Thank you for making this video! 100% agree that something needs to be done. And you're correct about Tesla, that was the BEST car buying experience my wife and I ever had...no stealership garbage about this package and this warranty and blah blah blah
One thing everyone seems to keep forgetting is that the dealer isn’t responsible for low volume. The manufacturers are, yet no one is making claims to them. Everyone forgets that during and after the pandemic as things got worse. People got stimulus assistance, rent or mortgage breaks, electric companies provided help with bill costs. The dealers never got this help, the bills never changed. The mortgage never changed, electricity discounts were not available, there were no stimulus checks. The minimum wage kept growing and hourly pay was now demanded on top of commissions( at least here in California) How does the owner keep everyone employed? How does the owner stay away from losing everything they worked their whole lives for? It’s common sense that when your volume is cut by three quarters and the number in sales tank the only solution is to add a premium to offset these losses. No one bats an eye as clothing and shoe prices are double or quadrupled simply cause the item is “rare.” People buy several $300-500 Jordan’s pairs at a time and they complain when a truck has a $5,000 markup. The cost of food has gone way up, and let’s not forget the crazy fuel costs. Yet what’s bothering them the most is the price of a car or truck when it is very clear production numbers in the auto industry have tanked. The dumb part is when dealers were selling at sticker people would still complain you were raping them. When you gave then invoice price they still doubted the deal and were not satisfied. The client is never satisfied they’d want to happily buy knowing the dealer lost money to sell the car. If we all had to lose money to sell our products to keep customers happy businesses in America and the American dream would be dead. You’ll never make anyone happy no matter how big the discount is. Wood and copper went through the roof and quadrupled over night and people kept remodeling their homes and contractors pricing was absurd and yet no stopped and cried about it. Customers want to tell the dealer “it isn’t my fault you guys don’t have enough cars why do I have to pay the price?” Well it’s not the dealers fault so why should they also pay the price? We are ALL paying the price for the chaos that came during and after the pandemic and we continue to pay they price every day on every thing we pay. All thanks to our shit President and his shit party who keep letting things go backwards. Blame those responsible for a failing economy not the businesses that have had no option but do what they have to do to survive. I do think 30-40k markups are absurd however a mark is still necessary to keep things going. Manufactures CEO’s are making these “tired of markups” claims as well. But when have they lowered their profit to aid the dealers in making enough per transaction without having to mark up the vehicle? Of course they say they care but they don’t want to take losses. They expect the dealer to, while the financial loss of low production has a lesser effect on them than the dealer.
Dealerships saying "the customer might turn around and flip it immediately" is BS. What a customer does with the vehicle after its sold to them, is NONE of the dealerships business.
A customer can’t flip a car if the dealer has the more affordable price. Like tf Who would buy a car used for more from a private party, in comparison to from the dealer new around its intended msrp. If dealers didn’t have these insane markups they’d honestly probably sell more as it would be in the targeted market range. It’s almost like a manufacturer does research into the market before choosing an msrp.🙄
@@JaredS23 we are the dealership's customer it is absolutely our business what process the products go through prior to our purchase, because it is we that seek ownership over these items, it is we that they aim to convince to spend our money, so before I spend my money I'm going to make sure the price I'm paying is within reason. The dealership's are just seeking to copy the market tactics of sites like Bring A Trailer. There is no reason for the cars to be priced so aggressively, but the more dealerships that do this, the less they will back down after backlash unless the manufacturer steps in.
@@JaredS23 chat like that is why they get away with the shit, keep accepting shitty treatment from companies and continue getting shit on. The world runs on consumerism and if as a consumer you consume blindly, they will always get you to spend hard earned money on bullshit. Speak up about bullshit and don't let companies cheat the consumerist public.
@@dellanowhite8729 I’m not for anyone selling a car over msrp, Public or dealer. All I’m saying is you can’t be upset with one and not the other. It’a hypocrisy at its finest
It boggles my mind how people are ACTUALLY paying these prices! How smooth does your brain have to be to go into a dealership, look at the paper, see that the MSRP is like $35,000, see a $30,000 markup, and be like "that looks like a totally reasonable price for this car" and then proceed to waste exorbitant amounts money, in a bad economy mind you.
Yep, the "informed buyer" is a fucking myth nowadays. People are just wasting money all over the fucking place, look at art and fashion, you'll be shocked.
People have lost their minds! It’s absolutely crazy and stupid. Even if I was worth a billion dollars I wouldn’t over pay like that because it screws hard working people out of ever being able to attain a car that should be attainable if you work hard.
I feel like dealerships are just straight up scamming people. one tried to force a friend of mine to get a warranty for $8k, and they wouldn't sell him the car he wanted(a 2016 Ford Focus ST) without this warrany, and that brought the total price of the car to over $30k. that's a lot of money for a used Focus. dealerships are absolutely stupid and unreasonable these days
@@jjepik2456 exactly lmao. he was pissed, because he really wanted that car. it was a low mileage ST with no mods at all, and a clean title with a good history. they wanted $22k without the warranty, but wouldn't sell the car without their $8k warranty.
@@calebrose4607 I hope I don't get this treatment from these asshole dealers (even though it might happen) especially when I flash $25K of hard earned money on the table for a car I want (IS-F). Just give me the keys, title, and I'll be on my way. None of this negotiation bullshit aside from the price.
I remember when the jeep renegade first came out as tiny suv gas friendly starting at $17k. The f tried selling it to me for $35k. And this was back in 2014. You could’ve bought a bad ass wrangler at that price at that time.
This is why I think ford trying to get away from the dealership system is a good thing, keeping the dealers around for maintenance and easy of delivery would be the best thing to do, but find a way for them to be owned by the manufacturer. we really need to get rid of the archaic law where manufacturers can't sell to the customers directly, because the whole reason dealerships are doing this is for profit. that's it they don't care about the customers at all.
@Christian Cusack that adult is just like every other working adult. It’s not fair to markup on a markup. Suggested msrp is already based off of everything including research and development so to markup it up twice should be illegal. This is legal in the united states but many places in Europe have made this illegal
The C8 can go to 150k CAD (115k USD) easily where I am at. It's absolutely nuts. The dealers drive them for 100-500 miles and then list them as used, since mark ups are illegal here for new cars.
Yep they are always happy to find loopholes or sell it to their "brother" so its technically used. I can't wait to see what hair brained schemes are used to scam people with Z06s.
Maybe Canada is different than the US, but in order for the car to be considered used that has to be registered first. I'll use the Lexus LFA as an example. Some dealers had brand new Lexus LFAs that went unsold for years. so technically you now had a car that is 3 to 5 years old but still considered new because it was never registered regardless of how many miles it may have been driven or test driven.
@@fattygamer94 idk how it works here, but it really seems like the dealers are just listing them as used for the sake of it. There are barely any "new" cars.
Honestly, the manufacturers could (and need to) do a few things: 1) Start pulling allocations. Ford has started doing it, it's a good start. 2) Start blacklisting customers that pay a certain amount over sticker. Blacklist both parties of the transaction, it negatively impacts the market as a whole even if the customer can afford it. 3) Eliminate franchises entirely. Tesla for all its problems has proven the benefit of selling DTC. Copy that model. 4) Stop making so many limited production models. Just make all the damn cars that people want.
While I agree that people who pay so much for a car are stupid, I think it is stupid to blacklist people who pay over sticker. People have the right to do what they want with their money. It's the dealerships that are breaking protocol and being greedy.
Well, if I'm not mistaken, there's rules against what Tesla does, which is why they do it in a backwards way abs everyone else sells through dealers. Donut Media has a video explaining it. Essentially, you don't actually buy a Tesla from a Tesla dealer. The dealership is basically a showroom. Technically speaking, for legal reasons, the actual purchase is made "somewhere else" This is from what I remember on watching that video and another video they had on dealers raping people with markups But even still, the it's obvious that a DTC model is possible, even if a little workaround has to be used. It's far better than dealing with the dealership tho
@@jackryan4313 It's essentially illegal for a manufacturer to own their own distribution. Tesla from my understanding doesn't give a fuck and does it anyways, which is why they're not allowed to operate in some states. The manufacturers need to get their shit together and lobby against the franchise holders to allow them to take ownership of their dealerships, because lobbying is the only reason it's illegal for them to own their distribution in the first place.
@@ericmueser well, technically speaking, Tesla doesn't own their distribution...as in a distribution network of dealers. They don't have any dealerships at all. They have showrooms and galleries that walk you through why you should buy one blah blah blah, but they don't sell it to you there. You do that online, and specifically not in the showroom. If there's not a single Tesla dealership to be protected by franchise laws, then the laws don't apply That being said, you're correct in stating some states "don't allow it", and/or have certain hoops that need to be jumped through, but from a quick search, I kept seeing Texas in every list and I know damn well that ain't true, because I see WAY too many Tesla's in my little area alone, and if anyone says they were simply bought out of state and brought in, I'm calling horsshit because no. There's also a big ass Tesla place (idk what it is, just says Tesla on the building off the highway) soooo I'd have to look more into what exactly those articles mean by bans, because I know for a fact that at least two of them that I looked at contain a state that makes me think it's just misleading
Dealerships have always abused their power, they are the reason you weren't able to import a car until they are 25 years old, they did the same thing in Australia, when the laws were going to be changed so you could import new cars they made sure to stop it, people being able to buy cheaper cars outside of dealerships is bad news for them.
