New car prices. Gulp.

[ProfessorWes]

So this morning I drove up to Jefferson City to see the Hyundai dealer, as my 2012 Elantra had developed a sort of clicking noise in the steering column. Actually, it had devolved into a clunking noise and a certain amount of play in the steering wheel and a "wiggle" in the shaft. A local shop had diagnosed the problem as a "steering coupler" - a bushing in the column that apparently is a known issue with that vintage of Elantras - and told me they really didn't want to mess with it as it would involve pulling the column. So, off to the dealership.

Yep, it was the steering coupler. Final bill was $253.12: $3.12 for the part and $250 worth of labor and tax. Ouch. It could have been a warranty repair, as Hyundai had extended coverage for that issue, but at 205,450 miles on the odo my Elantra is well past any warranties and has entered the realm of "Everything is normal wear and tear. Good luck."

So I'm wandering the lot while my car is in the service bay, looking at the handful of new models actually available for sale. Three new 2022/2023 Elantras, a new Sonata, a Venue, a Veloster and a Kona. All with a $5,000 - $7,000 markup over MSRP (labeled "Market Adjustment Fee" on the invoice). Yikes. A new Elantra SEL with a similar option package to the one I have now would set me back thirty grand, plus financing, for a $23,500 car.

Gulp. So much for any desire to trade right now . . . They had lots of relatively cheap used SUVs on the lot for some reason, though.

So does everybody else. Anything with fuel economy, not so much.

 

[Busterswoodshop]

You should ask them if they give you a "Market Adjustment Fee" on your trade in.
See how that goes.

 

[Kevin]

I wouldn’t do business with any dealer who blatantly advertises their “market adjustment” fee.

We bought a new car back in January, no market adjustment fee. Then a new truck this summer, again, no market adjustment fees.

 

[rkrcpa]

I saw recently that the "average" car payment is now $700+. I can't imagine ever paying that much.

 

[Dave P.]

It works both ways. In a crappy economy with a lot full of cars and huge floor plan interest costs, dealers are going to cut prices and deal.
With empty lots and absolutely terrible availability they're going to bump their margins to whatever they can get. If nobody's buying over
list the prices WILL come back down. Lots of places people are willing to pay the premiums, personally I'd wait it out.

 

[Johnnu2]

Not much different than the fake ammo and components "shortage pricing"............. If you can: DON'T BUY
J.

 

[Mobuck]

I wouldn't buy a NEW vehicle even if I had the money burning a hole in my pocket. New vehicles are a ticking time bomb and a very expensive one at that.
On top of that, I've NEVER paid retail for a vehicle let alone paying OVER sticker price.

 

[GasGuzzler]

Actually trades do have a market adjustment as they are worth way more than they should be.

What does the "S" in MSRP represent? It stands for SUGGESTED.

So if you have a commodity like real estate, precious metals, or ammunition and the value takes a spike because of demand and lack of product, you're supposed to sell at the same price as when the value was lower? Why is a car any different?

I saw a new Camaro with a $10K market adjustment in 2002 when cars were cheaper and it sold in a day or two. Customer was glad to have it as it was a special edition with only 200 produced.

For anyone complaining, I think you should consider the simple rules of supply and demand. You have the right to take your business elsewhere just as much as they have the right to set their own prices.

It's not the sellers of inflated priced items that creates the inflation. Inflation comes from the de-valuing of currency.

 

[bearskinner]

Almost a year ago, being tired of rising fuel costs for feeding my truck (V8, 4 door 4WD F150) when you put $100. In it, and get almost 3/4 tank full…….. so I went car shopping. I’m not trading in the truck, it’s a staple on the ranch, but an economy car to run to town. Or state to state visiting friends, family, etc. Lots of research in advance, need AWD, 4 door and like a 5 door or hatchback for loading all the “stuff” I haul around. I had called the local Subaru dealer agent, that sold us my wife’s car. They have NOTHING NEW on the lot. …….. but they have a few used trade ins to check out. The little Subaru Impreza 5 door lists for $21K. A nicely equipped one $23K problem is, there are none! I test drove a 2 year old lease trade in, and put a $500. Deposit on a sticker, of one that is going to arrive in a month. Funny thing is, the used, trade in, was on the lot listed for $1K more than I just put a deposit on the new 2022 model. So I wait till my new car arrives, and the next customer bought that trade in, before I finished my paperwork. Guess if you need one now……….
I got the extra Subaru in about 4 1/2 weeks, and I’m amazed with the mileage it gets. The little 2.0 engine has plenty enough power, cruises nicely at 75-85 on the open road, and gets 34-38 MPG. I can put lots of miles on the subie, and save fuel costs and wear on driving the truck. It’s almost s year old, and the dealership is offering me more than I paid for it, to sell it back to them……..
Guess I got it just in time, as it’s really hard to get new cars in now. The $312. A month payment, (0.9% interest) saves me about that in fuel costs, so pretty much a free car payment. By keeping my money earning much better interest, my financial guy told me 4 of those yearly payments are earned interest off the same amount, staying in place with earnings. Basically, I’m MAKING money with the econo car, even after insurance. Sure is easier to park in town too.

