Anyone buy a car with high mark up and have no regrets?

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Arizonasun2008
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Anyone buy a car with high mark up and have no regrets?

Post by Arizonasun2008 »

Once again, another car post but I looked in other posts and didn’t see the specific question asked. Has anyone purchased a car recently with a high markup, between 10-15k and have no regrets about it?

I am in the market for a Kia Telluride and as some may know, this vehicle’s demand is far exceeding its supply. It is possible for me to wait a year and place an order and then pay a $4k mark up fee or I could potentially get one off the lot for $10k over msrp. I am having a difficult time deciding because the BogleHead in me knows that this is the worst time to buy a car. However, another part of me considers that getting a car now allows us to enjoy the summer road-trips more comfortably this year. Can we afford the $10k mark up? Yes. I am just undecided so curious if someone has done this recently with no regrets.
Silk McCue
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Silk McCue »

Depending on the number of trips/days it might be cheaper to rent. No way I’m paying that level of markup for something I don’t have to have.

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lazynovice
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Re: Anyone buy a car with high mark up and have no regrets?

Post by lazynovice »

No, I have never done that. Would I? If I could afford it and it was my dream car, yes.
niceguy7376
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Re: Anyone buy a car with high mark up and have no regrets?

Post by niceguy7376 »

We bought Ioniq5 this month by paying 4k above MSRP(Shown on website of hyundai.com). We drove 180 miles to get the car we wanted with that lowest markup. Dealerships near to my place had upto 10k markup. My thought is that by the time demand and supply even out, the inflation might have increased the prices anyway.
bob60014
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Re: Anyone buy a car with high mark up and have no regrets?

Post by bob60014 »

Never for a Kia.
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Watty
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Watty »

Arizonasun2008 wrote: Sat May 07, 2022 7:59 pm I could potentially get one off the lot for $10k over msrp......
If you will be replacing a decent car that you will be selling or trading in that will likely also sell for top dollar so that extra money will at least partially offset premium that you are paying for the new car.

If you wait until the car market returns to normal, then you will lose the premium that you can get for your current car so the overall savings may not be as much as you may hope.
Arizonasun2008 wrote: Sat May 07, 2022 7:59 pm ....and have no regrets about it?


The big question is what you will do if you do not buy the Telluride.

You might keep driving whatever you have now, buy one of the half dozen or so SUVs that are comparable to the Telluride at a better price, or you could buy a different class of car.

Once you have narrowed it down to two choices and that might help you figure out what you want to do.
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Arizonasun2008
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Arizonasun2008 »

lazynovice wrote: Sat May 07, 2022 8:27 pm No, I have never done that. Would I? If I could afford it and it was my dream car, yes.
It’s not a dream car but it’s the one that we like out of the 3 row SUVs. The boxy design is exactly what we are looking for. I looked at more luxurious Lexus SUVs with a third row but the gas mileage was terrible at average of 16 mpg.
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Re: Anyone buy a car with high mark up and have no regrets?

Post by runner3081 »

Arizonasun2008 wrote: Sat May 07, 2022 7:59 pm However, another part of me considers that getting a car now allows us to enjoy the summer road-trips more comfortably this year.
I had the same thought, it is time replace my car (would not drive it a long distance) and were going to get something bigger for summer trips. However, not happening now with the prices where they are at. We will be taking our little Nissan Versa on a 2.4K mile round trip with the three of us this summer.
CletusCaddy
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Re: Anyone buy a car with high mark up and have no regrets?

Post by CletusCaddy »

bob60014 wrote: Sat May 07, 2022 8:30 pm Never for a Kia.
Haven’t you heard? Kias are nice now.
BruDude
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Re: Anyone buy a car with high mark up and have no regrets?

Post by BruDude »

I would never pay over MSRP for a mass produced car. You can get a Wagoneer or Grand Cherokee with a pretty nice discount if you’re ordering. Don’t know if those have a third row but they’re pretty big.
Last edited by BruDude on Sat May 07, 2022 10:45 pm, edited 1 time in total.
CletusCaddy
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Re: Anyone buy a car with high mark up and have no regrets?