The car importation rule is insane. It should be ruled out as an illegal restraint of trade for anything coming in from Canada or Mexico as we're supposed to have a free trade agreement there, not special interest carve-outs for car dealers. Instead, for example, Honda sells a superior-spec, safety-compliant Civic Si in Canada for a significantly lower price which you then can't buy as a US resident.
That’s absolutely absurd and scummy. I absolutely agree with being able to order directly from the factory. That would be incredible. As enthusiasts, we know what cars are worth when the manufacturer advertises them at a certain price. It only makes sense. These dealerships need to GET REAL! I’m also not a fan of people immediately flipping cars for profits like that. Then again, I’m just a regular consumer that can only afford one vehicle at the moment ha. If I buy a car, that’s MY CAR! I don’t want to buy and sell and never get to enjoy what I paid for! Great content as always, much love from Texas!
thats why i wasn't so against ford having contracts to go along with the gt. if there were enforced no sale contracts on sports cars for say a year it would solve that problem, obviously leave some ways for someone to get out of a car, like if there is a major life event and it needs to be sold etc. but to solve this problem completely the brands need to pull some franchises. caught with over 5k in markup once? no more allocations of that type of vehicle for a year. twice in a year? you get to take that big logo off the side of your building and return the new inventory. do it once or twice and the dealers will stop real quick
@@genericjosh96 that sounds like it might work ha. Just gotta be strict about it. Maybe someday dealerships will be gone and we’ll be able to order directly from manufacturers! That would honestly be pretty cool!
lol had a car salesman once tell me “you shouldnt haggle on the car’s sticker price, because you want to be happy when you buy a car and not frustrated”
Hello! I work in corporate automotive and can confirm that these mark ups make us very unhappy. So much work goes into pricing the vehicle with a fair MSRP. When dealers sell for 100k over, that just tells us that we priced it wrong to the dealer or they are just not thinking about long term customer satisfaction. Sadly there is not much we can do, because we cant dictate dealer pricing. We can only let them know that we don't like it and to encourage the benefits of selling at MSRP.
My dad has been looking at Ford Mavericks and I can't tell you how many "used" Mavericks I've seen with an asking price of $35-$45k. It's absolutely insane! These "used" trucks don't even have enough miles to be considered broke in yet. They're all clocking a couple hundred miles tops.
It's a freaking scam. Dealerships will drive the car enough to make it appear like a "used" car, because with used cars they don't have to offer the same type of warranty.
Went to buy a new gr86 and they wanted to make me believe that msrp was 40k. Got up while the guy was trying to make it sound normal and went somewhere else
Had the same situation when I was thinking about trading my VeloN on one. Tried to get an allocation of a base manual and they insisted I take a look at the auto base model they had on the lot. They were selling it used with 14 miles on it for 48k
I think every car youtuber needs to put up videos explaining these BS mark ups. I've seen StreetSpeed and a couple of others making a huge deal over this. We are the consumers and we can control these mark ups by not participating in this insanity.
Absolutely bonkers!! Some of those prices were twice over MSRP. Its like buying 2 of them! Man, I've been looking at getting another car, but these last 2 years have kept me just waiting, and hoping that these ludicrous prices come back to reality. I refuse to pay these hefty , over inflated prices. I'll drive my car until the wheels fall off first
Clearly you've never sold cars or worked at a dealership. Believe it or not, MSRP, especially on lower tier vehicles, generally allows for next to zero profit.
The best buying experience I’ve had was at a Subaru dealership. Got pre approved for a sti and a trade appraisal online. Went in, took about 30 minutes and the paperwork was ready for me to sign. No haggling at all, absolutely amazing. My own dealership tried to screw me twice so the experience at Subaru North Orlando was a wonderful.
The guy who purchased a Tesla instead of a RAV4 has a similar story to mine. I wanted a RAV4 Prime XSE. Jerry’s Toyota in Baltimore, MD wanted $65,000 for it. I left the dealership and started thinking to myself what I can get for $60k. Lexus NX, BMW X3, BMW X5 we’re all on my list. All were being marked up. Little old Tesla was the last thing on my list. But I ordered my Model Y, added the options I wanted, and 3 months later, my car was delivered. I went to the dealership, inspected the car, and was gone in TWENTY MINUTES!!! Twenty minutes! I’ve had longer stays at Panera Bread waiting for a bread bowl. Jerry’s Toyota played themselves.
@@Mark-wl5oi That's exactly why he said that consumers need to stop paying the markups. If you increase demand cost sensitivity, then the price will drop. And yes, the whole point of scamming is that it's "consensual" in the end - the consumer is suckered into thinking that they need to pay as much as they are paying to get the product.
Was just talking about this with a friend, I find it awesome that Chevy is checking dealerships about the stupid price gauging. Hopefully other brands will pull a Chevy play. We all know that some will fork over the money anyway for a “flex”
Even experienced this with my TLX Type-S, seen dealers markup the 53k base price all the way to 120k (cough* Paragon Acura NYC cough*) I got mine for MSRP in December with extended warranty and wheel and tire protection included free. The more we support customer centric dealers the better the market will become. Not all dealers are frustrating but avoid buying from dealers the charge markup on any car.
This is why I love the dealership I work at. We don’t do any of this BS no markups no add ons and a free lifetime power train warranty. Makes selling cars so easy when the competitors down the road doing stuff like this
Best dealer experience we ever had was at a Honda dealership. We told them via email which car we wanted and how much we were willing to pay. We emailed 4 dealers and our closest dealer responded with the deal we wanted. We test drove it and then sealed the deal in about 1.5 hrs. All negotiations were done via email. It’s been a few years since we did that and not sure how well it would work in today’s market. Thanks for another great video!
A guy right down the road from me bought a Blue C8 Z51 completely fully loaded and he spent $121,896 on that. I thought that it is absolutely crazy to spend that kind of money on a 60-80k car. But hey it's his money and as long as he's happy with it.
Regarding the flipping, a dealer told me that I should buy the new Z they had in stock and just flip it to make some money. Toyota has been really bad about their markups and have done nothing to curb their dealers. A lot of people are going to dealers that have zero markups, like Subaru, as a result.
I used to work for Bellevue nissan. No wonder they're trying to get almost 130k for a Z. That place was so greedy they put the lube techs on flat rate so they could pay them next to nothing.
I’ll give you a simple one I just wanted to buy a Honda accord 2.0 sport from Joyce Koons Honda in Manassas Virginia. Full MSRP was 36,980 and they wouldn’t take a penny less than 43,000. I told the sales manager he was smoking crack and I walked out.
The 90k rav4 was a mistake that happened at a lot of Toyota dealerships. I work with one locally and everyone was scrambling to get the prices corrected. That price wasn’t a dealer markup but a nationwide error.
Years ago I was going into a movie with a friend ~3pm and another friend called me to ask if I could meet her at dealership to help her pick a car. I said after I get out of this movie, if you're still there. The movie ended, I went to that dealership, she was still there, she picked out the SUV, was wanting to trade-in a vehicle, and was going to finance it with the dealership. Having been a finance major, I told her to LEAVE. They were lying to her about the interest rate and/or the trade-in value. I had to tell the salesman to pound sand and we left there at ~8:30pm. She found what she wanted at a different, more honest dealership the next week.
I was in the market for a Hyundai Veloster N for two years, and everything was marked up anywhere from $15,000 to $20,000 over MSRP. I finally found a dealership with practically no markup and I can say from experience that waiting was well worth it.
A lot of dealers are selling their new cars to family and friends first. They drive them for a few months. Then they sell them back to another dealer for more than they paid. It's a scam.
Jim Farley at Ford is the Man. He is putting an end to this at Ford dealerships. If a dealership wants to get vehicle allocations, it can't markup its cars. Way to go Jim!
Emphasis on employees get the bad side of it too because customers thinks it’s us but it’s the managers and as salespeople it’s nothing we can do about it, and if we do sell it, we barley get anything for it
Had a true old gear head I used to know, and the group conversation lead to this exact topic. Dealership markups, along with the takeover of EV's. My man went on a complete tangent, but he definitely put things into perspective. From what I recall, this is briefly what he said. "I've owned the same C20 that I bought new in 1977, and aside from the frame, I can buy body panels, a new Bed, cab panels, suspension, A- arms,14 bolt rear end, fuel lines wiring, distributor, radiator, engine block, glass, headlights grill, trim, A/C radio, dash, door panels, doors, bench seats etc, etc can all be bought through aftermarket, and I could literally build my own squarebody from the ground up with not a single part from the factory, or off a parts truck! Yeah sure she drinks, but I can ensure that truck for next to nothing, and I don't have to worry about emissions on it being a classic. Dealerships wanna charge almost a $100K for a pickup that the average Joe needs for "actual work"...you know what, let em because they'll find out the hard way, because in 100 years "my" great grandson will be driving the same C20, and his older brother will be driving "my" great "Great Grandpa's" Model A.
