Dealer Markups: I Don't Think So

i won't even pay msrp

 

Unfortunately people pay it.

 

yes, and if mfg's can keep limiting supply, it won't get any better.

 

I agree Bisco

I am so over the marking up of cars and trucks. Hopefully it calms down soon. If not I refuse to pay the mark up and I will purchase a used car instead.

 

yeah, now i wish i had bought a prime during the huge discounts of 2017, just so i'd have a newer car and not have to worry about it.

 

Under utilizing factories has a cost.

 

agreed. you would have to start mothballing at some point, if you want to maintain supply constraints.

chinas new chip policies may have something to say about it though

 

The manufacturer probably has cut back on the to dealer incentives with the short supply, but I doubt the dealer is paying them MSRP. They don't see any of that dealer market adjustment. Very little could go to them from the reduced incentives.

 

Unfortunately their prices are sky high too. That’s part of how dealers are getting away with new car markups.

When my brake booster assembly went out I briefly looked at what I got when I got my 2012 Prius - a 3 year old car for about $15K. Now that’s $25K, the same price as the new ones! But they can get away with that if they mark up the new ones so they’re no longer the same.

Just a terrible time to buy a car. Although I have heard very recently that the prices are starting to come back to earth. Haven’t tried to verify that myself.

 

I agree with you 100%.
I am glad for sites like this and that I am mechanically inclined to keep my old cars running so that I don’t have to purchase a vehicle.

 

Because nobody ever overpaid for a used car before?

 

Yup, I called my dealership (Greenville NC) yesterday to get in line. I gave them 3 colors I am ok with, XLE, and asked what the interior options are, she didn't know.... ok whatever. I asked if they charge MSRP and she said no, they are adding a 2,500 premium on all hybrids. I said, ok thanks anyway, and she said uh huh and hung up.

Both of my existing priuses run fine (2010, 107K, 2016, 56K), so I can wait. I'll call a few more before I give up for this year. But if I do have to wait, I won't start with my local dealer again.

 

Good point in the article: They are expecting sales around 35k units, when in the past, they sold well over 100K units/year. Now, consumers have more choices, competitors have HEVs, and even EVs. The Prius is about right for me, I'd get one. But if the dealers are going to make it hard, I can look into other options too.

 

exactly

 

You're not kidding. Our daughter needed a new (different) car, and we spend hours looking at used cars on several lots. I finally phoned my Toyota dealer and asked them why used cars were almost as expensive as the new ones. "Supply chain, chip shortage, etc."

After dropping our daughter off at her home, my dealer phoned me and said, "We have a brand new RAV4 Hybrid, just came in, the guy who ordered it changed his mind. You think your daughter might be interested?" So for about $1,000 more than the four-year old used cars we had been looking at, our daughter drove home a brand new car. The guy who ordered it had waited maybe a year? Our daughter 3 days!

 

Nope I have never overpaid for a used car. I usually purchase them with some kind of mechanical problem and get them way below market. In the past when you purchased new cars as soon as you drove off the lot you would lose money.
Of course that wasn’t I. Today’s market. Everything is over priced.

 

$2500 is palpable. Its when you start to get into luxury car money that it no longer makes sense to buy a Prius of any trim.

 

Not the question that was asked. Lots of people have been over paying for ... well, since money was invented.
And no, not everything is over priced. I paid MSRP last spring for my MINI. There are a lot of bad apples out there, but the good ones still exist.

 

Well ok…..