Post by CletusCaddy »

Arizonasun2008 wrote: Sat May 07, 2022 9:28 pm
lazynovice wrote: Sat May 07, 2022 8:27 pm No, I have never done that. Would I? If I could afford it and it was my dream car, yes.
It’s not a dream car but it’s the one that we like out of the 3 row SUVs. The boxy design is exactly what we are looking for. I looked at more luxurious Lexus SUVs with a third row but the gas mileage was terrible at average of 16 mpg.
If you like boxy check out Volvo XC90. Going for MSRP not over
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Shackleton
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Shackleton »

I bought a 2022 Telluride last July for $3k over MSRP and had to drive 400 miles for that deal. Near me it was $6k over MSRP. I love the car and don’t regret it. I’d definitely shop around to see if you can get a better deal by going a little farther from home.
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DoubleComma
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Re: Anyone buy a car with high mark up and have no regrets?

Post by DoubleComma »

Pretty hard for you to know if you will regret the purchase based on if others have regretted similar purchases.

Think about other “frivolous” things you have purchased in the past, did you regret them or miss the money?

Everyone have things they can justify others can’t. Last year I paid a serious premium on a new wake surf boat…love the boat, don’t miss the money, no regrets.

At the same time I sold out previous boat for a significant premium. Maybe you can do the same with the vehicle you will replacing.
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Re: Anyone buy a car with high mark up and have no regrets?

Post by MikeG62 »

Arizonasun2008 wrote: Sat May 07, 2022 7:59 pm Once again, another car post but I looked in other posts and didn’t see the specific question asked. Has anyone purchased a car recently with a high markup, between 10-15k and have no regrets about it?

I am in the market for a Kia Telluride and as some may know, this vehicle’s demand is far exceeding its supply. It is possible for me to wait a year and place an order and then pay a $4k mark up fee or I could potentially get one off the lot for $10k over msrp. I am having a difficult time deciding because the BogleHead in me knows that this is the worst time to buy a car. However, another part of me considers that getting a car now allows us to enjoy the summer road-trips more comfortably this year. Can we afford the $10k mark up? Yes. I am just undecided so curious if someone has done this recently with no regrets.
$10K-$15K above MSRP on a vehicle with a $35K starting (before options and upgrades) MSPR - not a chance. I would not want to pay that kind of premium even if the vehicle MSRP were $100K. My advice - find something else you like - something you can get at MSRP. There are options out there. If you have your heart set on the Telluride, find a way to wait until the market supply and demand come more back into line.
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burritoLover
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Re: Anyone buy a car with high mark up and have no regrets?

Post by burritoLover »

Arizonasun2008 wrote: Sat May 07, 2022 7:59 pm However, another part of me considers that getting a car now allows us to enjoy the summer road-trips more comfortably this year.
This sounds like the rationalization that I use when I want to get a new car (my wife would point this out to me). I would say if you have no reliable, safe transportation now - such as your current vehicle was totaled from a wreck and the Telluride represents something that you would keep for a long period of time, I would say go for it. But since the best you could bring out was more comfortable road trips, I'm gonna guess this is not the case.

The chip shortage and supply issues will abate at some point. It might be 2024 or maybe a recession in 2023 will solve the issue for everyone but it will happen. This isn't like the real estate market which is more unclear.
Johndoefire65
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Johndoefire65 »

Another, "Anyone throw money away and have no regrets?" Or "Can I afford to throw away money?" Hoping to find justification from one foolish person to another. I've noticed that's a way of people justifying ridiculous things they do.

Tons of SUVs in my state for sticker here. Pick a different vehicle or take a flight to another state, drive it home.
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snackdog
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Re: Anyone buy a car with high mark up and have no regrets?

Post by snackdog »

Definitely rent for trips. An SUV for $40 per day or $1200/mo gets you a newer vehicle you can abuse, eat in, etc. Return it filthy and toss them the keys. $10k markup could cover several years of rentals.
FrugalConservative
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Re: Anyone buy a car with high mark up and have no regrets?