As a C6 Z06 owner you said what I’ve thought about the new Z, it’s not the peoples super car anymore. They aren’t gonna make enough of them to meet demand and they will be unobtainable.
I'm a detailer at a ford dealership as a third party company and last week they *SOLD* a "LIMITED EDITION" Ford F-150 Raptor with a $75,000 mark up. they call it "Fair Market Adjustment". oh and btw the truck was black and there was white overspray through out the whole car (not sure how or why it got there) that i had to remove, took almost 2 hours
Honestly if i was a dealer, id keep my markups to at an absolute max $5k over msrp and sell double to triple the amount of cars off the lot vs dealerships that are looking to get their entire inventory net worth on 1 car that ends up sitting for sometimes months.
That’s what the majority does. However, allocations are the ones getting marked up 10k+. Predominately because each dealership is only offered 1-2 allocations per 6 months depending on the model/options and or sales figures across the board. They could easily sell 100 c8 z06s in a month,but gm won’t send them 100 per month. Since each dealership has to have the opportunity to stock said model.
That's what most dealers are doing with normal cars because of low inventory...looks like these outrageous markups are mostly for expensive specialty cars...
@@governmentcalamari9785 makes sense but at the same time id still sell em at a good price and somehow someway let gm know that we got a hot spot for the c8 soo let me get more to sell lol
In 2002 I went to a Subaru dealership and told them I wanted to test drive a WRX. The salesman made a copy of my drivers license and handed me the keys. Came back and barely negotiated. Paid sticker plus the wing thrown in for free and no push for extras. Came back the next evening and picked up my car. Total time including test drive was about 45 minutes. In 2009 I was buying a used 2005 F150 from a dealership. Was at dealership for 2hrs for test drive and negotiating price. Came back next day with a check from my credit union and was there for 3 more hours. If I had not have been dropped off I would have left. Still have WRX.
Just bought a 2022 Shelby GT500. Didn’t go with the Carbon Fiber Pack, don’t plan on tracking it. Even if I did, the carbon fiber isn’t worth it. I’d be terrified to scrape a rim, ($5k ea) replacing the carbon fiber brake lines, ($6k+), and everything else. The Dealer markup on my GT500 was set at $25k. I was able to get the markup down to $7k, (which is still BullStuff). The only reason I was able to knock $18k off dealer markup is because my family friend is the finance manager and she’s tight with the owner. Dealer Markups are insane and criminal. It’s so bad.. How is it allowed through Ford and other Companies?
I work as a photographer for 2 dealerships, they recently had a under 1k mile 2022 Ford Bronco Badlands edition come in. MSRP on them is $45k, they're selling it for $69k pre-tax. That things been sitting on the lot for a month now collecting dust. 😬
Anyone selling anything should sell it at the absolute highest price the market will support. The flaw with dealers is the same flaw with all of this stuff. Government regulates how cars can be sold and won't allow car companies to sell direct which creates the situation which allows the market to get out of control. When you add in the dealer only used car auctions and everything gets worse. Deregulation is always the best for the consumer.
Dealers lobby the government so that car companies can't sell directly to consumers. Sure it's "regulation" but not in the normal sense. Regulation typically helps consumers, if done right, but deregulation typically only helps big companies. But this is dealers lobbying for "regulation" in their favor, making themselves out to be small business owners vs the big corporations (manufacturers). Normally this would be good, but then they turn around and screw over consumers more than the manufacturer would. The solution isn't deregulation, it's proper regulation that works in favor of consumers.
I consider myself to be very lucky as I was able to pick up a fully loaded '19 wrx for ~24k usd. It was right before the massive boom in car prices and I think it's absolutely ridiculous how much dealers are marking up enthusiast cars by. Especially after seeing that blob eye with an asking price of 28k. This markup bs needs to stop
When I got my 2019 Civic Hatch (in late 2019) I got a pretty nice quote on it, ~4 grand off retail. Pretty decent I think, I went to the dealer to purchase it (with my dad) and we did end up taking it home. But they for sure tried to upsell me on the car. The total price of the car went from like a 20.5K car (including dealer installed optional extras) to like 30 grand (which consisted of ceramic coating, interior protection coating, 3 year protection thing, probably an extra warranty too). But with the help of my dad and a lot of waiting, we finally got the price down to 21.3K (including taxes, registration, and about 1300 dollars in extras) out the door. We also somehow were able to have them completely remove the dealer installed security system, but they still tried to sell me on it out the door (and kept reducing the price until I went to pay for the car). Dealer tried to scare me into it being the most stolen car in America, it only is because it's so common. I didn't want the security system because I felt it would make the car easier to steal, as one could hack into the security system and unlock the car (since the system can be paired to a phone). But yeah, overall wasn't that bad of an experience for me personally. Nissan dealer I went to was worse, they tried to convince me that a Nissan Kicks was perfect for me. But I only wanted a hatchback, so they didn't convince me. LOL
So I live in California and I really want a new manual Supra. I’ve called local dealerships around me and have told them to inform me immediately when they get one, but what they don’t know is I also have a friend at a dealership in Tennessee and told him if he can get me a car at MSRP I wouldn’t mind buy from them and driving the car back to California. I rather spend the extra money on a road trip than pay above msrp from a greedy dealership and much rather pay an honest dealer 3k miles away
I wanted to buy my girl a bronco, she loves it, but when the dealer told us how much it was USED we laughed at the salesman and walked out. I was not going to pay 60-70k on a bronco
I own a Civic Type R. I bought it in 2021 for MSRP. I had to drive half way across NC after negotiating for several days. Originally, between markup and addons it was about 9k over. And this was before the current issues took off. I think the only reason I got it was because it was a later model year, and they had an LE on the lot markup up 50k. The FK8 is a fantastic car and worth the $40k price new. It is not worth 50k+ used. Something absolutely needs to be done about these tactics. My only fear is that the government getting involved will probably make things worse. I understand smaller markups in response to major shortages to sustain profitability and keep staff employed. Doubling the price of a vehicle is not that.
The government sitting out on the sidelines for the past 40 years or, in some cases, as with the Supreme Court's interventions, making gouging and monopolistic behavior even easier, is what has gotten us in this mess. But there's a simple way the government can kill two birds with one stone, both the dealer markup abuse and any risk that the government might screw it up too, and that's to get rid of state laws that effectively require the existence of dealerships by interfering with direct selling. Read up on what's been happening in Michigan for example, Tesla doing battle with the state legislature in order to be able to sell their vehicles in the state.
You’re on point with this!! It has to stop…the thing that’s nice is I’ve heard of a lot of people doing factory direct orders…to add to the lunacy of this gouging, how would you like to have bought your 2023 Mustang directly and when you take delivery at a dealership, they try to mark it up when it arrives, before you pick it up…umm, it’s already paid for!! They’re no longer dealerships, they’re stealerships.
I really appreciate this channel. It's hard to find a mustang/American muscle guy who still loves and respects other types of cars rather than that merica attitude
alternate title: ''These car dealerships must be stopped!" proceed to cycle through shots of different car brands with stickers on their windshields of huge mark ups
Went down my local MB dealer, interested in the GLS for the family. Their website showed the MSRP, so I thought, cool, the gouging is over, let's see if we like the car. Pulled up, got a salesman, fired it up, played with the seats, then in the corner of my eye, I see a sheet that has fallen off the window, DEALER MARKUP $20,000.00 ------- Told the salesman, sorry, we will pass until the car is sold for its MSRP- or better yet lower. No way I am paying over MSRP. It's ridiculous.
I understand that some people just have the money to throw at some of these insane car prices, but even then man, it's just not worth buying it when you know damn well in your head that you're being scammed.
Lol used is just as bad, I went to buy a 2004 Jeep Wrangler 2 years ago for a daily and off-roader and after 2-3 months of looking, I found one advertised for 7,995 at Jeep West Covina. Get to the dealer, inspect and decide to buy right then (knew what to look for as my mom has a 2005 Unlimited), and they tried to tac on a $700 paint and fob protection (mind you this is on a used wrangler and there is only a key with chip, no fob). Getting it taken off was pulling teeth, and after my dad threatened to leave twice, I said "Its a jeep, the paint will be scratched and there is no fob, I don't care for it and I'm not paying 10% what you listed it in a fee that wasn't advertised." Eventually got them to take it off and would be able to pick it up 2 days later. I should also mention that there were weathertech front floor mats which were ~120-150 at the time, and the owners manual. Cut to 2 days later, they give me only one key and the floor mats are gone with nothing to replace them and the owners manual is gone too, something I didn't realise at the time. The mechanics I think tried to steal them to flip, got the manager over and he made a call and they washed the mats down right there while the rest of the car had been cleaned(leading me to think they tried to take it to sell). Left a 1 star review and the dealer tried to deny me being there, edited in pics of it in their bay on the lift when we first saw it and a document with both my name and the dealers name from when i bought the car (making sure personal info wasn't shown). Please watch you backs when going to dealers as they will ALWAYS try to screw you over for a buck
Yup, I’m trying to get an employee discount on a Toyota, a perk for working with the company, however to no avail. Something else I’m thinking. We at the Toyota factory in Kentucky are and have been working 12 hour shifts 5,and 6 days a week and yet our local dealerships are staying empty. But if you walk over to their used lot full of new car priced 5 year old cars that they buying off the old owner for a lot cheaper. So why would they ever order any new cars. Completely iniquitous.
