What is the average dealership markup for a 2022 Yukon Denali? Just got quoted $10k markup

[VMD2022]

We pre-ordered a 2022 Yukon Denali at a local dealership in California. They said they are not charging a markup but the wait is 1-1.5 yrs for the exact car we want.

So I went around and started emailing EVERY dealership in California- we plan to find one before then. We got a hit for basically the exact car we want but the dealership is marking it up $10k. HOLY CRAP. We can't do it.

Is this normal? Are we going to deal with this no matter where we go?!

 

[todayusay]

If you "need" it soon, you're up a creek. If you "want" it soon, you're up a creek.

That type of markup is unfortunately all too common.

Those that have ordered at MSRP or lower are generally those that have ordered at their local(ish) dealer

Our local dealers are at MSRP for "locals" and $5-10k over for out of state peeps

 

[MezJr]

It also depends on what you ordered. Some things are not being installed in new cars at this time. We built one that didn't include anything on constraint so we'd get the truck sooner.

 

[R32driver]

Welcome to modern car buying. If you want something now you pay extra. If you want to order one and wait and roll the dice with the options you may or may not get then you can save some money and pay msrp. Our dealer hit us with a $10k markup and I very easily got them to bring that down to $5k. We didn’t need a new vehicle but we did want it and they had one that checked all the right boxes so we pulled the trigger. Payed a little extra and drove it home, no waiting games or missing options. This was 8 months ago when you couldn’t even touch one on a dealer lot so felt lucky to get one on the spot and have them come down on markup.

 

[Vinnoto1]

We pre-ordered a 2022 Yukon Denali at a local dealership in California. They said they are not charging a markup but the wait is 1-1.5 yrs for the exact car we want.

So I went around and started emailing EVERY dealership in California- we plan to find one before then. We got a hit for basically the exact car we want but the dealership is marking it up $10k. HOLY CRAP. We can't do it.

Is this normal? Are we going to deal with this no matter where we go?!

Here in NJ a fully loaded denali with 3k markup.

 

[GMCnewbee]

Our 2022 Denali was advertised on the lot with a $15k markup. We went to look at it but I made it clear to the Dealer that I would not be paying that much. I think it depends on the Dealer's judgement about just how serious you are. We negotiated and it came down to $8k, then $4k, and I finally agreed to the deal with a $2k markup and more money for my 2021 trade-in. I wanted to order my "exact" car but after listening to all of the waiting required for certain things, we decided to just buy what was right there in front to of us. Not that we are suffering. We have a beautiful car with more than everything we need. When I am ready for something new I will go through the whole order and wait process. For now we are just enjoying a really great vehicle!

 

[VMD2022]

We ordered

Our 2022 Denali was advertised on the lot with a $15k markup. We went to look at it but I made it clear to the Dealer that I would not be paying that much. I think it depends on the Dealer's judgement about just how serious you are. We negotiated and it came down to $8k, then $4k, and I finally agreed to the deal with a $2k markup and more money for my 2021 trade-in. I wanted to order my "exact" car but after listening to all of the waiting required for certain things, we decided to just buy what was right there in front to of us. Not that we are suffering. We have a beautiful car with more than everything we need. When I am ready for something new I will go through the whole order and wait process. For now we are just enjoying a really great vehicle!

Yea we're going to at least try to bring it down- I hope we get as lucky as you did!!!

 

[VMD2022]

It also depends on what you ordered. Some things are not being installed in new cars at this time. We built one that didn't include anything on constraint so we'd get the truck sooner.

We ordered it with the diesel engine- I've heard that may slow things down

 

[Stbentoak]

If I were looking for a diesel I would expand the search for at least 500 miles radius and try to find one that is available that may suit you. Just keep calling…
There’s always going to be something every month that is going to be on constraint plus a big dead spot this summer…. is it really worth waiting for 6 to 8 months and feeling hopeless?

 

[Doubeleive]

We pre-ordered a 2022 Yukon Denali at a local dealership in California. They said they are not charging a markup but the wait is 1-1.5 yrs for the exact car we want.

So I went around and started emailing EVERY dealership in California- we plan to find one before then. We got a hit for basically the exact car we want but the dealership is marking it up $10k. HOLY CRAP. We can't do it.

Is this normal? Are we going to deal with this no matter where we go?!

Everything new and used is marked up 10k, until you get into older years pretty much anything 2016+ is a wash currently, there are some 2015's floating around at somewhat reasonable deals but it's a 1st year redesign so.....

 

[VMD2022]

If I were looking for a diesel I would expand the search for at least 500 miles radius and try to find one that is available that may suit you. Just keep calling…
There’s always going to be something every month that is going to be on constraint plus a big dead spot this summer…. is it really worth waiting for 6 to 8 months and feeling hopeless?

I've expanded across the whole USA! There are barely any available at all in the color/trim we want. We're being picky since we just started looking a few weeks ago. The only leverage we have is time.. we're not in a huge rush but still don't want to wait a whole dang year.

 

[Saltydog]

Yes, a 10k markup sounds about right, I saw several dealers that do that.

Our dealer started at 5k and we worked them down to 3k and then they gave us an extended warranty at no additional cost, so it was a wash at paying MSRP which was still hard for me, as I generally buy vehicles below MSRP.

The dealer I worked with tends to not list their Yukon's their website.

