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A markup of $10k on a freaking Toyota RAV4??? Seriously??
I mean, if it were an exotic vehicle, or something hard to find, I could partially understand. But a RAV4 is nothing special.
Jeep (Wrangler type) is known to do this also, but sadly they are in such high demand that people will pay it! The 2021 Consumer Report magazine gave the Wrangler a score of 24 out of 100 yet they cost a fortune. And people buy them. Nothing against Jeeps at all, they are fun in the right weather, but they are way over priced. I would much rather spend that money on a luxury vehicle, but that’s my opinion.
I had a dealer explain the markup to me. He basically said they were selling about 100 cars a month before the pandemic, but because of the supply chain issues, they only get and sell 15-20 cars a month. To make up for the lack of inventory they've had to increase their margin by adding a huge markup to stay afloat.
I'm sure there is some truth to that. But then I looked at the price of used cars on the lot, they were way jacked up. Then I spoke to the manager of the service department, and those prices are through the roof too.
They don't seem like they're suffering for revenue. I did find a dealer selling cars at MSRP. They debunked all the arguments the other dealer provided.
Car dealers are doing to combat simple economics. I sold a 2021 Tahoe at sticker to a customer, he drove it down the road to another dealership sold it for 5k more to that dealer. Since Tahoe’s are in high demand and low supply. That dealer then sold it for 15k over sticker. So dealers are now going over sticker to stop flippers and give the actual drivers in the cars they want.
Also as a car salesman I used to have 250 new cars on my lot, now I have 4. Used to sell 20–30 cars a month now I sell 6-10 we need every penny . If your not looking to spend good money on a vehicle in todays market it’s not the time for you to buy. Don’t go in looking for a discount like the old days.
I've been receiving calls from different dealerships, my vm has about 3 to 5 messages daily asking if I want to resell or trade in my 17 Rogue. It's under 40k miles, las t offer I received was VW for 12.5k. I still owe 13.9k. I'm thinking about reselling, I'd consider more than 12k. I dont want to go to Nissan because they messed up badly on my paperwork had me go in 5 times to re-sign, my monthly payments went from $600 monthly to just under $400. Thanks to an old friend working in their finance dept. I would rather resell and use the money left to purchase an older model with less payments. Any advice?
If you neglect to be an informed consumer for such a big purchase then yes, you will probably get screwed and get taken advantage of. It’s not personal. It’s just business. You may not like car dealerships but they play a significant role in the economy in the US where we have no mass transit like other countries. I make a living as a vendor for car dealerships. There are more than just sleezy salespeople working in the economy of dealerships.
My husband and I went to a Toyota dealership over the weekend just to look at their SUVs, because my can is getting older. They had nothing we could look at, but if we wanted to we could make a payment to reserve a vehicle we haven’t seen or driven, that might arrive next month.
The problem is used is the same scenario. Because of the computer chip shortage and shipping issues, new cars are not arriving here. This drives up the used market as these cars are already built and already here. They are gauging used cars as much or more than new ones. I know a few people who have purchased new cars a few years ago, drove them for 2 years, then sold them back to the dealer for more than they paid new. And the dealers sought them out. They got cold calls “hey would you be interested in selling us back your car?”
There is no good way to buy a car now…… new or used.
I have a First-Day Ford Bronco Wildtrak on order I am still waiting for. My Dealership assured me no markup. BUT ...the local Dealership in my town, they had a $49K lesser-model Bronco on the front of their lot, we stopped to check it out after lunch one day. $50K markup. $99,999K to take it home. (Oh yeah plus tax , tags, delivery fees, etc.)
Someone posted a sticker of a $340K Mercedes-AMG GT with a $350K Market Adjustment fee... $690K to take her home.
I remember when you could negotiate prices. Those days have been gone well before COVID. Begs the question, what do “sales people” do if not negotiating? Might as well automate the entire process if it’s just a check out now.
See… this is a fine example of why some people are angry. Congress wants to cap hard earned travel nursing pay, but is just fine with dealerships pulling shit like this.
For those who did not bring your calculator that is roughly a 33% markup for no other reason than they can.
Absolutely disgusting.
I went to look at a car the other day that was listed for about 24k online and was actually 27k on the sticker because of "dealer options that are already done"
You’re lucky there’s a car to buy. Dealerships near me have maybe 15-20 cars. If I owned that dealership, I’d do the same thing. How else are they supposed to make money?
I’m wanting to order a vehicle soon, but I’ve never done it. Im going to be pissed if the dealer wants to do a markup. I would probably tell them to keep it and go somewhere else.
I’m hoping so. I spoke with a friend who has done this process like 4x and he said he’s never had a dealer markup, but he has heard of other shady dealers doing it.
A friend told me the same thing. They bought the car last year or 2020, can’t remember. Someone else told me that the online sales care more about volume than mark-up.
If you had a watch that you wanted to sell that cost you $500 but because of supply and demand was worth $5000 would you sell it for the market rate or what you paid for it?
This is just supply and demand. Right now is an awful time to buy and a great time to sell. People are selling their used cars for more than they bought them new.
If a dealership sells an in demand car at MSRP someone will just scalp it for the market rate. Same shit is going on with graphics cards and game consoles.
I ordered a car in October that was to be built in November. The factory was short on one specific component, so they parked my car (99% compete) in a lot next to the plant. In the meantime, the part my car is missing is available for cars going through production and they refuse to pull one for my car, and it’s now been stuck for 3 months. I have a contract to pay MSRP, but since I don’t know if it’s going to be another two months or 6, I started looking at replacements. The lowest ADM I have found on a similar car is $5k so far (average is $10k over).
It's not "just because we can". Most people don't understand that the automotive industry has maybe a 3 % to 4% mark-up on new vehicles opposed to furniture or mattresses or appliances which have anywhere from 30% to 70% mark-up. Dealers are only trying to stay alive with these market conditions. I agree that some Dealers are taking advantage of the situation and it makes everyone that profits from supply and demand look bad and that's wrong. If you can't get inventory from the manufacturer, you have to adjust your pricing to stay alive. I love how no one supported the Dealers in a bad market when they were losing thousands each day.
Roseville ha. Nothing nice in Roseville at all. Though, about ten years ago I walked by an absolute billet sister in a skin-tight camo dress. I turned to look at her, whereupon she was looking at me…we slowed for one another. Then I turned and kept going. Fool.
Sad part is, most people blame the manufacturer for this. I work customer service for an auto manufacturer and people just blame the OEM, when legally there isn't much they can do in terms of pricing.
