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Markups Might Be A Thing Of The Past!

33K views 102 replies 37 participants last post by  TakesTheWheel  
#1 ·
#3 ·
I like the dealer markups because it increases resale price. It is a good deal for those of us that paid MSRP...
Sure, if you're selling now. But I expect these mark-ups to be a very short-term issue, whether Kia steps in, or not. The current pricing is driven by the supply chain issues and pent-up demand. As those forces ease, (and they're predicted to this year), prices should start to come down. By the end of the year, there will be new options in this category from Toyota, Subaru, Nissan, Audi, and Genesis, plus the '23 EV6 & I5 models will be coming out. The competitive landscape is probably going to look MUCH different within a year. It will be sad to be someone who paid a mark-up.
 
#7 ·
#6 ·
The idea of the a good deal is to let the dealership make just enough profit and not a penny more to stay in business. To do this, you need to know the invoice price, the holdback amount and the advertising allowance. Then add like $500 to dealer's real cost and see if you can buy the car. Then, and only then did you get a great deal. For example of the MSRP is $50,000, the invoice is $49,000, the holdback is $2,500 and the advertising is $1,300, then the vehicle cost the dealership $45,200 and a good deal is $45,700.
 
#33 ·
Well, everyone needs to make a profit. I'm not a fan of car dealerships by any stretch of the imagination, but if you want to do business with someone, they need to be profitable or they won't be able to service your account. It's simple economics. "Win-win, or no deal. - Stephen Covey" that's the sales philosophy I live by.
 
#13 ·
This is good news for consumers and bad for dealerships. Hyundai will instruct dealers to stop markups on their new products. Kia will most likely follow suit and stop with this nonsense.

Article for more info: Hyundai Is Latest Automaker Fed Up With Ridiculous Dealership Markups
Hyundai did not, and cannot “instruct dealers to stop markups.” From the letter:

“You are, as an independent business, of course free to adopt any policies, including pricing policies, that are consistent with the law and your contractual obligations.“

Hyundai is concerned about the impact to their brand once the market stabilizes

“Once supply and demand come into greater equilibrium, customers will feel that they were overcharged for their vehicle and thus look to other brands the next time they are shopping. we believe that the risk of losing customers and potential future customers far outweighs and short-term gains to be had from what customers describe as unfair pricing.”
 
#22 ·
Yeah it’s probably gonna last a bit longer, who knows. I went today by the Kia in Santa Rosa, CA and they had a few on the lot. All at $9k markup and with no intention to budge. I told them good luck with that and walked away. I’m
picking up a preconfigured polestar 2 at msrp and skip the bs from Kia and their dealers.
maybe next year I’ll reconsider the EV6.
 
#29 ·
Yeah it’s probably gonna last a bit longer, who knows. I went today by the Kia in Santa Rosa, CA and they had a few on the lot. All at $9k markup and with no intention to budge. I told them good luck with that and walked away. I’m
picking up a preconfigured polestar 2 at msrp and skip the bs from Kia and their dealers.
maybe next year I’ll reconsider the EV6.
Not sure if you've already picked up your Polestar 2 but, assuming you're in California (based on your reply above) you may want to keep in mind that the Polestar 2 no longer qualifies for the CVRP $2000 rebate as of today (2/24).
 
#32 ·
The customer does not pay an advertising fee. the manufacturer provides funds based on the number and type of each car the dealership buys to purchase local marketplace advertising in newspapers, radio, TV and online. So the car costs the dealer invoice minus holdback minus advertising money paid to dealer.
 
#35 ·
Just picked up an EV6 Wind RWD over the holiday weekend. My local dealer wanted $15,000 on the markup, drove 47 miles and paid $0 for the same identical window sticker. I even gave them the opportunity to split the difference and they still refused. I normally don't like pitting businesses against one another, but it was just a real head scratcher to have them do that.
 
