Most ridiculous ad I've seen

[Beej]

So we all know that vehicle prices have gotten out of control. Demand in UT is through the roof causing a long waiting list for a new GX and has driven used vehicles to unheard of levels. But this is lower than low. I saw this ad on KSL a couple days ago, there wasn't much detail to it. Now that there are details I can see clearly these guys are just trying take advantage.

http://www.ksl.com/index.php?sid=&nid=443&tab=list/view&ad=680117

So look at the ad closely. You'll see it's for a lease through this company. Sounds like a great deal since, to my knowledge, Honda of America doesn't do leases on the GX. However, since it's a lease, the buyer doesn't get the tax credits. The company that put the car into service does, the lessors. (20 cars times 7k each ... sounds good ... for them.)

They are offering them for sale for 35k , don't worry, that's just 10k over sticker, a 40% premium.

With the lease you would pay over $7600 (not including sales tax) this year with the chance to buy the car a year from now for 24k (at which time you'll pay tax on the whole vehicle). How is this better than paying $4/gallon at the pump???

A much more economical solution to high gas prices = tell these guys where to go and keep buying gas while being on a waiting list for a new car. I really can't imagine that costing more than their deal.

Is there a way to help protect unwary consumers from such vultures? Or do we chalk the victims up to natural selection??? Apparently they've already made 3 deals.

[freedml]

Re: Most ridiculous ad I've seen

I don't know how much money you make or how you make it, but I hereby declare that it's way too much and you should immediately take a 30% pay cut.

Who are you to say that these guys are charging too much or that the people who lease the cars are stupid? They (presumably) have a product that's hot and have devised a way to make money on it.

I personally think that people who have bought Hybrids are not thinking straight but the Prius was and is again a hot car and is selling for a premium. Escape hybrids at the last auto auction I went to sold for $14k.

I'm not going to argue too much -- my Honda GX would probably sell today for more than I paid for it 4 years and 80k miles ago -- go figure. Maybe I should lease it to someone in Utah?

[CNG4RD]

Re: Most ridiculous ad I've seen

I dont agree with you freedml.

Its called profiteering and it is a scummy business to be in. If it so happens that you are just happy with the resell value on your GX then good for you, but I didn't buy my bi-fuel as some speculative investment and I am pretty confident that I sleep good at night for completely different reasons than you do.

[ch4]

Re: Most ridiculous ad I've seen

UPDATE: As of 6/11, there are only 17 left.

WTF!

For 2 GX's you can get a
Mercedes-Benz CLS63 AMG

$74,900.00

Maybe we all oughta flag this ad on their website as abuse?
Abuse: If Abuse Click Here

[Beej]

Re: Most ridiculous ad I've seen

I don't know how much money you make or how you make it, but I hereby declare that it's way too much and you should immediately take a 30% pay cut.

I make a very nice living in the stock market. I am a capitalist thru and thru. I believe whole heartedly in the free market system and the laws of supply and demand.

I feel that this is something completely different. This is price gouging.

I also didn't call anyone stupid. I would call a buyer at this price naive and misinformed, but not stupid. (I reserve that term for people who flame forum posts.)

More than anything else I feel that this deal just doesn't make economical sense. It makes more sense to keep driving on gas and put a deposit on a new vehicle with the dealership here (there is just one in UT that sells the GX, sticker price of $25,225). I bought mine in Cali for a premium of $500 compared to the UT sticker price. It made sense since I would be paying over $1300 in gas during the 6 months I waited for the car. ($1300-$500 premium - $157 for flight to SoCal and fuel on the return drive = $643 still in my pocket, I think I'll buy some more shares of USO with that money) With the waiting route you have to keep paying $4/gallon but that definitely beats the 10k extra these guys want to sell one for. This company is a group from back east taking advantage of the market conditions in UT.

[freedml]

Re: Most ridiculous ad I've seen

It's called 'profiteering' in Communist and Socialist circles. It's called 'capitalism' in the free world. Don't want to pay $35,000 for a new GX? Then, don't. No one's forcing anybody.

I buy junk on the internet, fix it up, and sell it for 5x to 50x what it cost. Am I a profitteer? People on eBay are happy to sell their junk, and people who buy from me are happy to find what they want in good condition at what they consider to be a fair price. In return, I make a living. Everybody's happy.

I have a degree in economics. Price is an efficient way to allocate resources which are by definition 'scarce'. Charges of 'price gouging' is a way to intimidate people into selling scarce resources at a lower than market price and then not having any left to sell to people who would be willing to pay the 'market' price. To see how well it can work, look at historical pictures of lines at state stores in Communist countries (when they had anything people wanted) vs. the well-stocked shelves at 'dollar' stores.'

