One apparently late thought, and it's not clear if it helps or not but I don't see how it couldn't: If you are thinking of doing a more highly optioned build I would consider mentioning that to them. I'd think with the extra money they make with a highly optioned build that they'd be more likely to forego ADM than they would be with the smaller margin they'd get on a lean build. (This has been discussed on another thread before)

 

good point!

 

In the other direction it proves the point though by bringing up those brands. When there is a bidding war on mass produced mini vans and Hyundai Palisades are going above MSRP in this market……….it’s not surprising hard to come by models like these are also over MSRP.

 

Another approach, probably moot at this point, spec the car, place the order accordingly, leave a refundable deposit, when the car arrives, offer MSRP and if they decline - walk.

 

Good luck, I don’t think you can blame them if they ask for ADM. Your comment about many years of sales relationship implies that you will not be happy with the answer. But when the dust settles and the market gets back to normal, I’m sure you won’t mind asking for a big discount under MSRP. I think people need to be realistic and not get bent out of shape when they don’t get what they are used to getting.

 

Don't disagree, My response was more to call out westcoast who discounted the hyundai/kia reference in another thread and then uses it to bolster his argument here.

The market conditions have changed. If you are shopping in this market, you can choose to get negotiate within the market conditions to get a car or stand by your principles of not paying anything over MSRP and deal with the reduced odds of getting a car. Pretty simple.

 

while I don’t disagree with you necessarily, and I am neither bent out of shape nor unrealistic in my expectations here, your comparison with pre-shortage discounting would seem to imply that the dealers were selling for a loss previously. They were not, obviously. They were making good money before the shortage and now they are gouging to make huge amounts of money. I don’t necessarily disagree with the capitalism at play here, I am just choosing not to be a participant in jumping in at the peak of an inflated market.

Now I will feel very foolish if the dealer comes back and offers me a smaller ADM and I accept lol.

 

Agree. It helps put the market into perspective and helps buyers make more rational decisions when you see a $5000 ADM ask on a $100k very low production German Sports car that you can custom order any way you want VS a $5000 ADM ask on a $27k Japanese sedan that is not even customizable at all and they will make tens of thousands of..

 

To be fair, dealers are working with a lot less volume than they normally would be. So while they're scoring huge markups on GT cars, they're not selling as many of their bread and butter Macans, Cayennes, and Panameras. The supply of used cars is tight too.

Not to say that some are not being greedy, but the current market is not all beneficial to them.

 

Agreed, very simple. Actually, much more than it ever has been.

True, but that isn’t relevant. The market is what it is. Good luck though, I’m curious as to what they say.

Yup.

 

I think the characterization of "gouging to make huge amounts of money" is an overreach. There may be some of the bigger dealerships that will come out ahead from exploiting the market conditions for sure. I don't have access to the dealers financials but I imagine that the reduction of inventory and units to sell comes at a direct hit to their margins. I know they have reduced sales staff at several dealerships. I think they are trying to make more per unit on less units not necessarily by choice but as a response to the supply issues.

 

^Also very much this. If they have used inventory though they are making a killing off of that. My dealer offered me 93k on my 21 CGTS 4.0 and were going to sell it for the MSRP of 108k n change.

 

Sometimes a well-worded email can work some magic. I got my dealer to back off a $25k ADM by writing a polite but firm email to the GM and Busniess Manager about building long-term relationships, etc. My case was slightly different in that they had assured me all along I could buy it at MSRP, and only once they received the allocation did they try to tack on this $25k ADM. You might (CAREFULLY) allude to them "taking advantage" or something and say you'd have to consider if you'd like to continue doing business with this dealer in the future. In the end, this is going to come down to money, obviously. If they're worried about losing a long-time customer (potentially on the sales AND the far more lucrative service side), they may reconsider this charge. I'm not encouraging everyone to go whine when they don't get what they want, but be honest: will this affect your relationship moving forward? If so, tell them so.

 

I don't think the supply of new SUVs in particular is very tight. My dealer had several allocations for MY22 Macans; we put a deposit down on a Macan S yesterday. They also have 15+ MY21s sitting on their lot, and they're a small volume dealer.