Unreasonable Dealer Markups

[NGOT8R]

This has been going on for years. In 2017, I went to purchase a new Harley Davidson Street Glide Special and during negotiations, discovered that the dealer had marked the price up $6500. I told the salesman and GM that there was no way I was paying that kind of money for that particular bike (even though it was a 115th Anniversary Edition). Aside from paint, there was nothing different about it than any other SGS. Needless to say, I walked out of that dealership without that bike, drove 2 hours east into a neighboring state and purchased the same bike at MSRP.

There’s a TV show called AMERICAN GREED (and it’s a very real problem). Now what we need to see is a real life practice of integrity and maybe even a TV show called AMERICAN INTEGRITY (something many people and businesses seem to know or care very little about nowadays).

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[charlied]

Well I paid 32999 for 2017 gt premium california special in 2018, brand new. Msrp was 42k. I'm not paying 60k for a mustang unless it's a shelby, roush, saleen etc. You guys get it. If a gt premium is selling for 49k. Add another 8-10k for the performance pack and the California package. Its not enough car for the money.

 

[young at heart]

Thinking for a minute about the title of this thread, what is considered a “reasonable” dealer markup in the first place? Is any ADM at all ever reasonable?

 

[RonsterGT]

I'm cheap and won't play the ADM or the MSRP game.
Let them get rich on someone else's dime.
Interestingly, the deals always fall in my lap. My current GT I got for A-plan plus $4000 delivery allowance - $9800 CDN off MSRP. Just how I like it.

 

[KingKona]

I'm cheap and won't play the ADM or the MSRP game.
Let them get rich on someone else's dime.
Interestingly, the deals always fall in my lap. My current GT I got for A-plan plus $4000 delivery allowance - $9800 CDN off MSRP. Just how I like it.

Sure.

3 years ago.

 

[joe603]

Not sure if it's been mentioned, but another issue is trade-in values are also inflated. If they sold a MACH 1 for msrp, you could almost trade it right back to them for more. COVID has really done a number on the car market. Now with oil going up, it will hopefully right itself.

I generally dislike dealers and feel they are a relic from the past. I hate EVs...but I love the fact Tesla doesn't have a dealership model. Look at Texas:

Under Texas franchise laws, consumers can only buy cars from auto dealers and can't buy them directly from automakers. As it stands in the Lone Star State, Tesla's company-owned outlets can't legally sell a Tesla in Texas.

This is maintained by political lobbyists. Should be disbanded all-together.

 

[Bikeman315]

Thinking for a minute about the title of this thread, what is considered a “reasonable” dealer markup in the first place? Is any ADM at all ever reasonable?

The answer is, of course, Yes. If there is something you want and there is a cost involved in getting it then it reasonable for you to pay it.

 

[shogun32]

This is maintained by political lobbyists. Should be disbanded all-together.

but they make money hand over fist and make generous donations to non-profit politicians. Are you against naked capitalism, sir, and using the force of the state to protect your business interests and hinder the competition?

In WVa they are trying to pass a law that prohibits over-air software updates to vehicles. Force the consumer to come to the dealership to get the ROMs flashed. 'cause over-the-air is this invisible black magic, sorcery...

 

[joe603]

lol...not going there. But not much difference between corrupt politicians and dealerships IMO.

 

[Crowd Hunter]

I can see the dealers' reasoning. If they sell at MSRP, the buyer can turn around and resell for more than MSRP and make money. It's like ticket scalpers, except TicketMaster will sell you the ticket, then allow you to resell the ticket for more on their site, and they take a cut. I bet car dealers are trying to figure out how they can do that.

 

[Mdtaylorjr]

In Houston alot of the dealers are playing nice and just taking sticker. Some are trying to add markup but not successfully due to the volume dealers still selling at sticker or below. But in smaller towns here in Texas I did see $2500 mark up on every mustang I looked at outside of Houston because they had the colors I wanted. But in the end purchased another black one and am happy with it.

 

[OldPhart]

Hi - There is an article in today’s Wall Street Journal exposing another sleazy dealer sales gimmick(not necessarily Ford). If you want to pay cash they charge you more than if you finance it through the dealership. Reasoning? Again related to the limited supply the dealer knows they can sell the car and they actually gets additional money (ex. $2G) for financing a sale. So, they add the $2G to the cash price that they would lose by not financing the sale. It‘s just business, right? I call it ethically challenged… Bruce

 

[theruleslawyer]

Hi - There is an article in today’s Wall Street Journal exposing another sleazy dealer sales gimmick(not necessarily Ford). If you want to pay cash they charge you more than if you finance it through the dealership. Reasoning? Again related to the limited supply the dealer knows they can sell the car and they actually gets additional money (ex. $2G) for financing a sale. So, they add the $2G to the cash price that they would lose by not financing the sale. It‘s just business, right? I call it ethically challenged… Bruce

That is pretty normal. Lease, cash, finance all have different incentives. Now advertising a financed price without clearly disclosing it is a little sleazy. It gets extra fun if you look into buying an EV as sometimes they’ll take the federal rebate out of the price and not tell you about it until you try and buy.

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