Would you ever: "Market Value Adjustment"

wclark wrote: "Market Value Adjustment" = "A fool and his money" fee.

A fool and his money were lucky to get together in the first place

My 85 CRX Si sold with $1000 dealer markup, according to the paperwork I got with it. That's 10% of the price of the car. According to the scratch pads I got with the car (love people who keep paperwork), the HF had a $300 markup and the 1.5 auto $400.

When I bought my first new car in the early 80's I looked first at the Accord. They were in big demand and short supply at the time, so there was a big markup on them. I passed because of that. I then went to the VW dealer and drove the GTI and the Scirocco. I had an early beetle and really liked it, so I was favorably disposed to VW. I liked them both, but preferred the Scirocco. The sales manager was a jerk and made it clear that they weren't going to deal on the Scirocco. So much for VW.

I ended up with a Toyota Celica. The styling was kinda weird (this was the boxy coupe with the popup headlights staring at the sky), but it was a solid car with good power and handling. Sometimes I wish I had bought the GTI, but that's not where my head was at then.

I would certainly buy a car with a "market value adjustment." I'd just wait until the market value adjusted downward to the point where I could afford it.

If God had not wanted them to get sheared, he would not of made them Sheeple.

It has been said before, but people with money are not like you and I; there are plenty of people who load their car fund piggy-bank with a million bucks a month the way we do with a $100 and its really not a big deal. Most of us on this board do not have a lot of $$$. However, one thing that you need to know about those that do, is that they need to use it to acquire stuff that others can't.

What that means is that by raising the price $1,000,000 the dealer makes it MORE attractive to a 1% 'er not less since the pool of people who could afford it is now smaller.

All the new cars I have ever bought were year old leftovers deeply discounted. The added bonus, is that since the car is already a year old, you don't get wacked for that high first year excise tax. The new car is already into its second year assessment. There are still plenty of good deals on new car lots on 2014 models. It won't be long until some of the 2016 models start showing up. Personally I'm still waiting on the 2013 Mazda 6 diesel to show up.

The last gen MR2 I looked at had a MVA of $3500. I walked. I guess most every one else did too. The model is long gone and the dealership is gone. Every time I drive by the building I smile a little bit inside.

I wouldn't be surprised if quite a number of models, particularly sports cars, failed precisely because of this crap.

scardeal wrote: I wouldn't be surprised if quite a number of models, particularly sports cars, failed precisely because of this crap.

Exactly! I too went to look at a new MR2 around 2002, and the stealership had a $5000 MVA on it. What total bullE36 M3. Every Toyota dealer I visited seemed to think they were selling a Ferrari. I'm sure it had an impact on the failure of the 3rd gen MR2. Too bad really.

When the Porsche 944 first showed up at my local dealer they tacked on $3K. They wouldn't budge so I walked away. It didn't take long for the MVA to be removed.

A $1k markup on a near-million-dollar car? Let me get out my tiny violin!

That's a rounding error on the price of that car and hardly noticeable to the kind of person who would buy one. I remember when the Toyobaru came out it was getting "market adjustments" in the many thousands of dollars.

Look at the zeros again, Gameboy. The Porsche has a 300% MVA.

Based on the GRM crowd, I'm never going to get into the dealership business. In this case, it's apparently the dealership's job to give someone an easy million dollar profit by buying the car and flipping it as soon as they tow it off the lot.

Keith Tanner wrote: Look at the zeros again, Gameboy. The Porsche has a 300% MVA.

Whooooa yeah I see....that's bullE36 M3

Don49 wrote: MVA means an instant walk from me. I consider it legal extortion.

It's not extortion in any way. Are you extorting the dealer when you offer less than MSRP? It is, as someone mentioned above, a "fool and his money" fee, but it's not even in the same zip code as "extortion".

That being said, any time I've shopped new cars, I pretty much ignore the dealer-add stickers. I will offer based on what percentage of MSRP I want to pay, and tell them to feel free to remove any of the locally-added fluff that they want to charge me for on the extra sheet.