Great Video my dad and I were litterly talking about this yesterday!!! These Dealer's are all crooks and are going to get theirs, I'm done with dealer's until I see serious change!
these markups are still going on, in fact just today ran into one with a 100,000 mark up and the lowest markup was 80,000 and even some dealerships doing highest offers. After making this known over a month ago Chevrolet actually replied to me on twitter openly and in DMs but basically said dealerships set the prices they see fit and wiped their hands. I am game for reasonable markups, I paid 20,000 over sticker to be first owner in Texas with Rubicon 392, paid 15,000 over for my C8 stingray as well, because I wanted them and felt eh not too bad, thing is there are people with dumb money and will pay these prices. I think these people forgot they were bailed out by the tax payer.
I've always hated car dealerships! Dealerships have always been shady and this is just another feather in their cap. The fact that manufacturers and government have both allowed this mark up fiasco to happen also tells you something.
Thank god my brother got his 2019 CTSV before the pandemic, markup was only 15k, the car had like 2k miles, and came with 8 free oil changes from the dealership.
Here in the Province Of Quebec, Canada, by law dealers are not allowed to sell above msrp... of course some dealers will register and plate a new vehicle then sell it as a "demo" / used car for whatever price they want... but at least you can order and pay msrp.
as someone who works at a chevy dealership i’ve seen many C8s come off the truck with $90k+ sticker prices (that’s before markups, the highest i’ve seen so far is $121k for a 2LT)
When I bought my Ford mustang, the dealership let me take the mustang and go home until they could get all the paperwork and financial stuff taken care of, then I just drove back to the dealership signed all the paper work and took my car home
I work at a dealer that’s not over charging. If you find a dealer at the low end of the market don’t haggle us. I had two customers on the same incoming unit I picked the one that was not an dick and was happy that I was the bottom of the market. The guy that asked for 2000 off and asking to speak to a manager ect is still waiting for his Prius.
@thatdudeinblue you need to get all car youtubers to make videos like this you guys have the most powerful voice. If it werent for @streetspeed717 that one dealer would have never been exposed and they would be getting that 90k over and the other dealer 100k over. KEEP IT UP!
I went to buy a Corolla Hatchback SE, pretty much base model, and until the very end they wouldn’t actually tell me what the out the door price was. Turned out to be attempting to add a $5,000 markup on a $23,500 car. Almost lost my mind on them, I told them what I would put down and what my monthly payment could be, and on their end to make it work, thankfully they did, and while I spent over MSRP, it was not egregious, came out to right about $24k which i could tolerate.
People need to stop paying these prices. I went to the dealership to replace our grand cherokee with a new trailhawk and they had a 20k market adjustment. They got an ear full
Dealers are 100% being extra scummy and taking advantage of the market. Sure the manufacturers have some blame for low production numbers, as do consumers for paying the markups... but at the end of the day the dealers are the ones taking the bag at the consumers expense.
I doubt they will ever lower prices now. They can just reduce the amount of cars they produce each year, and then claim that it is due to supply chain issues. They now know that people are willing to pay crazy prices for cars when they think there is a shortage.
There's only a couple dealerships not marking stuff up where I live. There's a subaboob dealer 40 minutes away from my house where I got my WRX, and there's a BMW dealership. I paid MSRP for it.
Before this insanity I feel like it was common knowledge that dealerships made the real money from maintenance and not from sales. I’d love to see actual data on profitability in this new era of just add 20%+ to sticker on everything
I believe the auto manufacturers are aware of this and they are not doing anything about. After all, corporate CEO's and share holders are profiting many times over. Classic case of profits over people.
They talked about it saying the increase is because this is the last ever gas powered one ever last year last body style. Many other car companies have done the same.
They do it and in many cases GET AWAY with it because we let them do it. Until we stop this and call them out, they will keep doing this! STOP IT @thatdudeinblue. Miss you buddy.
The only way that I see it from a dealership's perspective is like this. Dealerships are not moving nearly as much as they used to and they still have employees and bills to pay so their response is trying to make the average up by jacking up the price on everything that they own. But that's where my understanding ends. I went to a Ford dealership local to me to look at a 2022 Ford Maverick lariat or XLT I can't remember really. With the option package I think the truck brand new was $27,000 give or take a few. But the dealership is actually selling the truck used with 15,000 miles for a little over $48,000.
9:41 to be clear, while this markup is absolutely ridiculous, this isn't a regular Rav4. The Rav4 Prime is the plug-in hybrid Rav4 that can run solely on electric power. These along with the Prius Prime are being produced in such low volume that they are incredibly rare. I've been working at a Toyota dealer for over a year and I haven't seen a single one of either come to our dealership. When it comes to dealership allocation we can see how many of a certain car are for sale in the region, and based on what I've seen I'd estimate less than 50 Rav4 Primes are available nationwide at any given time. A $40k markup for any vehicle is obscene, but it's not just a regular Rav4.
Great video and so true. I used to go to this Ford dealer for service. While I'd wait I would always go check out the gt350's and raptors. Back in 17/18 a gt350 was getting a $15k markup and raptors a $20k. I told the owner I thought he was a scumbag and never went back.
I remember being really excited when the 07 GT 500 was being introduced. Ol Shel said this baby won't cost more than 40K. Well, he wasn't selling it Ford was so good luck trying get that price. Ford dealers quickly almost doubled that price so it was out of reach for the majority of the gear heads that would have bought them. People with deep pockets bought them and parked them in the garage and in one way that was a good thing because now you can but that low mileage car for what it was supposed to sell for.
Its hard to stay interested in cars right now. it's just deflating to know an MSRP that is in your price range will be marked up basically out of reach, and it's not going to change any time soon.
I'm trying to find a '22 Civic Si to replace my '17 M240i xDrive (which as it turns out is too heavy to actually be fun and engaging). Within 50 miles of me, markups are $6k-11k. $40k for a Civic with a 1.5 liter engine. I found Acura dealers selling the Integra A-spec at MSRP, but I don't want to be blinded by my own seats.
I hated dealerships before all this but this all makes me hate them even more. Any type of mark up is the fastest way to never get me to buy a new car from them again
That'll be 100K plus tax.
Thank you for making this video! 100% agree that something needs to be done. And you're correct about Tesla, that was the BEST car buying experience my wife and I ever had...no stealership garbage about this package and this warranty and blah blah blah
Hi David you should see the prices in Barbados for cars new & old you would freak lol ...
+ tip
A normal C8, in my country, is about 143,000 USD. So, imagine everything else.
One thing everyone seems to keep forgetting is that the dealer isn’t responsible for low volume. The manufacturers are, yet no one is making claims to them.
Everyone forgets that during and after the pandemic as things got worse. People got stimulus assistance, rent or mortgage breaks, electric companies provided help with bill costs. The dealers never got this help, the bills never changed. The mortgage never changed, electricity discounts were not available, there were no stimulus checks. The minimum wage kept growing and hourly pay was now demanded on top of commissions( at least here in California)
How does the owner keep everyone employed? How does the owner stay away from losing everything they worked their whole lives for? It’s common sense that when your volume is cut by three quarters and the number in sales tank the only solution is to add a premium to offset these losses. No one bats an eye as clothing and shoe prices are double or quadrupled simply cause the item is “rare.” People buy several $300-500 Jordan’s pairs at a time and they complain when a truck has a $5,000 markup. The cost of food has gone way up, and let’s not forget the crazy fuel costs. Yet what’s bothering them the most is the price of a car or truck when it is very clear production numbers in the auto industry have tanked. The dumb part is when dealers were selling at sticker people would still complain you were raping them. When you gave then invoice price they still doubted the deal and were not satisfied. The client is never satisfied they’d want to happily buy knowing the dealer lost money to sell the car. If we all had to lose money to sell our products to keep customers happy businesses in America and the American dream would be dead. You’ll never make anyone happy no matter how big the discount is.
Wood and copper went through the roof and quadrupled over night and people kept remodeling their homes and contractors pricing was absurd and yet no stopped and cried about it.
Customers want to tell the dealer “it isn’t my fault you guys don’t have enough cars why do I have to pay the price?” Well it’s not the dealers fault so why should they also pay the price?
