These Are The MOST Overpriced Cars With the Worst Deals Right Now

what are the most overpriced cars that you need to watch out for that's what we're going to find out welcome to C Corner where we help you the consumer Master the process of car buying and C ownership it's no secret that new cars are more expensive now than ever before and a big part of the insane prices unfortunately comes from some dealerships that are price gouging consumers charging ridiculous markups and add-ons that can sometimes add thousands of dollars to the total price so for this video I'm going to show you the most overpriced new cars right now that're the toughest ones to get a deal on I'm also going to show you an example of what a terrible dealership deal looks like so that you know what to watch out for and I'll also show you an example of what an amazing deal looks like so that you'll be fully prepared when dealing with the dealership before getting into it though remember if you enjoy and get value of this video make sure to subscribe and turn notifications and a huge thanks to omvic Ontario's vehicle sales regulator for sponsoring a portion of this video so the first C category of cars that are the most overpriced at the moment according to data from consumer reports and true cars are Toyota hybrids anyone who has shopped for a Toyota hybrid in the past 1 to two years would know that they are some of the most difficult vehicles to find brand new and also the most difficult ones to get a decent price on just as one example according to data from True cars and Consumer Reports you can expect to pay around 8% over MSRP if you want to buy a brand new Toyota Prius which is the equivalent of around $2,200 over MSRP and if you want to buy a Toyota Sienna hybrid you can expect to pay around 7% over MSRP which is the equivalent of around $2,900 given how difficult it is to buy one of these vehicles the supply is so limited that in some areas you could be waiting anywhere from several months to over a year long if you want to order one of these vehicles it's not hard to understand how some dealers ships can be charging enormous markups and it's not just Toyota hybrids that are extremely difficult to get a decent price on this is also happening with other Hybrid models from Brands like Hyundai Kia and also Honda buying a hybrid from any one of these Brands can be extremely challenging at the moment in many cases you might need to order one and wait several months or even longer so it could be very challenging to find a dealership that's not going to overcharge you and in some cases it's not just the Hybrid models in the case of Toyota it's also extremely difficult to get a decent price on one of their gas models as well including the Toyota Corolla the Toyota Camry and also the Toyota Corolla cross which according to the consumer reports and true cars data sells for around 6% over MSRP which is the equivalent of just under $1,800 another car brand similar to Toyota that seems to have very limited Supply where dealerships could be charging over MSRP is Kia according to the data from consumer reports and true cars the Kia tell for example sells for around 7% over MSRP which is the equivalent of a $2,900 markup the Kia Sportage or the Sportage hybrid sells for around 9% over MSRP the equivalent of around $2,900 and this is even the case for the Kia Stinger which because it's being discontinued can be in very short supply in some areas with an 11% markup over MSRP the equivalent of around $4,000 and this is also true for the Kia Rio another model that's going to be discontinued and as a result some dealerships are charging over MSRP for them on average around $1,600 another category of vehicle that can be extremely overpriced at the moment are sports cars these include the Toyota Supra which sell for around 6% over m SRP the equivalent of around $3600 the Toyota gr86 which sell for around 16% over MSRP which is the equivalent of around $5,800 the Nissan Z another limited production sports car which sell for around 12% over MSRP the equivalent of a nearly $5,000 markup and finally there's the Porsche 911 another sports carard that's extremely difficult to get with waiting periods from several months to over a year depending on the version and enormous markups over MSRP as a result there's also one pickup truck that made the list from the consumer reports and true cars data for being extremely overpriced and that truck is the Ford Maverick according to the data because the Maverick is extremely difficult to get and is a very high demand model it tends to sell for around 11% over MSRP which is the equivalent of around a $2,700 markup now now in my experience putting together deals and helping consumers on a daily basis much of this data is unfortunately very accurate it's the popular high demand vehicles that have limited Supply that are the most challenging ones to find a decent price on and the ones where you're the most likely to encounter a dealership that's charging a markup or charging extra fees or add-ons these include most hybrids and some plug-in hybrids most of the more affordably priced cars including compact cars and midsize cars and also small Crossovers and small SUVs now the bigger question is are dealerships even allowed to be doing this in the first place well technically as long as the dealership is disclosing everything and they advertise a price that includes all the fees and charges it is technically allowed in Ontario dealerships are required to follow all-in price advertising that means that the price you see advertised by a dealer whether it's a vehicle listed on their website or elsewhere or any other form of AD must include all fees and charges except for the sales tax and Licensing any dealership in Ontario that does not include all fees and charges in their advertise price could be breaking the law and could be investigated by omvic and it's really important that any consumer that encounters a dealership that's trying to charge you a price over the advertise price reports that dealership to now it's important to also mention that auto manufacturers in Ontario are not required to follow