Vehicles with the Highest Markups at Dealerships

[Gelo]

Interesting that the Gladiator is in the top five...

Sponsored

 

[chorky]

I would be curious to see who is marking them up over MSRP and to see what that number actually is. I just purchased mine directly at MSRP

i think there is also a big misunderstanding on some terms. I did some deep research not long ago and found out theres big differences (potentially) between dealer markup, MSRP, dealer cost, actual dealer cost, holdback (the ‘true’ dealer cost), and manufacturer cost. Some folks got rather angry with me when starting to discuss holdback numbers. I only scratched the surface really.

 

[Gelo]

You have valid points. I really didn't think of that.

 

[Gelo]

I should provide the link to the story. Here you go....

https://apple.news/Ad67Ax4l4SpCZHsP3P7-lNg

 

[arskemp]

Strange. Wonder if its just the case of people not shopping around or not wanting to be patient. I just bought my gladiator less than a week ago for below invoice.

 

[MPMB]

I would be curious to see who is marking them up over MSRP and to see what that number actually is. I just purchased mine directly at MSRP

i think there is also a big misunderstanding on some terms. I did some deep research not long ago and found out theres big differences (potentially) between dealer markup, MSRP, dealer cost, actual dealer cost, holdback (the ‘true’ dealer cost), and manufacturer cost. Some folks got rather angry with me when starting to discuss holdback numbers. I only scratched the surface really.

I don't think there's a misunderstanding. When articles like this come out, they're just looking at MSRP and final sticker price. It's not confusing. All the info is listed on most dealers websites. TrueCar gives average purchase price vs. MSRP.

All the terms you described all have different meanings. MSRP is MSRP. Dealer markup is ADM, and definitely not MSRP. So on and so forth. The article is just comparing MSRP and ADM among vehicles. It's not an in-depth look at the automotive pricing structure.

If anyone produces and sells at retail, they know roughly how much cars really cost, and how much dealers and mfgs make. How it's divided up is up to them.

Would it shock anyone to learn that the cost of producing a Chrysler 200 is roughly the same as a Mercedes E-class? And how much do those vehicles MSRP for?

 

[azmojave]

The largest I’ve seen was on a Bronco

 

[MPMB]

Strange. Wonder if its just the case of people not shopping around or not wanting to be patient. I just bought my gladiator less than a week ago for below invoice.

This. Instant gratification is standard these days. It's horrible. People "have to" buy a new car. If you "have to" buy a new car, odds are you are not able to afford a $50k+ vehicle.

A requirement to have a car to get to work means you *have* to work, everyday. You have no options for transit, rideshare, or carpool.

I drove 2hrs to check on a Tacoma and found out the ADM was $2500, and close to $10k in the greater Seattle area. So enter the Gladiator.

I didn't *need* a vehicle.

 

[MPMB]

The largest I’ve seen was on a Bronco

When Mitsubishi brought the Lancer Evo to the US in the 2000s, some idiot paid MSRP + ADM. For a car made famous by a video game. The ADM? $25000. Some software guy bought an econobox for almost $60k.

 

[Slyboots2313]

Is it possible that this is due to add-ons such as lifts and tires that wouldn’t be included on the sticker? Still seems high but I imagine that’s a contributor that a lot of other vehicles don’t necessarily have at anywhere near the same rate.

 

[MPMB]

Is it possible that this is due to add-ons such as lifts and tires that wouldn’t be included on the sticker? Still seems high but I imagine that’s a contributor that a lot of other vehicles don’t necessarily have at anywhere near the same rate.

Those are a line-item on the sticker or dealer sticker for Dealer-added options.

Example: https://www.toyotaofkirkland.com/auto/new-2022-toyota-tacoma-kirkland-wa/64319624/

Dealer added accessories
Dealer adjustment ..l. .l..

 

[FoxForce4]

When I grabbed mine in Nov 20, in my home state dealers wanted MSRP, zero wiggle. I bought out of state $9k back from there. Gave the local guys a shot at the business and they weren’t interested. Regional supply/demand plays here. Amazing how much. Everyone has the internet.

 

[Klutch]

Many years ago I lived in Washington DC. The local news channel did a story about new cars and reported buyers in the Capitol region typically paid significantly more for their new vehicles than buyers further out in Virginia and Maryland. The news station did a survey and surprisingly found most people didn't care.

I think what's going on here is people in cities tend to have jobs which are very high-paying but also very demanding. The pay is high but the hours are long with few opportunities for time off. When such people need a new vehicle, they simply show up at the dealer, pick one out, pay the price and drive home. They have no time for haggling, checking multiple dealers and certainly not for travelling out of state to save some money. Consider skipping one or more days from work would cost precious vacation time and city people want that vacation time for sipping fruity drinks on a beach somewhere and not for buying a vehicle. Also, when busy city people are away from their jobs, a lot of work piles up which they'll have to catch up on when they get back. Here again, it's not worth the extra hours they'll have to put in to catch up just so they can save some money on a new vehicle.

When I lived in Washington DC I was in the Navy and stationed at The Pentagon where I worked with such people. Consider my astonishment when I went to an ATM in the building and saw multiple receipts left behind displaying checking account balances of $26,000 and savings account balances of just under $100,00. (This was in 1985 and I was an "E-minus-minus" at the time.) Such people will gladly pay over MSRP to get the vehicle they want and get off the lot.

Just another perspective.

Sponsored