New car shopping? Why the sticker price in Forsyth County might not be close to what you’ll ultimately pay

Michelle Hall

https://img.particlenews.com/image.php?url=1Iv2Fe_0h5391lo00
(Photo/Getty Images)

(Forsyth County, GA) It’s no secret car dealers are looking to make a profit, oftentimes selling cars for way above the recommended sticker price. But as the demand for new cars still outweighs the supply due to the microchip shortage that started during the pandemic, dealerships are blaming the market for their markups.

But are new car dealerships in Forsyth County playing the same pricing game?

Four of 10 dealerships in Forsyth told NewsBreak that they are charging buyers a surcharge known as a “market adjustment” on top of a vehicle’s market price. This is meant to help dealerships make a profit and can add between five to 20 percent to the sticker price, according to employees at several local dealerships.

In fact, one Forsyth County couple who have spent more than a year searching for a new car was ready to spend $40,000 at a county dealership for a new car. But they said they were stunned to learn of a 20 percent dealer fee that was presented to them when they got the paperwork. The couple decided not to pay the $8,000 fee and walked away from the deal (Full disclosure: This couple is a friend of the author).

https://img.particlenews.com/image.php?url=3dqcHc_0h5391lo00
(Photo/Getty Images)

This year will remain a seller’s market for anyone shopping for a car - new or used - according to used car resource Kelly Blue Book. Meanwhile, prices for used cars hit record highs in December 2021, but are expected to drop by late this year, reported The Motley Fool.

Kelly Blue Book also reported that some car manufacturers – like Ford, General Motors, Subaru, and Hyundai – have argued against this practice, but some dealerships insist they need the fee to make a profit. Some market adjustments come with “incentives” to make customers feel like they are getting something extra -- such as car mats, nitrogen tires, etched or tinted windows. Others are just a flat fee.

So what are new car dealerships in Forsyth County doing about the market adjustment? Here’s what NewsBreak found out from seven of the 10 dealers:

Forsyth County dealerships that have a market adjustment:

  • Lou Sobh Honda
  • Lou Sobh Kia
  • Hyundai of Cumming
  • RBM of Alpharetta (on select limited models)

Forsyth County dealerships that do not have a market adjustment:

  • Beaver Toyota (although they have a mandatory Beaver Benefits package on new cars for $1,674 that began in 2019)
  • Troncalli Subaru / Jeep / Dodge / Ram / Chrysler
  • Nalley Nissan of Cumming

Forsyth County dealerships that did not return request for comment:

  • Billy Howell Ford (Website Markups.org, which crowdsources markups, features a listing with a $30,000 markup on a 2022 F150 Raptor. NewsBreak could not independently verify the claim.)
  • Billy Howell Lincoln
  • Andean Chevrolet

https://img.particlenews.com/image.php?url=2vhIaJ_0h5391lo00
(Photo/Getty Images)

If a new car is not a necessity at the moment, a report on nerdwallet.com encourages buyers to wait out the market a little longer until supply picks up.

If you have a news tip in Forsyth County, email michelle.hall@newsbreak.com

Comments / 5

Published by

Journalist, storyteller, and editor. I love sharing stories and finding the right words to help others write their own.

Cumming, GA
780 followers

More from Michelle Hall

Comments / 0