sandy
Registered Member
I went through this supply/demand issue with two previous cars, the Infiniti G35 Coupe when it first came out (2002/2003) and the Range Rover Sport (2006). Yes, I'm a sucker for 'hot' new models.
In both cases, the dealer would NOT charge over MSRP but had me put a deposit down to secure my spot in line.
I hope the dealers that chase short term profit by adding an additional markup get hurt long term by not getting as much inventory (I think the more you sell, the more you're allotted in the future).
I called 3 Hyundai dealerships. 2 of them are adding a markup to the car. Pretty obvious which dealer I'm going to buy from, even if I have to wait a bit.
Yes, supply and demand is what it boils down to. In the case of the Genesis charging over msrp will be very short lived as supply quickly catches up and the small number of first-adopters willing to pay the premium are satisfied.
Dealers often get around charging over msrp by adding things like pin-striping, window etching, etc to rationalize/justify the mark up.
Maybe dealers looks at this way: the % of the dealerships customers shopping the Genesis, especially in it's first few weeks, is a very small part of his business so the number of people he may turn off is relatively small so the risk he takes for the extra $$ is worth it. And, since the incidence of purchase can be 5 to 10 years.....time heals all wounds.
Dealers have been doing this forever, so they must have learned that no matter how distasteful it is to some shoppers, many accept it as common practice so it's "good" business in the long run.