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Dealership Mark-Ups and ADM’s Explained

RonFLA

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belmor

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This is a double-edged sword. I am all for businesses making money but dealerships had a garbage reputation before all this. I worked in the auto business for about ten years.

In a time where they CANNOT get vehicles to sell it is understandable to have an ADM. Without some money coming in they cannot stay open long and without them where would you get warranty work done? The ADM will eventually settle to what the market will bear.

The other side of that coin is by having BS fees, ADM, paint protection, etc. they are destroying themselves. Even someone who pays $10k over to get a vehicle willingly is going to destroy them in surveys, online, etc.-that customer isn't going to be happy no matter what.

Before I bought my used Maverick I was looking at Frontiers. The dealer I ordered my unbuilt Maverick from is also Nissan and they wanted $5-10K over on Frontiers. I called a small dealer who only had one truck but it was MSRP. The sales manager said he won't sell it for a penny less or a penny more and his reasoning was that if you overcharge someone that is a one time sale. They won't ever come back and they won't send anyone else to buy there and he's right.

I paid over MSRP for a lightly used Maverick, but I didn't pay $5k, $10k or more over-closer to $2k and when you deducted my dealers BS fees it was actually a better deal overall.
 
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RonFLA

RonFLA

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The sales manager said he won't sell it for a penny less or a penny more and his reasoning was that if you overcharge someone that is a one time sale. They won't ever come back and they won't send anyone else to buy there and he's right.
Never were words spoken more true! This should be engraved on a bell in every dealership!
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