The FL5 Dealer ADM Markup Thread

[ScumbagRob]

I'm working on a deal right now...

$8k markup, and a *healthy* trade-in value in my favor.

half of me is saying "don't you ever pay markup you loser", while the other half of me is justifying with "you would never have gotten that trade-in value outside of this crazy market, so it all evens out".

thoughts? i have a 2014 honda civic with a little over 100k miles, great condition. they're offering $13,500 for it, which is in line with KBB value and $3,500 over CarMax valuation.

Do it! You will not regret it, I promise.

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[hhkb]

Do it! That’s basically a 5k ADM which is about the best most can do right now!

Thanks! I may have a little bit more in my hand -- I live in Oregon so no sales tax, which equates to around $5,000. Going to try to bring it down even further.

Also got the approval from my wife so I'm ready to go!

Wish me luck, y'all!

 

[hhkb]

Do it! You will not regret it, I promise.

Yes, sir! Just trying to squeeze out a few more dollars here and there Will update throughout the week.

 

[Icehawk]

I'm working on a deal right now...

$8k markup, and a *healthy* trade-in value in my favor.

half of me is saying "don't you ever pay markup you loser", while the other half of me is justifying with "you would never have gotten that trade-in value outside of this crazy market, so it all evens out".

thoughts? i have a 2014 honda civic with a little over 100k miles, great condition. they're offering $13,500 for it, which is in line with KBB value and $3,500 over CarMax valuation.

Considering that car isn't worth close to that in a normal market... I'd jump. They were offering me $6-8k for a '13 Si with 60k miles 3 years ago just to give you an idea of how messed up the pricing is right now.

 

[I used to vtec]

Finally got a dealer to accept a deposit on future allocation at $2,500 over MSRP. 2nd on the list so 1-2 year wait is their expectation. Fully refundable so who knows if the deposit is even worth the paper it's printed on.

I have to say, though, as much as I love(d) Hondas and love this car, the way Honda has dealt with this car has soured me somewhat on the brand. They release an uber-desirable car and then trickle out 1-2 cars/year to most dealerships, with absolutely no attempts at trying to make dealers be reasonable (which clearly can be done, as evidenced by other brands trying to keep dealers in line). Honda knew exactly how their customers would be treated as a result.

I called Beurkle Honda in MN the other day and when going over the pricing and asking what accessories I would have to buy, the guy literally started laughing and said "Take your pick, and we're probably going to make you buy it". This is on top of their 15k ADM. The whole buying process has definitely toned down my love for Hondas in general.

 

[DarthTrizzle]

Finally got a dealer to accept a deposit on future allocation at $2,500 over MSRP. 2nd on the list so 1-2 year wait is their expectation. Fully refundable so who knows if the deposit is even worth the paper it's printed on.

I have to say, though, as much as I love(d) Hondas and love this car, the way Honda has dealt with this car has soured me somewhat on the brand. They release an uber-desirable car and then trickle out 1-2 cars/year to most dealerships, with absolutely no attempts at trying to make dealers be reasonable (which clearly can be done, as evidenced by other brands trying to keep dealers in line). Honda knew exactly how their customers would be treated as a result.

I called Beurkle Honda in MN the other day and when going over the pricing and asking what accessories I would have to buy, the guy literally started laughing and said "Take your pick, and we're probably going to make you buy it". This is on top of their 15k ADM. The whole buying process has definitely toned down my love for Hondas in general.

You can get mad at Honda but this is an industry wide problem right now. Check out the mark-ups on the last call Challenger. Or the 400z....or the GR Corolla. We are all in the same boat.

 

[albi]

You can get mad at Honda but this is an industry wide problem right now. Check out the mark-ups on the last call Challenger. Or the 400z....or the GR Corolla. We are all in the same boat.

+ the MT Supra

 

[DarthTrizzle]

+ the MT Supra

My list certainly isn't all encompassing

 

[albi]

My list certainly isn't all encompassing

Every enthusiast car is on the list unfortunately

 

[hhkb]

Every enthusiast car is on the list unfortunately

I think almost any car is at potential for markup. Ford Maverick, Toyota Prius, etc.

