Is this dealer mark-up for real?

[soundman98]

sounds about right for a currently-limited-availability brand new, showroom car.

for those desperate for something different, my 2014 brz is available to anyone interested. currently only $300,000.

[Veloist]

When you work at a car dealership, a lot of things will surprise you. For the most part it is very straightforward…someone buys a car and that’s that. On rare occasions… someone walks in, says a bunch of stuff to me…and I say a bunch of stuff back…and before I know it they’re driving home in a new car and I’m left speechless.

[Fingat]

Maybe this is a ploy to keep it there and drum up interest, and allow test drives?

[soundman98]

Originally Posted by Fingat

Maybe this is a ploy to keep it there and drum up interest, and allow test drives?

it's a ploy to see who has the least brain cells and the fattest wallet.

and there will be one.

for a subaru dealer, it's a win-win. they leave it marked up on the showroom, all the dad's coming in to service their base-spec cvt outbacks can drool over the life they used to have, the younger people coming in get to drool at the fancy sports car before being talked into something more 'sensible', 'responsible', and 'safer'. or if it sells, they make a fancy no-mess profit.

worst case, they lower the adjustment and sell it closer to market value.

can't blame them for trying.

any takers on a classic 2014 brz for $300,000?

[Sasquachulator]

Jesus 15k markup? Not even going to entertain that....
I'd rather play the waiting game with a MSRP order than try to justify that.

The local dealer here with the 2020 marked up to hell still has that car for sale (almost 2 years now i think sitting in the showroom).....low inventory or not i dont think anyone is going to pay close to 50k for a twin.

5K or less, then we'll see how desparate i would be to own one....

[timurrrr]

Originally Posted by soundman98

for a subaru dealer, it's a win-win. they leave it marked up on the showroom, all the dad's coming in to service their base-spec cvt outbacks can drool over the life they used to have, the younger people coming in get to drool at the fancy sports car before being talked into something more 'sensible', 'responsible', and 'safer'. or if it sells, they make a fancy worst case, they lower the adjustment and sell it closer to market value.

can't blame them for trying.

On top of that, all that time they'll have an actual car to show to real potential buyers, not just some pictures. And when the preorders are no longer backlogged, and the new cars don't come preallocated, they'll sell it for a more reasonable price.

It's in fact a win for everyone if nobody buys it. It's not wasting showroom floor or dealership lot space, as it's the only one (as compared to say a dozen of unsold Crosstreks).

[TheDonEffect]

They probably know they're not getting a ton more in the short run, but they know it's an interesting piece to keep in their showroom, something that has people showing up bring excited energy into the place. People have the herd mentality, I can be selling literal crap on a bun from a food truck, but if I have a line people will just get in line and wait. Or a restaurant packing out all the seats closest to the windows to show they're full, people never like being the only people eating in a quiet restaurant. Happy Hour in large part is to get the crowds in and fill the room with energy.

As far as the 15k markup, what's most likely will happen is that someone will come in, impulse will kick in, and the dealer is going to be such a nice guy and knock off 10k from the price, or even 15k, see how luck you are. Good distraction from hey you paid over MSRP, and you bought the car that everyone and their momma sat in and touched everything, and got charged a premium for that privilege.

[BrahmaBull1990]

I appreciate they are a "polite" dealership, but that just means their game is working. They smile at you while they reach into your back pocket...I work in sales btw...

The most logical idea is that they want to keep it as a showroom car until more inventory arrives, and if someone wants to pay $50k to remove it from their floor - sure!

[tiger1964]

Originally Posted by BrahmaBull1990

Taken from the FB group:

(A) If there's still anything remotely like ADM in 2 years when I plan to buy... I simply won't.

(B) Wow, I need to look at more photos of BRZ's. That 2nd photo, from the right rear, those sills look more like running boards -- are those making a comeback? Elliot Ness could stand out there holding on, with his Thompson. Possibly an optical illusion...

