Adjusted Market Value

[USC08]

So I was at the dealership today to test drive a 2016 Toyota Tacoma TRD Sport 4x4. They didn't have much inventory so I wasn't able to test drive one. We chatted for a bit about various options and availability and the topic of AMV (adjusted market value) came up from the sales person. He stated if I were to go to another city that had the truck I wanted they would have a AMV markup over sticker price as opposed to purchasing locally (where I wanted to test drive) where they would try and sell the vehicle to me for the actual sticker price. I live in Southern California btw. Los Angeles area. 

My question is, how much truth to AMV is when shopping at other dealerships in nearby cities as opposed to purchasing local. Was it some BS he was feeding me in hopes of having me buy local? 

Is there any wiggle room to negotiate the AMV on a vehicle?

Any input will be greatly appreciated. Thanks in advance. 

[RonM21]

I honestly had not heard of this before. I'll be watching for anyone with info on this to find out more about it. I'll be getting a new vehicle next year.

[pipeguy]

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@USC08 wrote:

So I was at the dealership today to test drive a 2016 Toyota Tacoma TRD Sport 4x4. They didn't have much inventory so I wasn't able to test drive one. We chatted for a bit about various options and availability and the topic of AMV (adjusted market value) came up from the sales person. He stated if I were to go to another city that had the truck I wanted they would have a AMV markup over sticker price as opposed to purchasing locally (where I wanted to test drive) where they would try and sell the vehicle to me for the actual sticker price. I live in Southern California btw. Los Angeles area. 

My question is, how much truth to AMV is when shopping at other dealerships in nearby cities as opposed to purchasing local. Was it some BS he was feeding me in hopes of having me buy local? 

Is there any wiggle room to negotiate the AMV on a vehicle?

Any input will be greatly appreciated. Thanks in advance. 

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AMV = Additional Dealer Markup = unless you are talking a very hard to acquire vehicle that you must have right now, you'd be nuts to pay sticker price or over. Run the truck through TrueCar and see what price they list. As far as I know, full size pickups are popular vehicles, and high profit for manufacturers, but if a dealer told me - especially in a big metro area where they are not the only game in town, that I'd pay over sticker - I'd LOL and say not from me, not today, not ever....

Check TrueCar and Edmunds to see what "true market value" is for the vehicle. 

Edit - Add: It's not like these are coming ffrom Japan: Tacoma is assembled at Toyota Motor Manufacturing, Texas (TMMTX) in San Antonio and Toyota Motor Manufacturing, Baja California (TMMBC) in Baja California, Mexico.  

[sccredit]

I just checked TrueCar and was shocked to see that buyers of the 2016 Tacome were, on average, paying $600 OVER sticker in Riverside, CA.  I can't imagine any vehicle that I'd pay over sticker for.  

[settleordelete]

That's just a Tacoma thing. Most Toyota dealers only stock a few Tacoma trucks anyway. So if there are two TRD PRO models available within a one hundred mile radius then the dealer has the advantage, not the customer when it comes to pricing.

[StartingOver10]

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@sccredit wrote:

I just checked TrueCar and was shocked to see that buyers of the 2016 Tacome were, on average, paying $600 OVER sticker in Riverside, CA.  I can't imagine any vehicle that I'd pay over sticker for.  

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+1

I'd change the vehicle I want before I paid over sticker....

[USC08]

So in the midst of going through the internet buying process. I contacted Carson Toyota in SoCal and communicated with them through email and the conversation was pretty short.

Internet manager: John, before I email you pricing for the truck you wanted, which looks like a beautiful truck. We sell all 4WDs at $2K over MSRP but have a good stock of them coming in regularly.
Just wanted to be clear regarding pricing before we get started.

Me: Thank you for that information. May I ask why you sell 2K over MSRP?

Internet manager: Because we get it. Just being honest.
I get 1,000+ Tacoma requests a month, but no one gets enough Tacoma models right now.

I have to sell Camrys at $1500 under INVOICE to keep them flowing thru, so the hottest product often is the only way to balance that out. 

Me: I appreciate your honesty. It's unfortunate but I will have to pass as far as paying a minimum of 2K over MSRP. I understand business is business but as a cash buyer I'm looking for a fair deal. 

[jim44]

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@settleordelete wrote:
That's just a Tacoma thing. Most Toyota dealers only stock a few Tacoma trucks anyway. So if there are two TRD PRO models available within a one hundred mile radius then the dealer has the advantage, not the customer when it comes to pricing.

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This is has been  true for years.  When certain models are in high demand, dealers can and will charge over sticker because people will knowningly PAY over sticker.  Such has been the case with PT Cruisers when they were first sold, HHRs, SSRs, Vipers, Dodge Viper V12 trucks, right now Cadillac Escalades, as well as Tacomas.  High demand models command over sticker prices. Sooner or later when demand dies down, so will the price.

[redshift1]

Currently BMW M2 and Ford GT350  are dealer mark-ups as well. Add 5k-10K over MSRP plus normall depreciation = big loss on resale.

[Watchmann]

There are always a few vehicles that can command a higher than MSRP.....one of the latest ones is the Ford Focus RS which will command at least a $5k premium due to it's short supply and demand in the marketplace.  The law of supply and demand means prices will seek the 'right' level, that is just the way an efficient market works.  Back in 2001 I relocated from overseas and we needed two new cars.  I was interested in a Subaru WRX which was just starting to be imported to the US market.  At the time they had a special Blaze Yellow color for 500 units.  I walked into the showroom and they had one on the showroom floor with a $2,000 AMV, and they would not budge.  I needed a second vehicle so they made a package deal on the WRX and a Forester.  The Forester they really dealt on the price in order to sell two vehicles to the same buyer the same day.  Everyone was happy.  It's the only time I ever spent more than MSRP but if you want the product bad enough that is the cost of playing.  Some people won't pay even MSRP and that's fine, the market will accomdate them although they may have to settle for something other than preferred choice.  Or wait a few months and prices will moderate once initial demand is satisfied.