takemorepills
Well-Known Member
I'm not an expert in the Canadian market, but I've been following the Tundra rollout, which is getting huge markups. Canadians who are trying to buy the Tundra are reporting that dealers in Canada are actually finding ways to mark them up.... it's called dealer add-ons.I guess selling over MSRP is only illegal in Canada if it involves new cars. Yesterday I looked at a 2019 370Z Coupe Sport 6MT with 33,000+ kilometres on it and a CarFax Report that showed it had 2 previous owners and had been involved in one collision. The dealer was asking $40,000 for it. Original MSRP was $34,198. Even if you allow for inflation, that's only $37,325. No thanks. If the car was a collector's item I would understand however I'm guessing a 370Z is not such an animal.
The real difference between USA and Canada new vehicle sales is that in USA a dealer is allowed to point-blank say they are increasing the price of a vehicle, without any material increase in what the customer receives.
In Canada, the dealers can add items and services, of dubious (I'd argue zero) value and charge whatever they want.
ADM isn't popular in USA either, and Toyota dealers in WA state have switched from charging ADM to now including "add-ons" that they sneak onto the vehicle before sale that can't be removed. They charge $3-4k for $300 in dubious products. Sometimes they sneak in window tint for $900, which is marginally valuable, of course the dealership probably pays $200 for it.
Anyways the Canadians are up to almost the same tricks as the Americans.
I think dealers actually prefer add-ons, because they're already part of the vehicle, the customer has less room to request lower negotiations, whereas ADM technically is open to negotiations