In a world of exorbitant dealer markups and rampant car flipping, people may finally yell “Uncle!” And not only Internet comments, but also their wallets. That’s because his two highly desirable hot hatchbacks in short supply (the new Toyota GR Corolla and Honda Civic Type R) just hit the Cars and Bids auction, and both fell below the markup price the sellers originally paid. am.
Car 1 is a Corolla. The seller did not disclose the type of markup they paid, but commented that they were still suffering a significant loss when the auction closed. It was still about $8,500 above the suggested retail price. Unsurprisingly, many in the comments section of the listing suspected someone of getting a Corolla and looking for big profits. In the seller’s defense, the car was listed as ‘no reservation’ and thus was completely at the mercy of the bidder. The seller also mentioned that the reason for the sale was because he was able to get another car quota and he needed to sell this car in order to purchase the other car.
Even worse is the Civic Type R auction. The listing description mentioned sticker prices and dealer markups above $20,000. The car had a MSRP of $44,385 and a final price of $67,678.95.Granted, it’s just a sticker and not necessarily what the seller ended up paying. But it’s pretty safe to say Several It contained markup. The car was listed with a reserve and the final bid was too low to sell the car. final bid? At $49,000, about $5,000 more than the actual suggested retail price. It is clear that the seller did not intend to make a profit. Also, since there are no comments or replies on the listing, we have no way of knowing exactly what the seller’s motivation was. But reselling a brand new car, having a spare, a huge markup, and saying nothing about the car seems to suggest the seller wants a juicy flip.
Aside from the obvious possibility of Schadenfreude, We have to learn a few things from this. People seem to be less tolerant of exorbitant markup. Neither car appears to have priced anywhere near what the dealer was originally asking for. Sure, they were still topping their MSRP, but they weren’t outright outrageous numbers. They may be useful in bargaining with greedy dealers. This is proof that the market is demanding more than it can bear.
And, of course, there’s the general caveat that buying a car just to resell it for profit can backfire severely.