Post by FrugalConservative »

No chance I would pay over msrp for a KIA.
Carguy85
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Carguy85 »

Anyone remember when the PT cruisers first came out a little over 20 years ago? Some dealers were getting $5K or more over the $20k msrp. Hardly sounds like a purchase that wouldn’t have been wrought with regret in a year or two for a number of reasons. More recently the Jeep Gladiator comes to mind. In 2019 they were commanding a premium $10-20k over msrp in some places. They are now everywhere and underwhelming. Both my bro’s got theirs (newer than 2019) with rebates. Of course paying over list doesn’t make sense for a mass produced car simply due to poor timing. Another industry where customers pay big premiums for poor timing is payday lending. Id say absolutely avoid it if at all possible. Heck I’m a car guy and have bought way more cars than I care to mention at invoice only to be filled with regret more often than not. I think I’d ride a bicycle before I bought a Kia (or probably about any car really) over MSRP but then again I’m not in the 8 figure club either. Btw, a Kia is the only new car on the lot that wouldn’t start when we were gonna go for a test drive.. I felt bad for the salesman but we slipped out never to return so I my view towards them may be a little tarnished.
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Re: Anyone buy a car with high mark up and have no regrets?

Post by stoptothink »

Carguy85 wrote: Sun May 08, 2022 7:25 am Anyone remember when the PT cruisers first came out a little over 20 years ago? Some dealers were getting $5K or more over the $20k msrp. Hardly sounds like a purchase that wouldn’t have been wrought with regret in a year or two for a number of reasons. More recently the Jeep Gladiator comes to mind. In 2019 they were commanding a premium $10-20k over msrp in some places. They are now everywhere and underwhelming. Both my bro’s got theirs (newer than 2019) with rebates. Of course paying over list doesn’t make sense for a mass produced car simply due to poor timing. Another industry where customers pay big premiums for poor timing is payday lending. Id say absolutely avoid it if at all possible. Heck I’m a car guy and have bought way more cars than I care to mention at invoice only to be filled with regret more often than not. I think I’d ride a bicycle before I bought a Kia (or probably about any car really) over MSRP but then again I’m not in the 8 figure club either. Btw, a Kia is the only new car on the lot that wouldn’t start when we were gonna go for a test drive.. I felt bad for the salesman but we slipped out never to return so I my view towards them may be a little tarnished.
For giggles I got a Carvana quote on the Ford Maverick hybrid we have now had for 2 weeks and ~400 miles. We paid $26,200 OTD, Carvana offered us $32,600. If you go on the Maverick forum, you'll seen dozens of builds similar to ours listed on dealer sites for $40k+. FWIW, we love the truck.
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snackdog
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Re: Anyone buy a car with high mark up and have no regrets?

Post by snackdog »

stoptothink wrote: Sun May 08, 2022 7:56 am
Carguy85 wrote: Sun May 08, 2022 7:25 am Anyone remember when the PT cruisers first came out a little over 20 years ago? Some dealers were getting $5K or more over the $20k msrp. Hardly sounds like a purchase that wouldn’t have been wrought with regret in a year or two for a number of reasons. More recently the Jeep Gladiator comes to mind. In 2019 they were commanding a premium $10-20k over msrp in some places. They are now everywhere and underwhelming. Both my bro’s got theirs (newer than 2019) with rebates. Of course paying over list doesn’t make sense for a mass produced car simply due to poor timing. Another industry where customers pay big premiums for poor timing is payday lending. Id say absolutely avoid it if at all possible. Heck I’m a car guy and have bought way more cars than I care to mention at invoice only to be filled with regret more often than not. I think I’d ride a bicycle before I bought a Kia (or probably about any car really) over MSRP but then again I’m not in the 8 figure club either. Btw, a Kia is the only new car on the lot that wouldn’t start when we were gonna go for a test drive.. I felt bad for the salesman but we slipped out never to return so I my view towards them may be a little tarnished.
For giggles I got a Carvana quote on the Ford Maverick hybrid we have now had for 2 weeks and ~400 miles. We paid $26,200 OTD, Carvana offered us $32,600. If you go on the Maverick forum, you'll seen dozens of builds similar to ours listed on dealer sites for $40k+. FWIW, we love the truck.
Sell!
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Jack FFR1846 »

Prices are moving a LOT as dealers receive new cars. Examples, the closest to me Cadillac dealer had 5 new cars 3 weeks ago when I went in to look at a CT4. Today, they have 7.

