Welcome to our website about market adjustments at dealerships! If you've ever shopped for a new car, you may have come across the term "market adjustment" at some point. Essentially, a market adjustment is an extra fee that dealerships sometimes add on top of the manufacturer's suggested retail price (MSRP) of a vehicle. This fee is meant to account for demand in the local market, and can sometimes be quite substantial.
While market adjustments may be a common practice at some dealerships, they can also be a source of frustration for car buyers. In this website, we'll take a closer look at what market adjustments are, why dealerships use them, and how you can navigate them as a consumer.
What are market adjustments?
As mentioned, market adjustments are extra fees that dealerships sometimes add on to the MSRP of a vehicle. These fees are meant to account for factors such as local demand, scarcity of supply, or the popularity of a particular model. The idea is that if a vehicle is in high demand in a particular area, dealerships can charge more for it to maximize their profits.
Why do dealerships use market adjustments?
Dealerships use market adjustments for a few reasons. First and foremost, they are a way for dealerships to increase their profits. If a vehicle is in high demand and there are limited supplies, dealerships can use market adjustments to capitalize on the situation and make more money on the sale.
In addition, market adjustments can also help dealerships manage their inventory. By charging a premium for certain models, they can encourage buyers to choose other models that may be more readily available. This can help prevent dealerships from being left with excess inventory that they may struggle to sell.
How can you navigate market adjustments as a consumer?
If you're in the market for a new car and you encounter a market adjustment, there are a few things you can do. First, it's important to do your research ahead of time. Look up the MSRP of the vehicle you're interested in, as well as any other fees or charges that may be associated with the purchase. This will give you a better sense of what you can expect to pay.
If you do encounter a market adjustment, it's important to negotiate with the dealership. Try to find out why the market adjustment is being charged, and see if you can negotiate a lower price. If the dealership is unwilling to budge on the price, you may want to consider looking at other dealerships or models to see if you can find a better deal.
Overall, market adjustments can be a frustrating aspect of buying a new car. However, by doing your research and negotiating with dealerships, you can help ensure that you get a fair deal on your purchase. Good luck!
Personally, in our location of South Florida, we have seen market adjustments on everything from Toyota Tacomas and Honda CRVs, to Chevrolet Corvettes and BMW M3s. Market adjustments ruin the ability for the target audience to purchase the vehicle at a price that was meant for them. For example, sports cars on the more affordable side such as Subaru BRZs and Hyundai Elantra Ns have seen a fair share of market adjustments. These adjustments in turn make the consumer look elsewhere for a vehicle and also leaves a bad thought in their head about how the dealership wanted to swindle them into paying above MSRP.