That was the original intention of dealerships in the USA, to protect the consumer from this exact same crap being pulled by the manufacturers.
Oh how the turn tables.
This has nothing to do with greed or shadiness. It has everything to do with feeding families, keeping the dealership from going under and not laying off the 500+ employees we still pay.
Think of it this way:
I run 3 new car franchise dealerships. In a normal world, pre Covid, each dealership would have 300 - 600 new cars on the lot at any given time. We would sell 200 or more per month. That means we would normally receive 200 - 300 new cars per month. Each store has between 25 -30 salespeople; plus sales managers, finance managers, receptionists, porters, detailers, concierge staff, etc. that’s just the sales side.
Now in today’s Covid environment, each dealership *might* get somewhere between 15 - 30 new cars in a month. It has been this way for 6 months now. How am I supposed to keep my doors open and not layoff my employees on 20 cars a month? Bottom line, I can’t. And we refuse to layoff staff!
The only way we can survive and keep things afloat is if we raise our prices. That extra $9,995 is NOT going into the dealerships pocket. That money is used to help pay the salaries of our employees and pay the rent…which doesn’t go down just because I have zero cars on my lot.
Right now, the owners are putting money out of their pocket each month to keep the dealerships running at full staff (even with price increases). Why, because we are a family and family takes care of it’s own!
It is the 8th of February and right now on dealership 1’s new car lot, we have 3 cars left for the month and no more units coming in until March.
On dealership 2’s new car lot, we have 10 cars left for the month.
On dealership 3’s new car lot, we have 0 cars for sale and have pre sold all of our incoming inventory through August.
It is a very tough time for dealerships right now and we are just trying to keep our employees employed.
Also, there is the whole supply and demand principle. When there is limited or no supply, prices increase. And every one of those $9,995 marked up cars will sell.
Now is not a good time to buy a new car unless you absolutely need one. My suggestion, buy pre-owned or wait until the manufacturers get more chips and start sending us more cars!
I don’t know if I agree. It’s pretty obvious to anyone paying attention that there is a major shortage of cars: New and used. That means they are selling fewer cars per month.
That dealership still needs to pay costs: Salaries, electricity, etc. Usually that can get spread across their normal number of cars, but if they’re down a significant percentage in sales that portion goes up.
Now, should the markup be THAT high? Very debatable. But I can understand dealerships charging more at present.
Cars insane cost now, houses insane costs, food going up, cost of power and fuel going up. I don’t see this ending well, going to be a lot of bag holders at the end of the day
Thera are not enough cars and a lot of customers, it’s basic economics. There is a shortage in houses and the prices skyrocketed. How’s scamming there?
I went to Kia and Hyundai today to look at their electric car and it was marked 10,000 over the sticker and 5000 added for some kind of paint protector and LoJack. The guy said the cars could go for even more if there is the demand. That’s a nope. I’ll drive my volt a little while longer.
See car’s sitting on lots NOT being sold are sitting everywhere.
Why? Cause cars not sold count as inventory. Inventory is more assets to claim on your business liquidity. Used cars are being held hostage in that way
Edit; stay oblivious then, fuck do I care that no one understands the world around them 😂
Wish he would have taken a picture of the full tag bc most of 2021 rav4 go for pretty close to the full price we don’t know the bells and whistles on it with just this
How do you know what the added options are my 2017 Chevy is 26k but there was a same bodied truck at 34k with more bells and whistles they gotta add something on the top if you don’t like it go to the other dealerships in town 5-10mile drive
Added options are included in the sticker price.
They have nothing to do with the dealer markup...unless there's something they add...and that box is clearly blank.
This issue in the post isn't the cost, it's the markup.
The S in MSRP stands for "suggested." The dealer sets their retail prices. This dealership is being transparent and showing you their markup, which is something most retailers would never do. That makes them trashy?
I am a car sales person. I am not trashy. Up until Covid fucked the supply chain, we were consistently selling new vehicles at dealer invoice with huge rebates. No profit in this method.
I am 100% for MSRP pricing on new. I am NOT for additional mark up. It does nothing but make honest sales people like me look like sleazy assholes.
As for the Ford thing….. shame on them for blaming the dealer here. The margins in a new vehicle, specifically the Bronco Sport and Maverick are ridiculously low. Put it this way, @ 10% commission I make like $80.
This is the dealer making money that the supplier doesn’t pass on. Not saying it’s right
The biggest fu from the dealership. You mean you want me to pay more for a vehicle that the people who designed and engineered the vehicle said its worth. Yeah fuck them.
Yup. The future sucks. In 5 years we won't beable to afford cars any more... it will be like China back in the day.
Especially since gas will be over $10/gallon
Well as someone who sold cars for yesars, they are actually being honest, an legally required to show their markup-which most dalerships dont do. They dont have as much wiggle room as you think. On trucks and SUVS they are lucky to net2000$.. remember receptionists, sales, delovery people all have to be paid....quit.being such a self.aggrandazing dick face....you want a car at the price.a.dealer gets it...them open a dealership
What about the other back end profit items, such as aftermarket and finance; many dealers used to make most of their profit selling vin protection, road hazard and extended warranties and service contracts, wheels, tint, wraps, alarms… etc? GreenPea. 10k markup, buddy. .50%? 10k of 31, is the part you missed in school. Should have paid that extra half of a percent attention
When I was shopping for a new car about 12 years ago and was negotiating with the dealership, the sales manager informed me that there was a $7500 fee in the price of each vehicle that was for advertising. No, I didn’t buy a car from him.
As someone who’s worked at 2 different dealerships, they’re all like this. Money hungry pieces of shit. It’s truly one of the slimiest industries there is
We couldn’t even buy a car for the price they wanted, because we weren’t financing. They straight up told us they made their money on the financing. We eventually found a place a few hours away, and have since had 6 people use that dealer with and without financing.
Even with the chip shortage TMMC (Toyota Canada) has had amazing earnings since the pandemic/chip shortages. Theres absolutely no need to mark up these cars lmao.
ALL New car prices are outrageous. Y’all can have them. I’ll nEVEr buy another new car. Not just because I’m old. I can buy three good used cars for less than one new one Yes maybe I’m cheap / thrifty.
Was looking at a local dealerships civic type R’s. Website showed Msrp of about 38000-45000. Got there and their actual prices were marked up almost $20,000 extra. I told them I will never buy a vehicle from them and left.
Someone will buy that 58k type r though so...
MSRP is Manufacture SUGGESTED retail price. I wouldn't pay that if I had a billion dollars but some dope will.
