One Toyota Corolla for the price of basically two. That’s the deal Autopian reader Max got offered recently at a California Toyota dealership in his quest to secure a 2023 GR Corolla. He could’ve taken the car home, but the dealer markups would’ve meant paying an additional $19,995 in the “limited market value” adjustment alone.
In case you’re curious, that’s not terribly far off the price of a new, base-trim Corolla, which starts at $21,550 before delivery.
Toyota’s three-cylinder, 300-horsepower demon-hatch starts at $35,900, before delivery. The final price for the car Max got offered was more than twice that at $77,597 after taxes and fees.
Perhaps needless to say, Max didn’t pull the trigger and remains GR Corolla-less as of this writing.
“I’m not into this markup game with dealers,” said Max, who is based in Santa Cruz, California. (He asked that his full name not be used for this story.) “I’m happy to pay for some B.S. extras but not a 25% markup, regardless of the vehicle.”
Max said he’s been in the market for the GR Corolla since it launched. “My local dealer called me first and offered me a base with a $10,000 [Additional Dealer Markup.] I offered to purchase another vehicle and they wouldn’t budge.”
So he said he started calling around until he found Freeway Toyota in nearby Gilroy. When he did, he said the dealer told him one such car was coming in. He said he was prepared to put down a deposit down for it.
“On the phone, I asked for the specs and if they were going to add a markup,” Max said. “The saleswoman said she couldn’t give me that info but would send me a proposal and the build sheet.” Max said he then received what he considered a “ludicrous proposal.” You can see their text message exchange below:
Freeway Toyota of Gilroy and its sister store, Freeway Toyota of Hanford, have not responded to multiple calls and an email seeking comment from The Autopian over the past two days. Additionally, the name of the salesperson listed in the text messages and sale quote document—whom we aren’t naming to protect their privacy—matches the name of a salesperson listed in multiple Google reviews of the dealership.
Granted, dealer markups on hot cars—especially limited-production performance cars aimed at enthusiasts—are nothing new. Only 6,600 GR Corollas will go to U.S. dealers for the 2023 model year. But prices have really gone bananas, to use an industry term, over the past year or so, thanks to COVID-19-related supply chain disruptions, inflation, skyrocketing car prices and limited vehicle supplies.
The GR Corolla has already seen its fair share of this. CarScoops reported in November on one such hot hatch in Maryland with an alleged 50% markup. Other new cars recently caught up in markup mania include the new Nissan Z, the Ford Bronco Raptor, and the new Honda Civic Type R, according to Road & Track.
The markup situation has gotten so wild that folks in the forums have started compiling lists of more scrupulous dealers willing to sell GR Corollas at MSRP and without markup. If you really want one of these, you should probably consult that list, and be potentially ready to travel a bit to get the deal of your dreams.
Above all, some good advice is to do what Max did: don’t be afraid to walk away from a terrible deal. It’s hard to justify a GR Corolla—and it’s a fantastic, fast car, but still a Corolla—at $50,000. At nearly $80,000? Forget about it.
But for Max, the ongoing markup situation is a disappointment for anyone who got excited about the GR Corolla—a rare modern foray into the performance car market from Toyota, and one with a unique engine packing a lot of speed for what’s supposed to be a reasonable price tag. But many dealers are working to make sure they get their cut at the buyer’s expense.
“As an automotive enthusiast, it’s upsetting when manufacturers listen to the desires of enthusiasts, just to have dealers price out the folks who originally created the demand in the first place,” Max said.
I’m sorry dealerships suck, they are the sole reason I never buy a new car. It may not have the mystique of a new tech wonder like the Corolla GR but you can take that same amount of money and buy a low mileage Celica GT4 (Alltrack in the US) and have a similar fun in a true homologation special. Preferable a ST165 as they are my favorite.
My mom, who will turn 79 on her next birthday has been getting a bunch of ads for the GR Corolla. I have not gotten such ads.
The Corolla is a 40-45K car tops when the market cools and maybe $50K will be the new normal for buying a GR Corolla. But its an economy car that’s been hopped up much like the Evo X that I used to drive. They are fast for what they are but you’ll never convince me that they are nice cars in terms of overall quality.
I’d seriously check the intelligence of anyone paying more than $45K for a GR Corolla, that’s a price point that gets you into a Golf R which once again is faster in every measure and is a better overall car? AT $77K…jeez, you can get a seriously fast Mustang, BMW M3 (non-Comp and if you are griping about mark-ups go M340I), you might even get a C8 Corvette, and a bunch of other cars for that price in today’s market . And all of those will leave this car looking it like it’s standing still when they launch.
Yeah, but a Golf R is lame.
