2022 Yukon Denali: Dealer Markup?

[sickk21]

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

 

[PaulGA]

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]

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

2022 Yukon Denali ordered ($300 over invoice)

Just ordered a Yukon Denali Ultimate with diesel package. Cayenne Red exterior and Walnut interior. Ordered from Robideaux motors in Idaho. Savings on custom order far outweigh what I purchase closer to me. Speak with Pam @ +1 (208) 547-6012 this is her work cell and she handles custom...

www.tahoeyukonforum.com

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

 

[firsttimetahoe]

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]

2022 Yukon Denali ordered ($300 over invoice)

Just ordered a Yukon Denali Ultimate with diesel package. Cayenne Red exterior and Walnut interior. Ordered from Robideaux motors in Idaho. Savings on custom order far outweigh what I purchase closer to me. Speak with Pam @ +1 (208) 547-6012 this is her work cell and she handles custom...

www.tahoeyukonforum.com

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

Aka you’re never gonna get it

 

[Yukon21Denali]

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]

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]

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]

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]

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.

 

[Quark]

Every dealer I've talked to is motivated to take an order some want a down payment some don't. No way those orders can be filled.

 

[Polo08816]

Every dealer I've talked to is motivated to take an order some want a down payment some don't. No way those orders can be filled.

Those orders will be filled. The only question is when.

 

[firsttimetahoe]

Those orders will be filled. The only question is when.

This is where I get slightly confused.

Does having more orders on standby give dealers a leg up on future allocations? Or is it simply based on sales? Let’s say you have 2 dealers. They each get an allocation of 10 Tahoes per month.

Dealer 1 has 120 custom buil orders for a Tahoe. They can prefill their next 12 months worth of allocations. They’re ordering cars exactly to match what the customer wants.

Dealer 2 takes no custom orders. GM just assigns them 10 Tahoes a month based on their own configurations. The dealer sells these vehicles to customers once they find out the configuration is finalized and customers claim these vehicles before they hit the lot.

So both dealers sell all of their cars pretty much immediately. But does the dealer who has a list of custom orders get more future allocations from GM?

 

[Polo08816]

This is where I get slightly confused.

Does having more orders on standby give dealers a leg up on future allocations? Or is it simply based on sales? Let’s say you have 2 dealers. They each get an allocation of 10 Tahoes per month.

Dealer 1 has 120 custom buil orders for a Tahoe. They can prefill their next 12 months worth of allocations. They’re ordering cars exactly to match what the customer wants.

Dealer 2 takes no custom orders. GM just assigns them 10 Tahoes a month based on their own configurations. The dealer sells these vehicles to customers once they find out the configuration is finalized and customers claim these vehicles before they hit the lot.

So both dealers sell all of their cars pretty much immediately. But does the dealer who has a list of custom orders get more future allocations from GM?

My guess is that it would but what I'm less sure of is how soon would GM increase its allocations.

Also, a dealer that sells more volume may qualify for a larger holdback %. So maybe these dealers that are close to reaching the next tier.

 

[Quark]

Those orders will be filled. The only question is when.

They can only build so many 2022's from what you say it is automatically rolled into the next model year if not filled.

 

[GoHeels]

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%

If a dealership requires you to finance through them, just ask about minimum finance amounts & early pre-payment penalty.

It happened to us and luckily the dealership essentially matched my credit union (1.99% for 5 years vs 2.02% for 6).

In our case, there was no min finance amount but a 6-mo pre-payment penalty. My CU would also refi a car at their new rate (higher rate for used) as long as it was under X miles. Don't remember the specifics but it was generous and a non-issue for us. Had the dealership given me a stupid rate, I would have just refi'd the car after 6 months.

Do your homework, know the rates you can get elsewhere, then compare to what the dealership offers. If you don't do your homework, you are guaranteed to get taken advantage of.

 

[firsttimetahoe]

Do your homework, know the rates you can get elsewhere, then compare to what the dealership offers. If you don't do your homework, you are guaranteed to get taken advantage of.

Honestly the thought of refinancing never came to my mind.....but even in this scenario doing your homework and knowing what rate you qualify elsewhere is meaningless if you have to use their lenders. Most dealer's will try to match what you can get elsewhere because you can always go elsewhere to finance.

But once you sign a document stating you must use their lenders, you're kinda screwed. Also, after waiting months and months for your custom car to finally arrive...they know you're going to be more inclined to just swallow it and just sign...rather then walk.

 

[GoHeels]

I would argue its not meaningless regardless. You should always know what you can get outside of the dealership before speaking with them. You'll know if they are being competitive or sticking it to you and you can use that to determine whether to proceed. It's also very valuable to compare across various dealerships.

Dealership 1 = $70k MSRP, dealer finance 6% interest for 5 years = $81,197.77
Dealership 2 = $70k MSRP + $5k market adjustment, bank of choice 2% interest for 5 years = $78,874.92

I totally agree right now dealerships have a take it or leave it mentality, but that doesn't mean you don't do your homework.

 

[Polo08816]

https://gmauthority.com/blog/2022/04/gmc-yukon-discounts-incentives-offers-deals-april-2022/

• Featured Finance Offer:
  • 2022 Yukon/Yukon XL
    • 0 percent APR financing for 36 months
    • For very well-qualified buyers
    • Must finance with GM Financial

...not that it's easy to find a Yukon/Yukon XL right now.

 

[firsttimetahoe]

I would argue its not meaningless regardless. You should always know what you can get outside of the dealership before speaking with them. You'll know if they are being competitive or sticking it to you and you can use that to determine whether to proceed. It's also very valuable to compare across various dealerships.

Dealership 1 = $70k MSRP, dealer finance 6% interest for 5 years = $81,197.77
Dealership 2 = $70k MSRP + $5k market adjustment, bank of choice 2% interest for 5 years = $78,874.92

I totally agree right now dealerships have a take it or leave it mentality, but that doesn't mean you don't do your homework.

I don't trust car dealers. And you don't start running credit and seeing what rate you qualify for until you're about to sign. So they can tell you one thing when you place your order and it no longer applies when it comes to signing months later. And usually you don't even talk financing and rates with your salesman....they pass you to the financing guy. And he plays dumb about whatever it is your salesman may have told you.

When you're given a "take it or leave it" offer from a dealer, they can give you a whole list of reasons why their rate they say you qualify for isn't as low as what you're pre-qualified for at a dozen other banks. And they don't care because you already signed a contract saying you can't use those banks.

They'll have no problem selling that car to the next guy or girl. But now you just wasted maybe 3-4 months waiting for a car that you're no longer going to buy. And now you have to start the process again. Have fun!