We are ALL paying the price for the chaos that came during and after the pandemic and we continue to pay they price every day on every thing we pay. All thanks to our shit President and his shit party who keep letting things go backwards. Blame those responsible for a failing economy not the businesses that have had no option but do what they have to do to survive.
I do think 30-40k markups are absurd however a mark is still necessary to keep things going.
Manufactures CEO’s are making these “tired of markups” claims as well. But when have they lowered their profit to aid the dealers in making enough per transaction without having to mark up the vehicle? Of course they say they care but they don’t want to take losses. They expect the dealer to, while the financial loss of low production has a lesser effect on them than the dealer.
Shame is good, shame needs to come back. Its a natural societal response to bad behavior.
Careful what you wish for
@@epiccowboymemes2042 What is that even supposed to mean? Shame on you!
Cry about it
@@Malthus lol
@@epiccowboymemes2042 seems like you are the one crying.
Dealerships saying "the customer might turn around and flip it immediately" is BS. What a customer does with the vehicle after its sold to them, is NONE of the dealerships business.
A customer can’t flip a car if the dealer has the more affordable price. Like tf
Who would buy a car used for more from a private party, in comparison to from the dealer new around its intended msrp.
If dealers didn’t have these insane markups they’d honestly probably sell more as it would be in the targeted market range. It’s almost like a manufacturer does research into the market before choosing an msrp.🙄
What the dealership does with their car is our business though? Don’t like the prices, don’t pay them.
@@JaredS23 we are the dealership's customer it is absolutely our business what process the products go through prior to our purchase, because it is we that seek ownership over these items, it is we that they aim to convince to spend our money, so before I spend my money I'm going to make sure the price I'm paying is within reason. The dealership's are just seeking to copy the market tactics of sites like Bring A Trailer. There is no reason for the cars to be priced so aggressively, but the more dealerships that do this, the less they will back down after backlash unless the manufacturer steps in.
@@JaredS23 chat like that is why they get away with the shit, keep accepting shitty treatment from companies and continue getting shit on. The world runs on consumerism and if as a consumer you consume blindly, they will always get you to spend hard earned money on bullshit. Speak up about bullshit and don't let companies cheat the consumerist public.
@@dellanowhite8729 I’m not for anyone selling a car over msrp, Public or dealer. All I’m saying is you can’t be upset with one and not the other. It’a hypocrisy at its finest
It boggles my mind how people are ACTUALLY paying these prices! How smooth does your brain have to be to go into a dealership, look at the paper, see that the MSRP is like $35,000, see a $30,000 markup, and be like "that looks like a totally reasonable price for this car" and then proceed to waste exorbitant amounts money, in a bad economy mind you.
Yep, the "informed buyer" is a fucking myth nowadays. People are just wasting money all over the fucking place, look at art and fashion, you'll be shocked.
People have lost their minds! It’s absolutely crazy and stupid. Even if I was worth a billion dollars I wouldn’t over pay like that because it screws hard working people out of ever being able to attain a car that should be attainable if you work hard.
for real. anyone that is paying 90k for a Toyota Rav4 after dealer markup is dumber than dumb
Because they’re rich and don’t give a fuck.
People love being upside down on a 10% 84 month car loan. lol.
Not to mention their credit already sucks and they don't fear repossession.
I feel like dealerships are just straight up scamming people. one tried to force a friend of mine to get a warranty for $8k, and they wouldn't sell him the car he wanted(a 2016 Ford Focus ST) without this warrany, and that brought the total price of the car to over $30k. that's a lot of money for a used Focus. dealerships are absolutely stupid and unreasonable these days
@@jjepik2456 exactly lmao. he was pissed, because he really wanted that car. it was a low mileage ST with no mods at all, and a clean title with a good history. they wanted $22k without the warranty, but wouldn't sell the car without their $8k warranty.
@@calebrose4607 I hope I don't get this treatment from these asshole dealers (even though it might happen) especially when I flash $25K of hard earned money on the table for a car I want (IS-F). Just give me the keys, title, and I'll be on my way. None of this negotiation bullshit aside from the price.
it's called GREED
It will be their undoing. Ford is finding a way out of dealership agreements. Expect other car manufacturers to follow suit.
I remember when the jeep renegade first came out as tiny suv gas friendly starting at $17k. The f tried selling it to me for $35k. And this was back in 2014. You could’ve bought a bad ass wrangler at that price at that time.
This is why I think ford trying to get away from the dealership system is a good thing, keeping the dealers around for maintenance and easy of delivery would be the best thing to do, but find a way for them to be owned by the manufacturer. we really need to get rid of the archaic law where manufacturers can't sell to the customers directly, because the whole reason dealerships are doing this is for profit. that's it they don't care about the customers at all.
@Christian Cusack So is forcing customers to pay outrageous prices is okay because it's "for profit?"
@Christian Cusack that adult is just like every other working adult. It’s not fair to markup on a markup. Suggested msrp is already based off of everything including research and development so to markup it up twice should be illegal. This is legal in the united states but many places in Europe have made this illegal
Yeah If I was a car company I would be pissed! They’re scaring off my customers at this point. They have to take legal action, big time.
@Christian Cusack I must work for a dealership
@Christian Cusack one could argue the dealerships are hurting the brand and driving away customers with the ridiculous markups
The C8 can go to 150k CAD (115k USD) easily where I am at. It's absolutely nuts. The dealers drive them for 100-500 miles and then list them as used, since mark ups are illegal here for new cars.
i got a quotation for the 2022 civic si without absolutely no markup here in ontario
You mean the managers take turns bagging the hell out of it for 500km
Yep they are always happy to find loopholes or sell it to their "brother" so its technically used. I can't wait to see what hair brained schemes are used to scam people with Z06s.
Maybe Canada is different than the US, but in order for the car to be considered used that has to be registered first.
I'll use the Lexus LFA as an example. Some dealers had brand new Lexus LFAs that went unsold for years. so technically you now had a car that is 3 to 5 years old but still considered new because it was never registered regardless of how many miles it may have been driven or test driven.
@@fattygamer94 idk how it works here, but it really seems like the dealers are just listing them as used for the sake of it. There are barely any "new" cars.
Honestly, the manufacturers could (and need to) do a few things:
1) Start pulling allocations. Ford has started doing it, it's a good start.
2) Start blacklisting customers that pay a certain amount over sticker. Blacklist both parties of the transaction, it negatively impacts the market as a whole even if the customer can afford it.
3) Eliminate franchises entirely. Tesla for all its problems has proven the benefit of selling DTC. Copy that model.
4) Stop making so many limited production models. Just make all the damn cars that people want.
While I agree that people who pay so much for a car are stupid, I think it is stupid to blacklist people who pay over sticker. People have the right to do what they want with their money. It's the dealerships that are breaking protocol and being greedy.
Well, if I'm not mistaken, there's rules against what Tesla does, which is why they do it in a backwards way abs everyone else sells through dealers. Donut Media has a video explaining it. Essentially, you don't actually buy a Tesla from a Tesla dealer. The dealership is basically a showroom. Technically speaking, for legal reasons, the actual purchase is made "somewhere else"
This is from what I remember on watching that video and another video they had on dealers raping people with markups
But even still, the it's obvious that a DTC model is possible, even if a little workaround has to be used. It's far better than dealing with the dealership tho
@@jackryan4313 It's essentially illegal for a manufacturer to own their own distribution. Tesla from my understanding doesn't give a fuck and does it anyways, which is why they're not allowed to operate in some states.
The manufacturers need to get their shit together and lobby against the franchise holders to allow them to take ownership of their dealerships, because lobbying is the only reason it's illegal for them to own their distribution in the first place.
@@ericmueser well, technically speaking, Tesla doesn't own their distribution...as in a distribution network of dealers. They don't have any dealerships at all. They have showrooms and galleries that walk you through why you should buy one blah blah blah, but they don't sell it to you there. You do that online, and specifically not in the showroom. If there's not a single Tesla dealership to be protected by franchise laws, then the laws don't apply
That being said, you're correct in stating some states "don't allow it", and/or have certain hoops that need to be jumped through, but from a quick search, I kept seeing Texas in every list and I know damn well that ain't true, because I see WAY too many Tesla's in my little area alone, and if anyone says they were simply bought out of state and brought in, I'm calling horsshit because no. There's also a big ass Tesla place (idk what it is, just says Tesla on the building off the highway) soooo I'd have to look more into what exactly those articles mean by bans, because I know for a fact that at least two of them that I looked at contain a state that makes me think it's just misleading
Dealerships have always abused their power, they are the reason you weren't able to import a car until they are 25 years old, they did the same thing in Australia, when the laws were going to be changed so you could import new cars they made sure to stop it, people being able to buy cheaper cars outside of dealerships is bad news for them.
The car importation rule is insane. It should be ruled out as an illegal restraint of trade for anything coming in from Canada or Mexico as we're supposed to have a free trade agreement there, not special interest carve-outs for car dealers. Instead, for example, Honda sells a superior-spec, safety-compliant Civic Si in Canada for a significantly lower price which you then can't buy as a US resident.