Part of the Victory Automotive which has dealers around the country. There’re always be markups on the latest, hottest cars. The Miata in 1990 was about a $10k msrp and dealers were getting $5k over. But the craziness we’re experiencing now will pass. Inventories across all brands are growing, pre-owned wholesale prices are dropping and we’re seeing more and more finance and lease incentives. High interest rates, increasing unemployment and a mild recession will all drive higher inventories and bring back more reasonable pricing. It sucks if you have to buy a car now, wait a year or so if possible.
But do take $100 off the truecoat?
Be sure to get the extended warranty!
This is yet another reason why dealerships do not make any sense. Why is it that in this day in age I can buy anything I want either online or at a store but not a damned car? Also- is it just me or did the sign in process change? I now have to sign in every day and do so by having to send an email to myself. Super not great.
Want to bet that one of these will soon turn up at a Barrett-Jackson or Mecum auction? Some fool will bite and thousands will cheer. It would warm my heart to see no sale. Whoever buys in this situation will never drive it, which is a sin.
“would’ve meant paying an additional $19,995 ”
Looking at that invoice, it looks to me there is more like over $35,000 in markups and bullshit charges… so almost a 100% markup compared to the MSRP.
And you know what’s bullshit? Spending over $30K on something and they still nickel and dime you with an $85 document fee.
I bought many other things with much lower profit margins and I don’t get hit with a document fee with that stuff… why would it be acceptable when it comes to buying a vehicle?
They seriously can’t build in the cost of paperwork into the price of something that costs 5 figures?
That’s just bullshit…
Dealers need to die… at least these kind… you wonder why the manual is dead in the US… this!!!!
Dealership: charges 50k over MSRP
Enthusiasts never buy cars so now we are going to stop making them.
Whokilledhannibal.gif
This, exactly, nailed it.
I don’t get FOMO on a car. Especially one that should see a couple years with enough production that everyone that wants one will get one. They’ll have ’24’s sitting on the lot.
I’ve called a bunch of Toyota and Honda dealers in Maryland/D.C area and none are selling below 60k.
There was one that sold a GR as “used” for 50k. Only had 20 miles on it
The buyer was heading for the dealership exit and got stopped because their check bounced, the cash was counterfeit, or the dealer ran a full credit check and realized the buyer had a 400 credit score or something.
Glad to see my decision to “not even bother” seems to have been the right move.
Can we just have a whole series of publishing exorbitant dealer quotes? They like to keep them secret, knowing that they’re absurd, but I’d love to see more dealers, by name, and their ridiculous scams, brought to light.
Can anyone explain a $4k GPS package, $4k “protection package”, and what is car doc w/brakes at $1.6k, vs doc fee at $85. Then separate $900 “non tax fee”. What the hell is that?
Just needs a “fee processing fee”.
But to shoot myself down, they do it because some sucker will pay it. Probably on a 72mo loan.
“Just needs a “fee processing fee”.”
When I got divorced I posted a cheque to my solicitor to pay the bill. A week later I got an additional £50 bill from the solicitor for “receiving documents”.
I once backed into a neighbor, causing about $3000 in damages. I called my insurance agent to find out how much that claim would cost me in surcharges – they told me it would likely come out around $3700. I just paid the neighbor directly, but I discovered that the not insignificant money I pay for auto insurance is 100% administrative fees.
Good for walking. That said, someone with more money than brains will pay the markup. Remind me how dealers are supposed to be good for us car buyers again? /s
The first time I ever heard of this was in 1982 on a DeLorean. Our neighbor wanted to buy one and the local dealer, I think it was a Pontiac dealer, wanted $15,000 over MSRP. Our neighbor then drove to the dealer in SF and bought it at MSRP. He delighted in driving by the Pontiac dealership and honking his horn while flipping them the bird. How I miss the eighties.
On the other hand, it was a DeLorean
Yeah, a bit of a pyrrhic victory I’d say.
Was he going 88 mph? Was that as fast as it would go?
My comment got lost to the moderation system so I’m going to try again…sorry if it winds up being a double post. Like I said earlier…I’m stuck in my basement fighting the Rona right now so I am going to remain very online.
I mean this is exactly what Toyota, Honda, etc want because their approach to enthusiast cars is deeply cynical. Toyota could absolutely make more than 6,600 of these if they really wanted to but they’re choosing not to…as is the case with the new Civic Type R. They’re intentionally creating scarcity to drive up the demand for/mystique around these vehicles, and clearly they couldn’t care less if the end result is these vehicles getting pushed out of the price range of their target audience. They make their money, their dealerships get a fat stack of ADM cash, and the brands get to cash in on all the positive press that these cars are getting absolutely slathered with 24/7/365. Everyone wins except us…the regular people that these cars are supposedly meant for.
