Dealer markup on 2023

My mid-Atlantic region Tacoma search got serious in June-July of 2023. Purchase in Southeast region late August.
Conclusions:
1. When it comes to increasing distributor/dealer profit, there are many ways to skin that cat.
2. It begins with window sticker "bloat" which the dealers say can't/won't remove. Some of the worst: theft insurance, grossly inflated cost accessories, etc.
"Premium Audio" is just renamed audio when associated with telematics - "assisted navigation". Cavet Emptor at window stickers.
3. "Dealer Advantage" such as "lifetime engine warranty", etc., etc. This is often applied after you think that you have negotiated your deal. $1,000-$2,000.
4. Documentation Fee: Dealer associations have gotten this fee enshrined in some state laws as "consumer protection"! $650-$2,00 or more!
5. Deposits: Never consider making a deposit until you have an "out the door" price, written/DETAILED "buyers order", signed by the sales manager. Always assume that your deposit is not refundable, and that you have cash in hand or financing approved by your credit union/bank.
6. Financing: another opportunity for dealer profit. Oops! You don't qualify for the advertised rate, but we can fix that for additional ... Your deposit ensures your cooperation.
7. Additional services and subscriptions: Be prepared to be subjected to high pressure sales tactics to purchase window tint, paint sealant, interior fabric protection and warranties, nitrogen in tires. The services are sometimes applied prior to delivery, and you are "expected" to buy/pay for subscriptions. No matter that the distributor already gouged you for TOYOGUARD Platinum paint and interior protection, the dealer has applied an additional paint/interior system. It has a warranty!
8. You arrive at the appointed time to pick up your new Tacoma. The "finance guy" is backed up and you wait a couple of hours. You are excited, getting tired, and then the sales pressure begins. It helps if you have been trained to resist enemy interrogation.

 

I mean it's good for what it is ?

 

Taken right out of the how to buy a car (1995 version).

 

Anything above MSRP is a ripoff. I drove 1200 miles one way to get my Taco at MSRP last November. By this time I wouldn't be wanting to pay full price on anything but a Pro, and I flat refuse to pay over MSRP. Especially with today's ridiculous interest rates.

 

August 2023, third week, central NC, paid $1300 over window sticker, SR5.
Window sticker included:
$1700. by Toyota/OEM for sonar parking sensors, and "assisted" navigation, renamed "premium" audio.
$699 TOYOGUARD Platinum by SE Toyota distributor. Two "free" oil changes!
$339 All Weather Floor Mats by SE Toyota distributor. Hey, they were "installed"!
$1335 Delivery and Handling. Transport from Mexico is in line with individual contract rates.

V6, LWB: Specifications were close to target.
The perfect spec was offered, same week, in Greer, SC for 10K over window sticker.
I encountered several dealers who were not willing to sell out of state.
Several dealers were willing to sell out of state with hefty mark-ups.

Post-purchase on-line shopping has not yet shown a better deal.

Understanding that the state of the market is what it is, I'm satisfied with my purchase.
Especially true since there will be no V6 for 2024.

 

Thanks! Still true today too!
This was (mostly) my actual experience.

A warning, from an old geezer to those too young to read it in 1995, should be sufficient.

 

You're rewarding bad dealerships in that manner. Dealer I bought from advertised a price $2,900 off MSRP and showed a doc fee of $324. I called and asked any additional fees, no. Gave them a deposit, showed up and no issues. Asked if I wanted a warranty and I said no. Then printed paperwork and I was on my way.

 

You are correct. I do regret rewarding bad behavior on the part of Toyota (mis-leading ads/info), Distributors (adding bloat) and dealers (above market pricing).
However, I did attempt to reward the least bad behavior.
The antics are right out of the parable of the "Frog and the Scorpion". That's just who they are.

 

You can't blame Toyota for what dealerships do. They are separate entities, not owned by Toyota.

 

My most recent deal, after 5 hours, the dealership presented updated pricing including markup and add-ons totaling $7k plus.

