$20K markup!!!?

[Bulletbill]

Not these days: 125% MSRP is common.

People don't get wealthy by paying markups or by being fiscally foolish/wasteful. The typical millionaire in the US is frugal--especially with cars. (cf. the book, The Millionaire Next Door).

I'd wager it's the middle class who don't do due diligence and purchases based on "monthly payment" rather than the actual price. There are reasons dealers try to only talk about the monthly payment.

There's also a niche market where these are business purchases: automotive YouTubers will pay extra to be first because that's their business and being first matters greatly (the Bronco being a big one here).


So there's this:

Fair point. I didn’t know about being able to finance 125% of the vehicle price. That’s insane. I can’t even stomach financing 100% of a vehicle price.

Either way, it’s probably safe to say we are both right to some degree.

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[Eischman]

I bought mine in April of last year, must had been the right time also, gave me almost what I had paid for a GC Overland that I had bought used a year and a half earlier and had a dealer discount of $5310. that paid for the diesel engine that was $4500 extra, was going to order one but this Rubicon had everything I wanted except the steel bumpers and those are easy to replace.

 

[SmokinV10]

Forbes disagrees:

"Elevated inflation has been driven by supply chain disruptions and pent-up consumer demand for goods as the Covid-19 pandemic wanes.'

https://www.forbes.com/advisor/investing/why-is-inflation-rising-right-now/

I’m not sure how that’s Forbes disagreeing.

 

[SmokinV10]

Fair point. I didn’t know about being able to finance 125% of the vehicle price. That’s insane. I can’t even stomach financing 100% of a vehicle price.

Either way, it’s probably safe to say we are both right to some degree.

financing significantly over msrp is fairly common (not saying it’s a good idea) practice for those with fantastic “car credit” or 780+ scores.

 

[RockAltered]

PT Barnum had the explanation.

 

[LDS]

Not sure what’s been added to that Jeep, but I bought a JL sport 3 weeks ago from Parks below MSRP!

 

[GreenAdventure]

Parks Motors in Augusta Kansas. Loaded Sahara. How do they get away with this ?

Yeah, not only some Jeep dealers are/have done this, but Ford on the new Bronco. There is always someone else cheaper, and I just told them no and I'd travel 200 miles just to not pay the ADM. They folded, of course. It sure doesn't make them reputable to just say "heh, why not just pay us more for the convenience of buying here"! None of us were born yesterday or have money like that to give away to a dealer.

 

[scott.roams]

I have nothing substantial to add, but if any of you are in the Jeep social media groups - 1 out of 10 posts are a photo of a window sticker on a Jeep sitting on a local lot with a huge price tag. I'm not saying it's right or wrong, but it's obvious SOMEONE is paying the price... or would they really waste their time and lot space on a vehicle that would never move?

 

[gregus73]

The more that I think about 20+ k over. I would just opt for something else at the point. I can get a Lexus for under msrp or a BMW M4 Competition at cost. I love my Jeep, but I love it for what I paid for it…well under 50k, out the door With a tossed in 75k warranty.

Getting a Bronco at 20k above is idiotic as well.

 

[thusske]

In the Seattle area a few places do $3-5k markups but those are starting to settle down now. I purchased out of state w/no markup because I couldn't find what I wanted and the dealerships around here are pretty worthless at customer service and helping track down what you want.

 

[SHO jeep]

Yeah, not only some Jeep dealers are/have done this, but Ford on the new Bronco. There is always someone else cheaper, and I just told them no and I'd travel 200 miles just to not pay the ADM. They folded, of course. It sure doesn't make them reputable to just say "heh, why not just pay us more for the convenience of buying here"! None of us were born yesterday or have money like that to give away to a dealer.