The dealer who lists their asking price who listed Escalades of all varieties for MSRP plus $30k now has them listed for between MSRP plus $15k and MSRP plus $20k. I haven't kept track of the number of new vehicles but they appear to have more today.

My local Jeep dealer had 10 new vehicles. Yesterday, I went by and there were 30 out front.

So one way or another, the factories are figuring out how to ship vehicles. I did notice with the Cadillacs that the stickers all delete certain options and list something like "Heated steering wheel delete: -$50". I would bet that the heated steering wheel module has a chip that can be used in other more critical modules and GM is moving around where they go in order to ship more cars.

I don't know Kia or Hyundai as they likely get Korean sourced chips. I would expect similar behavior, and if you pay $15k over MSRP, you very likely will see the same car at the dealer in 3 weeks for $5k over MSRP. It will completely depend on how many new cars the dealer can get. I mean...when a dealer has 5 new cars, they're not going to cut you a deal.
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stoptothink
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Re: Anyone buy a car with high mark up and have no regrets?

Post by stoptothink »

snackdog wrote: Sun May 08, 2022 8:07 am
stoptothink wrote: Sun May 08, 2022 7:56 am
Carguy85 wrote: Sun May 08, 2022 7:25 am Anyone remember when the PT cruisers first came out a little over 20 years ago? Some dealers were getting $5K or more over the $20k msrp. Hardly sounds like a purchase that wouldn’t have been wrought with regret in a year or two for a number of reasons. More recently the Jeep Gladiator comes to mind. In 2019 they were commanding a premium $10-20k over msrp in some places. They are now everywhere and underwhelming. Both my bro’s got theirs (newer than 2019) with rebates. Of course paying over list doesn’t make sense for a mass produced car simply due to poor timing. Another industry where customers pay big premiums for poor timing is payday lending. Id say absolutely avoid it if at all possible. Heck I’m a car guy and have bought way more cars than I care to mention at invoice only to be filled with regret more often than not. I think I’d ride a bicycle before I bought a Kia (or probably about any car really) over MSRP but then again I’m not in the 8 figure club either. Btw, a Kia is the only new car on the lot that wouldn’t start when we were gonna go for a test drive.. I felt bad for the salesman but we slipped out never to return so I my view towards them may be a little tarnished.
For giggles I got a Carvana quote on the Ford Maverick hybrid we have now had for 2 weeks and ~400 miles. We paid $26,200 OTD, Carvana offered us $32,600. If you go on the Maverick forum, you'll seen dozens of builds similar to ours listed on dealer sites for $40k+. FWIW, we love the truck.
Sell!
There's no direct competitor right now (compact pickup that gets 40+mpg - we're averaging ~46mpg so far) and anything else we'd want is easily $40k+. The only real option would be to sell and order another one, but we waited for 10 months and current orders will be waiting at least until next winter.
sidartvader
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Re: Anyone buy a car with high mark up and have no regrets?

Post by sidartvader »

Purchased a RAV4 Prime for $5k over MSRP. It is a great car for us, and we are loving it. No regrets (yet).

With inflation and supply chain issues, I am not sure I could get this vehicle for less than what I paid for even if I waited 6 more months.
Wanderingwheelz
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Wanderingwheelz »

It doesn’t have 3rd row seating but I bought a new 2022 SUV last week for 5% under invoice before the $1,000 manufacturer incentive and my $2,430 in credit card earnings were applied. The car just came off the truck the day before, with the steering wheel still wrapped In plastic and the seats were still covered in plastic also when I was ready to test drive it.

So all told, the $1970 dealer discount and $3,430 in additional savings put me a little more than 13% under MSRP. Plus, CarMax wildly overpaid me for my old SUV- $4,500 more than Carvana offered for it and $4,000 more than the dealer allowed for it if I traded it.