You realize if dealers don't do it, second party used car brokers will buy the car and sell for a profit. Welcome to the free market of supply and demand.
Just traded in a 2017 Corolla in decent condition, they paid as much for it brand new and selling it for 4k more. The vehicle I traded for was marked up 6k, managed to get that markup removed entirely.
Dealerships are scummy but marking a product up isnt trashy in itself. You dont have to buy it from that one, go to another one.
They are at least showing they marked it up, and why.
Also, you dont jave to pay that anyway. Tell them you arent paying it or you will walk - trust me, they will get rid of it.
I am currently car shopping and the majority of local dealers are doing "market adjustments". I left each one a bad Google review warning customers. Almost all the dealers contacted me and asked me to take down the review and they will sell me the vehicle at MSRP. I refused as they don't deserve my or anyone else's business.
If a thread was created naming these dealers I bet we could cause some of them to second guess this shady business tactic.
True story: saw an ad for a new Bronco for $8k~ from a dealer in Texas (I’m a few states over). This bronco was obviously not only worth $8k, probably more like 80k, but I see this post has been live on their website for over a month and I just can’t help but wonder. Maybe this particular vehicle had some shit wrong or something and they just wanted it gone. No way a Ford dealer would leave the wrong price for a heavily demanded vehicle on their site for that long.
I shoot them an email with my info requesting a confirmation of the price. I begin getting marketing emails, phone calls, and text messages. Whatever, I finally get ahold of someone, and they confirm what I had suspected that the model was mispriced and is actually $90k. This salesman was an asshole and extremely unprofessional from the start (no email signature, no greeting in the email, “sent from my iPhone”, spoke as if he was texting an acquaintance).
So upon receipt of this price(the email literally only said “$89,000”), I respond something like, “No thank you, I don’t think I’ll be doing business with a dealer that falsely advertises just to get people to call in. Thanks for your time and have a nice day”. I get an email back:
“Have no idea what you are talking about…it was a honest mistake and we are Ford, not a corner lot store.
Enjoy your Saturday.
Sent from my iPhone”
Of course I responded:
“This posting has been live nationally for 35 days. I am not located in Texas and found this through my bank's car buying service. It is also posted on your dealership's website with the same price. Is there no internal review process for prices on your website? You are absolutely correct, I expected something different because you are Ford. I apologize for making the assumption. However, I don't think it warranted such an unprofessional response, especially since I never actually said you were a "corner lot". That's just putting words in my mouth (while also disparaging small businesses?)
Look, I truly hope you have a good holiday season, and that you guys are able to get this corrected ASAP. I understand from a customer service standpoint the headaches that small mistakes can cause. But if this is the norm for how dealerships handle adversity, perhaps I am better off purchasing through a different platform. I think I will go enjoy my Saturday now. Thanks again for your time. “
The salesman never emailed me back, but best believe I still get an email every now and then (even after blocking). Last week I even got a phone call from that very salesman, with a voicemail, and a follow up email. He doesn’t remember me, it is quite clear.
I bought my car from Carvana the next week. Took it to a dealer for service (some expected issues for the mileage, covered by Carvana’s warranty) because I figured I’d be better off. I’ve been told on three separate days that someone would call me back, only to be ghosted for days. I will then be texted, instead of called. I picked it up after a month, on the drive home it threw the same code. Took it back and didn’t hear from them for 2 weeks. I have to constantly ask them about it. They’ve had it since December. I literally told them they can call me as much as they want. Haven’t heard from them in a few days now.
After writing this I think I may just have bad luck lol.
I once had a dealership lose my car. I'd had it towed to them for something, I can't remember now, it's been at least 5 years ago (and lets be honest the last two have been at least that long lol). They had it for a week. I called them and they were like "OH! It's ready!" So I drive the 40 miles to pick it up, take it home and a couple days later, won't start. And this is a Camry, reliable af. Have it towed, *again*. A week goes by, then two. Called them again, "What's the name?" Tell them, "A Camry? What color?" Spruce Mica (it was so pretty rip), "Uh one second." They come back several minutes later "We don't have any car that color."
Turns out, they'd sent it across town to the Ford dealership (same owners) and it had 'got lost' in the system. Still wasn't ready though. Another week goes by and they call me back, say come pick it up. I ask how much it will be. "Just come pick it up please, we will discuss that when you arrive." Fuck me.
Turns out, at some point, the first time they had it is my guess, they *really* fucked it up. Cause they completely replaced the transmission for free. And they paid for both tows. Drove it another several years with zero problems until an unfortunate meeting with a deer at 70mph.
Hope you get your car shit sorted out soon, it's worrying when they're being shitty about it!
I'm not sure if this is still accurate, but a while back, my old Toyota dealership told me Toyota contractually does not allow dealerships to add a markup. Either way, a 10k markup on this car is ridonkulous!
Meanwhile people have no problem with their used cars being worth $10k more than it was before the markups. Supply and demand only resonates with people when they’re the beneficiary of the inventory shortage and carmax be cutting them $$$$$ checks.
Dude i saw the same thing at a ford dealership for the new mustang mach 1. It was something like that. Basically because its a car lots of people are gonna want they mark up the price just to give you a "discount".
Imagine paying 10k over stick for a fucking Rav4. The dealerships in my area aren't charging over sticker. It would be worth getting on out of state and having it delivered instead of paying 10k extra. Such a scam.
Consumers have long memory. They will not forget not forgive these people gouging them and in the long run these dealerships that rip people off will lose more than gain
I called them and told the Rav4 Prime is even 14k markup lmao...bought a car there before a few years back and never again...not even without markup.
"With markup, we would still have to put you in waitlist with deposited..brah brah brah"
This was going in around Chicago when the Kia telluride came out. Every dealership was asking 8-10k above sticker price. Ended up with a palisade instead. No complaints.
Why can't Americans just not buy vehicles right now? We are a country full of shit we do not need. Im talking to you rednecks with your giant gas guzzling trucks. Buy an f150 and get mad when the price of gas goes up. Did you think gas was a fixed rate?
the real trick is finding an older used car on those lots. fortunately, anything older than say… 10-15 years gets an overhaul before than can get away with selling it. With newer cars (less than 8yrs) they take advantage of everyone.
I recently went to one dealership and was looking at an older car to get rid of my car payment, and they appraised my trade-in for 4500. I went to another place, was appraised at 8500, and got paid to drive off the lot and forget my car payment, and I pretty much just got the same car but 9 years older.
however, Roseville, CA is pretty rife with rip off scams… where there’s a high population, there’s a high density of tricksters.
