$10,000 dollar "market adjustment" markup on the lot. But, online price is way lower. I am hoping the dealership model changes soon, but I don't think the states will win over the dealership lobbyist's power. Too much money in the "old" model.
And this is why the Dealership Model needs to change.
- Thread starter 97K15004WD
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A few months ago it was $7,500 over sticker at a local L.I. Jeep dealer. A fool and his money are soon parted.
Economics 101? If it all sells... why change?
Yeah I don't like it either... my tune might change if I was the one doing the selling. One always wants to sell at the highest price.
It's great if you're in car sales, and getting your cut of that "market adjustment" price from the fools who pay it.
OK. "Don't pay over the sticker price".
Sounds easy.
Does one simply find a dealership which doesn't charge an overage?
Sounds easy.
Does one simply find a dealership which doesn't charge an overage?
I would think so... I don't shop anything fancy so I have not see this markup--I mean, base models usually (not always) don't seem to have this.
But the F&I is there to take care of that, don't worry about shopping anything that doesn't have ADM.
When people need a car they need a car. Is it a fair deal? Depends on which side of the deal you are on.
Yep. Everyone wants to sell high, buy low. But cries when it's the other way around.
If you pay list or over, you're on the side that got bent over.
I have been advising a friend who is shopping for a new Toyota RAV4 Hybrid. Her 15 year old Prius is no longer worth repairing.
None of the dealers within a 100 mile radius have one in stock with the color or options she wants. All of them are adding a $5000 ADM. I suggested she go on the Toyota website and try the "build your car" feature and be prepared to wait 60-90 days but at least she would get exactly what she wanted which is important as she plans on keeping it for 15 years like she did her trusty Prius.
Four out of the five dealerships she contacted told her that they couldn't order the car and to buy what they either had on the lot, or had in transit and arriving shortly. This is typical car salesman B.S. The last dealer agreed to order the car as she had optioned it and also negotiated cutting their ADM down from $5000 to only $2500. She is giving them her business although grudgingly because of the ADM.
This is the way it is today. The dealer's approach is if you don't like it, someone else will come along and pay their price.
Isn't it nice to be able to negotiate only paying half of the additional markup ?
None of the dealers within a 100 mile radius have one in stock with the color or options she wants. All of them are adding a $5000 ADM. I suggested she go on the Toyota website and try the "build your car" feature and be prepared to wait 60-90 days but at least she would get exactly what she wanted which is important as she plans on keeping it for 15 years like she did her trusty Prius.
Four out of the five dealerships she contacted told her that they couldn't order the car and to buy what they either had on the lot, or had in transit and arriving shortly. This is typical car salesman B.S. The last dealer agreed to order the car as she had optioned it and also negotiated cutting their ADM down from $5000 to only $2500. She is giving them her business although grudgingly because of the ADM.
This is the way it is today. The dealer's approach is if you don't like it, someone else will come along and pay their price.
Isn't it nice to be able to negotiate only paying half of the additional markup ?
Messed up. I think manufacturers should set a reasonable MSRP and that the price should be the price. If dealers wanted to discount cars they could but should not be able to charge above MSRP. Like, if MSRP on an iPad XYZ is $899.99 all places must sell it for that, Apple enforced it. Car companies should too!
On the other hand, long ago on another forum there was a guy who liked to let everyone know that it was his opinion that a dealer should never make more than a $500 profit on a vehicle. I then asked him if he won a new car in a raffle would he sell it to me for $500.
In my opinion dealers should be able to charge whatever they want; no one is holding a gun to a buyer’s head to pay an ADM. Back in 2008 I considered buying a new Mustang Bullitt, but the local dealer laughed and scratched when I mentioned X-Plan- as their Bullitt was also wearing a $10K ADM sticker. Ten months later the same Bullitt Mustang was still nailed to the showroom floor- only now the dealer was frantically emailing me with offers of "employee pricing" and additional rebates. I simply wished them a very merry Chapter 13…
Reddit boards state that Toyota doesn't take factory orders. They use an allocation system to Dealers-and one just hopes a dealer has one coming in that is spec'ed close to what you want.
After reading your post, it sounds to me like her trusty 15 year old Prius IS worth repairing.
Right! Reman hybrid batteries are available with a warranty if that’s the issue. Then revisit the topic in three years