If you REALLY want a GRC or CTR you’ll have to wait. It just is what it is. I’d started the process to potentially buy one of these when they were first announced and backed out after I realized what a shit show it would be and the fact that the Hyundai Ns basically did everything I wanted for less money. Honestly, if you want a performance oriented small car RIGHT NOW it’s a good route to take. You can actually find them at MSRP if you look around and they aren’t just locked away somewhere until you fill out an application to show Toyota that you’re worthy enough of their prodigal car.
Like I said…it’s all so cynical to me and I personally don’t like being taken for a fool. I get why this and the CTR are considered cool and desirable but I think I’d rather be forced to drive a Nissan Kicks for the next six months than have to fight a bunch of scalpers/clout chasers/rich guys/etc for the chance to pay M3 prices for a souped up economy car. All of this just leaves a wretched taste in my mouth…because these are supposed to be cars that regular people can afford, and they aren’t anymore.
I agree with this. There are 6 Kona Ns in Racing Red available at 5 dealerships within 25 miles of me and they’re going for MSRP. It expands to 12 if you include Sonic Blue and Lunar White. It’s so very tempting but I might be changing careers in the near future so I can’t justify a purchase like that.
Of course Kona Ns are going for sticker. Look at them.
If they would make the Kona N with the manual trans from the Elantra N, I believe they would sell better.
It’s reasons like this that I take pleasure in watching the Fed increase interest rates. Years and years of cheap financing have created this bubble, assuring dealers they can be asshats and still make a sale. I believe we’re approaching the hangover and as a fiscally tight person, I welcome it.
Markups need to die. This is why MSRP doesn’t mean anything anymore, the dealers can slap whatever price tags on their cars.
I wanted to buy a Maverick XL not too long ago, and all dealers in my area wanted 10-15K markups. On a ~20k vehicle. No test drives, I couldn’t even look at one as none are in stock.
Oh, and year plus long wait times on top of that.
Thanks, but no, I’ll just keep driving my 05 Frontier till the rust gods finally take it away from me.
I have a feeling that manufacturers got cocky after the supply chain disruptions. They discovered they can just make fewer cars and sell them for more money.
Hopefully the high interest rates will bring them back to reality.
The no-test-drives/no-looking policy is what baffles me the most. The only reasonable defense I can think of for the absurd markups would be to help a dealership keep at least one example on the lot at all times for demonstration purposes. I’m not going to buy a brand new car sight unseen, and I expect most other buyers are interested in taking it for a spin or at least seeing it in person before agreeing to plunk down 5 figures. If there are two dealers in town: one with the car in stock at an astronomical markup and one with no car at all (because they sold their only one at or around MSRP), then I’m going to visit the one with the car in stock just to check it out… then I’d be more likely to place a future order through that dealership because I’m already there. But if they don’t even let you see the thing? Eff. That.
I actually get the test drive thing. They have no cars just sitting on the lot in many cases. Are they going to let you drive a car they already sold? I wouldn’t want my car used for test drives. I guess the places with a ridiculous markup and have one in stock don’t want to devalue their golden goose either.
I agree though, I’d have a real hard time buying a car when I haven’t even sat in the seat. For all I know the seat presses into my back the wrong way or something and would be infuriating to live with.
When dealing with criminals, the cost of the “Protection Package” is usually a lot higher. At least that much is a bargain.
Perfect example of why I don’t get excited for new cars anymore, not that I’m in the market for this, but it’s something my brother was very interested in and I feel sorry for him that even a fast Corolla is unobtanium. To echo a few other comments, this is a hard sell at $50k, but at almost $80k they’re just taking a piss on the people who this car is ostensibly built for. These will all end up as garage queen investments or bought by influencers for the Gram.
This is hardly even news. 20 years ago, my then mother-in-law paid 40% over MSRP to get the first purple PT Cruiser off the truck. Somebody will pay $78k to buy this.
My fiance was in the market, she’s had a bunch of fast Japanese hot cars…. The GR touched all her buttons untill she caught wind of the pricing…. She like F THAT….I CAN GET AN EVEN HOTTER MUSTANG or SUPRA FOR THAT COST.
Lost that sale….lucky me…as I hate small cars
BRZs can be had for sticker
I mean… At least they have a low doc fee?
I had to double check I’d read that line correctly.
Yeah when they are adding one digit too many to all the other costs, that one being reasonable made me laugh.
Agree.
We charged $150 almost 20 years ago at a Ford dealership.
Yeah the dealership I used to work at about a decade ago charged like 300, which was still lower than most in the area.
I don’t care how special the GR is, anyone who pays nearly $78,000 for any form of Corolla needs their head examined. I hope the dealer never sells it and it just sits around gathering dust and brake rotor corrosion for the next several years, because I can’t afford to lose much more of what little faith I have left in humanity.
These guys kill the market same as how they killed all the buzz on the Supra. A lot of might be buyers were so turned off.