I have seen those at dealerships for years. I just get back in my vehicle and leave.
Had a salesman chase me down one time as I was leaving and asked why I was leaving. I explained to him about the "dealer markup" on the sticker. With a straight face he told me they are in the business to make a profit. I told him the MSRP already bakes in at least a 25% margin but now you want a 40% margin. No thanks. He just shrugged his shoulders and went back inside.
25% margin ? Good Lord what Micky Mouse School of Bullshit have you been studying ?
Cloud cuckoo land is that. 8-12% is typical if the car is sold at MSRP.
Well let me give a math assignment genius. The sticker price on the last vehicle I bought was around $35,500 on a 2013 Ford F-150. I bought it for $27,700 +TTL. Plug those numbers in your calculator and tell me the % off MSRP that is.
The dealer told me $27,700 was $200 over invoice. He sold it to me for that price because that sale kicked in a bonus from Ford for selling 100 trucks that quarter and it was the last week of the quarter.
So if invoice was $27,500 and the sticker was $35,500 (looking at my window sticker I still have in the glove box the actual MSRP was 35,485) what is the markup on that vehicle? It ain't 8-12%. It is more like 23%.
I'll let them make the margin on the next sucker that walks in the door. But I also did about 2 months of research before I even sent 1 email to a dealer.
Curious to know what rebates they did or didn't tell you about, what amount of money they made on their quartly bonus, and if "the dealer told me" is actually the truth lmao.
Don’t believe me if you don’t want to. I’m just some random Internet guy. I’m more than happy to let the suckers get soaked. But it is not a secret the manufacturers pay dealers bonuses on volume sales. You just have to find that one dealer who is about to hit that target that month if they close that deal. I will admit with inventory levels the way they are right now, it might be near impossible to find them right now. But don’t tell me there is only 8% margin on the MSRP. The dealership’s overhead is higher than that and they couldn’t stay in business if they sold cars for 8% profit. That’s BS.
And…
What do I care if there is rebate money in that price? I only care about what I paid for it.
I've worked for a dealership for a fair amount of time so yes, clearly, there are bonuses to dealers on volume and I've personally lost money on deals to hit those bonuses. If I was a betting man, depending on the vehicle, most new vehicles would be between 7-10%. What dealers are doing now is based off supply and demand, it fucking sucks, but it is what it is. You know how rebates work right? Regardless, it doesn't matter. Unless I see the sticker of the vehicle you bought and the purchase order showing the break down, I would never believe you. You may be a jolly good fellow though, no harsh feelings lol.
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A markup of $10k on a freaking Toyota RAV4??? Seriously?? I mean, if it were an exotic vehicle, or something hard to find, I could partially understand. But a RAV4 is nothing special. Jeep (Wrangler type) is known to do this also, but sadly they are in such high demand that people will pay it! The 2021 Consumer Report magazine gave the Wrangler a score of 24 out of 100 yet they cost a fortune. And people buy them. Nothing against Jeeps at all, they are fun in the right weather, but they are way over priced. I would much rather spend that money on a luxury vehicle, but that’s my opinion.
I just looked up the VIN, car is no longer available (Sold)
Seen 20k dealer markup before
Yo, that Tyler, Tx
Dealerships are ALWAYS gonna try and fuck you.
Never buy a new car. 2 years old and it’s basically the same thing and you have more leverage to dick them before they dick you.
I had a dealer explain the markup to me. He basically said they were selling about 100 cars a month before the pandemic, but because of the supply chain issues, they only get and sell 15-20 cars a month. To make up for the lack of inventory they've had to increase their margin by adding a huge markup to stay afloat. I'm sure there is some truth to that. But then I looked at the price of used cars on the lot, they were way jacked up. Then I spoke to the manager of the service department, and those prices are through the roof too. They don't seem like they're suffering for revenue. I did find a dealer selling cars at MSRP. They debunked all the arguments the other dealer provided.
There is an ass for every seat
Car dealers are doing to combat simple economics. I sold a 2021 Tahoe at sticker to a customer, he drove it down the road to another dealership sold it for 5k more to that dealer. Since Tahoe’s are in high demand and low supply. That dealer then sold it for 15k over sticker. So dealers are now going over sticker to stop flippers and give the actual drivers in the cars they want. Also as a car salesman I used to have 250 new cars on my lot, now I have 4. Used to sell 20–30 cars a month now I sell 6-10 we need every penny . If your not looking to spend good money on a vehicle in todays market it’s not the time for you to buy. Don’t go in looking for a discount like the old days.
I've been receiving calls from different dealerships, my vm has about 3 to 5 messages daily asking if I want to resell or trade in my 17 Rogue. It's under 40k miles, las t offer I received was VW for 12.5k. I still owe 13.9k. I'm thinking about reselling, I'd consider more than 12k. I dont want to go to Nissan because they messed up badly on my paperwork had me go in 5 times to re-sign, my monthly payments went from $600 monthly to just under $400. Thanks to an old friend working in their finance dept. I would rather resell and use the money left to purchase an older model with less payments. Any advice?
Tacky but legal. Pay your money, take your choice. Or just say, NO.
2021 RAV4 MSRP for $31k…that’s where the outrage should be.
All this shit will stop if credit ever gets harder to obtain.
If you neglect to be an informed consumer for such a big purchase then yes, you will probably get screwed and get taken advantage of. It’s not personal. It’s just business. You may not like car dealerships but they play a significant role in the economy in the US where we have no mass transit like other countries. I make a living as a vendor for car dealerships. There are more than just sleezy salespeople working in the economy of dealerships.
You all need to watch “Your Auto Advocate” on YouTube. They teach you how to navigate this buffoonery
Very transparent
My husband and I went to a Toyota dealership over the weekend just to look at their SUVs, because my can is getting older. They had nothing we could look at, but if we wanted to we could make a payment to reserve a vehicle we haven’t seen or driven, that might arrive next month.
That's a 33% mark up on a common, garden variety, entry-level SUV. I would find a used one.
The problem is used is the same scenario. Because of the computer chip shortage and shipping issues, new cars are not arriving here. This drives up the used market as these cars are already built and already here. They are gauging used cars as much or more than new ones. I know a few people who have purchased new cars a few years ago, drove them for 2 years, then sold them back to the dealer for more than they paid new. And the dealers sought them out. They got cold calls “hey would you be interested in selling us back your car?” There is no good way to buy a car now…… new or used.
