highways. They capture the traffic that can't or won't take the time to price shop. Generally the further you get from the highways the cheaper the price. In the cities there are sometimes higher prices because there are limits on locating new gas stations, and so even though there are a lot of people and a lot of stations, in practice competition can be somewhat limited unless people are willing to drive all over the place to price shop. Gas stations set their final price based in part on what the station just down the street is doing. If just down the street is out of sight, then they can get away with a bit higher price.


@Loppan Torkel regarding rear wheel drive: Each drive configuration has specific advantages and disadvantages. I personally prefer rear drive. And I live in an area with snow and hills. The advantages of RWD are better performance, better front to rear weight distribution of the car for better handling, better braking, no torque steer in hard acceleration, and it is generally a more rugged installation, for hard use (which is why cops overwhelmingly are not abandoning the few RWD cars in the US). The disadvantages of RWD is that it weighs more than FWD, and it is bulkier. And so RWD cars get lower gas mileage and for small cars the FWD package really frees up a lot of space in the passenger compartment.

It was not the poor weather performance of FWD that drove RWD from the market, it was fuel economy. That and small car interiors really needed the space.

That said, you will note that in modern cars the higher you go up in price, and the higher you go up in performance, the more RWD cars you will find and the fewer FWD cars. That should tell you something right there. I don't believe Rolls, Mercedes, BMW, make any front drive cars. However All Wheel Drive cars are taking over from RWD in the highest end performance and price-point.
 
probably his repressed sexual orientation.

This, along with his comments preceding my trip to Pattaya, makes me suspect he's had sex with a drag queen before and really wants to discourage anyone else from experiencing this.

Rugby and V: Got any good customer-from-hell stories?
 
Holy hell, seriously? It's only $3.13/gallon here right now. You need to move to the sticks!

The woods, mountains, and lakes are great - don't get me wrong. I really miss them. But I can't imagine NOT living in the city at this point. Simply put, there's just too much opportunity here.

My wife has already had 3 successful careers - can you imagine doing that in the sticks? I suppose it's possible, but I doubt it would be easy.

As far as gas goes, we didn't have a car for 5 years and got along just fine. Then we got one, and now we use it about 20 miles a week. So we really don't care what gas costs. It could double in price and it wouldn't affect our budget.

That said, we do visit family in northern New England a couple times a year. at $5/gallon it's not an issue. at $10/gallon it will be. And, personally, I suspect that we'll see $10/gallon before I stop driving - so, within 30 years. Just a hunch.
 
A friend of mine once did a spreadsheet where he came up with the result that if the price of gas stuck to the rate of inflation from the time he started driving in the late 70s, the price would be pretty much where it is now.
 
Well it's the Used Car Business. If customers aren't doing the scamming it's invariably gotta be him.

:p
 
Well it's the Used Car Business. If customers aren't doing the scamming it's invariably gotta be him.

:p

Not that I expect people not know the fine details of my job, but it surprises me how often it's mentioned that I'm a used car salesman. I've exclusively managed a new car dealership now for over five years.

At CH.....Scamming is extremely rare. I'd say what's more common is the little acts of dishonesty that otherwise very honest people resort to in the process of buying a car. But this is a reflection of the industries poor reputation and as such, a defense mechanism.

If only they knew they were dealing with honest Ben, the car buyers friend, it would be a lot easier to do business.
 
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