Canadian Stock Allocations

[Petah78]

Originally Posted by Tcoat

Canadian car dealerships (well Ontario ones at any rate) can most certainly mark up all they want. The R in MRSP means Recommended not Required.
What they CAN'T do (by law) is advertise at one price and then tell you it is more later. If they want to mark an 86 up to $50K then they have to advertise it at $50K.

This is very interesting and it is news to me, i always thought dealerships in Canada are not allowed to mark up. Glad i got mine @ MSRP.

[Tcoat]

Originally Posted by Petah78

This is very interesting and it is news to me, i always thought dealerships in Canada are not allowed to mark up. Glad i got mine @ MSRP.

Nope they can do whatever they want with pricing.
They are really just a business like any other so the standard rules apply.
Most don't mark up since they are making far more off the financing, service and add on packages than they ever would from the actual car price so why risk a sale just to make a bit on a mark up?

[Tcoat]

Originally Posted by Rustyoid

YES!!!

A ton of misconceptions going around, this is exactly right

Probably more than any other business.
I always find it interesting the theories that come out for car sales. People think because they are a high ticket item there must be huge mark up and profits when really the dealer and staff would starve to death if just selling the cars.
My wife has been in the industry (car and then RVs where the same thoughts prevail) for about 30 years so I have heard most of the stories.

[Petah78]

Thank you for the clarification. Thankfully, i dealt with a honest dealership for my MY22.

[justinczt]

Local calgary dealership has a Supra listed for $84,000, last week they had it listed for $89k

[Tcoat]

Originally Posted by Petah78

Thank you for the clarification. Thankfully, i dealt with a honest dealership for my MY22.

There is nothing dishonest about dealers that markup. You just need to see their perspective.
They are a business. This is how they earn a living. If you could get more pay for your job would you say "Oh no I am good you just pass that savings on to the customer"?
If you are selling your car and had 10 offers ranging between $0 and $5,000 above you asking price would you pick the $0 guy?

[Tcoat]

Originally Posted by justinczt

Local calgary dealership has a Supra listed for $84,000, last week they had it listed for $89k

That's the thing about mark ups. They can only be sustained under very high demand conditions.
Either some fool is going to pay it to be first or the price will eventually drop as the car sits there.
It is consumer impatience and "I want it NOW" that allows mark ups to even work in the first place.

[Backfire]

Originally Posted by Tcoat

It is consumer impatience and "I want it NOW" that allows mark ups to even work in the first place.

This. Nobody forcing anyone to buy a car at a marked-up price. Go somewhere else, or buy something else. You're either going to use up time to get the price you want, or spend extra money to save time.

[Slanders]

Originally Posted by Tcoat

Canadian car dealerships (well Ontario ones at any rate) can most certainly mark up all they want. The R in MRSP means Recommended not Required.
What they CAN'T do (by law) is advertise at one price and then tell you it is more later. If they want to mark an 86 up to $50K then they have to advertise it at $50K.

I always assumed, then, that since they advertise new cars on the manufacturer's web site, with pricing (MSRP), that they can't charge more than that for a new car. Which is why they will instead add on a bunch of charges for arguably useless items like nitrogen in the tires, anti-theft etching, etc.

[Sport-Tech]

Originally Posted by Slanders

I always assumed, then, that since they advertise new cars on the manufacturer's web site, with pricing (MSRP), that they can't charge more than that for a new car. Which is why they will instead add on a bunch of charges for arguably useless items like nitrogen in the tires, anti-theft etching, etc.

That is not dealer advertising though, so according to what was stated earlier that would not restrain dealers from charging more.

I do wonder if something else we don't know about is going on that constrains dealers here from typically adding ADMs in US fashion. They don't need to advertise in-demand cars like the GR86 so they are not legally limited by ad pricing. Why would they pass up the money grab their American peers are enjoying if they could easily get it? It's not as if Canadian dealers have some kind of special "virtue gene".

[Tcoat]

Originally Posted by Sport-Tech

That is not dealer advertising though, so according to what was stated earlier that would not restrain dealers from charging more.

I do wonder if something else we don't know about is going on that constrains dealers here from typically adding ADMs in US fashion. They don't need to advertise in-demand cars like the GR86 so they are not legally limited by ad pricing. Why would they pass up the money grab their American peers are enjoying if they could easily get it? It's not as if Canadian dealers have some kind of special "virtue gene".

Correct. The law is even written that the dealers are not held to manufacturers advertising. Also still goes back that the manufacturer materials are only saying it is a suggested price. The very definition of the word suggest is "put forward for consideration". It is not a Manufacturers Mandatory Retail Price.

The Canadian consumer is probably a little less impulsive and not a willing to pay markups to have that product RIGHT NOW. Also, all in all, the Canadian auto retailers don't have as big a market base as the US so dealers can't count on somebody else walking through the door if they lose a sale due to markup. Car sales depend upon volume not price point to make real money so dealers that charge a mark up are risking more with the much lower Canadian volume.

[Ambassador Foolish]

Originally Posted by Tcoat

Correct. The law is even written that the dealers are not held to manufacturers advertising. Also still goes back that the manufacturer materials are only saying it is a suggested price. The very definition of the word suggest is "put forward for consideration". It is not a Manufacturers Mandatory Retail Price.

The Canadian consumer is probably a little less impulsive and not a willing to pay markups to have that product RIGHT NOW. Also, all in all, the Canadian auto retailers don't have as big a market base as the US so dealers can't count on somebody else walking through the door if they lose a sale due to markup. Car sales depend upon volume not price point to make real money so dealers that charge a mark up are risking more with the much lower Canadian volume.

This seems to be the right answer in my experience. I would've been first in line at Subaru if I placed an order there because nobody has purchased from them (at the time of my inquiry).I assume this is because their financing rate is almost double that of my local Toyota. For reference, I'm 6th in line for an 86 at my dealership. Seems to boil down to the idea that they must be losing enough sales that they charge close to MSRP

[Tcoat]

Originally Posted by Ambassador Foolish

This seems to be the right answer in my experience. I would've been first in line at Subaru if I placed an order there because nobody has purchased from them (at the time of my inquiry).I assume this is because their financing rate is almost double that of my local Toyota. For reference, I'm 6th in line for an 86 at my dealership. Seems to boil down to the idea that they must be losing enough sales that they charge close to MSRP

Yep. Just not worth their while to lose volume for a couple of thousand dollars. If they are charging mark up it means they are probably keeping volumes up so can afford to have people either pay the premium or walk.

[Ambassador Foolish]

I'm very excited, but I'm trying to temper my expectations. Earlier this week my dealer said the factory has confirmed my order and that my car will be built. I'm just curious what a rough estimate/timeline would be from this point? I know everything is backed up, but the time range I got wasn't super helpful (2-6 months)