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Selling cars at MSRP ... really???

dud

dud

Diamond Member
Certain makes and models of cars almost always sell at/near/above MSRP depending upon supply and demand. I recenly spent a few minutes on the Edmunds.com fourms taking the "pulse" of the car market. I was especially interested in what new Hyundais were going for these days. I was surprised to find that many Elantra buyers are finding low/no stock at their local dealerships and are paying full MSRP for their cars. To me this is crazy. Yes, if you really want a car you pay what you think it's worth but in the case of MSRP you are paying what the manufacturer thinks it's worth ... and this is a cheap Hyundai.

Anyone else run into similar situations while car shopping (either on-line or at the dealership)?
 
With regard to the Elantras, I keep hearing that stock is very limited. When I looked at a local dealership in Chicagoland I heard the same tune. They didn't have any in stock and many people were just ordering them. So I don't see why you shouldn't expect that the high demand allows the dealerships to charge sticker price.
 
you mean the manufacturer actually prices the car at what the market says it's worth rather than pricing it $5,000 higher and then giving everyone a ton of rebates?!? heresy!
 
ElFenix said:
you mean the manufacturer actually prices the car at what the market says it's worth rather than pricing it $5,000 higher and then giving everyone a ton of rebates?!? heresy!
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Heresy for some manufacturers ... sacriledge for Hyundai.
 
My local Chrysler dealer has "$1499.00 ADM" tacked onto the the price on every new vehicle sticker...
 
dud said:
Anyone else run into similar situations while car shopping (either on-line or at the dealership)?
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Honda Civics always have a waiting list or no stock. When I bought one in 2006, silver was the only available color, I paid MSRP, the best the sales guy could do was throw in free shit. He won't give up his commission and lower the price, but he can still throw in a bunch of stuff like mats, free oil changes for life, net in the trunk, locking wheel nuts, etc.
 
Don't know about today, but I remember car shopping and finding some dealers adding a second sticker with an "Adjusted Market" price. Many Honda dealers did this when supply was small and demand high.
 
ShawnD1 said:
Honda Civics always have a waiting list or no stock. When I bought one in 2006, silver was the only available color, I paid MSRP, the best the sales guy could do was throw in free shit. He won't give up his commission and lower the price, but he can still throw in a bunch of stuff like mats, free oil changes for life, net in the trunk, locking wheel nuts, etc.
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Interesting ...

I bought the wife a new Civic LX in 2007 and paid way under MSRP. All I did was ask for quotes from all Honda dealers within 100 miles. The best deal was 45 miles away but the dealer we test drove the Civic at (12 miles away) assumed he had the best price. I informed him that his price was $800 more than the lowest he matched it within 2 hours ... no negotiations. The wife and I picked the car up a few hours later for about $15,500 plus tax/tag. Looking back it was the least painful car purchase (next to my truck) that I've ever made.

During this car-buying search 4 years ago Hyundai was by far the easiest-to-deal-with dealership ... they were practically giving them away far under invoice.

Things certainly have changed ...
 
dud said:
And your point is ...?

You would think that in a "down" economy automakers would be more competitive for the limited sales dollars available.
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The point is production is down now and there are enough sales of many models to warrant full price.

Volume sales lead to blowing cars out so more inventory could come.
 
The economy not booming has also led to car manufacturers not making so many of their models. Once again, supply & demand.

Remember when the Malibu had a body style change a few years ago? People weren't just paying MSRP, they were oftentimes paying 2 or 3 thousand OVER the MSRP, just to get their hands on one. Now that's crazy!! D:
 
alkemyst said:
The point is production is down now and there are enough sales of many models to warrant full price.

Volume sales lead to blowing cars out so more inventory could come.
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Yeah, decrease inventory on the lots has alot to do with it. Also in the OPs case, people are leaning toward smaller cars, therefore most smaller/high mpg vehicles will be close to msrp. I'm sure toyotas sequoias are running quite a bit under.
 
KK said:
Yeah, decrease inventory on the lots has alot to do with it. Also in the OPs case, people are leaning toward smaller cars, therefore most smaller/high mpg vehicles will be close to msrp. I'm sure toyotas sequoias are running quite a bit under.
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That's a good point. People were still buying huge SUVs 3-4 years ago and you could get good deals on smaller cars. Also, large profits on expensive SUVs were the bread-n-butter of the big three, so you could get their small car for a steal.
 
dud said:
And your point is ...?

You would think that in a "down" economy automakers would be more competitive for the limited sales dollars available.
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Car makers have adjusted their production to the new norm. For awhile they were churning them out and especially when the economy took a dump there were to many of them. It sucks since I want to buy a car now.

I wanted to test drive a Tucson and there just plain weren't any on the lots. They eventually bought some year old corporate leases and I got to drive a used one to see if I liked it at least.

You might want to check out a Kia if you're looking at Hyundais. I didn't really see much difference between the Tucson and the Sportage, aside from more doodads on the Hyundai base model with an accordingly higher price. Same company and same warranty. I can't remember what the Kia Elantra is called.
 
Honda is like that too.
I could barely get anything out of Honda when I bought my Civic. I did need a reliable car that had good resale value though, so I was willing to put up with the not so great purchase price because in the end I will get more for this car when I sell it than a domestic car. I shouldn't say the deal was terrible, its still 0% financing.
 
CraigRT said:
Honda is like that too.
I could barely get anything out of Honda when I bought my Civic. I did need a reliable car that had good resale value though, so I was willing to put up with the not so great purchase price because in the end I will get more for this car when I sell it than a domestic car. I shouldn't say the deal was terrible, its still 0% financing.
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Does the resale value matter that much? Do you drive cars into the ground or ditch them after a few years?
 
Resale always matters some, even if you drive it into the ground. If your needs change you might have to sell before you expected. If the car gets totaled it might factor into how easy or what kind of vehicle you buy as a replacement. And who knows? You might end up hating the car, or its at the dealership service department constantly when it is new and there's no way you want to be dealing with that after the warranty runs out.
 
Supply and demand....

Back in 1989-90 Mazda released the MX-5 Miata with a sticker price of @$14K. Demand was so high that dealers were selling them for $30-40K in Southern California.

Never underestimate the power of "Stupid" when it comes to people and the things they want. 😀
 
In and around Chicago the Elantra has been selling near MSRP since they first came out and right now, unless you take what you can find, there is a 3 month waiting list to get one. You can get a Sonata for just about the same price.
Anyone remember when the 2005 Mustang GT came out? You couldn't even find one and when you did it was waaaaaaaaay over MSRP. Stuff happens!
 
MiataNC said:
Supply and demand....

Back in 1989-90 Mazda released the MX-5 Miata with a sticker price of @$14K. Demand was so high that dealers were selling them for $30-40K in Southern California.

Never underestimate the power of "Stupid" when it comes to people and the things they want. 😀
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I just got back from the Nissan dealership (there was a safety recall on my truck). While I was there I strolled through the showroom ... aghast at the prices. Sticker on the average vehicle was in the mid-30s.

Glad I don't need a new car now ...
 
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