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Car dealer showing/adding profit figures on sticker - is this a thing?

Jeeebus

Jeeebus

Diamond Member
Have been looking at several cars over past couple weeks and have not noticed this - until today. Went to Hyundai dealership to look at Genesis/Equus models and noticed that the 'price' was actually about $6,000 higher than the MSRP. Both cars included an "appearance package" as well as something listed as "dmu." I asked the salesman what those were and he just bluntly disclosed that it was dealer profit. I was a little surprised by the honesty.

Is this a thing that I just haven't noticed before? Normal practice or just crazy Koreans?

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Tell them to take the dmu off. They still make money through car manufacturer incentives, holdbacks and actual invoice vs msrp.

That DMU is more like "increased profit".
 
Whether accurate or not, he even said the "appearance package" was actually nothing - just an additional profit to the dealer. Didn't really want to have a fraud conversation with him while I was standing there though.
 
In my experience of knowing some people who would buy a $68,000 car, that extra 10% in cost is not a factor in their mind. So why not try for that extra profit?
 
DMU or ADM (added dealer markup) is pretty normal on highly sought after vehicles.

Just looking at Jaguar F-Types on autotrader makes me laugh. They'll put the MSRP, e.g. this, $71,880 but the asking price is $77,375. So a nice, blatant $5.5k mark up. Same thing with the new Corvettes at their launch or the Mustang 350s.

Up to you if you want to pay it though and the dealership wants to not play supply and demand profit games or tell you to pound sand because they think they can get more.
 
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CPA said:
Tell them to take the dmu off. They still make money through car manufacturer incentives, holdbacks and actual invoice vs msrp.

That DMU is more like "increased profit".
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That's what it's there for, to fool suckers into getting it removed so the suckers can think they accomplished something and the dealer can still make money through incentives, holdbacks, finance steering, etc etc etc

You should not even look at or consider crap like that. Pretend it's not there and negotiate the price of the car down from the actual number, not the artificially inflated number. Or better yet, walk out the door and go to a different dealer. If they're adding mandatory packs and artificially jacked up prices like that they're thieves and they're going to attempt to rob you at every step of the process. They'll inflate service times, perform unnecessary work, charge you for work not performed, they'll add on paperwork fees and they'll steer you into bad financing. There are decent dealers and bad ones and these assclowns are a bad one. Run.
 
I am surprised they are not doing that to the all new 2016 Honda Pilot, supposingly they can't keep up with the demand, at least at this one dealership I went to few days ago. I didn't buy into the craziness and it feels a little too big for me, so I got a Jeep GC instead.
 
Who actually walks into a dealership anymore except to do a test drive? when I bought my car, which was several years ago, I didn't walk into the dealer until I'd arranged a price.

By walking into a dealership, you're just begging them to fuck with you.
 
Charmonium said:
Who actually walks into a dealership anymore except to do a test drive?
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Well, I walked in... to do a test drive. Over the past few days I test drove several ostensibly 'luxury sedans' and decided to see if Hyundai was up there with those that I really liked (spoiler alert - it was not). Their cars were very luxurious, but I was not thrilled with the ride. Drove both the v6 and v8 - was rather surprised that the V8 in sport mode was not all that impressive.
 
Jeeebus said:
lol it took above post for me to figure out dmu stood for dealer markup.
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If you read the book "don't get taken every time" the guy actually explains a lot of dealers will have a DVF fee on the invoice....what did it stand for? Dealer vacation fund.
 
Jeeebus said:
Whether accurate or not, he even said the "appearance package" was actually nothing - just an additional profit to the dealer. Didn't really want to have a fraud conversation with him while I was standing there though.
Click to expand...

Probably some floor mats and an air freshener. LOL.

DMU = Dealer Mark Up
 
They know customers will want to haggle. So, by raising the price to 6 or 7k over the MSRP, they can come down $5k, and idiots will think, "I got a great deal."

If you're trying to haggle, I believe "I'm not f'ing stupid. With the amount of markup you have, I can buy anywhere in the country - fly out and purchase the vehicle, and drive back. "
 
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