It's definitely a 'fool and his money' fee, and also an 'impatient person and his money' fee. I've never seen a car with the MVA still have one after not selling for a year.

Well, except for my parents local Ford dealer. They had a very large collection of Roush Mustangs. All with MVAs and no, you couldn't test drive it. I think their record was 3 years for an unsold 'new' car. It's hard to sell an '09 Roush with a $5k markup when '11 GT's are showing up on the lot, with more power and lower prices. Also they look nicer, and since they were 'just' GT's, you could test drive them.

Actually this is a clever investment on the part of the dealer and I'm sure it will sell at that price. This car is only going to appreciate, and most of the people who would pay $1m for a car would have no trouble paying $2m for the same car.

It's a nasty scheme but far from a stupid one...

Seeing a dealer markup on the car I'm looking at is usually the end of my dealings with that dealership.

Well I would have to imagine these mark-ups wouldn't exist anymore if not for people actually paying them.

Obviously very few, if any, people on this board would pay a premium for a vehicle. But, it must be happening, otherwise I wouldn't think this practice would have soldiered on for the past 50+ years.

And it isn't really unfair any more than one of us offering under MSRP is unfair, when you think about it. Simple supply and demand economics.

I don't think it's unfair to haggle and make a deal, but I do feel it's an unsavory business practice by the dealer that sets a bad tone for the entire purchase process. Having sold cars, it's the same way to me when buyers come in refusing to pay 1 cent over dealer's cost too. There is a happy medium where you still get a deal as a buyer and the dealer still gets to make a little profit and everyone leaves happy.

And having sold a couple cars with the full market adjustment still on the price sticker (one an STI, one a Mazdaspeed Miata, both with a $2000 ADM) it makes for a great pay day for the salesman and you know, those buyers were just as happy if not happier than the people who hammered us for 4 hours over $500. There are people out there who see the price and pay it and only look at the final number.

I took the Abarth in for 16k maintenance, they had an Alfa Romeo 4C on the floor (heavily roped off and locked up). $72k window and $2k "market value adjustment". He offered to sell it to me, I said not unless you give me an even swap for the Abarth.

Keith Tanner wrote: My 85 CRX Si sold with $1000 dealer markup, according to the paperwork I got with it. That's 10% of the price of the car. According to the scratch pads I got with the car (love people who keep paperwork), the HF had a $300 markup and the 1.5 auto $400.

I believe you are correct. My dealer sold me my '85 Si for almost $1,000 less than most paid. The catch, I was autocrossing a lot then and I had to put his magnetic sponsorship stuff on my car when I competed.

It worked out pretty well as I had a great season! At the end of the season he bought me a new set of tires to do the same thing the next year. Not so well the next year. Too many others were driving Sis too.

In reply to scardeal: Dealers that ordered every car with a slushbox used to cause that same thing to happen. Today, the stick in a sports car is almost the exception.

Datsun1500 wrote: In reply to kazoospec: It couldn't be too much less if you offered MSRP. There's only $545 markup in a fit. If they sold it for cost, it was $545 less than you offered.

Might be 545 over inVoice but then There is the hold back, bet it's another 800-1300 maybe more. The HB on my neon in 98 was 1150.

Yes, but I am not in the market nor have the money to afford something that would fall into the category. Plus there has to be some line there. The 918 in question, way too much add on.

Back when Hyundai was introducing the Santa Fe, they sent one to be displayed at the dealer I worked at. It had a regular Monroney and FROM THE FACTORY it had an MVA added of $99,999.00. No one wanted one THAT bad.....

We did sell them at full list for over a year, at the same time Honda Odyssey, Acura MDX and Acura TL were order and wait cars. I never felt like I was clubbing baby seals when I sold at MSRP & there was a waiting list.

Reminds me of the bumper sticker I used to see in Wyoming in the mid 80's....."Dear Lord, Please let there be another boom. I promise I won't piss it all away this time!"