Is this dealer mark-up for real?

[bcj]

It's likely one of the cheapest cars for them to hold for a few months as a draw for the dealership.

"Hey! we've got this Levorg over here that costs $50 less than that BRZ!"

[2020BRZtS]

The car is not listed in their inventory. It may have sold.

[dreamwonder]

East coast. I inquired with about a dozen dealers. Handful was at 3k+ msrp. Most is at msrp. 1 was at 1k below msrp. 1 was at 200 below msrp.

[Ernest72]

Remember the price of something is what someone is willing to pay for it. Let’s see what it goes for. I have seen old porsches on the market for years at crazy prices. Guess what, no one is buying them at that price. Crazy market right now.

[Veloist]

Another thing people don’t realize since it’s more behind the scenes…

The ultimate buyer of this car needs to either be loaded or be in excellent financial standing (excellent credit score, outstanding credit history, large down payment). Typically people with excellent financial standing are pretty good with their finances so they know what they’re getting into.

What people don’t realize is that it is downright difficult to get a car loan approved (no matter how good the credit) for a car with a purchase price 50% over its invoice. Auto loans use the vehicle’s invoice (which actually isn’t too far from the MSRP) to determine it’s “value.” When the mark up is 10, 15,000 the “Loan-to-value ratio” would be enormously high and banks won’t want to touch it.

In these cases, the dealer has no choice but to drop the sale price for it to attain the max LTV ratio for approval.

Based on experience, the only loans that get approved with a high mark up are the people who are putting $20,000-$30,000 as a down payment.

On the other hand, there are people who just pay cash. While it would seem more rare, it is actually more common here. If you’re bored just look up Hillsborough, CA up on google or Atherton, CA and you’ll see why.

[Veloist]

Hillsborough and Burlingame (city the dealership is located in) are basically the same city. They share the same zip code and the dealership is 4 blocks from the boundary of the town.

Atherton is roughly 10 miles south and Los Altos is roughly 20 miles south.

So yeah.

[LanceLane174]

Originally Posted by 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.

I agree completely with both of your paragraphs.

[Ultramaroon]

I thought twins were for the poors.

[spike021]

The dealer I got my BRZ from (Serramonte in Colma, CA) does the exact same thing. I remember seeing the Series.Yellow listed there in the showroom for $45k-ish and regular performance pack 2017's for $35-40k at the time.

But I ordered mine through one of the salesman ahead of time and I got mine for invoice or at least a bit lower than MSRP.

I think it's obvious a showroom one will be overpriced because there's always at least a chance some idiot with $$$ will come walking in and not care about markup.

If you know your shit about the car, then it's much easier to just sit down with a salesman and hammer out the right deal for the both of you.

[Veloist]

It’s actually detrimental to keep a car in the inventory especially during this time. Having old cars, even just 1, ruins chances to get more inventory in the future.

And in this day and age, dealers need as much inventory as they can get.

[PhatFreshPrince]

Originally Posted by dreamwonder

East coast. I inquired with about a dozen dealers. Handful was at 3k+ msrp. Most is at msrp. 1 was at 1k below msrp. 1 was at 200 below msrp.

In Georgia, BRZ we’re going for MSRP and some did $500 less than MSRP, but this was back in September when I ordered mine.


Sent from my iPhone using Tapatalk

[timurrrr]

Originally Posted by Ultramaroon

I thought twins were for the poors.

And yet it is arguably one of the most fun cars to drive on the street if you don't want to be too much above the speed limit, at any price point.

Given that the interior finally feels decent, I won't be too surprised if BRZ-2 and GR 86 become popular as "weekend fun" cars among more rich people, like ND Miata became before. I mean the rich people who want their own experience over flashy stuff. They do exist in the Silicon Valley for sure.

[Ultramaroon]

Originally Posted by timurrrr

And yet it is arguably one of the most fun cars to drive on the street if you don't want to be too much above the speed limit, at any price point.

For sure! I was just shitposting for my fellow poors. Sensible fun is best fun.

[LanceLane174]

Originally Posted by Veloist

It’s actually detrimental to keep a car in the inventory especially during this time. Having old cars, even just 1, ruins chances to get more inventory in the future.

And in this day and age, dealers need as much inventory as they can get.

Is that really how it works? I would have thought it goes by how many you sold last month or last quarter or something like that.