I’m not supporting the dealers position….either one way or another. As a matter of fact, I refused to buy from this dealer because of their markup…even though they are only a few miles away. But what’s ironic here, is we call the dealers unscrupulous…and then we (buyers) used to go into a dealer (before everything changed…pre pandemic) asking for under MSRP…sometimes by thousands also. Sounds almost like the same coin…but a different side of the coin. Oddly enough, I think the dealers are just trying to make enough money to stay in business…given shortages of cars to sell….and we all want want ours at the lowest possible price and then complain when the dealer does not or perhaps cannot deliver 5 star full price and full benefit service. I’m not taking a side here, just trying to see both sides of this. I hate haggling, but I think that it may be the only way to get a decent deal…..like it or not, the dealer is just doing what most folks in business would do…protect the business and maximize profits. Ok, that’s my 2 cents. Flame away.
No flaming needed. Supply and demand covers the vast majority of this. The exception is when a less scrupulous dealer manipulates available information (lies) or flat-out takes advantage of a customer. There’s a line there — I can’t draw it hypothetically because each situation is different.
My complaint is the over MSRP dealers that are hiding behind these BS forced "packages" and not clearly stating the true final price. If you want to put a ADM on every unit for "limited supply" then just come out and say it. That way I know for sure to avoid your dealership.
Selling vehicles for under MSRP was due to the business model of the OEMs. Their profit margin was based on volume: build as many as possible and off load them quickly by winning buyers with low prices (aka the Wal-Mart business model). Competition forced dealers to under cut each other thus driving prices down further. Dealers made plenty of money selling below MSRP for decades due to hold back, turns out even below MSRP includes a reasonable profit margin for them if they run an efficient business.
However these days its no inventory = higher prices, which makes sense. However since this dealer has 3 Limiteds in stock its hard for them to claim they have no inventory. At $4k over hopefully these units collect dust until the dealer is adjusts their pricing to reflect current market conditions. If some sucker pays up that rewards the dealer for their behavior which leads to other dealers continuing the same practice.