@@danielbliss8014 Well, each State also has different emmision standards.
That’s absolutely absurd and scummy. I absolutely agree with being able to order directly from the factory. That would be incredible. As enthusiasts, we know what cars are worth when the manufacturer advertises them at a certain price. It only makes sense. These dealerships need to GET REAL! I’m also not a fan of people immediately flipping cars for profits like that. Then again, I’m just a regular consumer that can only afford one vehicle at the moment ha. If I buy a car, that’s MY CAR! I don’t want to buy and sell and never get to enjoy what I paid for! Great content as always, much love from Texas!
thats why i wasn't so against ford having contracts to go along with the gt. if there were enforced no sale contracts on sports cars for say a year it would solve that problem, obviously leave some ways for someone to get out of a car, like if there is a major life event and it needs to be sold etc. but to solve this problem completely the brands need to pull some franchises. caught with over 5k in markup once? no more allocations of that type of vehicle for a year. twice in a year? you get to take that big logo off the side of your building and return the new inventory. do it once or twice and the dealers will stop real quick
@@genericjosh96 that sounds like it might work ha. Just gotta be strict about it. Maybe someday dealerships will be gone and we’ll be able to order directly from manufacturers! That would honestly be pretty cool!
lol had a car salesman once tell me “you shouldnt haggle on the car’s sticker price, because you want to be happy when you buy a car and not frustrated”
Hello! I work in corporate automotive and can confirm that these mark ups make us very unhappy. So much work goes into pricing the vehicle with a fair MSRP. When dealers sell for 100k over, that just tells us that we priced it wrong to the dealer or they are just not thinking about long term customer satisfaction. Sadly there is not much we can do, because we cant dictate dealer pricing. We can only let them know that we don't like it and to encourage the benefits of selling at MSRP.
My dad has been looking at Ford Mavericks and I can't tell you how many "used" Mavericks I've seen with an asking price of $35-$45k. It's absolutely insane! These "used" trucks don't even have enough miles to be considered broke in yet. They're all clocking a couple hundred miles tops.
Yup. Looking for one myself and it’s insane
It's a freaking scam. Dealerships will drive the car enough to make it appear like a "used" car, because with used cars they don't have to offer the same type of warranty.
Thank you for talking about this, it really is big problem with dealers.
Went to buy a new gr86 and they wanted to make me believe that msrp was 40k. Got up while the guy was trying to make it sound normal and went somewhere else
Had the same situation when I was thinking about trading my VeloN on one. Tried to get an allocation of a base manual and they insisted I take a look at the auto base model they had on the lot. They were selling it used with 14 miles on it for 48k
I think every car youtuber needs to put up videos explaining these BS mark ups. I've seen StreetSpeed and a couple of others making a huge deal over this. We are the consumers and we can control these mark ups by not participating in this insanity.
Absolutely bonkers!! Some of those prices were twice over MSRP. Its like buying 2 of them! Man, I've been looking at getting another car, but these last 2 years have kept me just waiting, and hoping that these ludicrous prices come back to reality. I refuse to pay these hefty , over inflated prices. I'll drive my car until the wheels fall off first
Without even watching the video... Just don't buy their cars.
MSRP is the dealership making money why any dealership is charging above that is beyond me
Clearly you've never sold cars or worked at a dealership. Believe it or not, MSRP, especially on lower tier vehicles, generally allows for next to zero profit.
Like @@sawyermartin4434 said they don’t make much at msrp when you consider all their costs. The service department is the real money maker
A lot of dealerships are going to be losing their business the next few years.
The best buying experience I’ve had was at a Subaru dealership. Got pre approved for a sti and a trade appraisal online. Went in, took about 30 minutes and the paperwork was ready for me to sign. No haggling at all, absolutely amazing. My own dealership tried to screw me twice so the experience at Subaru North Orlando was a wonderful.
The guy who purchased a Tesla instead of a RAV4 has a similar story to mine. I wanted a RAV4 Prime XSE. Jerry’s Toyota in Baltimore, MD wanted $65,000 for it. I left the dealership and started thinking to myself what I can get for $60k. Lexus NX, BMW X3, BMW X5 we’re all on my list. All were being marked up. Little old Tesla was the last thing on my list. But I ordered my Model Y, added the options I wanted, and 3 months later, my car was delivered. I went to the dealership, inspected the car, and was gone in TWENTY MINUTES!!! Twenty minutes! I’ve had longer stays at Panera Bread waiting for a bread bowl. Jerry’s Toyota played themselves.
It's nuts that a rav4 costs the same as a Tesla
Two things need to happen. Manufacturers need to crack down and consumers need to stop paying the mark ups
supply and demand determines the price. Don't seethe value don't buy it. Are you upset you are paying 4 times for ground beef. Is Kroger scamming you?
@@Mark-wl5oi That's exactly why he said that consumers need to stop paying the markups. If you increase demand cost sensitivity, then the price will drop. And yes, the whole point of scamming is that it's "consensual" in the end - the consumer is suckered into thinking that they need to pay as much as they are paying to get the product.
Was just talking about this with a friend, I find it awesome that Chevy is checking dealerships about the stupid price gauging. Hopefully other brands will pull a Chevy play. We all know that some will fork over the money anyway for a “flex”
Even experienced this with my TLX Type-S, seen dealers markup the 53k base price all the way to 120k (cough* Paragon Acura NYC cough*) I got mine for MSRP in December with extended warranty and wheel and tire protection included free. The more we support customer centric dealers the better the market will become. Not all dealers are frustrating but avoid buying from dealers the charge markup on any car.
This is why I love the dealership I work at. We don’t do any of this BS no markups no add ons and a free lifetime power train warranty. Makes selling cars so easy when the competitors down the road doing stuff like this
Best dealer experience we ever had was at a Honda dealership. We told them via email which car we wanted and how much we were willing to pay. We emailed 4 dealers and our closest dealer responded with the deal we wanted. We test drove it and then sealed the deal in about 1.5 hrs. All negotiations were done via email. It’s been a few years since we did that and not sure how well it would work in today’s market. Thanks for another great video!
A guy right down the road from me bought a Blue C8 Z51 completely fully loaded and he spent $121,896 on that. I thought that it is absolutely crazy to spend that kind of money on a 60-80k car. But hey it's his money and as long as he's happy with it.
Regarding the flipping, a dealer told me that I should buy the new Z they had in stock and just flip it to make some money. Toyota has been really bad about their markups and have done nothing to curb their dealers. A lot of people are going to dealers that have zero markups, like Subaru, as a result.
I used to work for Bellevue nissan. No wonder they're trying to get almost 130k for a Z. That place was so greedy they put the lube techs on flat rate so they could pay them next to nothing.
I’ll give you a simple one I just wanted to buy a Honda accord 2.0 sport from Joyce Koons Honda in Manassas Virginia. Full MSRP was 36,980 and they wouldn’t take a penny less than 43,000. I told the sales manager he was smoking crack and I walked out.
The 90k rav4 was a mistake that happened at a lot of Toyota dealerships. I work with one locally and everyone was scrambling to get the prices corrected. That price wasn’t a dealer markup but a nationwide error.
Years ago I was going into a movie with a friend ~3pm and another friend called me to ask if I could meet her at dealership to help her pick a car. I said after I get out of this movie, if you're still there. The movie ended, I went to that dealership, she was still there, she picked out the SUV, was wanting to trade-in a vehicle, and was going to finance it with the dealership. Having been a finance major, I told her to LEAVE. They were lying to her about the interest rate and/or the trade-in value. I had to tell the salesman to pound sand and we left there at ~8:30pm. She found what she wanted at a different, more honest dealership the next week.
The same way the older Supra and r33 GTRs are WAY more than they should be. It’s the HYPE we all surround the car with
I was in the market for a Hyundai Veloster N for two years, and everything was marked up anywhere from $15,000 to $20,000 over MSRP. I finally found a dealership with practically no markup and I can say from experience that waiting was well worth it.
A lot of dealers are selling their new cars to family and friends first. They drive them for a few months. Then they sell them back to another dealer for more than they paid. It's a scam.
Jim Farley at Ford is the Man. He is putting an end to this at Ford dealerships. If a dealership wants to get vehicle allocations, it can't markup its cars. Way to go Jim!
Emphasis on employees get the bad side of it too because customers thinks it’s us but it’s the managers and as salespeople it’s nothing we can do about it, and if we do sell it, we barley get anything for it
Had a true old gear head I used to know, and the group conversation lead to this exact topic. Dealership markups, along with the takeover of EV's. My man went on a complete tangent, but he definitely put things into perspective. From what I recall, this is briefly what he said.
