Thoughts on current markup environment?

Hey all, new forum member, long time lurker. Just wanted to gauge everyone’s thoughts on this current vehicle market. Been looking for a 1794 for a while, and just as I was finally in a position to buy one last year, prices spiked. I told myself I would wait but it seems like prices are staying high, maybe even going higher. Just this week I found a brand new 2021 1794, probably one of the last ones out there. Price with markup is $64k. I’m seeing 2018 and 2019 1794s with 50k miles for high $40s/low $50s, some even more. So my question to you all… Is it better in the long run to pay the new car mark up or pay the premium on used? Interested in everyone’s opinion. By the way, I’m not in a position where I have to do something, but I can’t push a vehicle purchase out much further. Definitely don’t think I can wait for things to get back to “normal”, which could be next year or longer…

 

If you dont actually need a new vehicle right not, I would wait at least until 3rd quarter 2022 and see what happens. New or used, you are going to pay premium prices now. Best deal you will find on a new Tundra will be sticker price and as you know many are adding adjustments.

 

Yeah, if I can make it to Q3 then I will try to do that but I’m just not sure that is feasible. We are essentially a one car family right now and if my wife’s company forces her back into the office, I will need to make a move on a vehicle.

 

2018/2019 w/50k

 

Personally, I don't believe in buying new vehicles.

Let some other suckers eat all that depreciation when you sign the contract. (Normally, not so much these days, until prices go back to somewhat normal)
Certified preowned is where it's at in my opinion.

Or whatever is 1 owner with low miles in good condition with clean records.

It's tough right now to get a vehicle if you care about money at all.
New ones are way overpriced, so are most used ones, especially Toyotas.

I don't think there is any good answer.
But when you find the right one, don't hesitate, secure it, and go buy it at once before someone else does.

I spent over 6 months looking for my white low mileage 1794 in my price range.
I went through some bs to get it also.

Check this out......

Finally found my truck online, called, got info, made them send me undercarriage pics and got the managers word to hold it while I drove there.

Drove 4 hours each way to another state in my trade in with my online trade in appraisal in hand.
Then at test drive the Tundra was shaking and carrying on.
After being inspected and listed for sale 1 hour ago on their website and on the lot "ready to go" at Carmax outside Raliegh NC.

They could not fix it on the spot, it needed 4 new tires (1 owner, 53k miles, original tires, flat spotted from sitting while they were deployed at sea) and they sub that work out, even though they have a shop.
They offered to lock in my trade regardless of miles and ship my Tundra to my local Carmax free.
Fine, whatever.
I went and saw my mom who lived 30mins away.
Was worth the trip to see mom

3 weeks later........ the local store says come get it.

30 mins drive later.
I test drive it again, new tires, shaking like I'm driving on square tires lmao.
Over the next 2 WEEKS, they rebalance the new tires, and I test drive it.
TWO more times/trips to the dealer.

Each time I tell them the tires are clocked wrong to the valve stem per the manufacture instructions.
The colored dots have to be in certain places which are often different depending on the brand of tire.
They indicate heavy spots and high/low spots.
My new tires dots were all over the place, every tire different clocking.

The last trip it was mostly balanced.
I said F it, gimmie the paperwork.

That was a total of almost 2 months from the day I drove 4 hours each way to buy a "ready to go" truck on the lot for sale.

I asked for compensation for the 2 months delay, driving to NC and back, and multiple failures to balance tires and my back and forth to their local store.

Mind you, they honored my trade appraisal from 2 months ago.
Even though I added a few thousand miles to the trade in.

They flat out refused to lower the truck price even 1 dollar.
Even after all that, in Feb of 2020, pre-covid nonsense.
I talked to the general managers of both stores.
They said pricing for sales and trade appraisals are set in stone, they don't even have authority to change them.
I said get me who does.
They said there is no one who can do that in the entire company.

I recommend avoiding this company at ALL costs.
Unless you are in the position I was in lol.

I hung out there and fumed for a few hours making them sweat, while I searched online for other options since I stopped looking when I found that truck 2 months ago.
They did not break.