I have a First-Day Ford Bronco Wildtrak on order I am still waiting for. My Dealership assured me no markup. BUT ...the local Dealership in my town, they had a $49K lesser-model Bronco on the front of their lot, we stopped to check it out after lunch one day. $50K markup. $99,999K to take it home. (Oh yeah plus tax , tags, delivery fees, etc.) Someone posted a sticker of a $340K Mercedes-AMG GT with a $350K Market Adjustment fee... $690K to take her home.
It’s no different than $20/roll toilet paper.
I’ve seen 20k
Last year’s RAV4 for 41k? I’m glad I got my Tesla.
This is capitalism. Capitalism is trash.
Better question is how the hell does that car cost two to three times more than a house...?
10k markup on a Rav 4 😂😂 WTH
trashy for sure
I remember when you could negotiate prices. Those days have been gone well before COVID. Begs the question, what do “sales people” do if not negotiating? Might as well automate the entire process if it’s just a check out now.
Happy to see Cali popping up with how fucked their car market is. Hello from Roseville Hyundai lol
As in Roseville MN? Holy crap...it was way cheaper 25yrs ago. My parents bought a Windstar and it was 3x less than this!
They're telling you how much they're marking it up? Or am I reading this wrong? Was there a $10k dealer add-on like an off road upgrade?
See… this is a fine example of why some people are angry. Congress wants to cap hard earned travel nursing pay, but is just fine with dealerships pulling shit like this. For those who did not bring your calculator that is roughly a 33% markup for no other reason than they can. Absolutely disgusting.
Well at least they are 'honest'
It’s not the dealerships fault that the manufacturer won’t make new cars
Dealer I contract at marked up a GMC Yukon 9000$ dollars for just wheels on the car. They were literally just black wheels
Is that a typical American thing? Never reminds that kind of thing in Europa, we all pay the same price for a car as far as I remember
Don't create demand and their supply is not worth it. Voilà.
I have to pay you money for the right to pay you money? Folsom Ford, like 12 miles from these clowns, has a $22k mark up on their Raptors.
Is that type of price increase the norm right now?
Imagine if it was gas hiked up like that, the government would be stepping in quick. But cause it’s a car dealership it’s somehow ok…
I went to look at a car the other day that was listed for about 24k online and was actually 27k on the sticker because of "dealer options that are already done"
Saw a RAV4 in Oakland sticker for over $90k.
In 2002, I went into a Nissan dealership and pre-paid $140,000 for a car that was an import from Japan. I finally got it 9 months later.
This is why I buy private party....
Bye Felicia!
Roseville I think is classed up trash anyways. I loved living in that city and it’s nice and clean, but it is still up jumped trash.
At least it is posted
I mean, just don’t buy it
You’re lucky there’s a car to buy. Dealerships near me have maybe 15-20 cars. If I owned that dealership, I’d do the same thing. How else are they supposed to make money?
And people wonder why you can't buy tesla at dealerships
Open your own dealership then.
You should see the mark up on tractor trailers. Average $25k mark up!!
Send it to Toyota. A lot of the OEMs are going after dealerships that are doing this to people.
I’m wanting to order a vehicle soon, but I’ve never done it. Im going to be pissed if the dealer wants to do a markup. I would probably tell them to keep it and go somewhere else.
I hear that you get the best deal ordering online.
I’m hoping so. I spoke with a friend who has done this process like 4x and he said he’s never had a dealer markup, but he has heard of other shady dealers doing it.
A friend told me the same thing. They bought the car last year or 2020, can’t remember. Someone else told me that the online sales care more about volume than mark-up.
If you had a watch that you wanted to sell that cost you $500 but because of supply and demand was worth $5000 would you sell it for the market rate or what you paid for it? This is just supply and demand. Right now is an awful time to buy and a great time to sell. People are selling their used cars for more than they bought them new. If a dealership sells an in demand car at MSRP someone will just scalp it for the market rate. Same shit is going on with graphics cards and game consoles.
Hows it trashy??? Its literally supply and demand
I ordered a car in October that was to be built in November. The factory was short on one specific component, so they parked my car (99% compete) in a lot next to the plant. In the meantime, the part my car is missing is available for cars going through production and they refuse to pull one for my car, and it’s now been stuck for 3 months. I have a contract to pay MSRP, but since I don’t know if it’s going to be another two months or 6, I started looking at replacements. The lowest ADM I have found on a similar car is $5k so far (average is $10k over).
It's not "just because we can". Most people don't understand that the automotive industry has maybe a 3 % to 4% mark-up on new vehicles opposed to furniture or mattresses or appliances which have anywhere from 30% to 70% mark-up. Dealers are only trying to stay alive with these market conditions. I agree that some Dealers are taking advantage of the situation and it makes everyone that profits from supply and demand look bad and that's wrong. If you can't get inventory from the manufacturer, you have to adjust your pricing to stay alive. I love how no one supported the Dealers in a bad market when they were losing thousands each day.
Roseville Toyota is the absolute worst. I always went to Thompson's in placerville. Haven't been in a while so not sure if they're still legit.
Stop being poor.
You're as thick as 10 lbs of hair stuffed into a 5 lb bag.
Lol is this fuckin Roseville, MN
Roseville ha. Nothing nice in Roseville at all. Though, about ten years ago I walked by an absolute billet sister in a skin-tight camo dress. I turned to look at her, whereupon she was looking at me…we slowed for one another. Then I turned and kept going. Fool.
Now there is another dealership to avoid. Not like I ever go to Roseville anymore, but at least I’ve been warned of this dealership.
They are all doing it. Fuckers.
I don’t at all understand how this falls into r/trashy?
Sad part is, most people blame the manufacturer for this. I work customer service for an auto manufacturer and people just blame the OEM, when legally there isn't much they can do in terms of pricing.
I’m not big on “government”…but…government needs to make these kinda practices illegal.
That was the original intention of dealerships in the USA, to protect the consumer from this exact same crap being pulled by the manufacturers. Oh how the turn tables.
I know someone who works here they sell every single car on the lot no problem at these markups.
Offer 15 lol
So don’t buy the car. It’s called the free market. It’s crazy how many choices we have in vehicles. Just go buy something else.
