Ever since it was first announced a few months ago, the Toyota GR Corolla has sent excitement throughout the automotive industry. The latest addition to the Toyota GR stable promises to pick up where the frankly exemplary GR Yaris left off, and of course carry on the mantle from the GR 86 and the GR Supra. We are just one of many places who are incredibly excited to get our hands on the GR Corolla and try it out.
However, there is a problem. And that is dealer markups. Markups hurt a lot of cars when it comes to pricing, especially with the chip and parts shortages that is currently affecting the global car industry, and the world as a whole. This is causing cars to get built in just limited numbers. As Top Speed has reported, one of those is the GR Corolla. Only 6,600 examples are coming to the United States. Which means that dealers have decided it is right for them to charge absurd amounts for a car that is set to become extremely popular.
The Problems Of Pricing Affecting The GR Corolla
As Top Speed reports, there is a Toyota dealer that goes by the business name of 355 Toyota of Rockville, Maryland. They decided that it would be a good idea to sell a base Core model of the Corolla. Seems fine, right? Well, as Top Speed reports, this was actually sold for more than what the top-tier Morizo Edition of the Corolla costs, at $60,223. That is a huge increase on what the Core model should get priced at. So this is where the trouble starts to begin when it comes to these dealer markups.
For reference, the base Core model of the 2023 GR Corolla costs $36,996. The circuit edition meanwhile comes with limited-slip differential hood vents, suede seats and more, and costs $43,995. The Morizo Edition itself? That costs $50,995. So a base Core edition of the Corolla is near enough $10,000 more than the top of the range Morizo version. And the dealer’s price is more than 50% more than Toyota’s suggested retail price. We simply have to ask the question, how is that allowed? And who in their right mind thinks it is okay to charge such an obscene amount of money?
We Are Not Seeing The last Of These Markups
As the guys at Top Speed say, and we will reaffirm, this is unlikely to be the last of the dealer markups. The pandemic has really created quite a chips and parts shortage that the industry is yet to recover from. Which means that sadly, dealer markups like this are here to stay. This will only likely change if vehicle production either returns to something resembling normality, or us consumers decide we want to do something about it. Ie, if we effectively say we won’t pay these price hikes.
But there are naturally some people out there who won’t think like that. They will want to go that extra mile just to own that particular car. Be it a Morizo Edition GR Corolla or some exotic McLaren supercar. That is not what most of us though want to do. Some people though are more than happy to pay extra to jump the Que, or pay way above what the suggested retail price is to seal the deal. Who though in their right mind has the money to throw at that? A 50% increase on the manufacturer's price? Insane.
The Average Non-Luxury Price Is Higher Than The Average Retail Price
Top Speed go on to say that Cox Automotive have reported on the average price of a new non-luxury car. In September 2022, this was at $44,215. That is some $829 above the average retail price. This dealer markup problem though as Top Speed say damages the reputation of a brand/manufacturer, and a customer’s loyalty to that brand. A study by GFK notes that 31% of buyers who paid above that suggested RRP said they would tell others not to go to that dealership where they got their vehicle. Double those who simply paid the retail price which was at 14%.
A Sad Problem Blighting The Brilliant Toyota GR Corolla
It is sad to see this problem afflicting the debut of what is one of the most eagerly anticipated cars of 2023. With its 1.3-liter three-cylinder turbo engine, the GR Corolla will chuck out at least 300 hp and its lightweight nature will make it a joy to drive in the corners. Just like the GR Yaris is. And the fact that it will have a six-speed manual transmission means it will be a blast to drive. It's just a shame dealer markups will put it so out of reach for so many people.
Sources: Top Speed, Toyota