 

[Doubeleive]

I've expanded across the whole USA! There are barely any available at all in the color/trim we want. We're being picky since we just started looking a few weeks ago. The only leverage we have is time.. we're not in a huge rush but still don't want to wait a whole dang year.

well the industry leaders, the ones that spend billions on chips more than 50% of them expect the chip shortage to extend into 2023, shanghai is locked down the largest shipping port in the world is locked up with over 500 container ships backed up sitting off the coast. I wouldn't expect prices to change anytime soon.
your best bet is to check at least twice a day and maybe score one from a private seller if you have cash funds, some are coming out of Canada if you can figure that one out.

 

[VMD2022]

Update:

We went to the dealership and were able to negotiate it from $10k down to $5k. Still doesn't feel like a win to me! But maybe we just need to get used to the markups being normal right now. They said they've never dropped it below $7k but who knows if that's true

Maybe a markup of $5k for a Yukon Denali in California isn't terrible?!?!

 

[StephenPT]

Update:

We went to the dealership and were able to negotiate it from $10k down to $5k. Still doesn't feel like a win to me! But maybe we just need to get used to the markups being normal right now. They said they've never dropped it below $7k but who knows if that's true

Maybe a markup of $5k for a Yukon Denali in California isn't terrible?!?!

They're car salesman - of course they've "never dropped their markup below $7K." They'll tell that story to the next guy that comes in and the next one. You can pay MSRP or even less, but it's a matter of you searching around more. Markups are there because most people are impatient and justify to themselves they need it now. The waiting part is not fun, but do you really need it "now"? If you ordered one now at MSRP and waited 9 months, would you look back and say it was worth $5K to wait? Money has a different value to everyone and some people have a lot more of it than others. I don't know what your situation is and I'm not tell you what to do, but $5K is a nice chunk of change in my mind and could pay for a lot of fuel, accessories, vacation houses, etc. The only thing you're getting from that $5K if you pay it now is a reduced wait...

 

[ProfeZZor X]

You'd be better off buying one in Texas and having it shipped to your location. I also live in Southern California and had been looking for a year for my Yukon AT4. Bottom line, I too kept hitting that markup "roadblock", so I expanded my search for 2000+ miles. For the most part, a lot of the vehicles that had the options I wanted were already spoken for before it hit the lot, but I was lucky enough to find a rural Mississippi dealership that just got a Redwood Metallic earlier that week. It didn't have 3 of my options, but it did have the must-have ones... So I bought it and had it shipped here to Los Angeles. AND, that process was a lot cheaper than paying $10k over sticker. I still paid $3k over sticker, but that plus shipping, and I still saved $5000 over what I would have paid here in California. That was just two months ago when I had mine imported from Mississippi.

As for Texas, Denali's and AT4's were harder to come by because most of Texas won't charge a dealer mark-up, and those are the most desirable trim levels. I came close a couple of times, and even tried offering $15k over sticker for a few fully optioned AT4's, but they were loyal to the customers that pre-ordered them and wouldn't budge.

If you want to talk California registration and emissions, you don't have much to worry it passing since most new vehicles have 50 state compliant parts. It was a two week-long process that involved putting 500 "illegal" miles on it because the oxygen sensor was so new that it was giving off toxic readings. I say "illegal" because I drove it without being registered while putting on those 500 miles, so I could have had it impounded if a cop having a bad day pulled me over. Putting on the added miles to pass my smog was the idea of my local smogger, because he had a 2022 Corvette have the same issue a month prior, and I only had 13 miles on mine when I got it. After I put on the miles, it passed with no problem. Then came the DMV visual inspection, California sales tax, and just like that, I got my license plate that same day I registered it. That was back in late March this year.

Good luck in your search.

 

[R32driver]

$5k over in todays inflation ridden world sounds like a win to me. Five G's aint **** in todays world, just put your hand out and uncle Joe will print some more cash and plop it in your palm

 

[PaulGA]

You'd be better off buying one in Texas and having it shipped to your location. I also live in Southern California and had been looking for a year for my Yukon AT4. Bottom line, I too kept hitting that markup "roadblock", so I expanded my search for 2000+ miles. For the most part, a lot of the vehicles that had the options I wanted were already spoken for before it hit the lot, but I was lucky enough to find a rural Mississippi dealership that just got a Redwood Metallic earlier that week. It didn't have 3 of my options, but it did have the must-have ones... So I bought it and had it shipped here to Los Angeles. AND, that process was a lot cheaper than paying $10k over sticker. I still paid $3k over sticker, but that plus shipping, and I still saved $5000 over what I would have paid here in California. That was just two months ago when I had mine imported from Mississippi.

As for Texas, Denali's and AT4's were harder to come by because most of Texas won't charge a dealer mark-up, and those are the most desirable trim levels. I came close a couple of times, and even tried offering $15k over sticker for a few fully optioned AT4's, but they were loyal to the customers that pre-ordered them and wouldn't budge.

I tried 3 Texas dealers when I was shopping in February. All of the dealers I contacted refused to do business with out of state buyers. One said they’ve had too much fraud as of late and wouldn’t make any exceptions.

 

[EddieC]

I remember being at a dealer that tried that stunt with "yellow" C5 corvettes. Five-thousand for a particular color?
Simple solution was to go down the road to a dealer that actually wanted the business.
I always remember that dealers are independent and not General Motors so they get to do whatever they want.
I see quite a row of trucks on a couple of our larger local dealer's lots so I am confused reading about not being able to get a vehicle.

 

[Newapocalypse]

I would consider different states. Not all dealerships are marking up their cars and I was able to find 2 Tahoes that were available with no markups. One was in my state the other was less than 600 miles away. Food for thought.