There are deals out there if you’re looking in the right places.
Last edited by Wanderingwheelz on Sun May 08, 2022 8:36 am, edited 1 time in total.
Carguy85
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Carguy85 »

I’ll make the disclaimer up front that I’m not a Ford guy....haven’t owned one in 20 years. It was a Ranger and was a nice little truck. The Maverick does look interesting to a certain segment at a rational price. On the flip side, it seems the Bronco is at about double the price of something that I might be able to rationalize and I think they look pretty cool. My wife was wondering why there are so many now with very few miles for sale...I assumed people drove them for a month or two then decided to make a little money. However, I just learned though that there is a growing engine failure problem under 10k miles. Talk about regret!
Stumptowngal
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Stumptowngal »

Times do change for sure. A year and a half ago “ high mark up” meant paying well over invoice or MSRP. For the past year it means paying above MSRP.

We went through the process of looking for a new 3 row SUV last fall. While I was curious and intrigued by the Kia Telluride, once I found out that all dealers in our metro area were charging $10,000 to $20,000 over MSRP for them, I didn’t even set foot on the dealer’s lot. That pricing crossed my personal threshold of value to price ratio.

We narrowed it down to the Toyota Highlander and Subaru Ascent - both nice vehicles. The Highlander 3rd row felt really uncomfortable even for our 12 year old grandson on a short drive. The Subaru’s roomier interior, standard all wheel drive and decent mileage was the clear choice for us.

Many dealers were asking $3,000 to $5,000 over MSRP; but I found one local dealer who agreed on MSRP with none of those required add-ons so many are doing now. We chose a vehicle already in their transit pipeline and became the happy owners of a Subaru Limited last October after a 5 week wait. Never paid MSRP for a vehicle before; but then again, we sold our 2017 Subaru Impreza to CarMax for amazingly more than I could have imagined.

If a Kia Telluride isn’t your dream carn or one that you need very soon, I’d consider other 3 row SUV options or wait.
stoptothink
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Re: Anyone buy a car with high mark up and have no regrets?

Post by stoptothink »

Carguy85 wrote: Sun May 08, 2022 8:36 am I’ll make the disclaimer up front that I’m not a Ford guy....haven’t owned one in 20 years. It was a Ranger and was a nice little truck. The Maverick does look interesting to a certain segment at a rational price. On the flip side, it seems the Bronco is at about double the price of something that I might be able to rationalize and I think they look pretty cool. My wife was wondering why there are so many now with very few miles for sale...I assumed people drove them for a month or two then decided to make a little money. However, I just learned though that there is a growing engine failure problem under 10k miles. Talk about regret!
This is our first Ford. Good thing about the Maverick hybrid is that the powertrain is long-proven, having previously been used in the e-max, fusion hybrid, and escape hybrid. It does have a slightly more powerful electric motor and larger battery, and the ECVT is new (but exceedingly simple). Should be reliable; if not, we clearly have options to sell.

For a family who views cars as appliances, wants something as cheap and efficient as possible but has regular use for a truck bed (ie. transporting our 100+lbs. e-bikes), there is really nothing remotely comparable ATM.
30west
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Re: Anyone buy a car with high mark up and have no regrets?

Post by 30west »

This hot market will likely cool down now that interest rates are climbing. If you can wait 6 months you will probably get a better deal. Your motivation to buy now is to have a new car for a summer road trip. Why not drop the road trip idea and fly to europe or take a cruise with that 10k and buy the car at msrp in the future.
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Re: Anyone buy a car with high mark up and have no regrets?