#38 ·
Just saw this post on reddit for those near Michigan who are looking for EV6 at MSRP. I wasn't sure which of thread to post this in.

Yeah, the Yacht Blue GT-Line AWD is mine and is supposed to get to me tomorrow. Amazing service and communication from Miles Brown over there at Lafontaine. I never rave about people but Miles was so upfront that he made what had been a hassle dealing with dealers up to that point super easy. They sell at MSRP and I didn't feel that they padded anything. One-day shipping, just my car, from Michigan to Mid-Atlantic was about $950. Give him a call and see if he can hook you up.

Miles Brown
Master Certified Sales Consultant
LaFontaine Automotive Group
Ph: (313)996-6226
mbrown@lafontaine.com | http://www.familydeal.com
 
#39 ·
#46 ·
If any of you (in the US) are members of Sam's Club... I went through their Auto Buying Program and found several EV6s within 100 miles (central Illinois/St. Louis metro) being offered at between $94 and $200 UNDER MSRP (and also some over $1,000 OVER). Lights, Winds and GT-Lines, including AWDs (except Light, obviously).

None in the color I was looking for, Runway Red, but most in colors I would accept, like Snow White Pearl.

I'm not ready to buy yet, but for anyone who is, this might be worth pursuing. I've used this service in the past and it was very painless. I'm sure Costco has a similar service. Consumer Reports does too.
 
#47 ·
Yes Costco and Sam's Club are good alternative options to consider but they aren't always viable even if you are a member of either/both, as availability depends on location and/or dealer participation.

I do like that if you use the Costco Auto Program tool and look up the EV6 it shows both MSRP as well as Invoice prices; I don't know how accurate the Invoice price data is but FWIW Costco reports the EV6 GT-Line AWD as having $55900 MSRP and $55342 Invoice--both figures not including the $1215 destination charge.

Costco EV6 GT-Line AWD price data
 
#48 ·
I got a response from my Costco inquiry:
"The vehicle you selected does not currently feature prearranged pricing.
However, we are currently working with our local dealer to secure pricing for the 2022 KIA EV6 GT Line AWD. Prearranging low pricing for you is our top priority, and while it could be available soon, we cannot estimate exactly when." Oh, well
 
#49 ·
Bummer!

I got a response this AM, on a Sunday no less, from one of my dealership matches (using Sam's Club, not Costco). The selling price for the car I was looking at was listed (on the webpage) and although I'm not yet in the market I will consider using the service when the time comes. It beats the $3,000-4,000 over MSRP that the other area dealerships are asking, for essentially the exact same car. It may not be "prearranged low pricing" (one of the matches showed $1,000 over MSRP) but there were still a much better deals than the alternatives. Needless to say, I won't be contacting that dealership asking $1k over.
 
#50 ·
I live in the Bay Area and went down to the Van Nuys Kia this weekend to get a RWD GTL with no markup. I had tried negotiating with the manager earlier in the week over the phone and the best he would do was $55k on an MSRP of $53.1k. Then I got a call on Friday saying they were willing to do MSRP now. Finance manager said it was the first EV6 he had seen them sell with no markup. They did tack on $1200 in add-ons... so it's still kind of marked up but at least I get something for the money.

Salesperson who called me with the offer was Diana, but when I got there I did the sale with Jorge.
 
#55 ·
FWIW, I've been searching for a very specific config (AWD GT-Line in red w/suede interior). The ones I've come across have been this base configuration ($57,410), this plus carpeted mats ($57,580), or capeted mats + wheel locks ($57,640). At least for what I've been looking for, these have all been about similarly common. I've not seen any that had the locks w/o the mats. The car I ended up placing a deposit on has mats, but no locks.
 
#57 ·
You shouldn't have concerned yourself with finding a car with all the port installed opinions (i.e. accessories) that you wanted such as floor mats and wheel locks because the dealer could get those and install them for you. Your search should have just focused on finding a GT-Line AWD in runway red with suede interior option and forget the other stuff.