"I've owned the same C20 that I bought new in 1977, and aside from the frame, I can buy body panels, a new Bed, cab panels, suspension, A- arms,14 bolt rear end, fuel lines wiring, distributor, radiator, engine block, glass, headlights grill, trim, A/C radio, dash, door panels, doors, bench seats etc, etc can all be bought through aftermarket, and I could literally build my own squarebody from the ground up with not a single part from the factory, or off a parts truck! Yeah sure she drinks, but I can ensure that truck for next to nothing, and I don't have to worry about emissions on it being a classic. Dealerships wanna charge almost a $100K for a pickup that the average Joe needs for "actual work"...you know what, let em because they'll find out the hard way, because in 100 years "my" great grandson will be driving the same C20, and his older brother will be driving "my" great "Great Grandpa's" Model A.
As a C6 Z06 owner you said what I’ve thought about the new Z, it’s not the peoples super car anymore. They aren’t gonna make enough of them to meet demand and they will be unobtainable.
I'm a detailer at a ford dealership as a third party company and last week they *SOLD* a "LIMITED EDITION" Ford F-150 Raptor with a $75,000 mark up. they call it "Fair Market Adjustment". oh and btw the truck was black and there was white overspray through out the whole car (not sure how or why it got there) that i had to remove, took almost 2 hours
Much needed video, the dealer mark up needs to stop.
Honestly if i was a dealer, id keep my markups to at an absolute max $5k over msrp and sell double to triple the amount of cars off the lot vs dealerships that are looking to get their entire inventory net worth on 1 car that ends up sitting for sometimes months.
That’s what the majority does. However, allocations are the ones getting marked up 10k+. Predominately because each dealership is only offered 1-2 allocations per 6 months depending on the model/options and or sales figures across the board. They could easily sell 100 c8 z06s in a month,but gm won’t send them 100 per month. Since each dealership has to have the opportunity to stock said model.
That's what most dealers are doing with normal cars because of low inventory...looks like these outrageous markups are mostly for expensive specialty cars...
@@governmentcalamari9785 makes sense but at the same time id still sell em at a good price and somehow someway let gm know that we got a hot spot for the c8 soo let me get more to sell lol
@@jazzyboy7784 they doing this wild shit with all cars, even corollas bruh FUCKING COROLLAS 🤣
In 2002 I went to a Subaru dealership and told them I wanted to test drive a WRX. The salesman made a copy of my drivers license and handed me the keys. Came back and barely negotiated. Paid sticker plus the wing thrown in for free and no push for extras. Came back the next evening and picked up my car. Total time including test drive was about 45 minutes. In 2009 I was buying a used 2005 F150 from a dealership. Was at dealership for 2hrs for test drive and negotiating price. Came back next day with a check from my credit union and was there for 3 more hours. If I had not have been dropped off I would have left. Still have WRX.
Just bought a 2022 Shelby GT500. Didn’t go with the Carbon Fiber Pack, don’t plan on tracking it. Even if I did, the carbon fiber isn’t worth it. I’d be terrified to scrape a rim, ($5k ea) replacing the carbon fiber brake lines, ($6k+), and everything else.
The Dealer markup on my GT500 was set at $25k. I was able to get the markup down to $7k, (which is still BullStuff). The only reason I was able to knock $18k off dealer markup is because my family friend is the finance manager and she’s tight with the owner.
Dealer Markups are insane and criminal. It’s so bad.. How is it allowed through Ford and other Companies?
I work as a photographer for 2 dealerships, they recently had a under 1k mile 2022 Ford Bronco Badlands edition come in. MSRP on them is $45k, they're selling it for $69k pre-tax. That things been sitting on the lot for a month now collecting dust. 😬
Anyone selling anything should sell it at the absolute highest price the market will support. The flaw with dealers is the same flaw with all of this stuff. Government regulates how cars can be sold and won't allow car companies to sell direct which creates the situation which allows the market to get out of control. When you add in the dealer only used car auctions and everything gets worse. Deregulation is always the best for the consumer.
Dealers lobby the government so that car companies can't sell directly to consumers. Sure it's "regulation" but not in the normal sense. Regulation typically helps consumers, if done right, but deregulation typically only helps big companies. But this is dealers lobbying for "regulation" in their favor, making themselves out to be small business owners vs the big corporations (manufacturers). Normally this would be good, but then they turn around and screw over consumers more than the manufacturer would. The solution isn't deregulation, it's proper regulation that works in favor of consumers.
I consider myself to be very lucky as I was able to pick up a fully loaded '19 wrx for ~24k usd. It was right before the massive boom in car prices and I think it's absolutely ridiculous how much dealers are marking up enthusiast cars by. Especially after seeing that blob eye with an asking price of 28k. This markup bs needs to stop
I saw a GT500 at a dealer in Hugo, OK for $85,000
They start around 80k so that's pretty good actually. I saw ones at 120k+.
When I got my 2019 Civic Hatch (in late 2019) I got a pretty nice quote on it, ~4 grand off retail. Pretty decent I think, I went to the dealer to purchase it (with my dad) and we did end up taking it home. But they for sure tried to upsell me on the car. The total price of the car went from like a 20.5K car (including dealer installed optional extras) to like 30 grand (which consisted of ceramic coating, interior protection coating, 3 year protection thing, probably an extra warranty too). But with the help of my dad and a lot of waiting, we finally got the price down to 21.3K (including taxes, registration, and about 1300 dollars in extras) out the door.
We also somehow were able to have them completely remove the dealer installed security system, but they still tried to sell me on it out the door (and kept reducing the price until I went to pay for the car). Dealer tried to scare me into it being the most stolen car in America, it only is because it's so common. I didn't want the security system because I felt it would make the car easier to steal, as one could hack into the security system and unlock the car (since the system can be paired to a phone). But yeah, overall wasn't that bad of an experience for me personally. Nissan dealer I went to was worse, they tried to convince me that a Nissan Kicks was perfect for me. But I only wanted a hatchback, so they didn't convince me. LOL
The dealer markup problem goes away real quick when people refuse to pay it. In other words if the car is marked up, walk away.
$10,000 mark up on GR86’s in Tysons Corner, VA. Absolutely insane.
I have no qualms with shaming corporate/business greed.
So I live in California and I really want a new manual Supra. I’ve called local dealerships around me and have told them to inform me immediately when they get one, but what they don’t know is I also have a friend at a dealership in Tennessee and told him if he can get me a car at MSRP I wouldn’t mind buy from them and driving the car back to California. I rather spend the extra money on a road trip than pay above msrp from a greedy dealership and much rather pay an honest dealer 3k miles away
I wanted to buy my girl a bronco, she loves it, but when the dealer told us how much it was USED we laughed at the salesman and walked out. I was not going to pay 60-70k on a bronco
I own a Civic Type R. I bought it in 2021 for MSRP. I had to drive half way across NC after negotiating for several days. Originally, between markup and addons it was about 9k over. And this was before the current issues took off. I think the only reason I got it was because it was a later model year, and they had an LE on the lot markup up 50k.
The FK8 is a fantastic car and worth the $40k price new. It is not worth 50k+ used. Something absolutely needs to be done about these tactics. My only fear is that the government getting involved will probably make things worse. I understand smaller markups in response to major shortages to sustain profitability and keep staff employed. Doubling the price of a vehicle is not that.
The government sitting out on the sidelines for the past 40 years or, in some cases, as with the Supreme Court's interventions, making gouging and monopolistic behavior even easier, is what has gotten us in this mess. But there's a simple way the government can kill two birds with one stone, both the dealer markup abuse and any risk that the government might screw it up too, and that's to get rid of state laws that effectively require the existence of dealerships by interfering with direct selling. Read up on what's been happening in Michigan for example, Tesla doing battle with the state legislature in order to be able to sell their vehicles in the state.
You’re on point with this!! It has to stop…the thing that’s nice is I’ve heard of a lot of people doing factory direct orders…to add to the lunacy of this gouging, how would you like to have bought your 2023 Mustang directly and when you take delivery at a dealership, they try to mark it up when it arrives, before you pick it up…umm, it’s already paid for!! They’re no longer dealerships, they’re stealerships.
I really appreciate this channel. It's hard to find a mustang/American muscle guy who still loves and respects other types of cars rather than that merica attitude
Brands know , they just turn a blind eye , they get tons of calls and e-mails , RUclips videos like this are everywhere
alternate title: ''These car dealerships must be stopped!" proceed to cycle through shots of different car brands with stickers on their windshields of huge mark ups
Every car you mentioned is more than my nearly new gen 1 Viper. I rest my case, that is just insane. Thank you for addressing this giant problem.
One day I'll have my hands on a GTS, any generation will do
Went down my local MB dealer, interested in the GLS for the family. Their website showed the MSRP, so I thought, cool, the gouging is over, let's see if we like the car. Pulled up, got a salesman, fired it up, played with the seats, then in the corner of my eye, I see a sheet that has fallen off the window, DEALER MARKUP $20,000.00 ------- Told the salesman, sorry, we will pass until the car is sold for its MSRP- or better yet lower. No way I am paying over MSRP. It's ridiculous.
I understand that some people just have the money to throw at some of these insane car prices, but even then man, it's just not worth buying it when you know damn well in your head that you're being scammed.
