Dealer markup $25 to $50k
11-09-2021, 09:27 PM
#26
Member
2010 Corvette: local dealer had 2 in stock, said that they would not go below MSRP. Went to my credit union auto buying program, they made a deal at the same dealership for 2K less.
Nissan GTR : was told none in the area, no one would sell to me under MSRP, limited production. Got one from a local dealer at 3K under MSRP.
Jaguar XKRS: was told there was only one on the east coast, dealer would not agree to my offer. I left the dealer, got a call back about 15 mins after I got home accepting my offer.
2014 Audi S8: local dealers said no one would sell below MSRP. Dealer in MD said they would sell for invoice + 600.00 . Local dealer called me back to see how my search was going and then matched the MD dealer price. This was the same dealer that said no one would sell below MSRP.
2015 Corvette Z06 (first year for C7 Z06): local dealer was asking 23K above MSRP (same dealer as the 2010 purchase). Got one from Kerbek in NJ for MSRP and paid about 1K to have shipped.
There is very little expense associated with a ordered car for the dealership. No carry charges for having a vehicle sitting on the lot for weeks, no real work on the part of the sales person, and they also know they make more money in the finance office and in service than they do on the sale of the vehicle anyway.
Also there is always tons of hype around new vehicles and the initial orders pile up, but then the prices are announced, options start to disappear, financial situations change, and folks start to drop off the list. In this case, folks also start to think about the logistics surrounding owning an electric vehicle. We have already seen some of those stories here on the forum. Not all of those names on a list actually turn into purchases.
My point is that dealers don't always get what they ask for and it doesn't hurt to contact multiple dealerships. Also use the forum resources. Some forum members already know dealers which are placing orders at MSRP. If we stop supporting dealerships charging ADM, they will have to stop charging ADM or risk the expense of having the vehicles just sitting in the showrooms. By the way, my first MB purchase was a fully loaded 2016 S 63 AMG 2-door. I bought it in 2017 at a significant discount to MSRP after it had been sitting in a showroom in Arkansas for a year. I guess they finally decided to cut their loses.
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Ormond2004 (12-06-2021)
11-10-2021, 09:07 AM
#27
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No more MB:(
I was told the same thing in the past about several vehicles I purchased.
2010 Corvette: local dealer had 2 in stock, said that they would not go below MSRP. Went to my credit union auto buying program, they made a deal at the same dealership for 2K less.
Nissan GTR : was told none in the area, no one would sell to me under MSRP, limited production. Got one from a local dealer at 3K under MSRP.
Jaguar XKRS: was told there was only one on the east coast, dealer would not agree to my offer. I left the dealer, got a call back about 15 mins after I got home accepting my offer.
2014 Audi S8: local dealers said no one would sell below MSRP. Dealer in MD said they would sell for invoice + 600.00 . Local dealer called me back to see how my search was going and then matched the MD dealer price. This was the same dealer that said no one would sell below MSRP.
2015 Corvette Z06 (first year for C7 Z06): local dealer was asking 23K above MSRP (same dealer as the 2010 purchase). Got one from Kerbek in NJ for MSRP and paid about 1K to have shipped.
There is very little expense associated with a ordered car for the dealership. No carry charges for having a vehicle sitting on the lot for weeks, no real work on the part of the sales person, and they also know they make more money in the finance office and in service than they do on the sale of the vehicle anyway.
Also there is always tons of hype around new vehicles and the initial orders pile up, but then the prices are announced, options start to disappear, financial situations change, and folks start to drop off the list. In this case, folks also start to think about the logistics surrounding owning an electric vehicle. We have already seen some of those stories here on the forum. Not all of those names on a list actually turn into purchases.
My point is that dealers don't always get what they ask for and it doesn't hurt to contact multiple dealerships. Also use the forum resources. Some forum members already know dealers which are placing orders at MSRP. If we stop supporting dealerships charging ADM, they will have to stop charging ADM or risk the expense of having the vehicles just sitting in the showrooms. By the way, my first MB purchase was a fully loaded 2016 S 63 AMG 2-door. I bought it in 2017 at a significant discount to MSRP after it had been sitting in a showroom in Arkansas for a year. I guess they finally decided to cut their loses.