Post by London »

snackdog wrote: Sun May 08, 2022 7:21 am Definitely rent for trips. An SUV for $40 per day or $1200/mo gets you a newer vehicle you can abuse, eat in, etc. Return it filthy and toss them the keys. $10k markup could cover several years of rentals.
I’m not sure where you can rent an SUV for $40 per day. When my family of 5 goes on frequent trips, I’m not able to find any price close to that. I’m using every discount angle I can think of, and still far above that.
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Arizonasun2008
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Arizonasun2008 »

30west wrote: Sun May 08, 2022 9:12 am This hot market will likely cool down now that interest rates are climbing. If you can wait 6 months you will probably get a better deal. Your motivation to buy now is to have a new car for a summer road trip. Why not drop the road trip idea and fly to europe or take a cruise with that 10k and buy the car at msrp in the future.
I think after being a very rational person for so long and seeing others get cars, I sort of had “big car experience” envy. But you’re totally right along with others that have mentioned wanting a car now for summer road-trips is probably not worth it. the current vehicle we have is fine and reliable.
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Arizonasun2008
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Arizonasun2008 »

Stumptowngal wrote: Sun May 08, 2022 8:39 am Times do change for sure. A year and a half ago “ high mark up” meant paying well over invoice or MSRP. For the past year it means paying above MSRP.

We went through the process of looking for a new 3 row SUV last fall. While I was curious and intrigued by the Kia Telluride, once I found out that all dealers in our metro area were charging $10,000 to $20,000 over MSRP for them, I didn’t even set foot on the dealer’s lot. That pricing crossed my personal threshold of value to price ratio.

We narrowed it down to the Toyota Highlander and Subaru Ascent - both nice vehicles. The Highlander 3rd row felt really uncomfortable even for our 12 year old grandson on a short drive. The Subaru’s roomier interior, standard all wheel drive and decent mileage was the clear choice for us.

Many dealers were asking $3,000 to $5,000 over MSRP; but I found one local dealer who agreed on MSRP with none of those required add-ons so many are doing now. We chose a vehicle already in their transit pipeline and became the happy owners of a Subaru Limited last October after a 5 week wait. Never paid MSRP for a vehicle before; but then again, we sold our 2017 Subaru Impreza to CarMax for amazingly more than I could have imagined.

If a Kia Telluride isn’t your dream carn or one that you need very soon, I’d consider other 3 row SUV options or wait.
I’m not sure that it’s a dream car but it’s honestly the only one we like at the moment. I have only driven toyotas and their highlander’s third row is just disappointing. I think Im just going to end up waiting it out.
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8foot7
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Re: Anyone buy a car with high mark up and have no regrets?

Post by 8foot7 »

I still think it’s a mistake to assume car prices will stay high for the long term. The industry is not built or set up for capacity/supply controls or limits. It’s built on the average American getting bored on a Saturday and getting a new car that afternoon while getting the negative equity from his last three bored Saturday purchases rolled into it. Between the supply shortage limiting consumer choice and inflating costs plus rising interest rates making car deals crappier and crappier from a monthly payment perspective, this will sort itself out. It may not pop like a bubble but as more chips slowly become available and as factories figure out how to ship more cars, the air will let out of the balloon. Might take another 12-24 months. I think most of us can squeeze another two years out of our vehicles if we really had to and we were honest with ourselves… (car accidents excepted of course)

I anecdotally note that during 2021 most of our local dealer lots looked barren—a handful of cars in most lots. Driving around yesterday I noticed a much greater number of cars in many lots. No, not nearly as many as the before times, but certainly a great (relative) deal more than last year. The days of MSRP+ are coming to an end I think.
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Watty
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Watty »

Arizonasun2008 wrote: Sat May 07, 2022 7:59 pm It is possible for me to wait a year and place an order and then pay a $4k mark up fee or I could potentially get one off the lot for $10k over msrp.
What does the math look like?

A high end Telluride with some options could be pushing a $50K MSRP before the markup.

If you wait a year then 8% inflation could increase that up by three to four thousand dollars but there is no way of knowing how that will actually work out. If you still need to pay a $4K markup next year that might not be a lot of savings if they increase the MSRP.

It sounds like you also have a decent car that you would be replacing so selling that could also get you thousands extra if you sold it now.

Even if the premium over MSRP goes down it will be a long time before it will be discounted to be close to invoice price because there is a lot of pent up demand.

