Dealer markup on 2023

My guess: world events, inflation and diminishing supplies of V6 Tacoma will boost prices through 2024.
Dealers gotta survive/pay fixed costs with diminishing supplies.

 

There is a method to the madness:

Look for Toyota “Smart Path” dealers. Smart Path is a Toyota program to help control dealer markups.
Dealers who participate are usually ‘high volume’ dealers. I was seeing $7k+ markups in California when I started looking in April for a manual OR DCSB 4x4 with the minimum of options. I ultimately paid $100 under MSRP (just under 40k) for mine.

I had to drive 200 miles out but, at least, Smart Path dealers don’t pressure you. They just do the deal and move on to the next…volume, volume, volume.

You can model your truck up on the Toyota site to get a feel for the MSRP with the options you want and then look for participating dealers with something similar.

 

My August 2023 Toyota Smart Path experience was a bit different. The Smart Path price did not include "out of state" or other excuses to for dealer mark-up that ranged from $2K to $10K. Determined to maintain the $1995 fee for "lifetime" engine warranty, the deal was written to show a $1700 discount from SRP, then added back $650 for Documentation Fee (not to be confused with sales tax). So, about $950 above SRP (MSRP + Options + S&H) SE Toyota Distributor options were shameful: $150 above retail to install floor mats!
Also, Toyoguard and etc.

 

There are dealers with ZERO markup.
Search and you will find them.
Don’t be afraid to travel

 

There’s also dealers with massive discounts. I’m in Nashville. Had local quotes ranging from msrp to $2000 off (trd, SR5 v6 4x4)

even Huntsville was hagggling. ultimately went thru North Carolina with a 3049 discount

 

I hate to say it, but they made that 3k up somewhere in the deal.

 

I work in auto sales my self (BMW)

I can confidently say they did not

 

Unless he financed (which reserves are less now, I heard TFS flats are pathetic), there may be a bit more but definitely not $3,000! Former sales director agreeing with @Nashville

 

Doesn't always work that way. Dealer I use locally will only sell people in the area vehicles at MSRP only. If you're outside of the network you gotta pay more. Their reasoning is they will never get to see this vehicle again for servicing.

 

Makes sense. We sell all of our M cars at $7500 over sticker for out of state.

 

That may be true for that dealership, but that doesn't mean that's the case everywhere. I drove approximately 1200 miles to trade my Tundra on a TRD Pro at MSRP. Pretty sure they knew I wasn't coming back for service, but they also refuse to sell above MSRP on new vehicles.

 

https://www.toyotadirect.com/searchnew.aspx?year=2023&make=toyota&model=tacoma

I'm seeing a total of 49(Brand New), might not be on the lot but they are taking deposits. Didn't check to see if they were long beds or short beds. Call them, I had a very pleasant experience.

 

I'm from MA, and just put a deposit on an incoming TRD-OR Access Cab that's coming in in November. All of the dealers around me were marking them up $5k over msrp. But I found a little dealer a few towns over that agreed right away to waive that fee. All I did was ask them to do so. So sometimes just asking works. That said, the truck has a few factory accessories that are on it, one of which I don't want- the Cast Alumunium Running Boards. But at least I get something for the $950 that they cost, instead of absolutely nothing for the mark up.

 

Always shocked to see posts of "everyone is marking up" especially in 2023... especially on a Tacoma. That's just bizarre to me.

 

It ain't over until it's over. This is how it will go:
The dealer will say that your dream has arrived and will set an appointment to pick it up two or three days hence. (The seduction begins: anticipation.)
Your appointment is before noon. The finance person is busy/unavailable, and you cool your heels in the showroom or dealer lot. (Psychological pressure builds.)
You sense disrespect for your time but don't walk out because: You are some distance from home/work, you want the truck, they have your deposit.
At this point, you should tell them you will come back: later, tomorrow, etc.
Hours after your appointment you are graced: an audience with the "finance officer".
After very brief pleasantries, you are presented with a flurry of papers to sign. This will include "free" services and trial subscriptions that you must sign to acknowledge receipt. (This gets you in the habit of signing things and may hook you for recurring fees.)
The finance officer is now in a hurry, implying that there is no time to read the documents that you are to sign. (We both want this.)
If you are financing, you will find that the interest rate has gone up because... (You might be having a second thought.)
The total cost of the vehicle now includes "mandatory" fees for "dealer Advantage Program", "Lifetime Drivetrain Warranty", "Window tint, Paint/Interior Protection" and warranties against every conceivable possibility. (You are definitely having a second thought.)
Relax, it will only cost you a few extra dollars per month. You can afford it, after all, you got a great deal on the MSRP. (It feels good but you feel used.)

Ok, they're not all like that. But when it does happen, folks don't want to talk about it.

 

I'll keep this in mind! Thanks, haha

 

Please do be careful.
I'm a bit soured on the process:
Toyota marketing lies, Distributor bloat and Dealer practices.
"Oh, what a feeling!" TOYOTA!

 

I would think before that dealerships would try all these shenanigans on folks who looked like me. Then overtime from reading up on car forums and social media……I realized all the dealerships are in fact equal opportunity rip off artists.

They don’t care who you are, what you look like, how educated you might be or not be, what gender or non gender you are, what credit score you got……they will still try to make stupid money off of you.

Made me feel better!

 

Well it is a business after all. I don’t agree with markups. But I’m ok with people working to make honest money.

ever felt good about buying a house? Those are the real con artists.

 

I know several car sales and dealer techs, this is what their various dealerships do. I think they also do it, to play nice with XYZ brand, some brands frown on the market whores that drive down prices,,,,, well until they get so big they can't be stopped.