[LanceLane174]

I think it is funny to see everyone busting on a dealership for marking up a vehicle. If no one is willing to pay it then they won't get it. The fact is that in Cali they probobly will get it. And it isn't taking advantage of anyone. It is the same as what you do when you go into the dealership and try to get them to go down on the price. You want to pay as little as possible and they want you to pay as much as possible. It's called negotiations.

Besides the fact that there are far fewer cars for them to sell right now and yet they still have the same fixed costs, like mortgage on the property, electricity, personnel, etc.. If they charge everyone MSRP on every car when they aren't selling as many cars then they will soon be out of business.

The Laws of Supply and Demand dictates that they should raise their prices when there is more demand and less supply. It is what capitalism is.

I wouldn't pay that amount since I don't need a car right now. And honestly no one that needs a car is going to buy that car for 15,000 over. They are going to buy something else that is more practice, or they are just dumb.

I paid 1500 under MSRP. Am I an asshole that I got the dealership to give me a deal? Are they stupid to have given me a deal? No. It was good business, since I have bought 7 cars from them.

Maybe this won't be a popular post, but it needed to be said. I'm sure there are others on here thinking the same thing.

[Pete]

Originally Posted by LanceLane174

I think it is funny to see everyone busting on a dealership for marking up a vehicle. If no one is willing to pay it then they won't get it. The fact is that in Cali they probobly will get it. And it isn't taking advantage of anyone. It is the same as what you do when you go into the dealership and try to get them to go down on the price. You want to pay as little as possible and they want you to pay as much as possible. It's called negotiations.

Just to clarify my post earlier, I have no hate or judgement on the dealership. In fact from the other comments above it sounds like they are cool to deal with.

I'm just being honest, if I could sell my MSRP car for a $15,000 markup, I would. And so would they. Everybody likes money lol.

Originally Posted by LanceLane174

Maybe this won't be a popular post, but it needed to be said. I'm sure there are others on here thinking the same thing.

Naw it's all good.

[Tcoat]

Originally Posted by LanceLane174

I think it is funny to see everyone busting on a dealership for marking up a vehicle. If no one is willing to pay it then they won't get it. The fact is that in Cali they probobly will get it. And it isn't taking advantage of anyone. It is the same as what you do when you go into the dealership and try to get them to go down on the price. You want to pay as little as possible and they want you to pay as much as possible. It's called negotiations.

Besides the fact that there are far fewer cars for them to sell right now and yet they still have the same fixed costs, like mortgage on the property, electricity, personnel, etc.. If they charge everyone MSRP on every car when they aren't selling as many cars then they will soon be out of business.

The Laws of Supply and Demand dictates that they should raise their prices when there is more demand and less supply. It is what capitalism is.

I wouldn't pay that amount since I don't need a car right now. And honestly no one that needs a car is going to buy that car for 15,000 over. They are going to buy something else that is more practice, or they are just dumb.

I paid 1500 under MSRP. Am I an asshole that I got the dealership to give me a deal? Are they stupid to have given me a deal? No. It was good business, since I have bought 7 cars from them.

Maybe this won't be a popular post, but it needed to be said. I'm sure there are others on here thinking the same thing.

Not everybody is busting on them!
It is the task of any dealership as a business to try to maximize their profit where they can.
It is the task of any consumer to try to get the best deal they can.
These two things cause a load of conflict when really there is a middle ground where both should be willing to meet.

[TommyW]

Wow a business trying to turn a profit...
I'd imagine with all the shipping woes and inventory issues they are needing to find revenue wherever they can find it. If someone just HAS to have that car right this minute and has the resources then it's just another business deal.

[Interceptor777]

I don't blame dealers for insane mark-ups, I blame the people who actually PAY those prices without much haggling. If cars weren't flying off the lot, mark-ups wouldn't exist. Production being limited means the dealers have even more leverage than normal against these buyers.

Another reason I could see for mark-ups is that they want the car on their showroom as an attention grabber. An insane markup ensures that it'll stay in the showroom, or they get a really big profit from it if some insane person walks in.