Car buyers pay up to $10k more than they should be as ‘despicable’ dealers cash on demand – NBCNEWS

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Car buyers have been told to remain cautious of 'untrustworthy dealers' selling vehicles for up to $10,000 more than they should be (stock image)

Car buyers have been told to remain cautious of “despicable” dealers selling vehicles for up to $10,000 more than they should be.

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New dealers are pushing up the prices of nearly new demonstrators to entice buyers who aren’t willing to wait several months for a new vehicle.

Dealers benefit from dire inventory shortages caused by the COVID-19 pandemic and add up to $10,000 for the cost of cars in stock.

Industry experts say the limited supply and production of new vehicles combined with strong demand has led sellers to charge extravagant prices for models in stock, including demonstrators with a few hundred miles on the clock.

Car buyers have been told to remain cautious of ‘untrustworthy dealers’ selling vehicles for up to $10,000 more than they should be (stock image)

New dealers are pushing up the prices of nearly new demonstrators to entice buyers who aren't willing to wait several months for a new vehicle (stock image)

New dealers are pushing up the prices of nearly new demonstrators to entice buyers who aren’t willing to wait several months for a new vehicle (stock image)

Dealers are charging up to $92,468 on the go for Ford Ranger models that should actually cost $73,281, the Daily Telegram reports.

The popular Toyota RAV4 hybrid sells for an additional $20,000, with Subaru, Kia and Volkswagen dealers adding up to $10,000 for some models.

Tony Weber, CEO of the Federal Chamber of Automotive Industries, said the rising cost of demonstrators in showrooms was “terrible.”

“I think it’s despicable behavior to praise people when there’s a supply constraint, as there is now,” he said.

“It’s opportunism and it’s just not appropriate.”

Toyota Landcruisers with a GXL sell for $82,000 - about $8,000 above what it would cost to buy new.

Toyota Landcruisers with a GXL are also in high demand and sell for $82,000 – about $8,000 above what it would cost to buy new.

Traditional favorite Toyota Hilux is booming in the used market, selling for nearly the same price as a new model

Traditional favorite Toyota Hilux is booming in the used market, selling for nearly the same price as a new model

He said dealers looking to make a profit are doing themselves a disservice as a growing number of brands are embracing direct sales to the customer.

Companies like Tesla, Honda, Mercedes-Benz and Polestar are choosing to skip the “middle man” and instead sell directly to their buyers.

This allows customers to purchase vehicles at a fixed price with no dealer surcharge.

“This supports the investigation of different business models to eliminate this type of behavior by dealers,” said Mr. Weber.

Car dealers looking to make a profit may actually be doing themselves a disservice as a growing number of brands embrace direct sales to the customer (stock image)

Car dealers looking to make a profit may actually be doing themselves a disservice as a growing number of brands embrace direct sales to the customer (stock image)

It’s because used cars have exploded in value to the point where some older models are selling for more than it costs to buy them new.

How to make money in the rapidly rising used car market?

Used car dealers are getting unbeatable prices on highly sought-after models, including Toyota HiLux, Teslas and Landcruisers.

James Ward, director of content at Drive, said those looking to take advantage of the windfall should remember to buy the next car at a higher price, too.

So it’s a good idea to first determine what you want to buy, so you don’t come up short.

He said for those who may have a second or third car that they don’t use, now is the best time to sell.

A growing number of drivers are willing to pay more for a used car than to buy a new one, as retailers report dire inventory shortages and months of waiting lists.

Sellers advertise their used cars with tens of thousands of miles on the odometer for thousands more than what they originally paid.

A Toyota HiLux SR5 that sold new for $56,440 is listed on Carsales for $62,000, while a 2017 Toyota Corolla purchased for $23,490 is listed for $27,590.

A Suzuki Jimny, a very popular four-wheel drive, has increased by about $20,000 in pre-owned value in less than two years.

A GXL car that had only traveled 34 miles recently sold for $82,000 – about $8,000 above what it would cost to buy new.

Some offers that used to start at $30,000 are now asking over $50,000.

One example was Toyota’s RAV4 Hybrid, which can be bought new for $38,490, but a used model with 24,000 miles on the clock is now listed online for a whopping $56,960.

In the first quarter of 2022, used cars sold for a 65 percent higher price tag than three years ago — and as much as 18 percent more than six months ago, data from Moody Analytics shows.

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