 

[albi]

I think almost any car is at potential for markup. Ford Maverick, Toyota Prius, etc.

Great point

 

[I used to vtec]

You can get mad at Honda but this is an industry wide problem right now. Check out the mark-ups on the last call Challenger. Or the 400z....or the GR Corolla. We are all in the same boat.

I definitely understand we're in unprecedented times and this is happening across many brands. Maybe it's just my perception, but Honda seems to be the worst right now. For whatever the reason, they seem to have been impacted the hardest by Covid supply shortages and have had the slowest recovery. I bought my niece a new car and wanted to get her a Civic, but the Honda dealers were vultures, even for an entry-level 2022 Civic. I wound up getting her a Toyota (at MSRP) because the Honda dealers were insufferable with mark-ups, required accessories, etc. Many dealers were openly hostile when I balked at 5k ADMs on a 22k car. And that's not to say all Toyota dealers were saints, some did want ADMs on certain cars, but overall it was much easier to make a fair deal on a base car, and it was impossible with Honda. My dad also recently put in an order for a new Corvette and was pretty easily able to get it for MSRP. I was chatting with the sales guy about how painless they had made the process and he made a comment about their GM wanting to make the process seamless because they don't want to end up on GM's 'naughty list'. So, whatever it is that GM is doing, at least it's an attempt at making the buying process not openly adversarial. I think that goes a long way in brand perception for the consumer.

So, yeah, definitely an industry-wide problem right now, but my experience with Honda has been overall negative in the past year, while GM and Toyota have been solid.

 

[CTRifecta]

Agree that Honda is particularly awful right now. Congrats on securing one for only 2500 over, that's a great deal

 

[I used to vtec]

Agree that Honda is particularly awful right now. Congrats on securing one for only 2500 over, that's a great deal

Thanks - I"ll believe it once the car is in my possession, hah. I've had too many dealers not honor their word with this car to really trust even a deposit at this point.

 

[zmago]

Finally got a dealer to accept a deposit on future allocation at $2,500 over MSRP. 2nd on the list so 1-2 year wait is their expectation. Fully refundable so who knows if the deposit is even worth the paper it's printed on.

I have to say, though, as much as I love(d) Hondas and love this car, the way Honda has dealt with this car has soured me somewhat on the brand. They release an uber-desirable car and then trickle out 1-2 cars/year to most dealerships, with absolutely no attempts at trying to make dealers be reasonable (which clearly can be done, as evidenced by other brands trying to keep dealers in line). Honda knew exactly how their customers would be treated as a result.

I called Beurkle Honda in MN the other day and when going over the pricing and asking what accessories I would have to buy, the guy literally started laughing and said "Take your pick, and we're probably going to make you buy it". This is on top of their 15k ADM. The whole buying process has definitely toned down my love for Hondas in general.

This is something that has puzzled my mind since this car was hinted at years ago. Someone (I won't name names, I have no idea who reads these forums) from Honda Corporate told me that Honda spent nearly $1.8B (with a B!) on FL5 R&D, and nearly 50% of it on marketing alone. They hyped it to oblivion, only to not deliver the car whatsoever. And yes, it is true that each dealer gets 1 (possibly 2, less than half of dealers get 2) per year. All that marketing, all that media, all those reviews, all those events, all that hype, hype, hype, to deliver - NOTHING.

And...to add insult to injury, completely unhinged dealerships. People who had NOTHING to do with the car's development, production get to hold the car hostage until you pay a ransom called ADM for them to release the car. Company who did all the work says this car costs $44K but you can't have it. It needs to go to a third party parasite called franchise dealer so they can rob you. This madness with the dinosaur franchise car dealership needs to disappear. This is a US problem, not a world problem. I grew up in Europe and travel there frequently. You go into a car store, you tell them what you want, you pay portion of it and wait until the car comes from the factory. If they have the car there which a lot of them do (regular cars in general), you pay what the OEM said and you go on your way. People in Europe don't believe me when I start telling them how the dealership system works in the US and the fact that there are actual LAWS that MANDATE dealerships to exist. It's a textbook mafia-style business.

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