I told them the same thing I tell all dealerships, is that I don’t do business with dealerships who have a markup and that they wasted our time that day. I think I’ve said that to 10-15 dealers in the 6 months leading to buying my latest.

Fortunately this dealer folded, lost the markup, all the add-ons disappeared and they made up for their shit. I politely railed on the manager for pulling that shit with me and wasting my day. He asked why I didn’t want the add-ons and after telling him, I was below msrp, I told them to send an updated pricing sheet and it was done.

The whole thing felt slimy, but it was the truck I wanted, and the only truck I wanted and the first time I saw it in 6 months of on and off looking.

They delivered it to my house hours later, I signed contracts on the tailgate and they drove away my trade.

My nephew bought a Corolla days earlier from the same dealer and they were below msrp from the start, for an in-demand car with markups everywhere else.

 

Buck, I respectfully disagree ...
Toyota creative marketing can be quite misleading: The "advanced technology" package claims "premium audio". It appears to be the same SR5 audio system as without the $1700 kit.
Also, Toyota markets traction control (an ABS function) as Electronic Limited Slip. They feature a differential, showing ring gear, in the advertising/description. Quite misleading. The truth is hidden in the fine print notes on the last page.

 

Thanks for telling of your experience.
If you spent 2 hours per dealer X 15 dealers, that's 30 hours. Add in the last five, that's 35 hours total.
$7,000/35 hours = $200/hr. Not a bad return on your investment of time.

Did you not pay a fee for DMV title/processing?

Folks here say that they paid MSRP. Does that really mean sticker price?
Do folks actually ignore distributor options added and Delivery, processing and handling?

 

Premium audio should be the JBL, with a sub behind the seats in the back, shouldn't it? I'd have to check the Toyota site for what they specify is in it.

The simulated limited slip is NOT traction control. That's a separate function.

I can't speak toward the gear pic, as I never saw it, but is it possible they were referring to the locker that some models/packages have?

I'll be the first to say that marketing is lying as much as is legal. That still doesn't mean dealership practices are controlled by the manufacturer or vice-versa. That point you quoted still stands.

 

Must be different in the US. Here in Canada, Toyota has a strict "No Haggle" policy. In other words, you pay the sticker price. They "claim" it's to make the purchase process stress free.

On my fist Tacoma in 2008, I was able to get them to throw in the side steps, and a bed mat, but no dealership was willing to budge on the price.

 

Can't speak for up north, but dealerships in the USA are independently owned and set their own policies. That's why you'll have drastically different experiences at different dealerships of the same brand.

 

This is "dealer speak" as I've heard it soo many times before. The "truck" is a year old. Yeah, the 2024's aren't available yet but if you owned it, they'd knock you down for that year.

 

If you have time to search, look somewhere else. I got MY 2023 OR DCSB at MSPR. Not all dealers are stealers. I had CA with 9.5K dealer adjustment, NJ with 5K, … You are not dependent on them - they are on your business!

 

As others said, you gotta look around. If you are not in a hurry to get a truck NOW, find a good dealer and wait for when they have an allocation close to your spec coming in at MSRP.

I bought my '21 TRD OR Manual in mid 2021 just as the dealer add ons were becoming normal. I searched all over the Northeast for a manual at a reasonable dealership. I ended up paying $1000 under MSRP at Newburgh Toyota in NY. Here's the price, they offered all the warranties, pixie dust paint protectant and other BS, but didnt go for the hard sell. Finance manager wasted two days trying to beat my credit unions rate but couldn't come close.

 

Just an FYI, I was able to "secure" a TRD OR for $39.8 @ TOYOTA Direct in Colombus, OH. MSRP was $42.8.

 

Started another thread, but found my unicorn! In rural Tennessee, that was a long journey there and back. But well worth it..

2023 slightly used TRD Sport Premium 6MT, 7900 miles. $41,500

Love it!