Nearly every time a hotly anticipated new or redesigned vehicle first hits dealer lots, a number of enterprising dealerships will take the opportunity to make some additional profit. Recent examples include the Ford Shelby GT500 and the Ram 1500 TRX. At the peak of their popularity, these vehicles had “market adjustments” ranging from $10,000 to upwards of $30,000 over the manufacturer’s suggested retail price (MSRP).
This issue doesn’t just affect flashy performance vehicles. The past year has seen low inventory at dealerships, caused in part by a semiconductor chip shortage. In this scenario, ordinary vehicles such as the Kia Telluride, the Chrysler Pacifica and the Toyota RAV4 Hybrid have been selling for a few thousand dollars above MSRP. It’s a textbook case of supply and demand in which there are more customers than cars. The good news for consumers is that there are ways around these markups.
While frustrating and costly, this price adjustment is within a dealership’s rights. After all, the “S” in MSRP stands for “suggested.” Edmunds offers ways for consumers to deal with dealership markups on a high-demand vehicle.