Luv it lol
Except that dealers have been doing ADM long before the pandemic or shortages when our trade-ins werenāt worth as much.
Exactly. A guy I know went all the way to Illinois from California to buy his GT500 because he could get it for $5000 ADM compared to what he could do in California. This was way before the pandemic.
So what? Itās the same thing just for a different underlying reason. We can argue all day about why, but the fact is there is a really big supply problem causing a shortage of vehicles. Yet, the demand is still there.
And why was there any ADM in the first place? Because itās a low supply / high demand vehicle then just as it is today. Just because he found one that had a lesser ADM doesnāt change that fact ( and ADMs are set by the dealer not the manufacturer so you will often see different amounts across the nation based on local factors).
Oh, Iām your Huckleberry. My local Toyota dealership has had an ADM on every vehicle on their lot for the last 6 years Iāve lived here. Even the base model Corolla had a $2K markup. I know this because my last daily car was a 2020 Avalon TRD and before that was a 2014 Corolla. This is not a low volume dealer either.
By your statement I would assume they are the only Toyota dealer in the area?
I like seeing any sporty car, Miata, Mustang, Camaro, Challenger. There just aren't enough around here. 99% of people either buy small SUVs or they buy big pickups.
Ford and GM can do their best to make enough cars to satisfy demand. Increasing supply would remove all ADMs in short order. I believe Chevy has typically tried to do that, but Ford deliberately limits the production of certain cars, which makes it more difficult if you want to own one. With the pandemic and certain chips that are difficult to make and test such as automotive radar, things have changed. However, Ford always did this thing where they didn't make many of the halo cars. I blame Ford more than the dealers.
Nope, thereās two within 30 min drive and half a dozen within 2 hours.
And if those other dealerships are not charging the ADM and people are still paying it they are just plain stupid. You are correct, in that case itās just plain greed.
The current 2007 used prices don't really reflect that $20k ADM. I guess it's safe to say those original owners never saw any of that money when they sold them.
Overall Iād say you are correct (Iām sure there is a case here or there where someone did if they never drove it, sold it soon after, etc). I think part of it was it was a piece of history people wanted right then and they thought they would end up being a bit more exclusive than they turned out to be. Also, those high ADMs in my area were gone by MY 2009 and you were seeing them go at MSRP or maybe a $5K ADM depending on time of year. That really pissed off those who paid that high ADM.