Not all dealerships are playing dirty.
Over the past few weeks, we’ve received some reader emails informing us of dealership markups for the new 2019 Hyundai Veloster N hot hatchback. While its starting MSRP is $26,900, we were informed that dealers were marking up the new car with price tags as high as $41,000. An online configuration shows a Veloster N tops off at just under $31,000 fully loaded.
Unfortunately, markups are nothing new and other carmakers, specifically Dodge, have made noble attempts to prevent dealers from doing this. New car dealerships in the US must be franchised, meaning privately owned, so they can price the car as they see fit.
We reached out to Hyundai inquiring about Veloster N markups and whether it's considering a counter-markup plan similar to what Dodge did when the Demon arrived. The quick and short answer is 'no.'
According to a company spokeswoman, Hyundai "disagrees with the practice (of markups) and are discouraging it. Unfortunately, (there’s) nothing ‘legally’ we can do.” It was also stressed to us that "Hyundai Motor America maintains an open and productive dialogue with its dealer community, and we know that only by working with them as partners can we all achieve success.”
The good news is that a vast majority of Hyundai dealerships are pricing the Veloster N appropriately. In fact, we did our own search of nationwide dealers and discovered something we didn’t expect: many are being sold at or just below MSRP.
While there may be a few greedy dealerships trying to squeeze every extra dollar possible, they are definitely in the minority. It’s also important to emphasize that unlike, say, the now discontinued Dodge Demon, the Veloster N is not limited production. It has a planned product cycle and isn’t going anywhere, at least as far we know it.
So if you go to a Hyundai dealership planning to buy a new 2019 Veloster N and discover there’s a markup, just walk away, plain and simple. it makes no sense to bother with a greedy dealership when there are plenty more out there with zero markups.