Fremont TRD Pro mark up

Buddy of mine is a used car sales manager @ a Toyota dealership in the east bay. He said they're marking up 20%-30% above msrp or normal retail value and people are still buying. Crazy times...

 

I truly think this is the new normal.
The dealer model has drastically changed, even though they are selling the same amount of vehicles.
I think the day of having several hundred new cars on the lot to choose from has forever gone away.
I think MSRP is the new normal because the market has proven people will pay list.
It's been two years. No signs of manufacturers catching up.
In addition, and this is fact, not only are passenger vehicles doing this, but every part and component in pretty much every manufactured product has increased significantly.
For example, our components have increased sale price by 15% since last year. Yet, we are still making the same margin because all the materials required in our components have increased that much as well.

The biggest winners?
Raw material and commodity producers.

The biggest losers?
Us. The end users.

The inflation rate in the US right now is 7.5%.
Unless you got a raise of this percentage this year then you are making do with less.

 

When I was in the market, Fremont had a 5-10k mark up on all their trucks before the madness was in full swing. I don't understand how anyone pays their prices. It's not that difficult to look around and find something at MSRP. I think they mostly prey on uninformed customers with the monthly payment numbers tactic.

 

Tacoma sales are down, inventories are depleted, production forecasts are dropping, market adjutments are up, the price of fuel along with everything is up and increasing, taxes are due on stimulus payments.

 

Most people need a vehicle, so if you’re in the unfortunate situation of having to car shop, you’re gonna end up paying. You really only have control over make, model, year, and mileage (and availability of course) in terms of any price/budget control. I have no interest of entering the car buying market at the moment, which has even increased my road awareness when traveling. I sure don’t want an accident to force my hand.

 

We have MUCH more power than you think. But these record profits in all markets is what's continuing everything. And that makes it worse for the people who can't afford things before covid. But that's another rant i care not to start on this thread.

 

There was a new tundra at the dealer near me with a 15k markup. It sold within a week.

 

You guys are totally missing the bargain here. The dealer is eating the $1250 destination charge. They are basically selling that truck at a loss!! Hahahaha. What a bunch of fuckery.

 

That’s the current market, yes… but remember, it only took us a year to get into this mess. The fall off can/ will be rapid as well once inventory catches up across the industry. It doesn’t pay for these companies to not have inventory, they might be selling the vehicles at higher prices- but they don’t have as much traffic in their service department / not making as much money from each transaction with the banks.
Volume = king, always will be.

Most people will go to other brands if there current wanted vehicle isn’t available and they need one asap. That’s a lost sale, service contract, interest from the bank financing.

 

Here is an interesting site. It crowdsources dealer markups nationwide.

https://markups.org/

 

I have been seeing a lot more new Tundras on the road. Haven't priced them at any dealers, but presumably they are marking them up.

 

My understanding is the last year or 18 months or so has led to record setting profits for dealerships.

 

At least they were honest about the 500$ not required. Lol

 

Anyone try walking in say i need a salesman, i want this truck. Then tell them you have a trade. When they tell you their trade price, say just add 50k market trade in adjustment.

 

You're right, we do have power. But only in numbers. Individually we're screwed. As a group large enough to reject the product at these prices we could change the dynamic. As others have noted, however, we are not united at all and there are still enough buyers at these prices where nothing will change for the foreseeable future.

 

Well damn, 58,000 MSRP was already high enough. GMC or Ford @ 0% APR would be the obvious choice if in the market for a new truck, if there isn't any Toyota dealer selling Tundras at or below MSRP.

 

Having the "Protecting the Consumer" under the markup is hilarious!

 

"Protecting the Consumer"

Right............