Don’t Pay Markups

[Ulti-Resis]

I really don't understand all this markup business in the US and Canada and have no experience of it as it is illegal here in the UK. I got nearly £4000 off my brand new '19 FK8 GT simply because one dealer at the other end of the country offered it with a discount. I went to my local dealer and asked them to match or beat it, and they did.

I would agree with the thinking and sentiment of the OP and if EVERYONE did refuse to buy with markups then the practice would stop. Truth of the matter is that many people will pay it. Even if everyone here on the forum took a stand against it, there will always be many other mugs out there!

It's also strange to me that you US and Canada buyers can't choose the colour of your new car and many had to take what they could get when buying an FK8. We over here wouldn't dream of buying a car and not being able to choose the colour and all various other options available. It seems crazy

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[Tickle]

Considering vast majority of americans trading in for new cars will be upsidedown soon as they drive off the lot and while car prices and loans are increasing. Theres gonna be a breaking point. Dealers cant keep partying like 2005. Either way I have no interest in sending the sales man to Hawaii. I had no trouble finding a ps5, I wont have trouble finding a 40k car.

Help me understand where you are coming from. I work in a dealership and I feel like I have a good feel for what I am seeing. That said I'm only a small pocket of America. That said... What you are describing is the opposite of what I see currently.

Everyone expects this snap recalibration of the market but I do not think they will be the case.

I'm not sure dealers are partying quite like you think either. Things are definitely different and there are benefits but there are also downsides. If you want an example of how it isn't as easy or low on risk. Look at Carvana's woes.

Good luck on finding your car! Do you have preference color wise?

 

[Whitboy82]

I really don't understand all this markup business in the US and Canada and have no experience of it as it is illegal here in the UK. I got nearly £4000 off my brand new '19 FK8 GT simply because one dealer at the other end of the country offered it with a discount. I went to my local dealer and asked them to match or beat it, and they did.

I would agree with the thinking and sentiment of the OP and if EVERYONE did refuse to buy with markups then the practice would stop. Truth of the matter is that many people will pay it. Even if everyone here on the forum took a stand against it, there will always be many other mugs out there!

It's also strange to me that you US and Canada buyers can't choose the colour of your new car and many had to take what they could get when buying an FK8. We over here wouldn't dream of buying a car and not being able to choose the colour and all various other options available. It seems crazy

While I complete disagree with gouging customers with markups on new vehicles, especially outlandish ones, my question to you is, what is the background behind it being illegal to do so in the UK and Canada? I mean, a car is a luxury item, especially when we are talking about a Type R, in this example, and most markets work off supply and demand, to some extent. So, what is the justification for making it illegal? I’m legitimately curious.

 

[Boostlag]

Auto dealers have a pretty powerful lobby group that allows to function as they do. Tons of fees and add on that complicate car buying. Thats why the dealers group push back against Tesla and direct sales, they dont want that to happen because it would eliminate the middle man and make cars cheaper and more transparent

Imagine if grocery stores jacked up prices of food and best buy increased the prices of ps5 because it was in demand.

 

[Village911]

Auto dealers have a pretty powerful lobby group that allows to function as they do. Tons of fees and add on that complicate car buying. Thats why the dealers group push back against Tesla and direct sales, they dont want that to happen because it would eliminate the middle man and make cars cheaper and more transparent

Imagine if grocery stores jacked up prices of food and best buy increased the prices of ps5 because it was in demand.

Supply also matters for markups we see these days.

I sell 10 cups of lemonades a day on the street, 1$ per cup but this month I can only buy supplies to make 7 cups of lemonades. What's worst is that I have an assistant to pay who relies on lemonade sales. So I decided to jack up the price of my lemonade by $0.40 so I can make $9.8 a day and pay my assistant as well.

https://carsalesbase.com/us-honda/

 

[Boostlag]

You guys don't have to justify paying markups. I don’t care, its not my money.

 

[Whitboy82]

Imagine if grocery stores jacked up prices of food and best buy increased the prices of ps5 because it was in demand.

This has already happened lmao

 

[Boostlag]

This has already happened lmao

Inflation and jacking up a fixed priced goods are two different things. Grocery stores are paying extra for food due to increase in inflation and passing on the price. Grocery stores dont pocket extra by costs increasing. Dealerships pay the same invoice for each car and jack up the price to consumers.

 

[Whitboy82]

Inflation and jacking up a fixed priced goods are two different things. Grocery stores are paying extra for food due to increase in inflation and passing on the price. Grocery stores dont pocket extra by costs increasing. Dealerships pay the same invoice for each car and jack up the price to consumers.

I was really just joking. I get it.

 

[Boostlag]

I was really just joking. I get it.

It would be funny though if Honda said, since you’re selling these with a mark up, well sell you the car with similar 5k additional.

 

[Tickle]

Inflation and jacking up a fixed priced goods are two different things. Grocery stores are paying extra for food due to increase in inflation and passing on the price. Grocery stores dont pocket extra by costs increasing. Dealerships pay the same invoice for each car and jack up the price to consumers.

Untrue about grocery store profit.

I'm not en economist. I will not pretend to be.


Record profits are all around us. It is largely why companies continue to hire people even while the recession term is being thrown around.

You are so confusing. On one hand you bash dealerships but turn around praise Tesla business model despite Tesla laying off 10% of their salaried workforce. Look at their profits since the start of the year. You mentioned a secretary wage in a post you edited...

What about the people that were laid off? Is there a Tesla near you? How many people do they employ? Do you think it's more than the surrounding dealership near you?

It's a bit much.

 

[Boostlag]

Yeh true I dont want to argue about the economy. Simple fact is you wanna bend over for a dealership, go right ahead. No need to justify your actions to a stranger on the internet.

 

[Tickle]

Yeh true I dont want to argue about the economy. Simple fact is you wanna bend over for a dealership, go right ahead. No need to justify your actions to a stranger on the internet.

I don't know what that even means.

I will tell you this though.. you and I would get along well. I agree with you. I think it's just different than you think.

 

[Kyofu]

While I complete disagree with gouging customers with markups on new vehicles, especially outlandish ones, my question to you is, what is the background behind it being illegal to do so in the UK and Canada? I mean, a car is a luxury item, especially when we are talking about a Type R, in this example, and most markets work off supply and demand, to some extent. So, what is the justification for making it illegal? I’m legitimately curious.

Can't say for the UK, but in Canada the law revolves around advertised price. New cars constantly have nation wide advertisement campaigns that say "MSRP + taxes & delivery fees". So if a dealership sells it above MSRP it would be considered false advertisement and falls under consumer protection laws.

That's not to say dealerships can't sell above MSRP but they could be setting themselves up for a big legal headache if they do.

 

[TypeSiR]

Currently, it’s a lack of supply issue. Even low end civics have markups. Honda production is down by how much? 50%? I don’t advocate paying markup at all. Most dealerships will markup the FL5. Pay more if you want it now or wait until the supply chain issue gets resolved, maybe in a year or two.

Personally I won’t be in the first group. I’ll look for a used one in a few years or wait and see what the refresh brings in 2025/2026.

But if you got the dough, flaunt it. Life’s too short.

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