Would You Buy a Car at $19,000 over MSRP? Majority Say They Would

[PSUTE]

Checks investment accounts... even with the massive market crash... yup still a millionaire.

Paid 8% under MSRP ($2900 below sticker) . Dealer tried to give me the MY21 price protection instead of the My22 Retail price protection. I'd have walked over $1200. In the end, he gave me both.

The average millionaire in the US drives a 10 year old Ford. Poor people buy new cars every couple of years.

Read the book "The Millionaire Next Door" Old book, but the lessons for building wealth remain.

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[Sherminiator]

I've got a very simple answer to this. $19,000 to the buyer maybe $100 to you. Some don't care about the price. They want the vehicle.

Yes there are people like that, which is fine, but having 50% plus of potential customers wanting to do this is downright crazy.

If your financing a vehicle at zero percent interest over six year, the difference in price is about a $150 a month, which basically another bill like your cell phone or whatnot.

it also begs the question that manufacturers are underselling their vehicles if the market supports stupidity like this.

 

[MnLakeBum]

Read the book "The Millionaire Next Door" Old book, but the lessons for building wealth remain.

It’s a good read, especially for young people who are just getting started with retirement saving. Many Americans spend way too much on their vehicles. A good rule of thumb is the total value of your vehicles(anything with a motor on it) shouldn’t be more than half your annual income. By that rule if you have a two vehicles worth $50k each and no other toys, you should have a gross annual income of at least $200k.

From the Millionaire Next Door:
Millionaires believe financial independence is more important than displaying social status. Consequently, millionaires don’t drive high-status vehicles. Millionaires drive used cars that are several years old, and they never lease or finance them.

In addition,

• Fewer than 25% drive a current year model.
• Only 23% of millionaires own new cars.
• A quarter haven’t bought a car in four or more years.
• 37% buy used vehicles.
• 80% purchase rather than lease.

In the 1990s, when this book was written, the Millionaire Next Door’s most popular car was a full-sized American-made vehicle, which was less expensive and less trendy. In order, the most popular brands among millionaires were: Ford, Cadillac, Lincoln, Jeep/Lexus/Mercedes (a three-way tie), Oldsmobile, Chevrolet, Nissan/Volvo, and Chrysler/Jaguar.

Most car buyers spend 30% of their net worth on a vehicle, while millionaires spend only 1%. In contrast, high-income under-accumulators Ws spend many times more on cars than prodigious accumulators do. They own multiple vehicles, usually the latest luxury models, and often lease them. Because they’re so status-conscious, high-income under-accumulators erroneously believe people always drive the most expensive car they can afford.

 

[FLSTFI Dave]

Wow, I can't believe that many people would pay that much over MSRP. Speaks volumed about the intelligence level in this country.

My Bronco Raptor is the first vehicle I have paid MSRP for in my life. Even in this short vehicle supply we have in February I was able to get a 2022 Grand Cherokee for 2500 under MSRP. We did not end up with her first two choice as they both want 5K over MSRP.

Even the 2014 Corvette, which was commanding ADM because it was the First year of the design and significant improvements, I got 3K below MSRP. Had the 2020 on order for 3K under, but canceled when diagnosed with cancer. Should have bought it knowing what I know now.

 

[Jeverall]

I think my OBX was ~$18k over … I don’t even know. I think I bought the top of the market back in May. If I chose to wait, and order one, or wait for more inventory to show up, my trade would have depreciated, & if I would have chosen to finance, interest rates have gone up since. And I heard Ford has started to raise MSRP?? There is def a price to pay for convenience and getting something early. As others on this thread mentioned, and like anything else, it depends on your individual financial position. For me, waiting 6M+ to get a vehicle to maybe save $20K isn't worth it... I'm not going to call others idiots who chose a different path. Just not a good look to blast others, call them idiots, wish them ill will etc....

 

[RHeinz]

I don't think inflation will get that bad but there are places in the world that have see inflation rates over 100 per year so not impossible.

I hope you are correct! I lived in Argentina in 1982. When the yearly inflation rate dropped below 100%, the government deemed it “under control”. Restaurant menus had prices hand written on masking tape strips so they could be changed weekly/daily!

 

[Snacktime]

I wouldn't pay $20k over on a base but on a Raptor that is chump change. Vehicle are getting stupid expensive anyways, most people I know are not buying in. They think they are being smart but they are just putting off the inevitable. You need a car in America and a POS is $10k that is $10k ADM.

 

[DrewBronc21]

I wouldn‘t call someone who pays a $19k ADM an idiot. They may very well be one, but I wouldn’t assume it. It doesn’t make much financial sense to pay an ADM but not all of life’s decisions need to be the best use of your money. In truth, buying a NeW Bronco at any price isn’t the best use of your money and in the long run, it’s a losing proposition. You could instead buy a 10 year old 4x4 that would have at least 90% of the capability of a new Bronco And be a better financial choice.

There are people who refuse to pay anything other than MSRP but will then spend $1500 on an extended warranty, $5k on PPF and $$$ on countless other mods that they will never get any money back from. They do it because they want to. All depends on the individual And what they value. I know millionaires that couldn’t care less about cars or trucks and drive beaters and I know guys that make $100k or less and choose to spend their money on new cars, trucks, snowmobiles, boats, bikes. Life is short. Do what makes you happy ….within reason

 

[LiftedPony]

It is all about supply and demand. It isn't that certain people are dumb and can't figure out the numbers but rather put the value on a scale. I paid 12K over MSRP for the novelty and fun factor which roughly cost me an additional $150 a month which is an absolute steal in Southern California. A date night dinner out here in Orange County cost more than that, so it makes sense and my family enjoys it.

To put things in perspective, I stopped by Porsche Irvine last week to see if I can get an allocation for a new GT4 RS and they are asking $100K over MSRP(Which is crazy) and people are lined up for it.

 

[rtazz17]

I haven't seen this before...but WTAF are people thinking?


https://www.caranddriver.com/news/a41740061/car-shoppers-paying-over-msrp/?utm_medium=social-media&utm_campaign=socialflowR&T&utm_source=facebook&fbclid=IwAR1JfBfckLq_gQEzBKByAbwLCkvc_DRkpVl7Wxgn-NxHLBd3uQAkre06FUQ

Huge difference in what people say they would do vs actually do. I say a lot of things in the moment. Never actually do it. Also whos the sample group? Where? Income range? Lol

 

[Shesadragon]

Hell No. Earnhardt in AZ we’re charging 20k over for an OBX, cloth, high package. I didn’t want it but I laughed in the dealers face when they said people were paying that left and right. That’s a big WTF for me.

 

[AZ_Liberty]

Hello No. Earnhardt in AZ we’re charging 20k over for an OBX, cloth, high package. I didn’t want it but I laughed in the dealers face when they said people were paying that left and right. That’s a big WTF for me.

Last time I talked to Earnhardt was 3 weeks ago when I picked up my Bronco for $2900 below MSRP (price when I ordered 20 months ago). I was chatting with the sales manager and he said that the most they thought could get for a 4-door soft top now was about $5k over. They were still going to try to get $20k over on Badlands and Wildtrack though.

 

[Lil Red Broncette]

I hope you are correct! I lived in Argentina in 1982. When the yearly inflation rate dropped below 100%, the government deemed it “under control”. Restaurant menus had prices hand written on masking tape strips so they could be changed weekly/daily!

Scary that getting down to 100% it is called "under control".

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