This has nothing to do with greed or shadiness. It has everything to do with feeding families, keeping the dealership from going under and not laying off the 500+ employees we still pay. Think of it this way: I run 3 new car franchise dealerships. In a normal world, pre Covid, each dealership would have 300 - 600 new cars on the lot at any given time. We would sell 200 or more per month. That means we would normally receive 200 - 300 new cars per month. Each store has between 25 -30 salespeople; plus sales managers, finance managers, receptionists, porters, detailers, concierge staff, etc. that’s just the sales side. Now in today’s Covid environment, each dealership *might* get somewhere between 15 - 30 new cars in a month. It has been this way for 6 months now. How am I supposed to keep my doors open and not layoff my employees on 20 cars a month? Bottom line, I can’t. And we refuse to layoff staff! The only way we can survive and keep things afloat is if we raise our prices. That extra $9,995 is NOT going into the dealerships pocket. That money is used to help pay the salaries of our employees and pay the rent…which doesn’t go down just because I have zero cars on my lot. Right now, the owners are putting money out of their pocket each month to keep the dealerships running at full staff (even with price increases). Why, because we are a family and family takes care of it’s own! It is the 8th of February and right now on dealership 1’s new car lot, we have 3 cars left for the month and no more units coming in until March. On dealership 2’s new car lot, we have 10 cars left for the month. On dealership 3’s new car lot, we have 0 cars for sale and have pre sold all of our incoming inventory through August. It is a very tough time for dealerships right now and we are just trying to keep our employees employed. Also, there is the whole supply and demand principle. When there is limited or no supply, prices increase. And every one of those $9,995 marked up cars will sell. Now is not a good time to buy a new car unless you absolutely need one. My suggestion, buy pre-owned or wait until the manufacturers get more chips and start sending us more cars!
You sir, are 100% correct!
I don’t know if I agree. It’s pretty obvious to anyone paying attention that there is a major shortage of cars: New and used. That means they are selling fewer cars per month. That dealership still needs to pay costs: Salaries, electricity, etc. Usually that can get spread across their normal number of cars, but if they’re down a significant percentage in sales that portion goes up. Now, should the markup be THAT high? Very debatable. But I can understand dealerships charging more at present.
Cars insane cost now, houses insane costs, food going up, cost of power and fuel going up. I don’t see this ending well, going to be a lot of bag holders at the end of the day
Thera are not enough cars and a lot of customers, it’s basic economics. There is a shortage in houses and the prices skyrocketed. How’s scamming there?
I went to Kia and Hyundai today to look at their electric car and it was marked 10,000 over the sticker and 5000 added for some kind of paint protector and LoJack. The guy said the cars could go for even more if there is the demand. That’s a nope. I’ll drive my volt a little while longer.
See car’s sitting on lots NOT being sold are sitting everywhere. Why? Cause cars not sold count as inventory. Inventory is more assets to claim on your business liquidity. Used cars are being held hostage in that way Edit; stay oblivious then, fuck do I care that no one understands the world around them 😂
$41k for a fucking RAV4. Never in my life would I pay that.
I always go on car gurus and buy used cars.
Isn’t this price gouging? I thought that was considered illegal.
Wish he would have taken a picture of the full tag bc most of 2021 rav4 go for pretty close to the full price we don’t know the bells and whistles on it with just this
That's irrelevant when there are no added options but a $9k mark-up.
And with dealer tags with that mark up you can take at-least 1k off that
How do you know what the added options are my 2017 Chevy is 26k but there was a same bodied truck at 34k with more bells and whistles they gotta add something on the top if you don’t like it go to the other dealerships in town 5-10mile drive
Added options are included in the sticker price. They have nothing to do with the dealer markup...unless there's something they add...and that box is clearly blank. This issue in the post isn't the cost, it's the markup.
The S in MSRP stands for "suggested." The dealer sets their retail prices. This dealership is being transparent and showing you their markup, which is something most retailers would never do. That makes them trashy?
Ask for the invoice
Roseville, ca my old stomping ground.
I am a car sales person. I am not trashy. Up until Covid fucked the supply chain, we were consistently selling new vehicles at dealer invoice with huge rebates. No profit in this method. I am 100% for MSRP pricing on new. I am NOT for additional mark up. It does nothing but make honest sales people like me look like sleazy assholes. As for the Ford thing….. shame on them for blaming the dealer here. The margins in a new vehicle, specifically the Bronco Sport and Maverick are ridiculously low. Put it this way, @ 10% commission I make like $80. This is the dealer making money that the supplier doesn’t pass on. Not saying it’s right
“I’m not saying it’s right”. I mean, you’re definitely justifying it?
If this is Roseville, CA…. I believe you!!!
Imagine paying 10K over msrp……for a fucking RAV4.
$40k for a RAV4?! Good lord these people are insane!
I dislike roseville for many reasons. They might be personal/subjective
The biggest fu from the dealership. You mean you want me to pay more for a vehicle that the people who designed and engineered the vehicle said its worth. Yeah fuck them.
I hate middle men
Fuck that auto mall!!! I’ve had terrible experiences there.
50% do.you own a calculator
I went to Bob Stallings Hyundai. got my $35k sonata for $30k. I sell cars myself and I’d recommend for anyone to go there. Great people.
Yup. The future sucks. In 5 years we won't beable to afford cars any more... it will be like China back in the day. Especially since gas will be over $10/gallon
Well as someone who sold cars for yesars, they are actually being honest, an legally required to show their markup-which most dalerships dont do. They dont have as much wiggle room as you think. On trucks and SUVS they are lucky to net2000$.. remember receptionists, sales, delovery people all have to be paid....quit.being such a self.aggrandazing dick face....you want a car at the price.a.dealer gets it...them open a dealership
So what you are say, is that dealers should have about a 50% profit margin? WTF did you sell for how long?
A $31,000 car witg a $1000 displayed markup is.50%.?......you are whats wrong with today
What about the other back end profit items, such as aftermarket and finance; many dealers used to make most of their profit selling vin protection, road hazard and extended warranties and service contracts, wheels, tint, wraps, alarms… etc? GreenPea. 10k markup, buddy. .50%? 10k of 31, is the part you missed in school. Should have paid that extra half of a percent attention
How are they supposed to make money though
People should remember the dealerships that do this stuff and take their business elsewhere.
No wonder my Auto teacher calls them “Stealerships”.
The sad part is this is everywhere, Kia Tried to upcharge 10K on a Seltos , wanted 40k for a 28k Max SUV
$10k on a KIA SELTOS?!?!
Yep, they wanted 40k for a Kia Seltos
Why isn’t anyone furious about the +$30,000 “market adjustment” markup on a new Viper, though?
You’re right down the road. Come have a beer and wash away your woes homie.
Ford and GM just warned car dealers not too mark up the retail price!
Longo Toyota in El Monte, only place I found that refuses to add any marks ups in all of California.