Still no other trucks matching my specific budget and desires within 400 miles.

I knew if I even walked away overnight, as soon as this truck hits the website again, it would sell immediately.

I signed the paperwork and gave them my cash and trade.

I am soon to write my reviews, I needed time to cool down.

I also got screwed more as my truck has the driver's side timing chain tensioner issue and I did not figure it out before warranties went bye bye.

I will drive it till it breaks or I come into a few thousand dollars to spare for the repair.

That's my story, hope someone learns something from it.

 

There are still some 2021 SR5s, mostly double cabs out there. Priority in Springfield VA has one which is waiting on power steering recall fix. I bet you can get it for 2k-1500 off of MSRP +tax/tag once fix is done. I got mine for 44k OTD.

 

Ive never bought a brand new truck. The mark-up is out of control. Even 10yrs ago it seemed trucks were marked up 10K more than a large car/suv with a similar amount of metal. Once that truck leaves the lot the value plummets so vehicles are a horrible investment, at least that was the pre-covid trend. I predict inventory will improve within 2 years but I doubt car-makers will ever lower prices with increasing inflation.
I purchased my 2014 Tundra just when covid was starting late 2019. Roughly $24K for SR5/TSS double cab with new 6" lift and tires and 110K on it. The truck was a little beat up though, scratches, dents inside and out and was a prior smoker. Truck has been solid, few trips from VA to Maine with the family no issues.
I don't think you will ever regret getting a used truck and spending 20k less, just the savings on interest will probably amount to 30K in total-savings and minimal increase in maintenance fees. Just my .02

 

Held out about 6 months hoping the market would correct a bit and watched the prices climb, I have not seen any signs of anything getting better. 3 weeks ago I bit the bullet and bought my 16 1794 for what I consider a obscene amount of 41k. This was the 3rd truck I told them if it was in good condition as described I would take it, the first 2 were sold before I could get to the dealership around 4 hours later after I got off work. Mine popped up on fb and pictures said it all, it was obvious it was babied all 56k miles and the stuff the previous owner added showed he loved it so I told them I would be to them in a couple hours and I will take it. I am not feeling so bad about the price but damn the last long term vehicle purchase I made was a 4x4 Tacoma back in 2010 for out the door price of 27k new. Hope everything settles down soon but don't see a path that gets any of our financial turmoil issues under control.

 

New truck incentives are way better than anything used. I also don't like messing with used car "histories" aka any messes the previous owners did to their vehicles.

All my life I bought, fixed up, then sold used crap and vowed that one day I'd buy new and once that happened I fully accepted payments for worry-free happiness. Every truck I had would be loaded down with spare parts for roadside repairs (which I inevitably did).

Some folks revel in the bliss of not making payments while others, like myself, revel in the mostly stress free life of new truck ownership.

 

I'm with you. I've only ever purchased pre-owned. I think you're right, it will eventually improve, but the end does not seem in sight.

 

In this market, that is a hell of a price. I'll have to start scouring fb.

 

To each their own brother.

There is value in being the first owner, and the 3-year warranty.
Almost no worries, except maybe downtime for warranty work, thankfully we have little of that driving Toyotas

I just don't think that value is equal what they have been charging for new vehicles since at least the 70's, let alone after covid.

I also understand buying secondhand junk, been there, done my share of that.
If I was rich and money was no object, sure i'd buy new.
But this is my reality, new is not for me.

I bought used and pay high payments, that is my financial reality, for now.
But I am already 7 months ahead on my payoff date thanks to extra principal payments on top of every regular payment.

It takes work and patience to get something secondhand that is not junk.
But for some of us, it is worth it, to get what we otherwise could never really have.

 

It doesn't seem like there are any incentives out there. All I'm seeing is $10-15k mark ups on 2021s that still exist. Speaking to the 1794 specifically. Might be able to find SR5s as someone mentioned above.

