MSRP means Manufacturers Suggested Retail Price. No manufacturer can dictate to a dealer how much over or under this figure he must sell a vehicle for. Additional Dealer Markup (ADM) is most often applied to specialty vehicles or other vehicles that are in limited supply. For example, demand for the Corvette in most years is far beyond the number of units that can be produced in a model year. Most small to medium sized Chevy dealers are lucky to get 3 or 4 of them a year. Supply and demand ultimately dictate whether or not the dealer can sell a Corvette above MSRP.

If it is fair for a consumer to ask to pay a price below MSRP then it must also be fair for a dealer to ask for a price over MSRP. This is not to be confused with some other dubious add on charges that some dealers force on every car, such as an "Environmental Package" or some "VIN Etching" program. Simply refuse to pay for these items, period!

 

True enough Bob and to add a little something to that post and using the Corvette as a great example, you can often get a car for under MSRP at a high volume dealer where the same car will carry a markup at a low volume dealer. The corvette is a case in point. In small town Vacaville CA, a town of 70 thousand people, they maybe get one or two corvettes a year and are always asking over MSRP. If they don't get it, they eventually trade the car to a larger dealer for something they can sell (in Vacaville's case an SUV probably). On the contrary, there are several high volume corvette dealers that specialize in pleasing the corvette faithful and almost always sell under MSRP, you may have to wait for the car to be ordered but they are out there. Finding the right dealer for these things usually means contacting a web forum sales person or a special "Corvette Sales" person at a larger dealer. If you walk in off the lot, you will still get reamed.

I know Dodge dealerships are still marking up the Magnums, especially the RT's but rest assured they will sell for MSRP now, if not below, especially since the 06's are hitting the floor. Go out there and get yourself a deal!

It would rock if the dodgeforum partnered with a NO BS dealer network that paid to have banner ads here. That way forum members could have a direct line to reasonably priced cars and the dealers would have a steady stream of customers. This is how they do it at the corvette and viper club forums and it could work here too.

 

The first on-line quote I got was 84% of the MSRP and they said they could discount it even further when I came in.

Now, why wouldn't they just tell me their lowest price to begin with?

 

Most likely they want to make sure you are a customer not another dealer shopping them..

 

I don't want to waste space with a sales pitch, but, I have three R/T magnums on my lot approaching three months on the lot. Guess there is a little less demand in longmont colorado. By the good graces of the owner, I can offer dodgeforum members INVOICE plus our dealer fee of 493.67(don't ask me how they came to that amount) then minus chrysler financial rebate. AND these cars still have the 7/70 warranty on them. let me know.

 

Do you mean 94% of MSRP? 84% would be well below dealer cost.

 

No way. I got mine for 81% of MSRP. There is no way they sold it to me losing money.

 

That is incredible. Example:
A fully loaded 2006 SXT (kbb.com has pricing online) has MSRP of $36015. Invoice on this is $33284.
Check my math, but 81% of MSRP is $29172, or about 12.3% below invoice.

Who's your dealer?

 

This is a topic ive been strugling to understand for awhile now, so im glad when i read this sorta thing, that there are ppl out there that understand this stuff. Included in my post is a jpg of a window sticker i got from a online dealer search, of the Magnum i wish to buy. Not that exact one, but it was the first i found just browsing around. These are Canadain dollars.. so just stay calm when u see it

MSRP is 46k and then the options take it up to 53K and change. Now these numbers are still both MSRP right? going by what MagnumSXT and his deal of 81% of MSRP that takes it down to.. almost 43,800? thats 3k less then the base msrp for this car? is that right? Why do i feel ill get laughed at when i tell the dealer i dont want to pay more the 45k for a 53k car?

Maybe you guys can clear some of the merky mud away, and help me with this.

Thx, and remeber this is candain money. current exchange is .84c a US dollar i believe.

[IMG]local://upfiles/3267/81BC6608908C489680913A866F1788A4.jpg[/IMG]

Dont click the attachemnt, it doesnt seem to re-size it to see the whole jpg. But the thumbnail does.

 

OK,
20% off MSRP is not below Invoice paid by the Dealer... How do you think they pay for the Salesmen that sit around all day long? The Electric Bill with the Over-Lite Parking lot, the nice Sales area, the expensive square footage they're sitting on with 100's of cars? 30% Mark-Up is more realistic. I would question the Invoice Price, that was probably inflated to make you feel better, so you buy it, because you THINK you are getting a good deal. Plus, did the Dealer get a deal by paying off early, buying in bulk, etc... But hey, I would have had no problem paying another $5,000 for mine... It's that fun...