2022 Yukon Denali: Dealer Markup?

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sickk21

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I just got an incoming Denali at MSRP from a small dealer in New Mexico.
 

PaulGA

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I got stuck with a high market adjustment for mine, and a transportation fee since I ordered several hours away. I called dealerships for weeks and found none that were selling in transit trucks at MSRP and 99% of them had everything presold, almost got bait and switched at one localish in state dealer (almost 2 hours away) which soured that dealership for me as well.

I only found two trucks that fit my criteria that were available and one salesman/dealership put me off with their attitude and non-refundable deposits. The truck was still a few weeks/months out and didn’t want to chance it so I turned that one down. I had to put a non refundable deposit for the one I actually bought, but the truck was actually at the dealership and deal was going through so I didn’t mind in that case. My situation was semi time constrained so I took the hit.
 

Polo08816

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I can wait and travel, what's the deal?

They have a significant wait list and it might be a while.
 

firsttimetahoe

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I went to Casa De Cadillac in Sherman Oaks California, and they did NOT charge over sticker. In fact, they had me sign a disclaimer stating that they agree not charge me a dealer markup, immediately after I placed my order. I inevitably cancelled my order a month later, but they did what most other dealerships here in SoCal don't do...

The “must finance or lease through their vendors” is a little shady. Sure we don’t charge you over MSRP but we’ll make a huge profit charging you several points in interest over what you realistically can get anywhere else lol

Financing in-house is where dealerships make all of their money.

Imagine your car gets there and the best rate they can give you is like 5-6%
 

firsttimetahoe

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They have a significant wait list and it might be a while.

Aka you’re never gonna get it
 

Yukon21Denali

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Good luck everyone who is looking for a Denali, sounds like us who got in last summer were really lucky. Not many packages were on constraint and supplier pricing was still the norm.
 

Polo08816

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Aka you’re never gonna get it
Sounds like we should have a wager going. We should bet a Tahoe on it.

Remember, "never" means one will not be able to take delivery on it - ever.

Would you like to qualify your statement?
 

firsttimetahoe

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Sounds like we should have a wager going. We should bet a Tahoe on it.

Remember, "never" means one will not be able to take delivery on it - ever.

Would you like to qualify your statement?

Sure I’ll edit it, you’ll probably have to wait until 2024-2025 before they get to your name on their order list for an allocation lol


Odd thing I noticed too from their dealer website is they’re advertising a used 2021 Tahoe LT with 18k miles on it for $72k. I’ll make a bet with you that is more than sticker price (and it’s not brand new!)….but guess what? You don’t have to wait years to get it.

I am not entirely sure how the whole allocation process works, but my guess is this dealer is getting some sort of benefit to accept orders for these vehicles that probably 4 out of 5 people will end up not buying because they got a car elsewhere afterwards. In theory as a purchaser, sure why not throw your name in the pot for a fully refundable order with zero commitment on your end to place an order for a car that’ll be cheaper than anywhere else. And as a dealer, sure why wouldn’t I accept orders for cars that I’m pretty much guaranteed to sell before it hits my lot….even if the initial buyer who ordered it walks in me.

I do feel bad for the locals who live there though…who probably have to wait long in line for a car because most people are buying from out of state
 

Polo08816

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Sure I’ll edit it, you’ll probably have to wait until 2024-2025 before they get to your name on their order list for an allocation lol


Odd thing I noticed too from their dealer website is they’re advertising a used 2021 Tahoe LT with 18k miles on it for $72k. I’ll make a bet with you that is more than sticker price (and it’s not brand new!)….but guess what? You don’t have to wait years to get it.

I am not entirely sure how the whole allocation process works, but my guess is this dealer is getting some sort of benefit to accept orders for these vehicles that probably 4 out of 5 people will end up not buying because they got a car elsewhere afterwards. In theory as a purchaser, sure why not throw your name in the pot for a fully refundable order with zero commitment on your end to place an order for a car that’ll be cheaper than anywhere else. And as a dealer, sure why wouldn’t I accept orders for cars that I’m pretty much guaranteed to sell before it hits my lot….even if the initial buyer who ordered it walks in me.

I do feel bad for the locals who live there though…who probably have to wait long in line for a car because most people are buying from out of state
No bet! ... because I agree with you now. I can't see the chip supply issues extending past 2025. The new chip fab facilities should have completed construction by then.

As long as the deposit is refundable, I don't see the harm in putting in an order even if the wait time is extremely long.
 

firsttimetahoe

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No bet! ... because I agree with you now. I can't see the chip supply issues extending past 2025. The new chip fab facilities should have completed construction by then.

As long as the deposit is refundable, I don't see the harm in putting in an order even if the wait time is extremely long.

Who knows man. We’re still several months, maybe even a year away, from having to face another major issue regarding a chip shortage. Ukraine makes neon which is used in over half the world’s microchips. They have halted production since the invasion.

The reserves of neon that are being used aren’t going to last very long. Once they’re depleted, now what? Having someone else start mass producing neon to make up for that missing half needed won’t happen over night.

It is going to get tremendously uglier as we approach 2023.

It’s actually crazy that this isn’t front page news everywhere. This is going to have a monumental impact on everything; not just auto production.
 
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