[freedml]

Re: Most ridiculous ad I've seen

By the way, if you think sarcasm and 'flaming' are the same thing, then you're ......

[freedml]

Re: Most ridiculous ad I've seen

Yeah, I just bought 10 this morning and am offering them for $50k...

[ch4]

Re: Most ridiculous ad I've seen

There is a thing called Price_gouging and it is illegal.

http://en.wikipedia.org/wiki/Price_gouging

A store cannot sell bottled water for 20 bucks each right after the city loses it water supply.

Now, is 5 dollar a gallon gasoline a national emergency?

Maybe, maybe not...

[j03j03]

Re: Most ridiculous ad I've seen

Yeah, I just bought 10 this morning and am offering them for $50k...

Holy cow what a great deal!!!

You both bring up good points. I agree that the price is a little steep, but no-one is forcing people to buy them. And if you think the price is bad on these cars and call it price gouging, I think you should take a look at the gas prices.

Now what if someone wanted to use NG but didn't want to pay an outrageous
amount to buy one? This would be a good option. You do have to admit that its a very well thought out business idea. Now I'm not saying that I would try the lease thing but someone might.

[jblue]

Re: Most ridiculous ad I've seen

I have a degree in economics.

wow. Thanks for sharing!!

I too, have a degree, except it is in Aviation Electronics.

[Adrian]

Re: Most ridiculous ad I've seen

It's called 'profiteering' in Communist and Socialist circles. It's called 'capitalism' in the free world. Don't want to pay $35,000 for a new GX? Then, don't. No one's forcing anybody.

I buy junk on the internet, fix it up, and sell it for 5x to 50x what it cost. Am I a profitteer? People on eBay are happy to sell their junk, and people who buy from me are happy to find what they want in good condition at what they consider to be a fair price. In return, I make a living. Everybody's happy.

I have a degree in economics. Price is an efficient way to allocate resources which are by definition 'scarce'. Charges of 'price gouging' is a way to intimidate people into selling scarce resources at a lower than market price and then not having any left to sell to people who would be willing to pay the 'market' price. To see how well it can work, look at historical pictures of lines at state stores in Communist countries (when they had anything people wanted) vs. the well-stocked shelves at 'dollar' stores.'

I'm with freedml on this one. No one is forcing anyone to buy these GX's and I remember the store shelves in the communist country I grew up in....capitalism works, communism and socialism don't.....so run the numbers, buy if it makes sense, don't if it doesn't, instead of crying "price gouging" .
I still enjoy listening to people complain about high gas prices. Most just like to complain and call it "price gouging" without even a rudimentary understanding of what sets the price of gas in the US. Of course, 99 out of 100 people wouldn't consider switching to CNG even though it's more economical.....complaining is just so much better!
To recap, if you think something costs too much, don't buy it! If you have choices, make the choice that makes more economical sense....or not...it's you choice; that's the beauty of capitalism, which I believe in firmly!

[ajgiorgi]

Re: Most ridiculous ad I've seen

You think I could rent out my 99 for 200 hundred a week? I have two cars and my Nissan will last two weeks on a tank of gas. Dam, you guys got me thinking. ....and that's not a good thing. Ask my wife. LOL!

[CNG4RD]

Re: Most ridiculous ad I've seen

It seems a degree in economics helps you cope with your own over-the-top pricing philosophy.

Supply and demand can be a beautiful thing that keeps markets efficient and focused. However, it takes a short trip down history lane to realize that it can be very ugly as well, when food and water dry up, or even when a family's economic lifeline starts to spiral out of reach (gasoline).

I would suggest you review your economic course material on topics such as Monopolies, The Great Panic and The Great Depression.

You have started down a slippery slope in thinking that you can use economic or capitalistic principals as some sort of litmus test for ethics.

I do believe our gasoline situation is a very serious threat to our way of life. As small as it might sound, losing 300 dollars a month in discretionary income can devistate a family.

When a boat starts sinking I am not going to start charging for life preservers simply because there are only ten life preservers and 100 people are drowning, that would be a very, very ugly thing to do.

[freedml]

Re: Most ridiculous ad I've seen

[quote=ch4;9870]There is a thing called Price_gouging and it is illegal.

http://en.wikipedia.org/wiki/Price_gouging

Did you read the Wikipedia article you posted? It says that price gouging is only illegal during a state of emergency. And even then, prices on 'essential articles' can be raised to pay for things like an emergency generator and hazard pay for employees.

In every other case it is a 'perjorative term' for raising prices. In other words, subjective and not illegal.