Larry Tressler


At what point does Additional Dealer Markup become gouging?

I found this Bronco at a Ford dealership in Oklahoma.  The sticker says the MSRP is about $63,000 and the dealer markup is $72,000 making the price $135,000.  I think this is crossing the line by a mile, and into price gouging.  Thoughts anyone?   Checking their website, I found other 50K vehicles with 40K markups.   Amazing.

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Happy story with Carmax

I experienced the "One Person" sales concept for the first time yesterday at Carmax.  It was so different, it caught me by surprise.  No negotiation on anything.  Their listed price was very fair, so I took it.  Their on-line offer for my trade-in was very generous.  I kept expecting to be marched back to the F&I office, but it never happened.  I was ready for a fight with all the up-sales and unnecessary fees, but there was none.  The sales person said, "Are you interested in an extended warranty?"  I said no, and the subject was dropped.  I was then offered their financing, and was told their APR.  I said no thank you.  Again he said OK.  Then I was ready to negotiate a ton of their stupid expensive fees.  Their ONLY fee was was a processing fee of $399.  That was it!!!  That included DOC, prep, reconditioning, tank 'O gas, EVERYTHING.  (Of course... state sales tax, title, & registration was extra.)   I couldn't have signed that contract faster if I jumped over the table with pen in hand.  It's common for dealers here in central Florida charge as much as $2,000 in other bogus fees, so I was expecting the worst.  

Another surprise was that you go for a test drive alone.  No sales person telling you which way to turn and asking you questions all the while.  They make a copy of your drivers license.  I told them that I would not approve them to do a credit check at that time.  They said that they don't.  No credit checks would be done until I agreed to buy the car.  Then they ask for your cell phone number and make a test call to it.  They then said "Enjoy your test drive and try to be back within about 25 minutes."  I was dumbfounded.

I am 72 years old and purchased many cars in my lifetime.  I have never experienced anything like this before.   But I actually kinda liked it. 
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