Lol used is just as bad, I went to buy a 2004 Jeep Wrangler 2 years ago for a daily and off-roader and after 2-3 months of looking, I found one advertised for 7,995 at Jeep West Covina. Get to the dealer, inspect and decide to buy right then (knew what to look for as my mom has a 2005 Unlimited), and they tried to tac on a $700 paint and fob protection (mind you this is on a used wrangler and there is only a key with chip, no fob). Getting it taken off was pulling teeth, and after my dad threatened to leave twice, I said "Its a jeep, the paint will be scratched and there is no fob, I don't care for it and I'm not paying 10% what you listed it in a fee that wasn't advertised." Eventually got them to take it off and would be able to pick it up 2 days later. I should also mention that there were weathertech front floor mats which were ~120-150 at the time, and the owners manual.
Cut to 2 days later, they give me only one key and the floor mats are gone with nothing to replace them and the owners manual is gone too, something I didn't realise at the time. The mechanics I think tried to steal them to flip, got the manager over and he made a call and they washed the mats down right there while the rest of the car had been cleaned(leading me to think they tried to take it to sell).
Left a 1 star review and the dealer tried to deny me being there, edited in pics of it in their bay on the lift when we first saw it and a document with both my name and the dealers name from when i bought the car (making sure personal info wasn't shown).
Please watch you backs when going to dealers as they will ALWAYS try to screw you over for a buck
Yup, I’m trying to get an employee discount on a Toyota, a perk for working with the company, however to no avail.
Something else I’m thinking. We at the Toyota factory in Kentucky are and have been working 12 hour shifts 5,and 6 days a week and yet our local dealerships are staying empty. But if you walk over to their used lot full of new car priced 5 year old cars that they buying off the old owner for a lot cheaper. So why would they ever order any new cars. Completely iniquitous.
Nah this videos needs to be shared 100x per viewer because when I bought my last 2 cars we were there for 8hrs each time. And I worked there!
Great Video my dad and I were litterly talking about this yesterday!!! These Dealer's are all crooks and are going to get theirs, I'm done with dealer's until I see serious change!
these markups are still going on, in fact just today ran into one with a 100,000 mark up and the lowest markup was 80,000 and even some dealerships doing highest offers. After making this known over a month ago Chevrolet actually replied to me on twitter openly and in DMs but basically said dealerships set the prices they see fit and wiped their hands. I am game for reasonable markups, I paid 20,000 over sticker to be first owner in Texas with Rubicon 392, paid 15,000 over for my C8 stingray as well, because I wanted them and felt eh not too bad, thing is there are people with dumb money and will pay these prices. I think these people forgot they were bailed out by the tax payer.
I'm glad these dealerships are starting to catch flak for these insane markups.
I've always hated car dealerships! Dealerships have always been shady and this is just another feather in their cap. The fact that manufacturers and government have both allowed this mark up fiasco to happen also tells you something.
This was the nice thing about scion. What Toyota said it cost is what it cost.
Thank god my brother got his 2019 CTSV before the pandemic, markup was only 15k, the car had like 2k miles, and came with 8 free oil changes from the dealership.
Here in the Province Of Quebec, Canada, by law dealers are not allowed to sell above msrp... of course some dealers will register and plate a new vehicle then sell it as a "demo" / used car for whatever price they want... but at least you can order and pay msrp.
as someone who works at a chevy dealership i’ve seen many C8s come off the truck with $90k+ sticker prices (that’s before markups, the highest i’ve seen so far is $121k for a 2LT)
Dealerships: People are going to buy the car and flip it so we decided to flip the car from the factory.
When I bought my Ford mustang, the dealership let me take the mustang and go home until they could get all the paperwork and financial stuff taken care of, then I just drove back to the dealership signed all the paper work and took my car home
Everytime a new car comes out I contemplate it but than realize my daily driver is hardly worth what the mark up would be lmao
I work at a dealer that’s not over charging. If you find a dealer at the low end of the market don’t haggle us. I had two customers on the same incoming unit I picked the one that was not an dick and was happy that I was the bottom of the market. The guy that asked for 2000 off and asking to speak to a manager ect is still waiting for his Prius.
when the C6 Z06 first came out the Chevy dealers around me where flipping them and selling them for Viper prices...
@thatdudeinblue you need to get all car youtubers to make videos like this you guys have the most powerful voice. If it werent for @streetspeed717 that one dealer would have never been exposed and they would be getting that 90k over and the other dealer 100k over. KEEP IT UP!
I went to buy a Corolla Hatchback SE, pretty much base model, and until the very end they wouldn’t actually tell me what the out the door price was. Turned out to be attempting to add a $5,000 markup on a $23,500 car. Almost lost my mind on them, I told them what I would put down and what my monthly payment could be, and on their end to make it work, thankfully they did, and while I spent over MSRP, it was not egregious, came out to right about $24k which i could tolerate.
People need to stop paying these prices. I went to the dealership to replace our grand cherokee with a new trailhawk and they had a 20k market adjustment. They got an ear full
At the dealership I work at we've already replaced one of the batteries in the Hummer.
Dealers are 100% being extra scummy and taking advantage of the market. Sure the manufacturers have some blame for low production numbers, as do consumers for paying the markups... but at the end of the day the dealers are the ones taking the bag at the consumers expense.
I doubt they will ever lower prices now. They can just reduce the amount of cars they produce each year, and then claim that it is due to supply chain issues. They now know that people are willing to pay crazy prices for cars when they think there is a shortage.
There's only a couple dealerships not marking stuff up where I live. There's a subaboob dealer 40 minutes away from my house where I got my WRX, and there's a BMW dealership. I paid MSRP for it.
Before this insanity I feel like it was common knowledge that dealerships made the real money from maintenance and not from sales. I’d love to see actual data on profitability in this new era of just add 20%+ to sticker on everything
I believe the auto manufacturers are aware of this and they are not doing anything about. After all, corporate CEO's and share holders are profiting many times over. Classic case of profits over people.
They talked about it saying the increase is because this is the last ever gas powered one ever last year last body style. Many other car companies have done the same.
Direct to consumer is the way to go. Get rid of the aging dealership model
They do it and in many cases GET AWAY with it because we let them do it. Until we stop this and call them out, they will keep doing this! STOP IT @thatdudeinblue. Miss you buddy.
The only way that I see it from a dealership's perspective is like this. Dealerships are not moving nearly as much as they used to and they still have employees and bills to pay so their response is trying to make the average up by jacking up the price on everything that they own. But that's where my understanding ends. I went to a Ford dealership local to me to look at a 2022 Ford Maverick lariat or XLT I can't remember really. With the option package I think the truck brand new was $27,000 give or take a few. But the dealership is actually selling the truck used with 15,000 miles for a little over $48,000.
9:41 to be clear, while this markup is absolutely ridiculous, this isn't a regular Rav4. The Rav4 Prime is the plug-in hybrid Rav4 that can run solely on electric power. These along with the Prius Prime are being produced in such low volume that they are incredibly rare. I've been working at a Toyota dealer for over a year and I haven't seen a single one of either come to our dealership. When it comes to dealership allocation we can see how many of a certain car are for sale in the region, and based on what I've seen I'd estimate less than 50 Rav4 Primes are available nationwide at any given time. A $40k markup for any vehicle is obscene, but it's not just a regular Rav4.
Great video and so true. I used to go to this Ford dealer for service. While I'd wait I would always go check out the gt350's and raptors. Back in 17/18 a gt350 was getting a $15k markup and raptors a $20k. I told the owner I thought he was a scumbag and never went back.
I'm glad Ford is actually doing something to combat this issue
I remember being really excited when the 07 GT 500 was being introduced. Ol Shel said this baby won't cost more than 40K. Well, he wasn't selling it Ford was so good luck trying get that price. Ford dealers quickly almost doubled that price so it was out of reach for the majority of the gear heads that would have bought them. People with deep pockets bought them and parked them in the garage and in one way that was a good thing because now you can but that low mileage car for what it was supposed to sell for.
Only problem is that car is 15 years old now
I took a 2020 Toyota Highlander for a oil change to a Toyota dealership in Gresham and there was a 19,995 mark up on a used Toyota TRD Tacoma
Its hard to stay interested in cars right now. it's just deflating to know an MSRP that is in your price range will be marked up basically out of reach, and it's not going to change any time soon.
I'm trying to find a '22 Civic Si to replace my '17 M240i xDrive (which as it turns out is too heavy to actually be fun and engaging). Within 50 miles of me, markups are $6k-11k. $40k for a Civic with a 1.5 liter engine. I found Acura dealers selling the Integra A-spec at MSRP, but I don't want to be blinded by my own seats.
I hated dealerships before all this but this all makes me hate them even more. Any type of mark up is the fastest way to never get me to buy a new car from them again
The hellcat and 392 hemi been like this for year with the mark up dealerships
You are 100% correct. Id rather buy a gen 1 Viper with 2k miles for $61k than buy any new POS chevy or anything else that's marked up.
Worst ive seen is a 85k 2022 scat pack wide body with no options.