Editorial

Grinding Gears: Dealer Markups

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You want to talk about Grinding Gears? Oh man, this one really gets me!!!! Dealer Markups! I mean, why is this even allowed or legal, why doesn’t the government or the car manufacturers step in and stop this nonsense. Or better yet, why don’t car manufacturers and well manufacturers as a whole (think Apple iPhone and Nintendo Wii) not release a product until they have enough stock on hand to fulfill the expected demand. I mean what’s the point of not making enough of something that is clearly selling but to keep producing things that are not. Case in point when the Focus RS first came out it had markups of about ten grand on them and one could just not find one no matter how hard one tried but that same dealer lot had fifty to one hundred base model Focus models that no one was buying and more and more were being delivered daily (I mean why?). But anyway I digress, I can’t fix all of the worlds problems in one post and I’m less here to rant about why manufacturers do this but am rather here to rant about the greedy dealers that mark cars way up!

Here is a perfect example, there is a dealer called Redwood Ford in Ukiah, California that is advertising a new Ford Mustang Shelby GT500 for $149,995 which is an insane $51,210 dealer markup on the MSRP of this car. That is just insane! How insane you ask? Well for a MSRP of $46,705 you can get yourself a really nice Ford Mustang Bullitt! So yeah these guys want you to pay a whole Bullitt’s worth of money over the MSRP for your GT500 plus a few more grand on top of that! I genuinely hope that no one buys this car and that it just sits there forever! I mean the greed level is just insane here!

What makes dealer markups even worse to me is how rude and stubborn most dealers are about them. I was looking at a Civic Type R when they were newer (and mind you not looking to buy, instead just looking because I wanted to see it while I was waiting for my Mazda dealer to pull my part out of their back warehouse and I was killing time) and I saw that the car was marked up ten grand over MSRP. Now mind you at this point the car was not that new and within five miles there were three others of the same color and spec for sale at literally MSRP. While looking at it a sales guy walked up and said hey you want to take that sweet ride home today (awesome sales skills) and I said no, I am good, I am not car shopping just killing time while waiting for my car, but also I would never pay your asking price, that markup is insane. The guy then proceeded to tell me how rare the car was and that I was essentially stupid for not getting it. I showed him on my phone that there were some near by for MSRP and he claimed that they would never sell it to me for that price since the car was impossible to find (mind you at this point the car was no longer hard to get and I literally just showed him seventeen models to chose from within a three hour drive radius meaning it was far from that rare at that point). Ill spare you the rest of the details but long story short I would never buy a car at this dealership and found it super insulting that they would push so hard for a markup.

The sad truth is, I don’t see this practice ending any time soon and that really is like Grinding Gears to me! The only way it stops is if those of us with extra money to burn show a little more patience and not pay one and a half times a cars asking price simply because we can not wait.

Circuit94
d.pecenkovic
the authord.pecenkovic
Editor In Chief
Damir Pecenkovic is a passionate car enthusiast, photographer, race car driver, graphic designer, computer nerd, video editor and basketball player all rolled up in to one. Damir is currently the owner of DecalCutter.com and ShutterVelocity.com and is the founder and previous Editor in Chief of Performance Tuner Magazine. Damir currently drives the #19 Mazda MX-5 Miata for Circuit94 Racing. Damir loves to discuss cameras, computers and cars so jump in and join the conversation.

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