How much does it cost to build a car?

General Discussion
41

"Let’s say Ford was able to cut all their cost by 50% but they don’t
tell anyone. Will car buyer who pays the same amount for the same car
be more or less happy with the exactly the same car for the same price,
with no one knowing the real cost was 50% different? "

Another Huh ? How would the buyer ever know if he would be more or less happy with the same car for the same price if he didn’t know…If he knew, I guarantee most purchasers would negotiate downward, the price of the car. If he could not get the price down…he wouldn’t be a happy camper.

So, you didn’t know know that while Toyota charges more for their cars, the actually make them for less than 1/3 the costs of Fords or GMs. That’s pretty common knowledge you know. Ignorance is bliss !

42

"Another Huh ? How would the buyer ever know if he would be more or
less happy with the same car for the same price if he didn’t
know…If he knew, I guarantee most purchasers would negotiate
downward, the price of the car. If he could not get the price down…he
wouldn’t be a happy camper."

So if the buyer doesn’t get the price he wants, he’s not a happy camper. If the seller doesn’t get the price he wants, he sells to someone else, and camps happily. I don’t see the problem. It’s the golden rule. He who has the gold makes the rules. Ultimately the seller has the last word on price. If you tell me that’s not true, I expect to take delivery of your personal vehicle within a week, for the price of one U.S. dollar.

43

You won’t be happy, Toyota won’t sell you one for any more than list.

44

TwinTurbo: "…technically Whitey you didn’t provide an answer, you provided some direction to AN answer. If someone asks ‘what’s 2+2’? The answer is 4 not ‘go get a calculator and figure it out’."


The OP didn’t ask a question as simple as “What is 2+2?” If he did, my answer would be something like “It’s four, you dumb###! Now go back to school and get an 8th grade diploma!” You’ve seen me answer basic questions in the past with a basic answer, so you should know this is true.

It’s more like the OP asked “How much would it cost to buy an unassembled widget?” My answer is, “It depends, but for a basic estimate, see how much it costs to buy the only unassembled widgets sold on the market. That should give you a basic idea.”
45

"Ultimately the seller has the last word on price."
Ahhhh, No. Collectively, the market/buyers do. The seller can put whatever price he wishes on a car. If it’s too high, he can then choke on his undersold stock. The price will go down.

46

Having spent most of my professional life as a corporate tax auditor, cost is a meaningless term. I can make the cost larger or smaller at will. For example what are you going to do with the cost to reduce pollution that you may be required to do. Is that a cost? Car runs fine without it? How about advertising? How are you going to sell the car if you don’t advertise it? Why would anyone pay for advertising if it was not necessary?

Often the final number is chosen and the necessary math is used to get to that number.

“what’s the cheapest one can make a car from scratch”

Do you know what a soap box racer is?