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DEALER MARKUP?

21009 Views 71 Replies 33 Participants Last post by  peterschuylerbishop
Has anyone heard about dealer markup to the MSRP? Ford dealers have been marking up Mach-e up to 5k. I called my VW dealer and he has no comment. I’m not paying 50k for my 1st Edition even though I love it. I‘ll wait til next year, but I hope I don’t have to!
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Has anyone heard about dealer markup to the MSRP? Ford dealers have been marking up Mach-e up to 5k. I called my VW dealer and he has no comment. I’m not paying 50k for my 1st Edition even though I love it. I‘ll wait til next year, but I hope I don’t have to!
Unclear at this point. I made two reservations with two different dealers for negotiating purposes in case dealers try to markup the price.
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Ford dealers have been marking up Mach-e up to 5k. I called my VW dealer and he has no comment.
That's exaggerated media reporting. There are a few Ford dealers that tried to add ADM to Mach E at the beginning. But the vast majority of dealers didn't, and you can avoid the bad dealers without losing your reservation.

Ford did 3 things:
  • Made the dealers put the markup (if any) in the online reservation-to-order conversion website
  • Allowed reservation holders to switch dealerships (by calling a specific number)
  • Promised dealers $500 bonus at delivery for each reservation that turned into an order (presumably the bonus goes to the new dealer if the reservation holders switches dealership).
If VW doesn't get this right, it will look really bad. I'm sure it's on their priority list.
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If you click on number just to right of the MSRP, it says dealer sets actual price. And it does say starting price. I just have a weird feeling about it. I tried to buy my wife a Telluride a couple of months ago and all dealers were marking up MSRP a couple thousand. Supply and demand. I hope you are correct!
There may be a few dealers that try to do it but I don't think it'll be a widespread problem. If that does happen you should be able to find another that won't do that.
If you click on number just to right of the MSRP, it says dealer sets actual price. And it does say starting price. I just have a weird feeling about it. I tried to buy my wife a Telluride a couple of months ago and all dealers were marking up MSRP a couple thousand. Supply and demand. I hope you are correct!
The footnote also states: "prices are subject to change without notice"

This launch is a big deal for VW. I can't imagine they would allow for early adopters to get upset and make noise for a few extra dollars on either their or the dealers' end - especially for the small number the reserved units will represent of the 2021 market.

We are going to be their best sales people.
I thinj @eldecarlo has a point in that it really depends. I suppose it comes down to how VW wants it done.

If VW USA doesn't care and chooses to let the "supply and demand" play out, there will surely be ADM. If VW USA cares, they will put some small incentive/pressure in the right place and get it sorted out.

I believe VW USA cares, or at least it should. Otherwise it will make the reservation process a joke. (Having a reservation process is where ID.4 differs from Telluride.)
I think I’m gonna just go to my dealer and show them my reservation and ask if that’s going to be my purchase price. Then, if they can’t give me a straight answer I’ll go to another. When I was looking at Telluride’s I was told manufacturer’s have nothing to do with dealer pricing because it’s a suggested retail price. I hope it works out the way you guys are saying. I’ll let you know what they say.
I got the sense from my dealer so far it is just the published price minus the point of sale NY rebate (part of the dealer invoice in NY, the dealer claims the rebate from the state). There is possibly a "lease acquisition fee" of around $700 (from the VW ID.4 pages). Also, there might be some kind of VW/dealer delivery/destination fee, which could be $1,000, plus state registration and state tax (in NY you pay total tax at time of lease).

Anything above those (and, I am hoping for a break on the dealer fee), and I will walk. I don't have any special need for a 1st. If not for the couple of thousand in savings over the similar Pro with options, the white steering wheel bothers me a bit. But, maybe for a $2,000 savings, I can live with it.

OTOH, here in suburban / rural NY, there is very little interest in EVs. I was the first to ask, and possibly the only one so far for my dealer. They will sell a few, but no one is knocking down the doors here for any type of EV.
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Also, there might be some kind of VW/dealer delivery/destination fee, which could be $1,000
I believe ID.4 had a delivery/destination charge of $1195. I read the amount on some websites, but not from any official source. In any case, it's at least $1000, and should be no more than $1200.

Normally, you don't see this fee when buying a car off dealer lot because it's offset by manufacturer or dealer discount, but there likely won't be discounts on ID.4. So you should expect to pay for that.

When I was looking at Telluride’s I was told manufacturer’s have nothing to do with dealer pricing because it’s a suggested retail price.
Manufacturer has sticks and carrots. Whether and how the manufacturer uses the tools is a different matter. Manufacturer and dealers have a complex and subtle relationship.

I think I’m gonna just go to my dealer and show them my reservation and ask if that’s going to be my purchase price.
I don't think you'll be able to get a straight answer in writing right now. There are too many unknowns, even for the dealer. It doesn't hurt trying, but you shouldn't be too stressed or too worried if things don't turn out right. Both reservation deposit and order deposit are refundable. I will not hesitate to walk away if dealers piss me off. Unless you definitely want a ID.4 and you definitely want it early, I wouldn't sweat it.
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I will guaran - effing - tee you if the mark the ID4 up I will cancel my reservation.
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Well good news! I just stopped at my dealer and he already has my info and assured me they are not marking up vehicle. Yeah!
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I believe ID.4 had a delivery/destination charge of $1195. I read the amount on some websites, but not from any official source. In any case, it's at least $1000, and should be no more than $1200.
The Atlas and Tiguan are $1,020. Should be around that.
All manufacturers has a transportation cost and probably a candy to the dealers to take care of the customers!!!
I tried to go on the VW USA site but it's crash :(. I am in Canada so it still not open until next spring so you are very lucky guys :cool:
I guess this post got sidetracked? I was never talking about transportation fees, taxes and dealer fees. I was talking about a markup from MSRP. But like I said, I did visit my dealer yesterday and he assured me there will be no supply and demand markup.
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yes, same as I reported at post #9, good to see the same from your dealer!

(we did also get off track, apology if that bothered you. I think a lot of us are wondering about total cost too, similar to the initial question, what other items might be added to increase the final cost out the door)
That's why I refered to a "candy" for the dealers maybe not paid by you directely but VW will if not it would get many problems for the sales and service. Ford is giving $500 to the dealers.
yes, same as I reported at post #9, good to see the same from your dealer!

(we did also get off track, apology if that bothered you. I think a lot of us are wondering about total cost too, similar to the initial question, what other items might be added to increase the final cost out the door)
No apology needed. Not bothered at all. But those costs all depend on your location. State taxes, doc fees, etc. Transportation cost should be between $1,000 and 1,200.
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I spoke to a few dealers in NJ and all of them confirmed there is no markup., though they had very few details to share. Sharing a monthly newsletter sent out to dealers by VW America, courtesy one of the NJ dealer.

VW USA dealer newsletter

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I spoke to a few dealers in NJ and all of them confirmed there is no markup., though they had very few details to share. Sharing a monthly newsletter sent out to dealers by VW America, courtesy one of the NJ dealer.

VW USA dealer newsletter
Thanks for sharing! Looks like some 1st Edition reservation holders in ZEV states could be getting a visit from Santa!
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