Agree. Paid $84k OTD for my 392 which stickered for $86k and change after the January price increase. (Ordered in Oct '21) Used the 'Tread Lightly' discount. My Ford dealer called to say I could order a Bronco Raptor on his last allotment, but it would be $30k over MSRP. Too bad, I would have loved to have one of each, but I think it's foolish to get gouged like that. Love my Jeep, and the dealer, Lakeland, that ordered it for me.
SHOJEEP

 

[spinxt]

Manufactures should not allow this behavior. Obviously consumers cannot be trusted to prevent this, because one dumba$$ will pay it. The traditional dealer model is outdated and needs revamped totally. Buying a new car shouldn’t be a stressful experience, but because of a small number of snotty, dishonest dealers it has become just that.

 

[Whaler27]

This is absolutely true. However, another thing that is true in these days of widening gaps in wealth distribution there are some people for whom this isn't even worth thinking about. Just get it because they want it.

This is it.

For me, $25,000 is a LOT of money. But there are millions of Americans who have many, many times my net worth. For them, spending an extra $25,000 may feel like spending $500 or less feels to me.

I love boats, as I have since I was a kid. Restoring, small, high-quality saltwater boats (20‘ to 30’) was a hobby of mine for years. I have a good sense of what they cost to buy and maintain, and I’m blown away by the boat wealth I see every time I fly into Miami, Seattle, Portland, SanFrancisco, Los Angeles, etc. I see center console fishing boats with 4 outboards hung on the transom at a cost of over $70,000 EACH.

Million dollar boats are as thick as fleas, and $3 million boats are pretty common too.

A friend of ours is an American success story. He’s a super kind, humble guy who worked his ass off and made millions in the timber industry. He bought one of those 80’ boats. It was about fifteen years old when he bought it for $750,000 four years ago. (That’s about a third of what the boat cost new). He then spent another $500,000 replacing the six CAT diesels, doing a major refit, and replacing all the boats interior and electronics. It looks like new now, and that’s where he lives when he’s in Florida. I was curious, and we’re close friends, so I asked about his costs… His moorage fees are about $3000 per month. Insurance is another $2500 per month (He gets a reduced rate, because the boat is pulled, cleaned, wrapped, and secured to the ground in advance of hurricane season every year.) The boat holds 3,000 gallons of diesel, so it costs almost $20,000 to fill it Up. Before he even fires it up, or pays the skipper or the folks who help clean it, or the endless subscriptions and maintenance fees, he’s in it “only” about $7000 per month. (It helps that he doesn‘t finance anything, but with the part-time skipper and other costs it’s more like $17,000 to $20,000 per month, as long as he’s not traveling much. The time is also running on all the big ticket items, as everything ages very quickly in a salt water environment. Six and eight thousand dollar repair bills are common.

I use the above cost profile as a medium-level benchmark, as I take inventory flying into LAX, SEA, or MIA. Many, many boats in those ports dwarf the one described above, and there are thousands just one size class down. (The boats folks are buying new for $750,000 to $1.5 million. For these folks, and their counterparts who fill hangers and bus barns all over the country with million dollar aircraft and RVs, writing a $100,000 for a Jeep is probably no big deal). I can’t wrap my brain around it, but if you’re worth $250 million, and you’re making just 5% on your money, you’re making about $35,000 per day, seven days per week...

if I really, really wanted something, and I was told I could have it if I overpaid $100, I‘d probably do it, and I don't think my choice would be “stupid”. For these high rollers, $100,000 just isn’t that much money.

 

[blnewt]

Manufactures should not allow this behavior. Obviously consumers cannot be trusted to prevent this, because one dumba$$ will pay it. The traditional dealer model is outdated and needs revamped totally. Buying a new car shouldn’t be a stressful experience, but because of a small number of snotty, dishonest dealers it has become just that.

I don't think it's a small number that are snotty and dishonest, I wouldn't say a majority of them are but I'd venture to guess at least 20% operate in this manner (or have some employees that do). It only takes one horrible salesperson to give a dealer a black eye, and word of mouth (and internet) travels fast.

 

[Whaler27]

When did car dealers start selling cars for more than they're worth???

1925?

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