The Reality of the South Florida Car Market
South Florida is a unique area when it comes to buying a car. The tri-county area boasts a large population and a car culture that places a premium on driving the latest models. This demand, combined with supply chain constraints, can create a seller's market. In such markets, dealerships may utilize dealer markups.
If you have shopped for a new Toyota in South Florida recently, you may have encountered this. You find a car you like, check the Manufacturer's Suggested Retail Price (MSRP) online, and head to the dealership. When you arrive, you notice a secondary sticker next to the official factory window sticker. This "addendum" often features a line item reading "Market Adjustment," or "Additional Dealer Profit". This markup can add significantly to the cost of the vehicle.
Why Toyota Markups Can Occur
Toyota's reputation for building reliable vehicles makes them highly desirable. However, markups are generally concentrated on specific models where consumer demand outstrips factory supply.
The Prime Targets for Markups
In South Florida, vehicles most likely to carry markups are hybrids and high-demand trucks/SUVs. The Toyota RAV4 Hybrid and RAV4 Prime, the Toyota Sienna, the Toyota Tacoma TRD Pro, and the Toyota Sequoia are frequent targets.
The "Protection Package" Strategy
Sometimes, dealerships disguise a markup as forced accessories. You might see a "Protection Package" that includes basic window tint, nitrogen-filled tires, and a generic paint sealant. Dealerships may insist these items are already installed and cannot be removed.
Strategies for Navigating Pricing
While the South Florida market can be tough, finding a new Toyota near MSRP is possible. It requires strategy, patience, and some legwork.
1. Request an Out-the-Door (OTD) Price Remotely
An effective way to identify a markup is to request an itemized Out-the-Door (OTD) price via email or text before visiting the dealership. An OTD price includes the vehicle price, all taxes, title/registration fees, and the dealer fee. If the vehicle price on the OTD quote is higher than the MSRP on Toyota's website, or if there are pre-installed accessories you didn't ask for, you have spotted a markup. By handling this remotely, you avoid high-pressure sales environments.
2. Order from the Factory (Allocation)
If you are not in a rush, a good way to avoid markups on high-demand vehicles is to place an order or get on a waitlist for an upcoming factory allocation. Many dealerships will agree to sell an ordered vehicle at MSRP. You will have to put down a deposit and wait, but you will get exactly the car you want.
3. Use a Service Like Keyosk
Navigating the South Florida car market can be challenging. Keyosk finds out exactly what vehicle you want, confirms it is available in the partner dealership network, and books a scheduled appointment so you are expected on arrival.
Exercising Your Right to Decline
You always have the option to decline a deal. If a dealership refuses to remove a "Market Adjustment," if they insist you must purchase their protection package, or if they refuse to provide a clear OTD price, you can exercise your right to decline and explore other options.
Conclusion
Navigating Toyota markups in South Florida requires vigilance. By understanding which models are targeted, recognizing markups disguised as forced accessories, and requesting a firm OTD price, you can make informed decisions. Be willing to wait for a factory order or seek out transparent dealerships. With the right approach, you can navigate this market and find a fair deal on the Toyota you want.