Can a dealer add 10k above sticker?

JSFoster75

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They can add whatever they want, if someone wants it badly enough they'll get it (when the Challenger came out they did this a LOT). IMO it's stupid to paid that much extra for a car just to get it a few months sooner than everyone else. I'm a haggler, I just looked up on KBB.com what my Jeep is worth, it is actually worth more now trade-in than I paid for it brand new...
 

Terminex

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Fixing stupid....
Not true. Manufacturers can set pricing limits. If a retailer/dealership brakes the franchise agreement, the manufacturer can essentially pull their franchise.

Well I guess you are technically correct, they can sell for whatever they want - it's just they risk loosing their supply of product. So I guess I'm sorry for saying your wrong now that I think about it. Still depending on the franchise agreement, the manufacture can set pricing from a practical standpoint.

Pretty sure it's even been ruled on by the Supreme Court.
no problem.

I was really trying to give an answer to the exact question asked - can they sell for any price they want - YES.

But, I was also pointing out that the spirit of Fogby's argument was completely valid. The manufacturer cannot prevent a dealer from selling at any price they want, but they certainly DO have ways to make the dealer feel the pain if they are going against what the manufacturer wants.


I can tell you from experience that in most industries it is actually illegal for a manufacturer to dictate a price that the products must be sold at. (I work for one of the largest electronics manufacturers in the world, and every year we have to take trade compliance training classes where they go over all of this type stuff.) BUT, we are always free to drop a partner / vendor from doing reselling our products at any time.


Wow, I actually retained a tiny bit of info that I got from a corporate training class. will wonders never cease.....
 

gato

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Not true. Manufacturers can set pricing limits.
Actually, the various state franchise laws specifically prevent manufacturers from setting up and enforcing price limits.

That is why the most you typically see are things like " minimum advertised pricing" clauses. And the only way manufacturers get away with that is because they pay for some of the advertising (either directly or via holdback/marketing agreements).

You'd be shocked to see how franchise laws give most of the rights and protections to the local franchisees - i.e. the ones that buy (er make political contributions) to the state politicians.
 

SSWIM

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Yep they can do what they want. It is a frenzy right now. Many are just nuts. Look at the C8 Vette market. Used ones bring $20-$30K over what MSRP was!!!!!

Sam
 

sandygar4

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My Jeep/Ram dealer has a Ram TRX in the showroom 50K over msrp only $142,000!
 

RedundanT

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Yep dealers for the most part are slime balls just out to rape you with out a reach around.
 

SnB4xe

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I would assume this would help the 4xe resale vale?
Nobody really knows yet but the trend is pointing that direction.
I think there is a very very good chance that public demand for plug in vehicles will outpace production capacity. As least in the near term (next 3-5 years). If that happens, then your 4xe will hold it's value quite well. Wranglers already hold their value better than most other models so the PHEV versions might even improve on that a bit. Even when the BEV version is released.....there will still be a lot of potential buyers that aren't yet willing to let go of ICE completely so I expect the values to remain quite high for some time to come.


In addition, the price of ICE vehicles is expected to increase quite a bit. They have been historically quite low for decades but that time is over. With the supply shortage and demand increasing for vehicles in general.....the prices for a traditional powered vehicle is likely to increase by 20% for some models. This will only push more people to consider alternatives such as electrified vehicles so we all should be looking good for a while.

Time will tell of course....
 

SSWIM

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My Jeep/Ram dealer has a Ram TRX in the showroom 50K over msrp only $142,000!

Shoot, I will sell my 21 JL392 for 20K over what MSRP was. LOL Only 500 miles and quite a few mods already. HaHa
 

JandS

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I was on cars.com and looked across the country and it appears this is happening.
Is the 4xe that hot of a car?
Anyone who pays that premium deserves to get hustled.

Remember when the Gladiator was new and commanding premiums over MSRP - now they have money on the hood. The 4xe won't sit on lots because of the performance and the mpgs, but waiting a few months will be well worth it.
 

michail

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Around south east Florida they list the MSRP with a discount on the web site. Then hit you with a $10K markup for paint protection, anti-theft etching, etc. Then tell you that you aren't eligible for the discount.
 

Oldbear

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It happens all the time, the folks who “have” to get the latest, newest, hottest model will pay a premium. If they just wait a few months till initial demand is satisfied they could buy for below sticker rather than above. A fool and his money are soon parted…😏
 
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I checked with a Jeep dealer to find out what the value is and they said it was 51k on a 57,500 (new) vehicle with 1500 miles.
They claim the next buyer will not be eligible for the 7500.00 tax incentive fyi.
 
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On the other side of the equation, I spoke with another dealer who says it's impossible to get (high end)vehicles at the auctions now. Mercedes etc... including some Jeeps are being purchased by Arab dealers for crazy amounts and are being shipped over to the Middle East.
 

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