kpinthebay
Member
Same! Sold the model Y to try something different but just cannot stand dealers. All were 5-10k over.
Ended up ordering M3 before the recent hikes.
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Dealer markups drove me to buy a Tesla
- Thread starter zarrack007
- Start date
Ended up ordering M3 before the recent hikes.
EVRider-FL
Active Member
I’m retired too, but still have more than $7,500 of tax liability from investment earnings and 401(k) withdrawals. The IRS makes it easy to owe them money.
LOLBookstores will never go away, no matter what Amazon does! People want to browse, and feel the touch of paper, and
Oh wait
Borders files for bankruptcy, to close 200 stores
Borders Group Inc filed for bankruptcy protection and said it would close about one-third of its bookstores, after years of shriveling sales that made it impossible to manage its crushing debt load.mobile.reuters.com
Anyone hoping for the shortage of cars problem going away soon may be surprised and disappointed.
Chip makers are in the drivers seat (excuse the pun), so they are making higher margin chips vs. the lower margin chips found in cars. This adds to the shortage of the chips in cars. Furthermore, every time in China they close down some city or large area due to Covid, they are closing down manufacturing of the chip makers, further compounding the problem.
I have a ways to go on this but I am starting the 2nd year of my 3 year lease. I have leased before and always turn the car in for a new one, but with what is going on in the shortage of used cars and new cars, this is going to be a problem. In my lease there is no residual or buyout price for the car, so if, and only if, Tesla will sell me the car, they will value at current selling/market price, not the price I bought 3 years ago.
Chip makers are in the drivers seat (excuse the pun), so they are making higher margin chips vs. the lower margin chips found in cars. This adds to the shortage of the chips in cars. Furthermore, every time in China they close down some city or large area due to Covid, they are closing down manufacturing of the chip makers, further compounding the problem.
I have a ways to go on this but I am starting the 2nd year of my 3 year lease. I have leased before and always turn the car in for a new one, but with what is going on in the shortage of used cars and new cars, this is going to be a problem. In my lease there is no residual or buyout price for the car, so if, and only if, Tesla will sell me the car, they will value at current selling/market price, not the price I bought 3 years ago.
I had the same situation as many of you. I was looking at the Hyundai Ioniq 5, which MSRP was 7,000 more than the Model 3, on top of that the slimeball dealer wanted another 7K in dealer markup. I'm very happy I placed my order for the Tesla Model 3 and avoided the whole Stealership experience. Hoping these dealerships go the way of the Dinosaur.
Honestly, the dealership sales people I've dealt with have been fine in my experience (as most were referrals/internet sales managers and I negotiate the price of the car before going in). But the part that makes me cringe the most is the 30+ minute wait just to stick you into a smallish office with the finance person who tries to upsell you on everything else while you're signing...
MSRP is just the manufacturer's suggested price... Since most traditional auto dealerships are independently owned, they can do whatever they want and mark-up the car at any time before you sign the final paperwork.
If I already negotiated the price ahead of time, I would find it highly unethical if a dealership marked the car up when I went to purchase/pick it up (and I would walk away from any car at that point), but it does happen.
RayK
Active Member
Ages ago, in the dawn of the internet online buying landscape (circa late 1999), I found myself wanting / needing to buy a new car. A recently established company, carOrder.com, was a virtual car dealership which basically operated as a broker. You would specify exactly what vehicle you wanted, with the same list of factory options to choose from, all at an established price (usually invoice but no higher than MSRP) and they would go out and find a dealership willing to provide what you wanted.
In my particular case, I wanted a 2000 BMW 323i with the Sport and Premium packages, Orient Blue metallic paint, sunroof, Xenon lights and the leatherette (fake / pseudo / mock leather) interior. After putting down a deposit and placing my order I had to wait about 3 months. Right before delivery I was contacted by the company and told my car was ready but that it had the optional leather interior. I told them I did not want that, but they said that they would cover the cost (!!!). I think that they were at the point of bending over backwards to please their customers. Having agreed to accept the car at the original quote, I wired them the money and they arranged delivery to my home. I believe it was just over $31K out the door, a pretty good price at the time since all of the local dealers wanted at least $35K before taxes, license, etc. When I received the car, I noticed it had Nick Alexander BMW (Los Angeles) license plate frames. So carOrder.com went to LA to find the car and then had it trucked up to me in San Jose.
They didn't last more than two years. My understanding was that near the end, they tried getting out of the virtual and into the brick-and-mortar part of the business but that failed too. Seeing how they probably ended up losing money on my deal since the leather option was a bit over $1K, it's no surprise their business model was doomed.
The best part of that deal was that I didn't have to interface with a dealership's sales force. Same as with the purchase experience with the Tesla. A set price, although it's been a moving target recently with Tesla, and a non-commissioned staff makes for a stress-free transaction. If I ever have to buy another car, it's going to be a Tesla or another EV manufacturer that has an identical approach to sales.
In my particular case, I wanted a 2000 BMW 323i with the Sport and Premium packages, Orient Blue metallic paint, sunroof, Xenon lights and the leatherette (fake / pseudo / mock leather) interior. After putting down a deposit and placing my order I had to wait about 3 months. Right before delivery I was contacted by the company and told my car was ready but that it had the optional leather interior. I told them I did not want that, but they said that they would cover the cost (!!!). I think that they were at the point of bending over backwards to please their customers. Having agreed to accept the car at the original quote, I wired them the money and they arranged delivery to my home. I believe it was just over $31K out the door, a pretty good price at the time since all of the local dealers wanted at least $35K before taxes, license, etc. When I received the car, I noticed it had Nick Alexander BMW (Los Angeles) license plate frames. So carOrder.com went to LA to find the car and then had it trucked up to me in San Jose.
