[Poochie]

Originally Posted by Vaticous

God, those headlines are disgusting. Imagine telling a potential customer that with a straight face.

The market dictates what prices people are willing to pay and currently, they're actually consumers out there willing to cough up the excess charge, just to be the the new kid on the block with the latest model, so dealers can and will keep with the markups in play.

Also, there are some consumers with a warped psychology, whom feels that because they overpaid for a vehicle, even from an artificially inflated market adjustment, their vehicle is somehow now worth as much as the note, so they mentally justify their exuberance purchase.

Maybe not as much as 100k markup but true story, a friend of friend ask me to print out a finalized bill of sale for him over the summer and I saw he paid 127k from a 106k MSRP for a Z06 Corvette. To me, a 21k AMD is criminal but don't blame the dealer; you find a jackass, you ride that bitch into the sunset… Unfortunately, reasonable buyers are still currently feeling the sonic boom of these financial improprieties in the automotive market..

[T_U_D]

Originally Posted by Poochie

Yep, with this model, there are more than enough potential midlife crisis and trust fund babies consumers out there to keep the demand high enough, whereas, the dealers feel confident enough to charge a markup, without any shame - especially it being a new model and all.

To reiterate the obvious, the last two years was also an anomaly in consumer spending, not just with automobiles. There where lot of people making poor financial decisions based on the life's too short motto and as a result, it became a total seller's market, taking away any leverage in negotiation for sensible buyers. We are still experiencing the residual effects of this..

Eventually, when the music stops and reality begins to hits again, the auto market will again stabilize to the previous known business models, where one can negotiate a sweet discount off the manufacturer's asking price. But in the current economic climate and for an early adopters, expect to pay a markup..


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Per Automotive News the major lenders are already warning that many automotive loan defaults are forthcoming. The majority of borrowers bit off more then they can chew.

[ElHeffe]

Originally Posted by ScullyD

I think the days of paying below MSRP are far away or gone forever. Manufacturers are seeing huge benefits from not over-building cars and dealers are fat off of ADMs.

Things are starting to normalize. RAM/Stellantis are over producing cars and you guessed it, they're starting to offer incentives! Sure some manufactures will try to hold out but there's other pressures at work as well. Higher profitability/limited production can come at the cost of lower market share. If you have one or a few vendors committed to flooding the market, it won't be long before others are forced to follow suit.

[BrooklynXB7]

Originally Posted by SPDandPWR75

BMW of Ridgefield ,CT is claiming no ADM. waiting to get called in to spec mine.

BMW of Ridgefield is great. Ask for Bob. I'm first on their list and awaiting my production order number one day this week. No ADM. great guys there.

[trey100]

Originally Posted by ScullyD

I think the days of paying below MSRP are far away or gone forever. Manufacturers are seeing huge benefits from not over-building cars and dealers are fat off of ADMs.

I do believe you should not pay more than MSRP for any car as the risk is just too great that you hold the bag. For example, I'm paying MSRP on my M4 CSL that's coming in later this month and that's a limited model.

When I sold my DCT OG M2 after about 3 years, it sold for 38k and OTD I paid 62k. Expect that level of depreciation to return again.

People buying non-limited model cars expecting appreciation cause of the way the market worked for about 12 months, they will be the ones that hold the bag for everyone else.

The used car market is already softening as well. Lots of "price drop" on cars.com. There are some hold outs of course, but I'm guessing the continued softening will force the new car dealerships to start to come down to earth. The previous M2 was selling for MSRP before all this craziness so it's not outrageous that given the newness of the G87, that dealers would go higher for now.