2010 Corvette: local dealer had 2 in stock, said that they would not go below MSRP. Went to my credit union auto buying program, they made a deal at the same dealership for 2K less.
Nissan GTR : was told none in the area, no one would sell to me under MSRP, limited production. Got one from a local dealer at 3K under MSRP.
Jaguar XKRS: was told there was only one on the east coast, dealer would not agree to my offer. I left the dealer, got a call back about 15 mins after I got home accepting my offer.
2014 Audi S8: local dealers said no one would sell below MSRP. Dealer in MD said they would sell for invoice + 600.00 . Local dealer called me back to see how my search was going and then matched the MD dealer price. This was the same dealer that said no one would sell below MSRP.
2015 Corvette Z06 (first year for C7 Z06): local dealer was asking 23K above MSRP (same dealer as the 2010 purchase). Got one from Kerbek in NJ for MSRP and paid about 1K to have shipped.
There is very little expense associated with a ordered car for the dealership. No carry charges for having a vehicle sitting on the lot for weeks, no real work on the part of the sales person, and they also know they make more money in the finance office and in service than they do on the sale of the vehicle anyway.
Also there is always tons of hype around new vehicles and the initial orders pile up, but then the prices are announced, options start to disappear, financial situations change, and folks start to drop off the list. In this case, folks also start to think about the logistics surrounding owning an electric vehicle. We have already seen some of those stories here on the forum. Not all of those names on a list actually turn into purchases.
My point is that dealers don't always get what they ask for and it doesn't hurt to contact multiple dealerships. Also use the forum resources. Some forum members already know dealers which are placing orders at MSRP. If we stop supporting dealerships charging ADM, they will have to stop charging ADM or risk the expense of having the vehicles just sitting in the showrooms. By the way, my first MB purchase was a fully loaded 2016 S 63 AMG 2-door. I bought it in 2017 at a significant discount to MSRP after it had been sitting in a showroom in Arkansas for a year. I guess they finally decided to cut their loses.
We are in a shortage, the question is will things return to where they were or will we adopt the euro model where dealers have limited inventory, hold gross, and orders will become more prevalent. Days of discounting gone?
In a regular market it does not cost the dealer more to order a car, but in a hot market it does. Less inventory equates to missed opportunity. Visit the G forums and you hear it all the time, people have orders in writing at msrp, vehicle arrives and 60-100k markup if you want it. Dealers are horse trading among themselves with the markups, not at msrp. I don't expect the EQS market to be much different, it will be a hot model to get. Few early orders will be the lucky ones, and then once dealers realize the potential they will capitalize on it. Dealers and salespeople are making the same or more they did before all this, selling fewer cars and no negotiating.
11-10-2021, 04:16 PM
#28
Member
I don't disagree. Times are different however, and it seems like the luxury market has gone mad. My local dealer has a 4K markup on GLA's, because they can. Now selling G's for 125K over, nuts. Maybach GLS is 100K over.
We are in a shortage, the question is will things return to where they were or will we adopt the euro model where dealers have limited inventory, hold gross, and orders will become more prevalent. Days of discounting gone?
In a regular market it does not cost the dealer more to order a car, but in a hot market it does. Less inventory equates to missed opportunity. Visit the G forums and you hear it all the time, people have orders in writing at msrp, vehicle arrives and 60-100k markup if you want it. Dealers are horse trading among themselves with the markups, not at msrp. I don't expect the EQS market to be much different, it will be a hot model to get. Few early orders will be the lucky ones, and then once dealers realize the potential they will capitalize on it. Dealers and salespeople are making the same or more they did before all this, selling fewer cars and no negotiating.
We are in a shortage, the question is will things return to where they were or will we adopt the euro model where dealers have limited inventory, hold gross, and orders will become more prevalent. Days of discounting gone?