all-in price advertising which means that the price that you get from a dealership could be very different from the price that you see on a car manufacturer website but dealerships are required to follow all-in price advertising so before you go to a dealership make sure you take a screenshot or a copy of the ad with you so you know what the price you should be paying is for more information on all-in price advertising and your rights as a consumer just visit the brand new omvic website and make sure to sign up to their newsletter more information can be found in the description below now that we know that some dealerships could be overcharging let's take a look at an example of a terrible deal compared to a really good deal so that you know exactly what to watch out for let's start with an example of a really bad deal now I get a lot of example of dealer quotes that come to me from consumers that I deal with but here's an example of a really extreme case of what a terrible deal looks like now here we can see that on this price quote from the dealership we have a sale price of $34,636 now that's the MSRP plus the freight and delivery charge which should be the price that you're paying for the vehicle but unfortunately we have a long list of dealer add-ons that dramatically increase that price we can see that the dealership is trying to charge almost $2,500 for a rust module $2,400 for road hazard plus $425 for 2-year prepaid package not exactly sure what that is but there it is we also have further down $75 for wheel loocks and $500 for anti- theft etching and finally we have $3,375 for map 84 months $200 000 km which I'm assuming is some kind of maintenance plan or extended warranty plan and altogether all of these add-ons add up to just over $9,000 which represents just over 25% of the MSRP which means that the total price further down after we include the mandatory charges and the sales tax is nearly $50,000 for a mid-level trim Mazda cx30 which is an absolutely ridiculous price to pay and this highlights why it's so important to get a proper price quote from a dealership and carefully go over the price breakdown line by line so that you know exactly what the dealership is charging you and whether you know if you're overpaying or not now let's take a look at an example of what an actual good deal should look like for the exact same model now this is an example of a price quote report that we prepare for all of our carel clients now we have a price breakdown of the MSRP for the exact same vehicle the Mazda cx30 and we can see that we have an MSRP of 30, 350 plus our mandatory fees Freight and delivery destination and an optional package which was on the other example as well giving us the same total MSRP of 34,5 for5 now this is something that we do only for carel clients we compare the MSRP to the invoice price which is the dealer cost what the dealership pays for this vehicle and we can see the dealership invoice is $2,439 which means that the dealership has a profit margin of around $2,100 on this vehicle so we share this with our carel clients to use it as a negotiating tool so knowing that the dealership has around $2,100 profit on this particular vehicle you could try and negotiate say around $1,000 discount that way you're getting some really good savings but also leaving a little bit of money on the table so the dealership is happy and still making a profit but that really depends on the vehicle that you're shopping for and what the supply and demand is like for it now moving further down the price breakdown we can see the mandatory charges we have a few small levies that are mandatory here in Ontario we have our plate and Licensing fee of $60 and we've also included a rebate a Mazda rebate for current Mazda owners which which is $500 off the price now with that that brings us a total price of $3 34,2 15 we have none of the add-ons none of those unnecessary products and Extras that were found on the other dealership quote which means that after we add in our sales tax we have a total price that's just over $10,000 lower than the price on the other quote $110,000 on a vehicle that's exactly the same this is a perfect example of what's considered a fair deal because you're only paying the mandatory fees and absolutely nothing else and even though there's no discount that's been negotiated into this price that's okay at least you know that you're getting a fair price and you're not overpaying for the vehicle like you are in the other example but because we do provide the consumer with the invoice price if you wanted to negotiate an additional discount at least you know how much negotiating ability you have as you can probably tell it can still be a very challenging time to be shopping for a vehicle right now especially if you want to buy one of the types of vehicles that was mentioned in this video that still have very limited Supply and you can still encounter dealerships attempting to overcharge but hopefully things will improve in the future but only time will tell let me know what you thought of this video and if you have any suggestions for any future car videos just leave a comment below and if you enjoyed this video make sure to like And subscribe you can also take a look at my other car videos by clicking these links over here make sure to follow me on Instagram and if you need additional car buying advice recommendations or help with getting a great deal on your next new car purchase make sure to visit carel can.com thanks so much for watching and see you next time

Channel: Car Help Corner

Views: 247,817

Keywords: how to factory order a car, how to factory order a new car, how to buy a car, how to negotiate a used car deal, how to negotiate with car dealers, dealer fees to avoid, hidden dealer fees, how to order a car online, how do dealerships work, how to save money buying a new car, new vs used car, used car prices going down, used car market bubble, car prices going down, car prices dropping, new car prices going down, how to buy a car in 2024, how to factory order a car in 2024

Id: o6sV-CycTKE

Length: 12min 50sec (770 seconds)

Published: Wed Dec 13 2023