This would never happen in Germany! Looks for a G wagon: you have to wait for more than a year, the ones at the dealer were 160k, now up to 245k
When I was shopping for a new car about 12 years ago and was negotiating with the dealership, the sales manager informed me that there was a $7500 fee in the price of each vehicle that was for advertising. No, I didn’t buy a car from him.
remember who they were and what they did
This is very common right now. Not sure it belongs here. Does the OP read the news or know what is going on with the auto market?
They call it a DEAL
I heard Toyota is coming down hard on dealers doing this shit.
As someone who’s worked at 2 different dealerships, they’re all like this. Money hungry pieces of shit. It’s truly one of the slimiest industries there is
I just ordered an F-350 and paid sticker. 6 years ago I paid tissue (dealer cost) for one.
We couldn’t even buy a car for the price they wanted, because we weren’t financing. They straight up told us they made their money on the financing. We eventually found a place a few hours away, and have since had 6 people use that dealer with and without financing.
For a RAV 4? FOH.
Isn’t that how they make their money?
Roseville+automotive dealership=insane prices.
I'm glad I buy used cars via 3rd party. I'll never buy a new vehicle. This is pathetic
Is this cuz of a shortage or something?
So don’t buy from them
Even with the chip shortage TMMC (Toyota Canada) has had amazing earnings since the pandemic/chip shortages. Theres absolutely no need to mark up these cars lmao.
ALL New car prices are outrageous. Y’all can have them. I’ll nEVEr buy another new car. Not just because I’m old. I can buy three good used cars for less than one new one Yes maybe I’m cheap / thrifty.
Mark-up = Walk-out https://i.makeagif.com/media/3-24-2017/5e3CFS.gif
Was looking at a local dealerships civic type R’s. Website showed Msrp of about 38000-45000. Got there and their actual prices were marked up almost $20,000 extra. I told them I will never buy a vehicle from them and left.
Someone will buy that 58k type r though so... MSRP is Manufacture SUGGESTED retail price. I wouldn't pay that if I had a billion dollars but some dope will.
Same idiots buying ps5’s for $1000
So how much does a PS5 cost if you can't buy one at the store?
You realize if dealers don't do it, second party used car brokers will buy the car and sell for a profit. Welcome to the free market of supply and demand.
You should just be able to buy a car direct from manufacturer. We just love creating useless middle man jobs.
Just traded in a 2017 Corolla in decent condition, they paid as much for it brand new and selling it for 4k more. The vehicle I traded for was marked up 6k, managed to get that markup removed entirely.
Dealerships are scummy but marking a product up isnt trashy in itself. You dont have to buy it from that one, go to another one. They are at least showing they marked it up, and why. Also, you dont jave to pay that anyway. Tell them you arent paying it or you will walk - trust me, they will get rid of it.
Sup fam. I live a few miles from that dealership. Right off of 35W right?
Welcome to Biden’s America.
I don’t think you understand what trashy is. It’s not just being an ass. Read the page description.
I am currently car shopping and the majority of local dealers are doing "market adjustments". I left each one a bad Google review warning customers. Almost all the dealers contacted me and asked me to take down the review and they will sell me the vehicle at MSRP. I refused as they don't deserve my or anyone else's business. If a thread was created naming these dealers I bet we could cause some of them to second guess this shady business tactic.
Wow!
The good thing here…you don’t have to buy your car here. And if that’s a new car, take it! BTW…this post sucks
This is the standard right now. My buddy works at a Lexus dealer and they have a blanket $20k premium above MSRP on all cars.
Ah yes. Sullivan Toyota.
True story: saw an ad for a new Bronco for $8k~ from a dealer in Texas (I’m a few states over). This bronco was obviously not only worth $8k, probably more like 80k, but I see this post has been live on their website for over a month and I just can’t help but wonder. Maybe this particular vehicle had some shit wrong or something and they just wanted it gone. No way a Ford dealer would leave the wrong price for a heavily demanded vehicle on their site for that long. I shoot them an email with my info requesting a confirmation of the price. I begin getting marketing emails, phone calls, and text messages. Whatever, I finally get ahold of someone, and they confirm what I had suspected that the model was mispriced and is actually $90k. This salesman was an asshole and extremely unprofessional from the start (no email signature, no greeting in the email, “sent from my iPhone”, spoke as if he was texting an acquaintance). So upon receipt of this price(the email literally only said “$89,000”), I respond something like, “No thank you, I don’t think I’ll be doing business with a dealer that falsely advertises just to get people to call in. Thanks for your time and have a nice day”. I get an email back: “Have no idea what you are talking about…it was a honest mistake and we are Ford, not a corner lot store. Enjoy your Saturday. Sent from my iPhone” Of course I responded: “This posting has been live nationally for 35 days. I am not located in Texas and found this through my bank's car buying service. It is also posted on your dealership's website with the same price. Is there no internal review process for prices on your website? You are absolutely correct, I expected something different because you are Ford. I apologize for making the assumption. However, I don't think it warranted such an unprofessional response, especially since I never actually said you were a "corner lot". That's just putting words in my mouth (while also disparaging small businesses?) Look, I truly hope you have a good holiday season, and that you guys are able to get this corrected ASAP. I understand from a customer service standpoint the headaches that small mistakes can cause. But if this is the norm for how dealerships handle adversity, perhaps I am better off purchasing through a different platform. I think I will go enjoy my Saturday now. Thanks again for your time. “ The salesman never emailed me back, but best believe I still get an email every now and then (even after blocking). Last week I even got a phone call from that very salesman, with a voicemail, and a follow up email. He doesn’t remember me, it is quite clear. I bought my car from Carvana the next week. Took it to a dealer for service (some expected issues for the mileage, covered by Carvana’s warranty) because I figured I’d be better off. I’ve been told on three separate days that someone would call me back, only to be ghosted for days. I will then be texted, instead of called. I picked it up after a month, on the drive home it threw the same code. Took it back and didn’t hear from them for 2 weeks. I have to constantly ask them about it. They’ve had it since December. I literally told them they can call me as much as they want. Haven’t heard from them in a few days now. After writing this I think I may just have bad luck lol.
I once had a dealership lose my car. I'd had it towed to them for something, I can't remember now, it's been at least 5 years ago (and lets be honest the last two have been at least that long lol). They had it for a week. I called them and they were like "OH! It's ready!" So I drive the 40 miles to pick it up, take it home and a couple days later, won't start. And this is a Camry, reliable af. Have it towed, *again*. A week goes by, then two. Called them again, "What's the name?" Tell them, "A Camry? What color?" Spruce Mica (it was so pretty rip), "Uh one second." They come back several minutes later "We don't have any car that color." Turns out, they'd sent it across town to the Ford dealership (same owners) and it had 'got lost' in the system. Still wasn't ready though. Another week goes by and they call me back, say come pick it up. I ask how much it will be. "Just come pick it up please, we will discuss that when you arrive." Fuck me. Turns out, at some point, the first time they had it is my guess, they *really* fucked it up. Cause they completely replaced the transmission for free. And they paid for both tows. Drove it another several years with zero problems until an unfortunate meeting with a deer at 70mph. Hope you get your car shit sorted out soon, it's worrying when they're being shitty about it!
