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Insane market value adjustments everywhere

wristbrike

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Honolulu, HI
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2016 Honda Civic (Touring), 2016 Honda Cr-v
Hey guys, looking to buy a new civic. Every dealer on Oahu is currently adding $3-5,000 dollars on to the purchase price for “market value adjustment” I’ve never seen this with regular model civics. I would understand if it was an SI or CTR, but a regular civic? make it make sense. Are you guys having these Insane MVA’s at your dealers or is it just the curse of being on an island? Chip shortage?
 

justasimpleman

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socal
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2020 SGP EX hatch
It’s common everywhere right now. Most places is 2k+. Pretty sure you can find dealerships that will give you sticker price, but you have to put in some work... with you being on the island, you’re probably SOL as far as that goes.
 

Manatee Bob

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Will go away when people stop paying them.
Don't think so. It will go away when the chip manufacturers and other sub-component vendors ramp up enough sufficient supply to keep the supply chain flowing smoothly. Car dealerships cannot get enough cars to sell so they are marking up the ones they have to compensate for the slim inventories of cars to sell. Supposedly, the chip shortage will not be over until sometime in 2023 so we will likely see these dealer shenanigans for some time to come. Simply a supply/demand imbalance.
 

fjrman

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Feb 12, 2017
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Tennessee
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2016 Civic 4 door LX with CVT
The local Honda dealer has almost no new vehicles. Hasn't had for weeks. It's a ghost town except for service work.

Dealers want to survive. In bad times they typically don't have enough buyers. Now, they don't have a product to sell.

These are multi-million dollar investments. They're going to scratch and claw and find any way to survive.
 

VarmintCong

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Massachusetts
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The local Honda dealer has almost no new vehicles. Hasn't had for weeks. It's a ghost town except for service work.

Dealers want to survive. In bad times they typically don't have enough buyers. Now, they don't have a product to sell.

These are multi-million dollar investments. They're going to scratch and claw and find any way to survive.
Friend who works at a Honda dealership says they’re making more money now, cause they’re making double or triple the profit per car and everything is sold before it arrives. They’re doing great. Honda factory probably is hurting though.
 

djlythium

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California
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2019 CBP Si Coupe
Will go away when people stop paying them.
Don't think so. It will go away when the chip manufacturers and other sub-component vendors ramp up enough sufficient supply to keep the supply chain flowing smoothly. Car dealerships cannot get enough cars to sell so they are marking up the ones they have to compensate for the slim inventories of cars to sell. Supposedly, the chip shortage will not be over until sometime in 2023 so we will likely see these dealer shenanigans for some time to come. Simply a supply/demand imbalance.
Except Honda isn’t affected by the chip shortage. https://www.caranddriver.com/news/g36218381/car-models-affected-chip-shortage/

ADM will vanish when we stop paying for it. I don’t feel like consumers give themselves enough credit as to their own purchasing power.
 

VarmintCong

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There’s major supply chain issues not just chip shortages, but equally important is all the stimulus in many forms. During Covid nobody was driving but everyone was flush with government cash and buying cars. The Fed has also inflated the stock market to insane levels so many are feeling frisky and vehicles are probably the top discretionary purchase in the US.
 

hoodlum

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Toronto Canada
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Except Honda isn’t affected by the chip shortage. https://www.caranddriver.com/news/g36218381/car-models-affected-chip-shortage/

ADM will vanish when we stop paying for it. I don’t feel like consumers give themselves enough credit as to their own purchasing power.
That is old news. Honda sent a letter to dealers in August which mentioned that September production orders would drop by 40%. And the Japan car manufacturers on Friday announced that similar production reductions would occur in October as well and they don’t know when it will improve.

https://asia.nikkei.com/Business/Au...lash-production-plans-by-over-1-million-units
 

djlythium

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That is old news. Honda sent a letter to dealers in August which mentioned that September production orders would drop by 40%. And the Japan car manufacturers on Friday announced that similar production reductions would occur in October as well and they don’t know when it will improve.

https://asia.nikkei.com/Business/Au...lash-production-plans-by-over-1-million-units
Awesome, thanks for the update!

I still contend for consumer purchasing power to end ADM, but I totally appreciate the updated info. 🙏🏼 Happy to see sources on this, but I could not find any info that the chip shortage is causing MSRPs to rise. It's one thing for dealers to adjust their markup if MSRPs rise, but this goes back to my point that we only have ADM because we keep paying it. Dealers still make profit selling at MSRP.
 

jtrader

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We just bought a '22 Odyssey EX-L. Took almost 2 months to get our color/trim preference. We had to pay MSRP, there was no negotiating...except, the dealer tried to slap on a $2500 cerami-seal charge that they said was mandatory. It hadn't been applied to our van yet.... and when I asked why it was mandatory, the salesman said it was "a way to mark-up the vehicle (like other dealers) but at least the customer was getting something out of it." I said I didn't want it, and after a few hours of saying no, they finally said "Ok, MSRP and we have a deal." I have mixed feelings paying MSRP, but the wife loves it so it's all good.
 

360glitch

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We just bought a '22 Odyssey EX-L. Took almost 2 months to get our color/trim preference. We had to pay MSRP, there was no negotiating...except, the dealer tried to slap on a $2500 cerami-seal charge that they said was mandatory. It hadn't been applied to our van yet.... and when I asked why it was mandatory, the salesman said it was "a way to mark-up the vehicle (like other dealers) but at least the customer was getting something out of it." I said I didn't want it, and after a few hours of saying no, they finally said "Ok, MSRP and we have a deal." I have mixed feelings paying MSRP, but the wife loves it so it's all good.
MSRP in this climate is not terrible for a desirable vehicle. Good that you didn't let them force you into paying 5x the value of a ceramic coating.
 

ebhaynz

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When I lived in Oahu I just bought used vehicles from military who were leaving the Island and needed to sell FAST.
 

bguttery

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Houston, TX
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It’s definitely everywhere, including Houston, TX. I purchased my Sonic Gray Touring on launch day and paid MSRP. Took some negotiating on my end just to get down to that price. Some dealers were marked up $2K for the same car.
 

nizarz

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Ottawa, CANADA
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Why is it they do this in the US? I've lived in the UK and currently live in Canada and never seen dealerships add markups like that.
 
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