Corpse Run 1,089: MSRP-eed off
Ok so I thought that building a new computer a few months back was difficult. Like, it was, but my fiancée and I are getting our first car together and it was been a wildly crazy nightmare of dealership lies and my phone blowing up.
Toyota has a configurator online to piece together the exact car/packages you want. Victoria and I spent a lot of time over the last month or so reading up on and checking out vehicles, so when we finally selected the car and options we were very set on what we were looking for. Once you configure the car, there’s an option to contact a dealership to get the car sent to their location for pickup.
Cool, right?
Naw, bro…
So the dealership says that they don’t have a car with those options in stock, which is fine. I say I did the configurator and that we’d like to order that car to their location. “Oh, that’ll take four to six months,” says the rep.
Four to six months? There’s nothing on their website that indicated that that would be the case, which is pretty lame. I totally understand shortages affecting the car market, but at least give the customer a heads up that the configurator cars are going to take half a year to arrive.
Fine, we’ll search through local stock to get a car that’s mostly what we’re looking for.
We find one that’s basically spot on and as paraphrased in the comic I’ll say it was roughly listed as $20,000. I called the dealership.
“Oh that car is actually $25,000,” says the rep.
“…but online its only twenty,” I reply.
“Yeah there are markups based on how the market is looking,” says the rep.
Now, this is where I deviated from how the comic above goes.
“So what you’re saying is that this car that you’ve priced at $25,000 is the same as the $20,000 car quote?”
“Yes.”
“So I’m paying $5,000 extra that you tacked on without receiving any other bonuses or packages?”
“That’s correct.”
“…why would I pay $5,000 for zero extra value?”
“Sir, that’s the price of the car.”
“The MSRP is twenty,” I say.
“That’s just the MSRP, there’s a markup,” she says.
Now, in the event that you don’t know what MSRP is, it’s the Manufacturer’s Suggested Retail Price. It’s what the manufacturer, in this case Toyota, says the price of the product is. Toyota says it’s $20,000, but they’re charging an extra $5,000 for the heck of it.
I mentioned computer parts before. While the parts shortage ballooned aftermarket prices, items sold at retailers (if you were fortunate enough to land one) were sold at MSRP. In this case, Toyota is acting as an aftermarket seller for their own products.
This is a colossally disgusting business practice.
To make a really long story short, we eventually found a place that had mostly what we were looking for and they were reasonable enough to not have a random markup tacked on…
…but that took hours of calls, one dealership hanging up on me, and scouring the internet to find something in our region that was viable.
Boooooooooo Toyota, boooooooooooo.
Oh wait, one more wild conversation with a different dealership, paraphrased excerpt beginning from being told that car I’d like to buy isn’t available despite being listed on their website as available:
“Are there any cars you have scheduled to arrive in the next month or so that I could put a deposit on?” I asked.
“Yeah, we have a model that fits your needs arriving at the end of November.”
“Cool, how much is that one?”
“I don’t know,” said the rep.
“…could you find out?” I asked.
“Only the managers know the price of incoming cars, but I can check with them and give you a call back.”
“Cool, thanks.”
Our call ended and a few hours later I got a call from the same dealership, this time from that representative’s manager. (names randomized)
“Hi, I’m John, I believe you were taking to Steve before about [car model]?”
“Yeah.”
“Ok great, well I’m happy to tell you that it’ll be arriving by the end of November,” the manager proudly stated.
“…I already knew that, I wanted to know what the price was to see if I want to put a deposit on it.”
“I don’t know what the price is yet,” he said.
“When I spoke to Steve, I said I wanted to know the price of the car. Steve said he didn’t know, but would check with a manager and give me a call back. You’re now calling me back, and you still don’t know the price. You called for no reason, you’re literally wasting my time.”
“Oh, I wanted to check to see if you wanted the prime version of the car,” lied John.
“I never once said to Steve that I wanted the prime version. I want to know the price of the car, and if I like the price I will put a deposit down.”
“I don’t know the price yet.”
“Why is that?”
“We might want to charge more for it in November,” John said.
TOYOTA, EVERYONE!
Car buying right now is literally out of control. Used cars are going for more than new ones… no joke, look at Subaru Foresters, it’s insane. I priced a Forester 2 years younger than mine with 40k less miles for $26k – the MSRP for the same vehicle (2022 and redesigned I might add) is $24550.
I saw a 1991 Toyota 4Runner with probably 250k miles on it here for $12k.
it is bonkers
That’s pretty normal. Toyota the dealership is not the same entity as Toyota the manufacturer. Dealerships almost always mark up the MSRP. Granted, it wouldn’t surprise me if it’s much *worse* right now.
Hoo.. and here I was thinking I might want a nice, sensible Prius… guess I’ll just keep driving what I’m driving.
Ummm…you do know that the dealerships aren’t actually owned or run by the manufacturers, right? They are franchises. So, no, they aren’t the people setting the MSRP…
I overpaid for a used Mazda because of a similar practice and couldn’t use my pre-approved loan because it cost more than the website said.
Dealerships are a racket. It’s incredible what some states are doing to make manufacturer direct sales (ie: buying from the manufacturer at MSRP) illegal.
I can certainly understand your frustration, but its misdirected. All the BS you’ve described is down to dealers, not Toyota. Dealers are mostly independent, they have contracts with car companies to sell their cars but are not owned by those companies.
So the $5k markup is what they usually refer to as a “market adjustment,” meaning that the dealer thinks they can just get away with charging you an extra $5k, but none of that money is going to Toyota, it’s just the dealer gouging you. It’s like if Best Buy tacked $300 onto the price of an RTX 3080, they aren’t sending any of that extra money to Nvidia. And if you think the market adjustment on Corollas is bad, check out Kia Tellurides. A lot of dealers are really scummy and will do things like advertising cars they don’t actually have yet, because they’re just trying to get you in the door so they can give you the high pressure sales pitch.
Unfortunately, it isn’t a great time to be in the market for a car. The chip shortage is delaying completion of a lot of new vehicles, and the pandemic only made it worse, causing factory closures and a few other problems. It all means the supply of new cars is really low, and it’s had crazy effects on the used market as well. Also means dealers stoop to being even scummier than usual, hence the markups.
I would suggest though, that the first dealer you mentioned might have been lying about the time to get a vehicle built. I’m not totally sure on that point, but I know a lot of dealers don’t like to take custom orders, because they want to sell you something out of the inventory they already have. It sounds like you found a dealer that’s a bit more reasonable, maybe ask them about getting your car built. That isn’t to say you can just order it up and have it be ready next week, it might still take some time, but 4-6 months seems a little long to me (I could also be wrong).
Good luck, and I hope you can find a reasonable deal.
This along with the attempt at subscription service fob (Yes, paying a subscription to unlock / start the car with a remote), I’ll probably start weaning my family off of Toyota.