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Avoid paying high markups by expanding your car search beyond local dealerships

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As demand for new vehicles continues to surge, many car buyers are finding themselves faced with steep markups at local dealerships. These inflated prices, often driven by limited inventory and high demand, can make purchasing a new vehicle a frustrating and costly experience. However, savvy buyers are increasingly exploring options beyond their local area to find better deals and avoid paying exorbitant markups.

The Reality of Local Markups

In today’s automotive market, it’s not uncommon to see significant markups on popular models, particularly those that are in short supply. Dealerships in high-demand areas often take advantage of the situation, adding thousands of dollars to the Manufacturer’s Suggested Retail Price (MSRP). For many consumers, this can turn an already expensive purchase into something unaffordable.

These markups are particularly prevalent in urban areas where competition for new vehicles is fierce, and consumers may feel pressured to pay the asking price to secure the car they want. However, this isn’t the only option available to buyers.

Looking Beyond Your Local Area

One strategy that more buyers are adopting is to expand their search radius beyond their immediate geographic area. By considering dealerships in other regions, especially those in less densely populated or lower-demand areas, buyers can often find vehicles at or near MSRP, without the added markups that have become so common.

The internet has made it easier than ever to shop for cars remotely. Online car buying platforms allow consumers to search inventory at dealerships across the country, compare prices, and even complete much of the buying process online. In some cases, buyers can have the vehicle delivered directly to their home, or they can arrange to pick it up from the dealership.

Expanding your search beyond your local area offers several potential benefits:

1. Lower Prices: Dealerships in areas with less demand may be more willing to sell vehicles at or closer to MSRP, avoiding the steep markups seen in high-demand markets.

2. More Options: By looking at inventory from multiple regions, you increase your chances of finding the exact model, color, and trim level you want, rather than settling for what’s available locally.

3. Better Negotiation Power: When you’re not limited to local dealerships, you may find that you have more leverage in negotiations. Some dealerships might be more motivated to close a deal with an out-of-area buyer, especially if they have excess inventory.

4. Avoiding Pressure Sales Tactics: Shopping remotely can give you the time and space to make a more informed decision without the pressure of in-person sales tactics.

While looking beyond your local area can help you avoid high markups, there are a few things to keep in mind:

Transportation Costs: If you’re purchasing a vehicle from a distant dealership, factor in the cost of transporting the car to your location. Some dealerships may offer delivery services, but this can add to the overall cost of the purchase.

Registration and Tax Differences: Be aware of any differences in registration fees, taxes, and state regulations when buying a car from out of state. These can vary significantly and may impact the final cost.

Inspection and Test Drives: Buying a car without seeing it in person or test driving it carries some risks. Ensure that the dealership offers a return policy or a detailed inspection report to avoid any unpleasant surprises.

Conclusion

As markups continue to drive up the cost of new vehicles, expanding your search beyond your local area can be an effective way to find better deals. By exploring options in different regions, you may be able to avoid paying inflated prices and secure the vehicle you want at a more reasonable cost. With careful planning and consideration, looking beyond your local market could be the key to a more affordable car buying experience in today’s challenging market.

  • Chad Kirchner

    Chad is the Editor-in-Chief and founder of Destination Charged. He has nearly 15 years of experience in the automotive industry, working for a variety of publications in both print and online. He was also the co-founder of EV Pulse, another site devoted to electrification in automotive.

    View all posts

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