Your math could be a lot different than if you were looking at a base Telluride and you were going to keep your old car.
Carguy85
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Carguy85 »

In addition, it’s not exactly like things are looking great right now in the economy...well at least with the market. Of course I can’t predict what will happen. However, it seems like not a great time to frivolously burn cash on a whim. Who knows how nice that $5-10k some months from now could come in handy.
Californiastate
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Californiastate »

Where will Kia pricing be in 24 months? I might consider ordering a new vehicle now to hedge against inflation. It might be many years before the new car market reaches a pre-Covid state. We buy new vehicles on 10 year cycles. Lucky for us that cycle was in '19. We bought 2 new vehicles with good pricing. I'd rather be lucky than good.
Carguy85
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Carguy85 »

8foot7 wrote: Sun May 08, 2022 11:05 am The industry is not built or set up for capacity/supply controls or limits. It’s built on the average American getting bored on a Saturday and getting a new car that afternoon while getting the negative equity from his last three bored Saturday purchases rolled into it.
So true. Last I checked wages have nowhere near kept up with inflation. Consequences of printing money like it’s going out of style are unfortunately going to hit the average American very hard sooner than later. The last thing that person should probably be holding is a bag of debt on a rapidly depreciating asset they just paid far too much for. Not saying this is the OP...just in general.
Last edited by Carguy85 on Sun May 08, 2022 12:28 pm, edited 2 times in total.
Ependytis
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Ependytis »

My son was in the market for a car recently. The engine in his Versa needed to be replaced. We went and looked for new cars and given the markup over MSRP was $3K-$6K, we just couldn't justify buying new. We, therefore, had his Engine replaced at a cost of roughly $3K. Given that was the minimum markup, I felt like it was a reasonable trade-off. Of course, I always want value for my money and figured if his car lasted another couple of years it was worth it. I wouldn't feel very good about paying $3K- $6K over MSRP personally, but to each their own.

P. S. – It surprises me that dealers don't think people will remember this behavior in the future. I took note of the dealers that were charging significantly over MSRP and needless to say I will never do business with them since they're in the business of price gouging.
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Arizonasun2008
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Re: Anyone buy a car with high mark up and have no regrets?

Post by Arizonasun2008 »

Watty wrote: Sun May 08, 2022 11:22 am
Arizonasun2008 wrote: Sat May 07, 2022 7:59 pm It is possible for me to wait a year and place an order and then pay a $4k mark up fee or I could potentially get one off the lot for $10k over msrp.
What does the math look like?
The model they have incoming is an SX with AWD which is a must for me on the car. They have it priced at $56,650 which is $10k above MSRP. Therefore, roughly $65k after taxes, fees, etc. My husband’s car is the one that needs replacing but he will take my older, reliable 2014 toyota and I will take larger car.
tibbitts
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Re: Anyone buy a car with high mark up and have no regrets?

Post by tibbitts »

snackdog wrote: Sun May 08, 2022 7:21 am Definitely rent for trips. An SUV for $40 per day or $1200/mo gets you a newer vehicle you can abuse, eat in, etc. Return it filthy and toss them the keys. $10k markup could cover several years of rentals.
Years ago I rented routinely for travel as you describe and even though I owned a car it made sense. Today that SUV could easily cost three or four times the amount you quoted.
stoptothink
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Re: Anyone buy a car with high mark up and have no regrets?

Post by stoptothink »

tibbitts wrote: Sun May 08, 2022 1:39 pm
snackdog wrote: Sun May 08, 2022 7:21 am Definitely rent for trips. An SUV for $40 per day or $1200/mo gets you a newer vehicle you can abuse, eat in, etc. Return it filthy and toss them the keys. $10k markup could cover several years of rentals.
Years ago I rented routinely for travel as you describe and even though I owned a car it made sense. Today that SUV could easily cost three or four times the amount you quoted.
Few others beat me to it, would love to see where you can rent an SUV for $40 day right now.
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snackdog
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Re: Anyone buy a car with high mark up and have no regrets?

Post by snackdog »

I see, for example, a Ford Edge for $1300/mo from Cincinnati. Larger SUVs could be more but the Ford seats five.
tibbitts
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Re: Anyone buy a car with high mark up and have no regrets?

