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Car dealers say they can’t sell EVs, tell Biden to slow their rollout
(arstechnica.com)
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this post was submitted on 29 Nov 2023
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Every dealership in my area has their markup at least the amount of the tax credit. More than a few have exactly the tax credit. Tax credits are supposed to help steer the market, they’re not a handout to pointless middleman.
Markups are super annoying, but identify them quickly and call out the dealer ASAP when looking at new cars. Literally call them out, to their face, and say "No". Don't let them use pointless markups in price negotiations! What I do is find the average price of the car across multiple dealers, subtract all stupid markups, delete the cost of dealer added "upgrades" subtract a few thousand and work from there. There is not much wiggle room for brand new cars, so don't expect to get a deal of the century. Used cars are a totally different beast, but you can basically ignore markups as well.
Provided that your local dealers aren't affiliated in some way, play the long game and play them against each other in a mini-price war. Stupid markups will generally evaporate naturally in that case.
(LPT: Do not sign anything but the actual loan paperwork or contract to buy the car. This will piss off a sales person to no end, but they will get over it. I can go into details why, but I am already outside the scope of this thread.)
A short anecdote to emphasize the wiggle room on used cars:
I briefly worked at a car dealership. A guy traded an old Acura RSX, maybe about fifteen years old. We gave him $500 for it and sold it two days later for $8000.
So many reasons, but this one is high on the list.
Remember to walk away when they don't budge. Sometimes they will stop you from leaving and you might still get a good deal.
And this is why a lot of us prefer Tesla’s approach. While there were still things I didn’t like about the process, it was much more straightforward and easy. No markups, no worry about getting ripped off, no having to “get up and walk away”, no dealing with stupid tricks like “I’ll go to bat with my manager for you”. I just bought the car … and Tesla has lowered prices this year, combinEd with state and federal rebates, the price isn’t bad