Dealer markup

[CraigW]

You know why dealers add a "market adjustment" or "dealer markup?" Because some people will pay it! I know no one wants to hear it, but it's the consumers' fault. If everyone who walked into a car dealer turned around and walked back out when they saw a "market adjustment" on the window sticker the practice would stop.

I wanted an S2000 when they came out but the minimum markup I saw was $10k. See ya. Bought one used about five years later.

I wanted a BRZ when they came out. Had to make a non-refundable down payment before even seeing the car and pay a dealer markup. See ya. Bought one a couple of years later for under invoice.

No car (or anything else for that matter) is worth paying more than MSRP. That's why so many people in this country are drowning in debt, they want immediate gratification.

 

[iclicku]

It's because someone bought it first that you can buy it used "for a great deal." Someone else usually has to take the hit. Otherwise no one would be able to get a deal later on.

That's the sort of market we are in.

 

[mldavis2]

If cars sit on the lot more than 90 days (at least that used to be the deal) the dealer has to begin paying the factory floor plan interest on the vehicle and they begin to increase their cost. Depends somewhat on how deep the dealer is getting on the vehicle, and also the floor traffic "interest" from the public. And of course some dealers are just out to get all they can from an unwary buyer.