How much am I overpaying at MSRP

The plan has always been to hand down my 2011 tundra to my son. What was not planned was this global chip shortage/COVID/random excuse market he came of age in...

Best deal I can find on a new Tundra is MSRP. How much is someone overpaying when paying MSRP compared to traditional discounts.

 

Nothing?

 

Realistically, you’re “underpaying” if you’re just paying MSRP (plus tax & tags). As weird as that may sound. Most places are doing some sort of market adjustment. Anywhere from $2K-$16.5K.

This will be the first time in my entire life buying a new vehicle that I’ve had to buy a vehicle at MSRP. It’s just the nature of the market, though. Especially when you’re looking at a truck that almost every dealership has a deep waitlist for.

 

First post! BTW...Welcome to the forum!

 

MSRP is a good deal, cant get any better right now and lucky if you get that.

 

The market is a living thing and changes. In today's market MSRP is a good deal and you are not overpaying. 3 years ago MSRP would have been a hell of a gouged price. You cannot compare the two as they existed in different environments.

 

When I was still considering the Tundra I was happy just to find someone not charging markup. But I gradually started to see ADM in my area fade away for most makes as customers complained to manufacturers who then came down down on dealers.

You can wait but My understanding is a lot of manufacturers have come to like the low inventory environment. They are looking at limiting inventory and limiting discounts long term so no more than a token amount below sticker may be reality for the long term. Unless there is a recession and they become desperate to sell vehicles Nobody can afford anymore.

Back to normal may end up being discounts from sticker, no more invoice as the starting point. But who knows. I bought a truck now figuring discounts may come back but trade values will go down. So there may not be a strong chance of me doing much better full picture in the next 2-3 years at least.

Had 3 out of warranty vehicles in the fleet, one 13 years old. Wanted to dump two out of the 3 for one nice one to have at least one worry free for the next at least 7 years. I paid a fair price for today but maybe not yesterday or tomorrow.

 

Thank you! Love your truck. How are you liking it so far?

 

Thanks! I'm really enjoying it. Definitely enjoying the upgraded tech. I've said it a ton on the forum, but I drive a lot. I spend 2 to 2.5 hours in my truck daily. I really appreciate the upgraded interior. It's made my commute much more enjoyable.

The off road experience has improved too since the 2" lift and 34" tires. Went out on some BLM trails last weekend and I didn't scrap the front chin for the first time. haha. It's a great truck.

 

Welcome from LA (Lower Alabama)!

 

welcome and here is my two Canadian cents.
I have always bought new vehicles through a car club. 5 minute transaction. Dealer cost is known and dealers were always ok to make about $1500 - 2000 on the vehicle. So....
Dealers here (Ontario) are making $6000 on the base vehicle. Then they make more money on the higher trims + options and accessories.
My car club told me during these times that the new Tundra is being sold at MSRP - no discount. So in theory when if the market comes back to your term of "Traditional Discount" you have overpaid by $4000 + .

What offsets this is if you have a good trade in. The truck market resale dipped a bit due to gas prices but cars are still very high.
Hope this gives you a different perspective.
Remember pickup trucks are over priced to begin with "markup", and usually come with big discounts at end of year to clear inventory which just does not exist right now.
So you are buying at a high price right now. All brands.

 

Thanks for all the helpful comments and welcome messages.

Borla gave me the answer I was looking for which could best be described as about a $4k traditional discount that does not exist in todays market. I am not overy paying as everyone is in the same boat and Dealers really aren't competing for customers.

 

That's awesome! Judging by the pictures, I'm assuming the SR5 TRD Off-Road Premium package with all the bells & whistles?

How does it drive on the road? Still a smooth ride?

 

The unfortunate part (for us consumers) is that I'm not sure when things will get back to normal, if they ever will.

I try not to criticize how people spend their money but I would say you'd do very well for yourself to go to Markups.org & see which dealerships in your area are not doing markups. That's about the best you're going to do right now & I was told by a few folks in the car business that it's going to be this way through at least the end of 2023. Good luck & if you end up needing additional info, etc feel free to reach out. I dove into this head first & have done quite a bit of digging around.

