Americas Dealership Markups (North America)

[Krabby]

The problem in the US is that there is legislation that protects the dealer ecosystem and prevents the direct sales method. While it varies state to state, the basic thing is the same - manufacturers can't truly control what dealers sell vehicles for, which is why there are insane "market adjustment" fees. Some companies like Dodge and Ford threaten dealers with reducing inventory of marquee models (Hellcat, Raptor, etc.) but it doesn't seem to help much. Years back my dad ran the service department of a large, swanky BMW dealership that had an unregistered/new Z8 they sold to another BMW dealership in California for $50 grand over list. I can only imagine how much that Cali dealer made by selling it to some rich bastard. Hopefully those rich bastards and greedy dealerships leave Grenadier early adopters alone.

 

[emax]

Ineos Automotive as trendsetter? --> BMW about to change to an agency model in Germany starting 2026 and Mini already in 2024 according to press (https://www.sueddeutsche.de/bayern/...urn-newsml-dpa-com-20090101-221208-99-829216; https://europe.autonews.com/automakers/how-bmw-will-revamp-its-retail-network-digital-age)

Volkswagen already does so. The EV models are sold in an agency model.

They not only want the money but the customers and their data as well.

"When it comes to money, there's only one buzzword: 'More!' "
André Kostolany

 

[DaveB]

Almost every Car dealership around me and I'm sure around most of the country is seeing shortages. All the JLR dealerships are charging 5k above sticker price for any new vehicle. What are the chances you guys think that Dealerships that are going to be selling the Grenadier will have dealership markups. I'm sure they are also in charge of financing. I'm sure at first the network will be limited. Its unlike a person can say I'm not buying it from you and go to another dealer in the area. But then everyone in the area is charging the same markup. Just wondering to see if anyone else has thoughts on this.

Not sure which country you are from but the dealers won't be selling the vehicle, Ineos sell it direct.
This means the dealers can't put a markup on it

 

[Stu_Barnes]

Not sure which country you are from but the dealers won't be selling the vehicle, Ineos sell it direct.
This means the dealers can't put a markup on it

@DaveB they’re referring to the USA sales model. Pretty much you have to sell a car via the dealership or spend a long time in court.

A bit of info here

Tesla are doing the direct sales approach in some states but we were told that INEOS will not be doing this as they simply don’t have time or resources to compete against the legislation and lobbyists.

Bottom line we (USA) buyers get shafted, maybe. INEOS said they would do everything in their power to stop price gouging of early adopters but it’s beyond their control ultimately. However crazy that seems.

 

[Stu_Barnes]

MSRP

 

[Stu_Barnes]

This is the real price that you pay, which goes up when all the other fees are applied..... And you're welcome Roseville Chevrolet for the free advertising.

 

[DaveB]

@DaveB they’re referring to the USA sales model. Pretty much you have to sell a car via the dealership or spend a long time in court.

A bit of info here

Tesla are doing the direct sales approach in some states but we were told that INEOS will not be doing this as they simply don’t have time or resources to compete against the legislation and lobbyists.

Bottom line we (USA) buyers get shafted, maybe. INEOS said they would do everything in their power to stop price gouging of early adopters but it’s beyond their control ultimately. However crazy that seems.

Pretty
Must be another one of those "rights" someone fought for in the past.
The right to be ripped off.
I think every country has old laws that keep biting them in the arse.

 

[Krabby]

Back in 1920-whatever, customers were being protected from the manufactures, now it has really become the opposite.

 

[Stu_Barnes]

Totally, I had a dealer on the phone a few years ago when I was looking at buying a Raptor, I think the list price was 65K but the dealer wanted 98K or something silly. We were talking and I had to explain that the business model they have is basically illegal in many other countries. Needless to say they were astonished and I didn't buy the Raptor.

 

[WorldsGreatestOverlander]

The "added dealer markup" situation in this country has really gotten out of control. These markups have been a real concern of mine since making my reservation last September. I really hope there is something Ineos can do to hold these dealers to the actual MSRP. I'm getting close to getting priced out on the car as it is without any additional markups. I can't see spending $95-100K+ for one of these. I guess we'll have to keep our collective fingers crossed that all goes well....

 

[Stu_Barnes]

On the flip side, if the Grenadier is a failure, then the dealers can let them go for silly money. But the likelihood of that ...............

 

[emax]

and I didn't buy the Raptor.

THATS's what everybody should do!

 

[emax]

You need a "Grenadier Buyers Union" or even better a "Car Buyers Union" in the US - and then should strike.

 

[DaveB]

You need a "Grenadier Buyers Union" or even better a "Car Buyers Union" in the US - and then should strike.

I would have thought dealers would be getting shot every day in the US

 

[Krabby]

The "added dealer markup" situation in this country has really gotten out of control. These markups have been a real concern of mine since making my reservation last September. I really hope there is something Ineos can do to hold these dealers to the actual MSRP. I'm getting close to getting priced out on the car as it is without any additional markups. I can't see spending $95-100K+ for one of these. I guess we'll have to keep our collective fingers crossed that all goes well....

Same here - not only would I be priced out, even if I wasn’t financially stretched I wouldn’t pay above list on principal alone. I could end up in the sidelines but I’d have my dignity in tact.

 

[pioneerofthenile]

locked in pricing needs to be put in place at least for the early usa reservations. this has to be taken care of in the next q&a.

to wait for 3 years and build up hope only to be price gouged with adm when it's built is going to get somebody hurt because of it. nothing Tony soprano can't fix. some ford ad's really fkd people good with adm's. I'm surprised that there wasn't any violent encounters with the bronco.

nobody trusts most us dealers.

 

[pioneerofthenile]

I saw in another thread that some cali and fla people have been told by reps that there would not be adm for early reservation holders.

but after that it would be nominal.

that does ease some concerns but you still have to take it with a grain a salt as second hand news doesn't mean much coming from a non decision maker.

 

[DCPU]

locked in pricing needs to be put in place at least for the early usa reservations. this has to be taken care of in the next q&a.

How would that be done in the context of the current laws?

 

[pioneerofthenile]

How would that be done in the context of the current laws?

grease your local politicians so they will put pressure on them. justice doesn't come cheap.

 

[ADVAW8S]

How would that be done in the context of the current laws?

Step one, order direct from the factory which everyone will do at least for the first set of orders. Step two, make agreement with the new dealers that part of the dealership agreement that early reservation holders get to buy at MSRP. In return the dealership gets special treatment. Allnspeculations.