Buying a new vehicle, truck, or SUV right now is more difficult than buying a new PlayStation 5 or a graphics card. In addition to the chip shortages and COVID shutdowns we’ve already reported on, Russia’s invasion of Ukraine has also disrupted supply chains and halted the delivery of brand new cars and other transportation equipment.
When it comes to buying a car in the United States, the great majority of purchasers choose to buy via a dealership rather than order directly from the manufacturer. Dealers have responded to the lack of inventory by increasing their ADMs, or “additional dealer markup,” by a few thousand dollars or more. The markups were valued at $3.6 billion, according to one estimate.
Due to supply and demand or because no one ever complained about dealerships losing money selling automobiles, several in the business have supported this approach. However, it’s difficult to empathise with those of us who don’t stand to gain monetarily from a $10,000 ADM.
Markups.org, a new crowdsourcing site, is collecting data about ADMs around the country to help auto purchasers avoid being duped.
“sort by Price (High)” lets you quickly identify the worst offenders, such as an Oklahoma dealership that tacked on an additional $200,000 to the price of a new Hummer EV. When a California 911 GT3 costs $150,000 and a Porsche 911 GTS costs $50,000 more, it’s no surprise to Porschephiles, who are used to paying top dollar for their beloved sports cars.
AMDs may be found in almost any well-reviewed automobile. When it comes to compact pickup trucks, the Ford Maverick is a standout. If you want to buy a Maverick XL from Villa Ford in California, you’ll have to fork up an additional $21,000 to do so. All World Ford in Wisconsin has thrown on an additional $20,000 to the MSRP, which is now $21,955. Additionally, the crowdsourcing site provides a list of Mavericks dealers that aren’t adding any ADMs.
Another noteworthy example is Kia’s superb EV6, but with a smaller number of data points. As you can see in this table, ADMs may range from $3,000 to $20,000. Only one dealership (in Colorado) doesn’t ask for any additional markups.
Some OEMs are beginning to lose patience with dealerships who engage in this type of conduct. When it comes to electric vehicles (EVs), a lot of people are interested in buying them. Several major automakers have told their dealers that if they don’t start behaving, they might lose their car allocations. That’s all we can hope for at this point.