Wow. $80K for a Pro inc/Dealer Markup

How is this dealer taking advantage of anyone? The markup is clearly shown. No one “needs” a brand new TRD Pro. If someone values the vehicle at this price point, that’s their decision. I don’t understand the outrage over the price of a completely unnecessary thing that the outraged person isn’t buying. My reaction to all these market adjustments is, so what? Or, this is how the free market works.

 

When friends ask why I am keeping my 2nd gen...its paid for.... its still running amazingly...parts are easy to find...mods are a plenty...Reg is cheaper.....Insurance is cheaper.....

 

I literally spit my drink out LOLing so hard seeing your post! +1

 

My only issue with dealer mark ups on "halo" trucks is Toyota bases their model allocations on previous sales. If customer demand is low because the dealer's will only sell them at inflated prices, then they won't make as many and the price gouging for "limited production" vehicles (which Toyota has never said they were) becomes a self-fulfilling prophecy.

 

The same thing happened with the C8 Corvette. Very high market adjustments. Today, you can buy a new base model for less than $65k. That was impossible until recently.

The market adjustments on the Tacoma will be short lived. I’m not sure the Pro and Trailhunter will be able to sustain their MSRP price.

I can’t wait to see the sales numbers for May. One week of selling left…

 

This doesn’t really make sense to me. If the vehicle doesn’t sell the market adjustment will be reduced until it does. MSRP is a mere suggestion. The market sets the price for better or worse. The market adjustments aren’t going to change the number of vehicles sold, just the price at which they’re sold. Dealers have no interest in a vehicle sitting on their lot for extended periods. They only get so many trucks from Toyota so if it’s a hot vehicle they’ll look to squeeze the best profit out of it but also keep the inventory moving.

 

I remember the day I paid off my Tacoma: I popped open a bottle of wine and celebrated! It's an amazing feeling to finally pay off a vehicle and see it sitting in front of your house and think, "F*ck yeah! That's mine."

If you can afford it, more power to you. But I wonder how many people buying trucks at these outrageous prices never pay off their loans. They simply trade it in with negative equity and continue that cycle of debt. Keeping up with the Joneses including their debt.

 

Dealer sells their first Pro with a 5K mark up. New customer comes in and asks if they can get a Pro. Dealer says the are +5K. Customer walks. Dealer thinks he will find another sucker/customer willing to pay the extra 5K. No new customers come. Toyota thinks allocation of one per dealer is right since dealer never asked for additional allocation.

 

Like I said, dealers are not interested in trucks sitting on lots. If the truck doesn’t sell at the markup, it’s reduced until it does. Why would a dealer leave it at the marked up price if it doesn’t sell? Not gonna happen.

Trucks being advertised with markups likely indicate trucks successfully selling at those markups. You can’t support your argument without data that shows that the marked up vehicles are remaining unsold at that price for long periods, which would be counterintuitive and of little benefit to the dealer. Plus, there are other drawbacks to stagnant inventory. Much of it is financed (longer it sits, more interest paid), and even when it’s not, individual margin is less valuable to profit than volume is.

 

There are people on TW that have bragged about not keeping a vehicle long enough to own it.

 

That's not necessarily true. Look at Mitsubishi. They really aren't price competitive but are okay selling at much lower volume/marketshare because they have a larger margin per vehicle. But folks will absolutely walk from markups, or higher prices in general. Of course, Toyota is the largest global manufacturer and that machine is gearing up. Lots around me are filling back up, but still have plenty of capacity. If they get to the production numbers they're shooting for, these interest rates will thwart enough demand to the point where they'll either have to cut production or prices. A buffer for the price floor of production costs are probably baked into those hefty Tacoma price tags right now, so barring big trade/supply line shake ups, they can probably sustain some decent discounts, but they have to get to market first and past that initial supply side scarcity.

 

I never said marked up vehicles weren't selling. I said the dealer sold their allocation with a mark up and when a new customer enquired about getting additional allocation the dealer said yes/maybe but they are +5K. Customer balks and dealer never asks distributor for additional allocation. Distributor/Toyota thinks 1-2 per dealer is all the market will bear and doesn't make any additional.

 

I don’t know why this distinction is a distinction. Why would the market magically stop wanting to pay the adjustment right after the dealer sells their allocation? Besides, if this really happens, the dealer doesn’t just stop there and turn customers away and sit on their hands. Instead, they negotiate a new adjustment or total price. The dealer will only stop requesting more vehicles when they can no longer sell them at a profit. Not when they can’t sell them with the full adjustment any more.

Plus, there is something to be said for selling a vehicle that is physically present rather than one that isn’t on the lot yet. If all the other Tacos sold with the adjustment, even if they aren’t being preordered at that price they may still sell at that price once on the lot. And if not, the bottom isn’t going to fall out of the market all at once. They’ll still sell at a profit, even if the margin is lower. Demand doesn’t just turn off all at once in a regional and even national market.

 

You know what I do think market adjustments affect: next year’s MSRP.

 

So buy a low mileage 2nd gen and spend the money on mods? I paid cash for my truck in 2011 28k out the door, I cant even imagine trying to payoff a loan for 80k plus very high interest. Its financially a piss poor idea.

 

Not a Tacoma but a Toyota product/dealer that is absolutely taking advantage of customers. This is FAR worse than a market adjustment in my opinion...

 

Haa, it's a White one and we all know how the paint could be hit/miss?

 

If you’re bringing production cost into pricing, you’re talking about dealer invoice and MSRP, not actual dealer pricing. Dealers couldn’t care less about production cost. They want to maximize their profit on the sale, that’s all.

A national MSRP is an odd thing anyway, when you consider the way various commodities have varied pricing depending on the location. In certain regions or even locales, market adjustments work, because the economics are different in that area.

 

Anyone willing to pay a mark up doesn't wait around. Those few buyers get the first few allocated vehicles and then they're gone (like magic). Those that want to buy at msrp (or lower) now have to ask the dealer to get a vehicle they don't have. First thing they will do is try to sell what they have on hand (not a Pro), then they will say "I might be able to get one, but they're +5K" since that's what they always sell them for. The dealer knowing/thinking they will only get 1-2 more Pros (if any) isn't going to work hard to sell it for anything less. No additional allocation is asked for. Just a theory.

 

I’m not trying to give you a hard time man. I just think that if there’s enough demand to sell out an entire allocation at the full market adjustment, that demand doesn’t fall off a cliff when the vehicles are sold.

My wife experienced this when Kia Tellurides were brand new and extremely popular. Many dealerships were applying $5k and higher adjustments and selling out. When more vehicles came in a month or two later, they were still selling at that price. Demand is demand.

And luckily she decided not to get the Kia. I never liked them, seemed cheap in the interior.