They didn't last more than two years. My understanding was that near the end, they tried getting out of the virtual and into the brick-and-mortar part of the business but that failed too. Seeing how they probably ended up losing money on my deal since the leather option was a bit over $1K, it's no surprise their business model was doomed.
The best part of that deal was that I didn't have to interface with a dealership's sales force. Same as with the purchase experience with the Tesla. A set price, although it's been a moving target recently with Tesla, and a non-commissioned staff makes for a stress-free transaction. If I ever have to buy another car, it's going to be a Tesla or another EV manufacturer that has an identical approach to sales.
I know, but I think when you order the VW ID4 online, you lock in the MSRP price and just take delivery from the dealer. I might be wrong, would need to hear from someone who recently ordered online and bought an ID4.
Shelburne
Member
It's not just the dealer mark up that pisses me off about traditional car dealerships: it's the attitude of most salemen. They are going to try their hardest to steer you towards the car they want you to buy, not the car that's best for you. Then when you finally think you've come to an agreement about the car and the price, the salesman will almost certainly say, "Now, I've gotta get my sales manager to approve the deal." And then you start all over again. I have other issues too. Way back in 1990, I bought an Eagle Talon Tsi AWD. It was a sharp looking little 2+2 sports car with a very smooth and very rounded plastic rear bumper. I ordered the car custom rather than pick one off the lot. I had paid a deposit on the car and I had a check with me for the remainder - no deals, no financing, just a check for $20,020. Then the salesman said it would take another 30 minutes while they put their dealership logo on the back. Not a decal but a metal logo that had to be screwed into what was soon to be MY car. I told the salesman I wouldn't let them do it. He told me it was out of my hands. So I walked out with the check. The dealership tried to sue me for breach of contract! I sued them for my deposit check. It was a very ugly experience. Ultimately, the case was decided in my favor and at the trial, the sales manager offered me the car again. I got one from a different dealership instead, but it took 3 months to get to that point. Ever since then I have hated car dealerships...until Tesla came along.
RayK
Active Member
I've noticed that with many out-of-state vehicles here in CA. I thought it was mainly a MidWest kind of thing. Here, at most, you'll get a decal on the trunk but usually it's a license plate frame which is easy enough to remove/replace. Before the recent mandate (Jan 2019) of having temporary "paper plates" when the car leaves the lot, it used to be that dealers would have their own plate-sized advertisements mounted inside the frame. First thing that got removed from my cars.
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We purchased an Infinity at a used car dealership last year. After we signed all the paperwork (and declined all the BS with the finance guy) they took the truck in the back to "detail" it. After 30 minutes they pulled the truck around to the front and had added the dealership name across the top of the back window..... Stopped on the way home for razor blades. Was happy to see that Tesla just included a Model 3 license plate holder.... Chrome on a car with no chrome but it will do for now.
stopcrazypp
Well-Known Member
Someone posted an example where the dealer charged higher regardless of the reservation. Legally because most traditional automakers are under franchise contracts (which are protected by various state laws), they cannot force a dealer to sell at MSRP. They can do indirect things to punish dealers that try to gouge (like reducing allocation), but they can't force them to sell at MSRP, given they are not doing direct sales. There are various laws out there that ban a car manufacturer from doing direct sales if they have franchise dealerships in the same state. The automaker may be able to help you find a dealer willing to sell at MSRP from another region, but if your local dealer wants to gouge you, there is little they can do.
Time for VW to invest in a "startup" called Wolksvagen who coincidentally doesn't have any dealerships so they can sell direct to consumer
The traditional dealer network charging insane EV markups is driving consumers to Tesla. I have been shopping for an Ioniq 5 and then RAV 4 Prime only to find all the dealers charging anywhere from $5K to $10 over MSRP. I also complained to Hyundai corporate but they don't seem to care
Eventually, I ended up ordering a M3LR just before the $3K price increase 2 weeks ago and it is expected to be delivered in June '22. Although the Tesla came out to be a bit higher than my budget, I believe it will pay off in the long run for two reasons: the Autopilot technology and Tesla's supercharger network.
I cannot believe how these traditional Auto companies can turn a blind eye on this huge inconvenience to customers. This and the charging infrastructure are the biggest bottlenecks facing the ICE manufactures. Until then Tesla will be reaping the benefits.
Lots of reasons to buy a Tesla and that is for sure one of them. I was done with BMW "service" always something every 10k miles when I took it in and that was under warranty! The whole "zero" maintenance is a great thing. In addition not paying recent gas prices, free driving in "pay to ride" PeachPass lanes and 1 person HOV. The technology is just icing on the cake for us.
Enjoy your M3LR I do mine and the wifey loves her M3SRP even more.
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Exact same story here. Thankfully I did a 'backup' order of a Model 3 while I was looking for other possibilities. I was so annoyed and disgusted with the sleazy tactics of these dealerships. That alone was worth buying without a dealership. Even these dealerships who bragged about no markups, get me to come in only to show me another $4-5k of added dealer-installed junk.
I'm still keeping my options open until I get a delivery date on my new Model 3, but I have a feeling I won't find anything better.
I tried really hard not to buy a Tesla, but the insane car market this year made the decision to buy a Model 3 LR very easy. I just had to wait a couple of months.
When people balk at the price now, I just tell them I bought a $30K car and paid for the equivalent of 10 years worth of gas up front at a discounted rate. And with current gas prices, the price argument is even more in favor of Tesla.
When people balk at the price now, I just tell them I bought a $30K car and paid for the equivalent of 10 years worth of gas up front at a discounted rate. And with current gas prices, the price argument is even more in favor of Tesla.
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