In a regular market it does not cost the dealer more to order a car, but in a hot market it does. Less inventory equates to missed opportunity. Visit the G forums and you hear it all the time, people have orders in writing at msrp, vehicle arrives and 60-100k markup if you want it. Dealers are horse trading among themselves with the markups, not at msrp. I don't expect the EQS market to be much different, it will be a hot model to get. Few early orders will be the lucky ones, and then once dealers realize the potential they will capitalize on it. Dealers and salespeople are making the same or more they did before all this, selling fewer cars and no negotiating.
11-10-2021, 07:57 PM
#29
Junior Member
Depreciating is not happening right now. My Tesla Model X is worth more than I paid for it 18 months ago. But, with a $25K to $50K markup on the EQS, I don't think anyone paying those prices have any hope of recovering. They simply have the money and want the car.
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Ormond2004 (12-08-2021)
11-11-2021, 02:57 AM
#30
It took a lot of searching but I found a dealer who agreed to a $5K markup over msrp. Ordinarily I’d have simply waited for awhile for the market to stabilize but I need an EV vehicle in the next 8 months and I didn’t like the Tesla sedan. The yoke steering wasn’t for me.
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Ormond2004 (12-06-2021)
11-11-2021, 08:31 AM
#31
Junior Member
It took a lot of searching but I found a dealer who agreed to a $5K markup over msrp. Ordinarily I’d have simply waited for awhile for the market to stabilize but I need an EV vehicle in the next 8 months and I didn’t like the Tesla sedan. The yoke steering wasn’t for me.
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Ormond2004 (12-06-2021)
11-11-2021, 08:43 AM
#32
Senior Member
You cant blame the dealers....I would do the same (and did when I was in the car game!)....at the end of the day they are a business not a charity and all the time there are loaded wealthy gullible people to take advantage of they will do it!......Blame the buyers....if people were not silly enough to pay those prices they would soon come tumbling down. Exactly why I've put my car search on hold. I refuse to pay over the odds....to potentially lose a fortune (for me at least) down the line.
Last edited by ALFAitalia; 11-11-2021 at 09:19 AM.
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jackinhs (11-11-2021)
11-11-2021, 10:55 AM
#39
Junior Member
The tax credit will be ending in 2021 correct? The new rules with price of car less than 80k could be potentially starting in 2022? Someone shed some light if you have any more info.
11-12-2021, 01:57 AM
#40
Member
https://fueleconomy.gov/feg/taxevb.shtml
11-12-2021, 02:06 PM
#42
Currently there is no expiration. The credit is phased out based on the manufacturer sells. So I think both GM and Tesla have reached 200,000 vehicle sales so no credit if you buy one of those. There are quite a few changes being proposed to this law in both houses of congress, but I don't think anything has been passed yet. Some of these proposals would eliminate the credit for high priced vehicles like the EQS.
https://fueleconomy.gov/feg/taxevb.shtml
https://fueleconomy.gov/feg/taxevb.shtml
11-13-2021, 06:01 PM
#44
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Join Date: Oct 2018
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No more MB:(
Last I read a while ago in the G forum, the waitlist is forever, good luck on that. Not sure if they changed the policy on ADM's, for a while they weren't charging.
12-05-2021, 08:56 AM
#47
Senior Member
12-05-2021, 10:33 AM
#48
I was told the same thing in the past about several vehicles I purchased.
2010 Corvette: local dealer had 2 in stock, said that they would not go below MSRP. Went to my credit union auto buying program, they made a deal at the same dealership for 2K less.
Nissan GTR : was told none in the area, no one would sell to me under MSRP, limited production. Got one from a local dealer at 3K under MSRP.
Jaguar XKRS: was told there was only one on the east coast, dealer would not agree to my offer. I left the dealer, got a call back about 15 mins after I got home accepting my offer.