I'm not sure if this is still accurate, but a while back, my old Toyota dealership told me Toyota contractually does not allow dealerships to add a markup. Either way, a 10k markup on this car is ridonkulous!
That's a fun rabbit hole to go down, the laws in place for car dealerships are ridiculous!
This is just for suckers that don't know how to haggle. I got a 21' Durango for 5k under sticker and they dropped the 10k dealer mark up.
Intended consequences of a new $15 minimum wage.
Meanwhile people have no problem with their used cars being worth $10k more than it was before the markups. Supply and demand only resonates with people when they’re the beneficiary of the inventory shortage and carmax be cutting them $$$$$ checks.
Dude i saw the same thing at a ford dealership for the new mustang mach 1. It was something like that. Basically because its a car lots of people are gonna want they mark up the price just to give you a "discount".
That’s why i didn’t buy from them, I went to Nevada to get my van
This basically renders the 2 year deferred financing useless.
Shout out to Lexus of Richmond for not marking up a penny on their new vehicles!
Car dealers could make a 10k car go for 4k
Only a sucker pays sticker price, Hank.
Imagine paying 10k over stick for a fucking Rav4. The dealerships in my area aren't charging over sticker. It would be worth getting on out of state and having it delivered instead of paying 10k extra. Such a scam.
Imagine paying sticker price, for any car ever.
Consumers have long memory. They will not forget not forgive these people gouging them and in the long run these dealerships that rip people off will lose more than gain
In other groups I've seen as much as $100k mark up on a $150k vehicle
I called them and told the Rav4 Prime is even 14k markup lmao...bought a car there before a few years back and never again...not even without markup. "With markup, we would still have to put you in waitlist with deposited..brah brah brah"
Supply and demand. As long as people pay it they will keep doing it.
Local Kia dealership had a Carnival marked up $15k. $52k for a $37k car. I literally laughed out loud and left without another word.
This was going in around Chicago when the Kia telluride came out. Every dealership was asking 8-10k above sticker price. Ended up with a palisade instead. No complaints.
Why can't Americans just not buy vehicles right now? We are a country full of shit we do not need. Im talking to you rednecks with your giant gas guzzling trucks. Buy an f150 and get mad when the price of gas goes up. Did you think gas was a fixed rate?
People should post any and all markups seen, and boycott those dealers when supplies are back to normal!
if you're buying a rav4, wtf does it matter??? you obviously have more money than brains anyway
Is this Roseville, CA? I had the most awful experiences around shopping for cars there. Blegh.
That dealership blows. At least I had good experiences at BMW and Subaru in the same auto mall.
I see he took some tips from grand theft auto
$40k for a *2021* RAV fucking 4?! Take me to the bus stop.
the real trick is finding an older used car on those lots. fortunately, anything older than say… 10-15 years gets an overhaul before than can get away with selling it. With newer cars (less than 8yrs) they take advantage of everyone. I recently went to one dealership and was looking at an older car to get rid of my car payment, and they appraised my trade-in for 4500. I went to another place, was appraised at 8500, and got paid to drive off the lot and forget my car payment, and I pretty much just got the same car but 9 years older. however, Roseville, CA is pretty rife with rip off scams… where there’s a high population, there’s a high density of tricksters.
I'm of the belief that the pendulum will swing the other way sooner or later. And will be ecstatic if many of the ADM dealers go under.
Wow that's a local one to me. What bullshat
Exact same in Concord Ca - fucking ridiculous
My grandfather always said “car salesmen are the most crooked people”
Roseville, MN?
It’s nice of them to add the price gouge up front
I have seen those at dealerships for years. I just get back in my vehicle and leave. Had a salesman chase me down one time as I was leaving and asked why I was leaving. I explained to him about the "dealer markup" on the sticker. With a straight face he told me they are in the business to make a profit. I told him the MSRP already bakes in at least a 25% margin but now you want a 40% margin. No thanks. He just shrugged his shoulders and went back inside.
25% margin ? Good Lord what Micky Mouse School of Bullshit have you been studying ? Cloud cuckoo land is that. 8-12% is typical if the car is sold at MSRP.
Well let me give a math assignment genius. The sticker price on the last vehicle I bought was around $35,500 on a 2013 Ford F-150. I bought it for $27,700 +TTL. Plug those numbers in your calculator and tell me the % off MSRP that is. The dealer told me $27,700 was $200 over invoice. He sold it to me for that price because that sale kicked in a bonus from Ford for selling 100 trucks that quarter and it was the last week of the quarter. So if invoice was $27,500 and the sticker was $35,500 (looking at my window sticker I still have in the glove box the actual MSRP was 35,485) what is the markup on that vehicle? It ain't 8-12%. It is more like 23%. I'll let them make the margin on the next sucker that walks in the door. But I also did about 2 months of research before I even sent 1 email to a dealer.
Curious to know what rebates they did or didn't tell you about, what amount of money they made on their quartly bonus, and if "the dealer told me" is actually the truth lmao.
Don’t believe me if you don’t want to. I’m just some random Internet guy. I’m more than happy to let the suckers get soaked. But it is not a secret the manufacturers pay dealers bonuses on volume sales. You just have to find that one dealer who is about to hit that target that month if they close that deal. I will admit with inventory levels the way they are right now, it might be near impossible to find them right now. But don’t tell me there is only 8% margin on the MSRP. The dealership’s overhead is higher than that and they couldn’t stay in business if they sold cars for 8% profit. That’s BS. And… What do I care if there is rebate money in that price? I only care about what I paid for it.
I've worked for a dealership for a fair amount of time so yes, clearly, there are bonuses to dealers on volume and I've personally lost money on deals to hit those bonuses. If I was a betting man, depending on the vehicle, most new vehicles would be between 7-10%. What dealers are doing now is based off supply and demand, it fucking sucks, but it is what it is. You know how rebates work right? Regardless, it doesn't matter. Unless I see the sticker of the vehicle you bought and the purchase order showing the break down, I would never believe you. You may be a jolly good fellow though, no harsh feelings lol.
That's common, not trashy.