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Dealing with the Added Mark Up

Ask Joe: “How do I deal with the added mark up
 when a customer complains about it?”

It sounds like chip shortages will continue to disrupt vehicle production this year. As long as dealers have a shortage, almost all new vehicle prices will be way above value.

Limited new vehicles also creates demand and over valuing pricing in used cars, so those also sell way above their value.

Since that’s true, it means your new vehicle inventory, especially those hottest models, are all overpriced right now. It also means used trade-ins, just like the new cars you have, are also overpriced now, too.

Other than ‘super packs’, like I’ve seen on some hard to get high lines, the mark up on new and used is pretty much a wash. So when a customer says, “Are you kidding, you expect me to pay $4,000 more for this?”

My response is logical … “Yep, ours is overpriced about $4,000, and so is yours, so it’s pretty much a wash, (now change the subject) so who’s the lucky one Bob, you or Betty?” It’s for me.

Because it’s true, most will follow your lead, so just keep asking those ‘who, how, what & why’ questions and sell the car.


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