2014 Audi S8: local dealers said no one would sell below MSRP. Dealer in MD said they would sell for invoice + 600.00 . Local dealer called me back to see how my search was going and then matched the MD dealer price. This was the same dealer that said no one would sell below MSRP.
2015 Corvette Z06 (first year for C7 Z06): local dealer was asking 23K above MSRP (same dealer as the 2010 purchase). Got one from Kerbek in NJ for MSRP and paid about 1K to have shipped.
There is very little expense associated with a ordered car for the dealership. No carry charges for having a vehicle sitting on the lot for weeks, no real work on the part of the sales person, and they also know they make more money in the finance office and in service than they do on the sale of the vehicle anyway.
Also there is always tons of hype around new vehicles and the initial orders pile up, but then the prices are announced, options start to disappear, financial situations change, and folks start to drop off the list. In this case, folks also start to think about the logistics surrounding owning an electric vehicle. We have already seen some of those stories here on the forum. Not all of those names on a list actually turn into purchases.
My point is that dealers don't always get what they ask for and it doesn't hurt to contact multiple dealerships. Also use the forum resources. Some forum members already know dealers which are placing orders at MSRP. If we stop supporting dealerships charging ADM, they will have to stop charging ADM or risk the expense of having the vehicles just sitting in the showrooms. By the way, my first MB purchase was a fully loaded 2016 S 63 AMG 2-door. I bought it in 2017 at a significant discount to MSRP after it had been sitting in a showroom in Arkansas for a year. I guess they finally decided to cut their loses.
2010 Corvette: local dealer had 2 in stock, said that they would not go below MSRP. Went to my credit union auto buying program, they made a deal at the same dealership for 2K less.
Nissan GTR : was told none in the area, no one would sell to me under MSRP, limited production. Got one from a local dealer at 3K under MSRP.
Jaguar XKRS: was told there was only one on the east coast, dealer would not agree to my offer. I left the dealer, got a call back about 15 mins after I got home accepting my offer.
2014 Audi S8: local dealers said no one would sell below MSRP. Dealer in MD said they would sell for invoice + 600.00 . Local dealer called me back to see how my search was going and then matched the MD dealer price. This was the same dealer that said no one would sell below MSRP.
2015 Corvette Z06 (first year for C7 Z06): local dealer was asking 23K above MSRP (same dealer as the 2010 purchase). Got one from Kerbek in NJ for MSRP and paid about 1K to have shipped.
There is very little expense associated with a ordered car for the dealership. No carry charges for having a vehicle sitting on the lot for weeks, no real work on the part of the sales person, and they also know they make more money in the finance office and in service than they do on the sale of the vehicle anyway.
Also there is always tons of hype around new vehicles and the initial orders pile up, but then the prices are announced, options start to disappear, financial situations change, and folks start to drop off the list. In this case, folks also start to think about the logistics surrounding owning an electric vehicle. We have already seen some of those stories here on the forum. Not all of those names on a list actually turn into purchases.
My point is that dealers don't always get what they ask for and it doesn't hurt to contact multiple dealerships. Also use the forum resources. Some forum members already know dealers which are placing orders at MSRP. If we stop supporting dealerships charging ADM, they will have to stop charging ADM or risk the expense of having the vehicles just sitting in the showrooms. By the way, my first MB purchase was a fully loaded 2016 S 63 AMG 2-door. I bought it in 2017 at a significant discount to MSRP after it had been sitting in a showroom in Arkansas for a year. I guess they finally decided to cut their loses.
12-06-2021, 11:23 AM
#49
Junior Member
At least one Bay Area dealer has a markup of $20K on the 450 and $30K on the 580. They did say the markup will go away once the supply stabilizes.
12-06-2021, 02:32 PM
#50
Junior Member
Join Date: Dec 2021
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EQS SUV cancelled, Audi Q7, Ferrari F12
I southern NJ, 2 dealers want 10K
over and one is NOT up charging for the 580, ordered mine at that dealer.
over and one is NOT up charging for the 580, ordered mine at that dealer.