 

[vito]

Adding to the MSRP is nothing new. Back in 1981 oe 2 when I was shopping for a small second car, and decided to get a Toyota Tercel I saw a new Toyota Sienna on the showroom floor. At that time the Sienna was quite a new model and very much in demand. On the sticker on the window had been added a $1,500 fee (remember that this was in 1981 or 2) marked as ADM. When I asked what "ADM" stood for I was told it was "Additional Dealer Markup". In those days I was used to getting anywhere from 10 to 20% off MSRP and was stunned that anyone would pay full MSRP plus this new ADM.

Last year I bought a new Mini Cooper convertible for my wife, a car she had said she wanted for many years. It was in the summer, and no dealer that I could locate within 500 miles of where I live had a convertible on their lot, so we were able to order one from the factory in the Netherlands and get the color and options that we wanted. Of course it meant waiting about 10 weeks but that was okay with us. Despite the car shortages in the summer of 2021 (and continuing even now) we paid full MSRP but nothing beyond that, and got 0.9% financing from BMW (who owns Mini). I had not planned on financing but at that low rate I decided to finance half the cost. On the other hand, one of my sons, who lives in Santa Monica, bought a new Toyota Sienna (that model again!) and had to pay $5,000 over MSRP, which I thought was crazy when he could have had a Honda Odyssey at full price without anything extra, but he wanted the Toyota.

 

[314Chevy]

The same thing is happening with motorcycles. I went to a dealer that advertised a small (250cc) MC for my wife to learn on. The price was $1700 until the paperwork was brought out then it was $3000. I looked at the price breakdown and the was a $700 paperwork fee and a $300 maintenance fee. This bike is air cooled and has no oil filter. They didn't check the valve gap nor change the brake pads all that was done was oil change and washed the bike. We didn't buy it buy less than a week later someone did. The thing that gets me is at $3.50 for gas and paying and extra $1000 and assuming you ride 3000 miles/year and 60 mi/gal it will take about 6 years to break even on the extra paid. Not worth it!

 

[Mauser9]

Enjoyed reading all the posts and find the comments and quoted prices shocking at my ripe age. I too recall the price of those Toyotas back in 81. Some models had a sticker "Lack of Availability" BS stuck on the window. Added another grand or two to the price back then. Does seem many items were much more affordable in my "olden days" even though I always get the "we made less money back then" comments. My point is prices did not triple 5 times over back in the 60s or 70s. Face it we are just getting HOSED up the ying yang these days no matter what the cause. Glad at least I ani't huntin for another vehicle at these rip off prices!!

 

[Paul B]

Guess I got lucky when I bought my 2019 F150 4x4. I been in a wreck with my 2025 F150 that was bad enough to total the truck and put me in hospital for a few days. After a bit of discussion the insurance company gave me a check and I went looking for a replacement. Couldn't work out any kind of a bargain on the deal but at least didn't have to pay over sticker price.
I almost did what I did on the 2015 when I bought it. Worked down to get the lowest payment possible then add $1,000 to the payment each month. Paid off the 2015 in a year and a half. On the 2019, I used the check from the insurance company for the down and when the little book with the tabs to send in with the payment came, I sent a check for the balance and paid the truck off. Put one serious dent in my bank balance. Interesting thing is the dealership is still offering me more than I paid for the truck. I can't see why I should sell because if I did, I'd just have to buy another truck. I'm happy with the one I have.
Paul B.

 

[XP100]

Took my truck to the dealer a couple months ago for an oil change. I paid less than 38,000 in 2019. I was walking around looking at their (very few) new trucks outside when a salesman came up and asked me if he could help me. Told him my truck was there for oil change, he asked which one, went in looked my truck over it only has a little over 20,000 miles on it . He came back and offered my more than I paid for it trade in, Big problem was the cheapest new one they had was over 68,000. Told him thanks but no thanks.

 

[Uncle Howie]

Adding to the MSRP is nothing new. Back in 1981 oe 2 when I was shopping for a small second car, and decided to get a Toyota Tercel I saw a new Toyota Sienna on the showroom floor. At that time the Sienna was quite a new model and very much in demand. On the sticker on the window had been added a $1,500 fee (remember that this was in 1981 or 2) marked as ADM. When I asked what "ADM" stood for I was told it was "Additional Dealer Markup". In those days I was used to getting anywhere from 10 to 20% off MSRP and was stunned that anyone would pay full MSRP plus this new ADM.