 

First off, people need to realize that vehicles are NOT investments. If it makes sense to buy new, don't let people screaming about the depreciation stop you. Deals are still out there in both new and preowned markets if you look hard enough. I used to be all about buying used vehicles as well, but as a business owner, there are more advantages to buying new tax-wise. I understand my situation may not be yours, but my point is, if you can swing it, it's ultimately your decision. Whatever you decide, nobody on the road is gonna wonder "I wonder if that person bought new or used."

 

The buyer climate right now is an anomaly for sure

 

Amen to this.

Yep, my first new-to-me truck was around 20-24% APR but I made every payment on time until I built credit up enough to trade it in on a new truck with a much better interest rate.

Before I ever bought a new truck I was lucky enough to own and drive 5 mid-70s model Fords. Had I known what they'd be worth today.....

 

Ya gotta be patient. Know what OTD price you are willing to pay, make that offer and take it. No negotiating, either take it or walk. I know of new trucks F150s and 2021 SR5s which have been for sale since this fall. They’re holding out but eventually timing will be right just have to keep at it.

 

I picked up a '21 sr5 cc for msrp at the end of December. I waited like you and missed a bunch of platinums in early/mid '21. If you can find what you are looking for at a dealer that isn't doing mark up then go for it, but I would never pay markup...paying msrp was hard enough. Upside to the sr5 is it came in under the 50k luxury tax...so that was a win.

 

Inflation isn’t going away soon unless we have a massive crash. The longer you wait, the more you will pay.

 

Just my prediction, I believe the market isn't going to ever go back to normal. I think this is the new norm for vehicles, new and used are going to stay at these prices. Will always be a demand for new and used so now the dealers know they can get these prices they ask. Eventually we will all just except this is the new norm.

Sucks but this is the world we live in now nothing is going to be cheap again.

 

That’d be great! Top color would be magnetic gray but I’m trying not to be picky. Zero luck with private sellers around here, they are few and far between. Seems like dealers were offering too much and making it to easy to sell your vehicle to them vs testing the market yourself.

 

As the industry is pivoting to electrification/hybrid/forced induction (complexity), some buyers are starting to recognize the value of old tech (longevity, reliability). Old tech that you can buy new or relatively new like the 5.7 Tundra, or Honda's J Series V6 still sold new in some vehicles (debuted in ~1997) are in high demand.

On the performance spectrum, Porsche naturally aspirated straight six's are shooting up in value over newer turbocharged offerings.

Get in and get it while the gettins good.

https://youtu.be/5IpnWtdv15M

 

I just picked up my 5th Toyota Truck (they're all I've driven for the last 40 years) and all have been purchased used.

What has worked for the last 40 years did not work this time around. I always buy 2-3 years old, with 20-30k miles, for half to two-thirds of new sale price. This time around, 2-3 year old trucks were selling for 90-95% of new price. Some were asking more than MSRP...

I ended up finding a like new, 4 month old, 2021 Limited CM Certified used with less than 5k miles at a local dealer, and paid basically the original sticker, but it has the certified used warranty out to 100k miles. Crazy times.

 

Yeah I don't believe this is a "markup". This is inflation. This is the new norm and will be with us for a long time. Hopefully I'm wrong

 

The new '22 model -- I tend to agree most cases are just inflationary. Of course, there are extreme >+10% examples, but I suspect the new 'normal' for Toyota is a 65K truck.

For the late-model used Tundras, let's say '20s and '21s with low miles -- I've felt for a couple years now that these were priced like a bargain when new at MSRP. So seeing these late model versions going for what was their 'new MSRP' doesn't surprise me at all (and also wouldnt shy me away from purchase.

Just my two cents.

 

I fear you are correct. Tip of the iceberg sort of thing.

 

There's a way to get the best of both worlds, but it takes time and working the web like an addict.

Have to search for Toyota CPO vehicles, they'll come with a clean Carfax, extended warranty, free maintenance and usually lower than average miles.

They're not easy to find but they are out there.


https://www.toyotacertified.com/inventory?zipCode=80516&model=tundra

 

You also might want to try TruCar. I know you won't get any discounts but if a dealer has a 1794 they will contact you accepting the price shown.
Good luck