 

Welcome and greetings from Minnesota. I just paid MSRP for my 2021 4WD SR5 TRD and I think for the times I got a good deal. They tried to hose me over on my rust free, low mile (164,500) 2000 4 WD 4RUNNER with a 5 speed manual and rear differential lock by offering $4,000. It’s paid for and then some so I kept it.

 

haha. Actually, no. I opt'd to not pay for a bunch of the premium stuff. I'm rocking the 8" screen with the fairly minimal options (No wireless charger, no heated steering wheel, no Homelink, No multi-camera system, etc). The 14" lost some of its "wow factor" for me when I learned the functionality was the same as the 8" so I saved the money. No regrets there for me.

When I say "upgraded tech", I guess I'm referring to standard stuff that's new for this year (or new to me) like wireless Apple CarPlay, BSM, Dynamic/Radar Cruise, MTS & Crawl, etc. This is my first owned vehicle with radar cruise & LTA, so those two features alone are worth their weight in gold.

As for the drive, it's still fairly smooth. There's a noticeable change in harshness, but that's from the tires. 10-ply "E" rated tires are definitely going to make the ride a heck of a lot harder than any Passenger tire.

 

I purchased 3 new Tundras and 4 new Tacomas between 2001 and 2018.... all at dealer invoice (7-10% off sticker).

In 2021 I purchased a new Tundra Pro and a new 4Runner.....both at MSRP.....and I had to order both and wait several months to receive them. It was quite a surprise for me but that is the reality of supply and demand in a capitalist economy.

 

If you're paying MSRP, you're doing fine. I traded my 2020 Limited in on a 2021 Limited, essentially got what I paid for my 2020 on trade in, and paid MSRP for the 2021. I had the 2020 for almost 2 years at that point, so in the end, I feel like I got a good deal based on the current market. I did have to travel for my 2021, most of the dealers in Maryland were adding anywhere between $5000-10000 premium to new trucks based on the current market. When I last got my 2020 serviced in November, the Adjusted Market Value of a 2021 Platinum sitting in the showroom was $10k at that particular dealer....and it sold. I'm guessing they got that or close to it.

 

10+%

 

You're lucky that you got a TRD Pro for MSRP. When I was hunting for one, every single dealer I spoke to was marking up the Pros within a 500-mile radius. If it wasn't for those high markups, I would be rocking a '21 Pro but it's what it is. Then again, I almost bought a Ram Rebel for $50k back in 2019.

 

MSRP for a truck with known turbo and other QC issues doesn’t seem like such a good deal to me.

 

Which is why its gunna suck when the market shift back to historical norms and all these people are left with trucks that they paid MSRP or more for.

 

Considering that’s not supposed to happen for at least a year or two, I don’t think it’s that big of a factor. Especially (as noted previously) if you’re trading in a vehicle, which are at historically high values too.

 

op isnt trading in.

 

Said every logical thinking person

 

fair enough. Just assumed with the “all these people” comment, it was more of a generalized statement vs only on the topic of the OP.

 

My local dealer tried hitting me with $4,000 over MSRP and it was to place an order for one, NOPE!! I went to another dealer, they had one on the lot and paid $1,000 over. It's the nature of the game now unfortunately.

 

Traditionally speaking between about $2k-$5 for a Toyota.

 

As others have said, years ago you could have negotiated 7-10% off, so I guess your are "over paying" 6G or so compared to yesteryear, but in 2022 I felt like msrp was a good deal.

 

I paid $3k over sticker in the form of options I didn't need (Nitrofil, Waxoyl and Emergency Assistance kit). I really had little choice as I use my truck for work, and my '19 was totaled last month by a massive pine tree. Crazy thing is I got $47k for the truck I pad $42,750 for with 44k miles. So in the end, it really didn't sting.