Post by tibbitts »

snackdog wrote: Sun May 08, 2022 3:09 pm I see, for example, a Ford Edge for $1300/mo from Cincinnati. Larger SUVs could be more but the Ford seats five.
Is that a private rental? Lowest I see for a rental car company is $2k+tax.
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khangaroo
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Re: Anyone buy a car with high mark up and have no regrets?

Post by khangaroo »

We bought a brand new car at the beginning of 2021 and not sure if it was crazy markups but we didn’t negotiate a price at all. We had a number that we weren’t going to exceed and it all worked out perfectly.

The best thing about money is having it and it was the easiest car buying experience I’ve had besides the financial guy trying to sell me their packages for the last 30 mins of the transaction.

So rather than focus on a markup, decide what your maximum price is and shop up to that.
daleddm
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Re: Anyone buy a car with high mark up and have no regrets?

Post by daleddm »

Arizonasun2008 wrote: Sun May 08, 2022 1:29 pm
Watty wrote: Sun May 08, 2022 11:22 am
Arizonasun2008 wrote: Sat May 07, 2022 7:59 pm It is possible for me to wait a year and place an order and then pay a $4k mark up fee or I could potentially get one off the lot for $10k over msrp.
What does the math look like?
The model they have incoming is an SX with AWD which is a must for me on the car. They have it priced at $56,650 which is $10k above MSRP. Therefore, roughly $65k after taxes, fees, etc. My husband’s car is the one that needs replacing but he will take my older, reliable 2014 toyota and I will take larger car.
Sensing a lot of "investment" in this. Folks talk themselves into a lot of things. Just a car. PLus $$$ insurance. Tax and license. GAS.
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orcycle
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Re: Anyone buy a car with high mark up and have no regrets?

Post by orcycle »

sidartvader wrote: Sun May 08, 2022 8:33 am Purchased a RAV4 Prime for $5k over MSRP. It is a great car for us, and we are loving it. No regrets (yet).

With inflation and supply chain issues, I am not sure I could get this vehicle for less than what I paid for even if I waited 6 more months.
We bought a Prime in January, 2022, paid about $4,500 over MSRP (dealer threw in some extras, most of them worthless but the paint protection was worth something). I had my name on two dealer waitlists for about a month, I could have gotten one without a markup sooner but the spouse wanted a particular color.

With the federal tax credit of $7,500 and our state’s rebate ($2,500), I think it was worth it. I traded in an SUV that the RAV4 Prime replaced and got an inflated price for it, so that helped too. Also, I might sell the RAV4 to get a pure BEV, and I think I would get a good price for it if I sold it sooner than later. But it’s a solid car and not burning gas for local trips has been great. Went 2,100 miles on the last full tank of gas, that was nice.
gonefishing01
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Re: Anyone buy a car with high mark up and have no regrets?

Post by gonefishing01 »

I bought a more expensive truck than I would have under normal circumstances late last year because i didn’t want to pay markup. Ordered exactly what I wanted and paid slightly under MSRP vs the marked up over MSRP lower priced more popular models. No regrets. If i’m going to pay more anyway, might as well upgrade, right?
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StevieG72
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Re: Anyone buy a car with high mark up and have no regrets?

Post by StevieG72 »

Heck to the no, not buying over MSRP period!j
Fools think their own way is right, but the wise listen to others.
59Gibson
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Re: Anyone buy a car with high mark up and have no regrets?

Post by 59Gibson »

I've postponed a veh purchase recently. Don't really need it. I'll wait it out. If it doesn't change much in the next year or 2, I'll cross that bridge then. I'd prefer to be operating in a non fever environment, maybe it never returns to old normal. That's ok too.
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mrspock
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Re: Anyone buy a car with high mark up and have no regrets?

Post by mrspock »

I feel your pain OP. I was in the same boat. My advice is just to factor order a car @ MSRP and be patient until it arrives. For most orders you have to put very little down as a deposit, and some manufacturers let you lock the price which is a nice deal with inflation being what it is (you will "defacto" get it lower than MSRP by time it arrives). Worst case, when the car arrives, you walk from your order... best case by time it arrives you are getting a pretty sweet deal after factoring in inflation.

To find dealers which do factor orders at MSRP, search online forums for the car brands you are looking at.
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