“Ouch” doesn’t even begin to describe this dealer markup.
Since we started publishing our dealer markup videos a couple months ago, you’ve all been kindly sending in the most egregious markups on everything from everyday Nissan Pathfinders to performance cars like the Mustang Shelby GT500. Now, our friend Derek sent in a marked up Mercedes-AMG GT Black Series — and I’m reaching for the heartburn medication.
All right, even at MSRP the hardcore Black Series isn’t a cheap proposition, by any means. In fact, the car he sent in — shown here at Mercedes-Benz of Pleasanton in California — has a hefty MSRP of $340,245. Just for reference, that sticker price is higher than a Lamborghini Huracan STO, two Porsche 911 GT3s or four Shelby GT500s.
But wait! That’s just the tip of the iceberg, because then you’ll get over the initial hit from the MSRP and land on the so-called “market adjustment”. No doubt these cars are desirable, particularly to die-hard AMG fans, but if you want this specific car (shown via screenshot below), you’ll have to shell out another $350,000. Excuse me?
Here’s what Derek says about the situation:
I took one of my cars in for service to Mercedes-Benz of Pleasanton (my preferred Mercedes dealership, even though Mercedes-Benz of Walnut Creek is about 20 miles closer).
While I was waiting for my service advisor, I walked through the showroom to look at the markups. Everything from $35,000 for an EQS450 to $75,000 for a G550. Then, there’s an AMG GTR Black Series that has an MSRP of $340,245 and is marked up $350,000 for a total of $690,245!
My service advisor said that there was one over $700,000 at Mercedes-Benz of Walnut Creek…Was, meaning it sold… These markups are getting close to the real estate overages people are paying here!
You know what, I don’t even need to say anything further. Those of you commenting on our YouTube community page already speak volumes on this dealer markup.
Here’s what you’re saying about it (via YouTube comments):
- “These dealers have ran right past greedy and kept going until they hit despicable.” — mpeugeot
- “This is absolute madness. I can’t imagine what would possess someone to pay double the asking price. No one needs it that bad.” — Preston Allen
- “This post made me reflect upon all the stores I have never been in nor ever will. Crazy. There are a lot.” — Kadir Olek
- “Dealer asking price…They can ask all they want LMAO.” — “Sharpshooter”
- “I’ve known several millionaires in my life…they earned their money through intelligence and hard work. They never would have thrown money away at something like this.” — Garth Howe
One of the more pointed responses I noticed didn’t target the dealer so much as the customer, from “EPeater86”. “Consumers have caused this because there are some that are paying those prices. Some of these cars may appreciate a bit, but I definitely don’t see the G550 being worth anywhere near the asking prices ever (emphasis added).”
The reason to call this behavior out
In past posts, I’ve mentioned that some dealer markup happens intentionally, setting berserk pricing as a deterrent to would-be buyers. That may be the case if the dealer only has one example of a car, and they’re using it either as a demo or, as could be the explanation in this case, a showroom piece. Nevertheless, the optics are still bad, even if that is the dealer’s purpose.
As ever, we have to mention that the dealer can, by and large, ask whatever price they’d like for a particular vehicle. The onus is then on the consumer to decide whether they want to abide that behavior by shelling out the markup, or walk away.
Fortunately, you guys have also been mentioning fair deals — albeit on more approachable cars, of course. I’ll admit I’ve become a bit jaded in the wake of all the emails and comments you get in, as it wears you down to the point where you think, “Eh, $3,000 markup on a Ford Maverick isn’t that bad…” Some of the examples are far from the worst we’ve seen.
This one is special, though. As far as I can recall over the past few months, this markup is the highest yet. We may need to give out a new “Big Cajones” award for this one.