Vito, are you perhaps thinking of a model other than the Sienna?

I thought that the Sienna is a mini van that came out in the late 1990s(?).

 

[GasGuzzler]

The Corona was a larger Toyota in the early '80's much like the Avalon now.

Expect the bubble to pop in the next few months. New inventory is finally coming in and repos are up. Both of these devalue used cars which slow new sales.

There's a used Tundra Capstone (whatever that is) for sale locally for $85K ... it's a V6 foreign pick up.

 

[Mauser9]

Can't believe these prices!!! Amazed at how many newer cars and trucks I see. Gotta be many leases. Still a shitty deal in my book. Do I hear recession!!??

 

[vito]

Vito, are you perhaps thinking of a model other than the Sienna?

I thought that the Sienna is a mini van that came out in the late 1990s(?).

Funny how memory can play tricks on our minds. I see you are right, that the Sienna didn't come out until 1998. Now I am not sure what model it must have been, but the memory of seeing "ADM" for the first time stuck with me all these years. But I know for sure that it was a Tercel that I bought. I needed a second car, wanted to buy new, and the Tercel was about the cheapest thing on the market at the time. Served me well for several years until my oldest son wrecked it.

 

[Rclark]

I was really thinking about a new vehicle this year too, but after researching, I'll stick with what I have. Asking way over MSRP was one thing. Second was all the do-dads for 'safety' that I didn't want but come standard now. The nail in coffin was the 'turn engine off at idle, then restart'. Yes there is a button on dash to disable it, but you have to press every time you get in the vehicle. No way to 'permanently' turn off. So no go for me. I was really wanting a higher off ground AWD vehicle, than our car... So it goes. Probably just get permanent plates for it when 10 years rolls around and just keep it.

 

[Mauser9]

Wise choice! Don't have a Money Tree in my back yard either. Prices are just plain crazy. Those $500-600 payments are more like a mortgage from years back.

 

[Rclark]

Note that I was thinking of replacing my Dodge 1997 pickup earlier this year.... Prices of new trucks are insane. So we decided to just purchase permanent plates for it and forget about ever getting a new truck. Looks like I've been priced out of the market.

My concern is the new generation. Between house prices and vehicle prices and prices in general, I don't know how they are going to ever have the standard of living we have/had.....

 

[Fox Mike]

I looked at the price of an electric bicycle this morning (no plans on buying-just nosey). It STARTED at $6000.00. For that price a can buy a new Honda motorcycle.

 

[Mauser9]

Ha!! Agree guys. Sometimes I wonder how people are coping at all with these insane prices.

 

[jimbo1096]

I was looking at a new Dodge Charger back in 2020, when they had a nice rebate. Decided I didn't want it bad enough to foot the extra car note so didn't get it. I guess I should have because now they are asking more for a used one with decent mileage than I would have bought it for, same car, and I could sell it back to them for a profit.

 

[WAYNO]

Out west, there's pretty much nothing for sale in the new car market. With the chip shortage, the new car lots are mostly void of new cars. So, if they get a couple to sell, and they charge what folks paid in the past, the dealer is not going to survive. I don't like it, and I wont buy one for the value-added cost, but I also understand a dealer will go bankrupt if he sells a car for the loss-leader prices of the past if he can't make up for it in volume sales.

I will look forward to full lots and huge incentives sales.

 

[Ride1949]

I'm still driving a '79 F-150 4wd. No plans for a new one, even if I could afford it.

 

[fiasconva]

Not only are the prices ridiculous but if you want to pay cash and not finance they don't even want to sell you the vehicle.

 

[Galaxiedan]

Just received my new truck, 2022 Ford Lightning. Ended up ordering it from an out of state dealer because the local dealers all wanted 20-50k adm fee added. I've already been offered 40k over what I paid for it. I paid MSRP

 

[Galaxiedan]

 

[BearBiologist]

My car is a 2019 4Runner SR5 Premium. Bought it 2 years ago with 17K on the odometer for about $43K. Now has about 28K and I can sell it for as much or MORE than I paid for it! People are waiting MONTHS for cars they ordered before they even left Japan. Dealers are making "market adjustments" of $10K or more! They just say "Take it or leave it"

Granted a 4Runner with 200K on the odometer can still go for $10K or even $15K, it is ridiculous! They have a reputation for one of the longest lasting SUVs on the road. Many will go over 200K and quite a few make 300K miles. I checked just one dealer in town and they have 3 2015-2016 4Runners of different levels with 81K to 95K on the odometers for $35K to $40K on the lot. For months there would only be one for sale in the valley.