Dealer Markup

[SC300ES]

The idea that the dealers aren't making money selling at MSRP is nonsense. They don't pay MSRP to purchase the vehicles.

This happens everytime an in demand vehicle comes out. I remember my friend waited a long time to purchase his CR-V because the dealers were asking crazy amounts.

Ed

 

[RebelShadow]

Technically they are making a profit even if they sell at Invoice because the dirty little secret is they don't pay invoice. The industry has what's called a "Hold Back" in KIAs case it is usually about 2% so even if they sold at invoice price they would still make at least 2% profet.

 

[ucinn]

Technically they are making a profit even if they sell at Invoice because the dirty little secret is they don't pay invoice. The industry has what's called a "Hold Back" in KIAs case it is usually about 2% so even if they sold at invoice price they would still make at least 2% profet.

Correct, and they also get monthly sales bonuses. Lets say this dealer has to sell 50 cars in a month to get $50,000 bonus. They are at 49 and it's the end of the month, they will sell you that car for $5000 loss to make 50,000. Believe me, even when you get an unbelievable deal, they aren't losing money. There's an underlying reason they are able to give you that deal for them to make more money.

 

[G-974175]

The dealer we bought ours from was marking up 5k. We called other dealers before purchasing. Location with highest mark up in area was 12k. We were told certain dealers in our area were marking up as high as 15k for the SX.

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[WhiteSX]

Correct, and they also get monthly sales bonuses. Lets say this dealer has to sell 50 cars in a month to get $50,000 bonus. They are at 49 and it's the end of the month, they will sell you that car for $5000 loss to make 50,000. Believe me, even when you get an unbelievable deal, they aren't losing money. There's an underlying reason they are able to give you that deal for them to make more money.

Spot on. Only the GM, owner and dealer accountants know what they're making for actual profit on vehicles. The sales staff will most likely never know. Invoice is a fictitious term. 2 -3 % is the US avg profit on new vehicles. That's before factoring in sunken operational costs. The true profit comes from the back of the house - parts / service.

 

[Karam.31]

With the Telluride, I suspect many people are buying from dealers that they won't use for parts / service as buyers are searching far and wide for the best deal. The dealer I am purchasing from is over an hour from me, but there is a closer dealer only 15 mins from me. I'll be using the closer dealer for parts and service.

 

[G-28261]

Cerritos CA marked the Telluride SX $12k. They were going for $55k

Yup. I got a text from the dealer about that sx. 12k mark up. I told them no way.

 

[AzTelly]

I paid MSRP at Mark Kia in Scottsdale AZ. We shopped 5 different dealers and 4 had the attitude and Mark didn't. Mark was my first stop but they didn't have what we were looking for and I didn't want my wife to have to settle. After all the $2000 over MSRP BS we found, we decided to take swing by Mark Kia one last time a month later before we went another direction. Sat down and the salesman said they had 2 coming in. Ok...tell us more.....Black on black SX w/o tow package and a Black SX with gray interior with a tow package...my wife said Bingo! Write it up! No markup but it was painful to even pay MSRP these days but oh well...she's all giggly with it so life is good! Oh and tires for the life of the vehicle as long as we own it are included at Mark. Yes, they need to change your oil at least once a year but I checked their prices and it's in line with other shops. Overall, these guys were good to work with. They just have to get to know their product better. I knew more about the Telly than the salesman.

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[critrider]

I paid MSRP at Mark Kia in Scottsdale AZ. We shopped 5 different dealers and 4 had the attitude and Mark didn't. Mark was my first stop but they didn't have what we were looking for and I didn't want my wife to have to settle. After all the $2000 over MSRP BS we found, we decided to take swing by Mark Kia one last time a month later before we went another direction. Sat down and the salesman said they had 2 coming in. Ok...tell us more.....Black on black SX w/o tow package and a Black SX with gray interior with a tow package...my wife said Bingo! Write it up! No markup but it was painful to even pay MSRP these days but oh well...she's all giggly with it so life is good! Oh and tires for the life of the vehicle as long as we own it are included at Mark. Yes, they need to change your oil at least once a year but I checked their prices and it's in line with other shops. Overall, these guys were good to work with. They just have to get to know their product better. I knew more about the Telly than the salesman.

Wow...that's the exact opposite of my dealings with them in early April???? Very shady IMO. But I guess timing is everything. Cut a nice deal on an EX at Prescott Valley Kia.

 

[popcrnchicken]

Yup. I got a text from the dealer about that sx. 12k mark up. I told them no way.

I'm interested to see if Cerritos gets the $12k. I called them as well...

 

[Joflo0705]

I bought an sx from a dealer 4 hrs from me paid msrp, when i finished the deal they told me a nearby dealer sold an sx for 57k the exact same as mine w/tow package. I told them what a sucker and drove off.

 

[cheeks80]

I bought an sx from a dealer 4 hrs from me paid msrp, when i finished the deal they told me a nearby dealer sold an sx for 57k the exact same as mine w/tow package. I told them what a sucker and drove off.

Good response !!!

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[chaz1028]

All the dealers in the SF Bay Area and LA Area are charging anywhere between $2k - $6k mark up above the MSRP. I called a dealer in Houston, TX and they are not doing that. CA is the only state that it is charging extra for this car. I guess is the law of supply and demand.

All dealerships in Az have a $2-3k markup as well.

 

[popcrnchicken]

All dealerships in Az have a $2-3k markup as well.

At this point, word has gotten around. A lot of dealers are marking up. Just be happy it’s not a $12k markup like LA.

 

[13_FST]

My dealer originally wanted a $5K markup. This is in Alberta, where supply is fairly limited.

I walked out and they came back to me at MSRP less some free stuff and good trade value for my then-current car. Good deals can be had if you have patience, and if you're willing to play the game that the dealers play.

 

[popcrnchicken]

My dealer originally wanted a $5K markup. This is in Alberta, where supply is fairly limited.

I walked out and they came back to me at MSRP less some free stuff and good trade value for my then-current car. Good deals can be had if you have patience, and if you're willing to play the game that the dealers play.

That’s not happening around here in CA. I’ve talked to at least 10 different dealers within 300 miles and no one is budging. Most of the cars are sold the same day they get them in.

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[G-452345]

I went to see the Telluride for the first time today. The dealership I went to, which will remain nameless, didn’t use a standard markup, but added over $3,000 to the MSRP with items such as security system, nitrogen filled tires, and a paint/fabric protection. Needless to say, I won’t be buying from them if they don’t remove those charges. I can wait another 2-3 years when my next lease is done to take a look.

My dealership did the same thing I'm buying the Lincoln aviator now

 

[Jdgate]

My dealership did the same thing I'm buying the Lincoln aviator now

If I could I would probably get an Aviator also. However at 10-15 grand more my wallet does not want me to get an aviator, LOL.

 

[Greengoblin]

All the dealers in the SF Bay Area and LA Area are charging anywhere between $2k - $6k mark up above the MSRP. I called a dealer in Houston, TX and they are not doing that. CA is the only state that it is charging extra for this car. I guess is the law of supply and demand.

maybe not the dealership you shopped in Houston but I dealt with a Houston dealer who tried to up charge the base SX by $10,000. All over the State of Florida they are marking up the vehicle as well. Definitely not exclusive to California

 

[Greengoblin]

My dealership did the same thing I'm buying the Lincoln aviator now

My telluride should be arriving in about 2 weeks but if there was one other vehicle I would want it would be the Lincoln aviator. That is a fine machine