buying new car in newport new va, why are they marked up so much over msrp?

Question

so far i have only been able to go to two dealerships but i ran into the same issue at both.

i am looking to get a kia sorento ex (i4) with the limited package and the 3rd row seating.
the website lists it 29,790 with a 1k discount its obviously 28,790. 

both dealers have this car marked up between 32,790 and 34,790. 

the first dealership told me they would not lower the price at all on any vehicle and that they do not participate in any manufacture discounts or incentives (i walked away without another word, the guy did ask for my phone number etc... i told him to take 8k of his list price and i might give him my name lol needless to say i drove off)

the second dealership told me that the msrp on the website means that is what it cost to make the car and that no one makes a profit etc... because they had to buy it at msrp and pay to get it to the dealership so the 6k mark up is just a cost recoup.

ok seriously i want to know from people who work at car  dealership's, what is with the huge mark up (i know msrp is not what you pay) and why not come down in price? why lie to the customer about everything. i spent some time at the second dealership as the woman there pretended to know about the car. it became obvious that she was just making it up as we went along once we go inside the car and she knew nothing etc... i asked her why the 6k mark up and got the same "we have to make a living etc..." speech.

i work in sales (100% commission i make a good deal of money without marking up my products, especially not 6-8k over should sell.) i understand commission is built into the price its only fare. but to pad the bill to earn more is ridiculous 

so the next question i have is. how do i get the price below msrp without screwing over a sales person (who gets a salary and some commission.) i dont want to pay the marked up price and dont understand that why the mark up?

Anonymous · Accepted Answer

This is simple: the management at this dealership is comprised of crooks and dirtbags. Marking a car up over MSRP and then approaching it as the only way to make a profit is unconscionable and a flat-out lie. Dealers do not pay MSRP for their vehicles. Within minutes of arriving at the dealership you had already been blatantly lied to you, tried to rip you off, and assumed you are a sucker. I wouldn't take a free car from soneone who operates like this. 

The best thing you can do is research online. Go to Kia's website and send a price quote inquiry with the exact vehicle you're interested in. It will got to several dealers and you should get some competitive quotes. Also, check Edmunds.com for incentives and rebates that might be available. 

Don't worry about the salesperson. They get paid either way. There is little markup in most new cars, so dealer pay plans are often based on a flat commission regardless of the profit in the deal (of which there is usually very little).

? · Answer

1st let me say I worked for a car dealership for 10 years and my Father-in- law currently owns 2 new dealerships. So what I'm about to tell you is FACT. A car has a MSRP and an invoice price. The invoice price is what the dealer pays the car company when it's sold. So if you are buying the new car straight up with no trade, offer the dealer invoice for the car. Most dealer will sell it today because they need to keep turning vehicles + they still make dealer hold back which is a small amount the car company gives the dealer for selling the car ($200-700) depending on the vehicle. Just be demanding that if you can't buy at invoice or 200 bucks over invoice you will keep shopping. Trust me, they will sell. Exception- if it's a vet or something popular they will probably not take the offer. But try anyway.

STEWIE · Answer

Don't listen to "Randy" since he's obviously an idiot.

MSRP is NOT what the dealers pay. They pay INVOICE which could be hundreds or thousands less, depending on the make/model. They also get HOLDBACK discounts which takes another 2-3% off the price they paid. 

Obviously both the dealerships you visited are CROOKS. 

Luckily for you, you can buy online @ http://amexnetwork.zag.com/main.html

They are selling the fully loaded 2011 Sorento EX at a $888 discount (in my area). Since the 2011 just arrived you'll have a hard time finding them at a big discount.

randy · Answer

the second gye was right. the msrp is what the dealer pays for the car. there is a way to get around that this is to get on the dealer website and order it from them. they will ship it to a dealer of your choice at a locked in price as far as the car goes but you will have to pay tax and tags for the car. i hope this answer helps

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buying new car in newport new va, why are they marked up so much over msrp?

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