Maryland Dealership Marks up “Last Call” Demon 170 With $250,000 “Market Adjustment”
When a highly anticipated new car hits the market, car dealerships often seize the opportunity to maximize their profits. They know that certain models will generate a lot of demand, so they sometimes opt for minimal effort and a hefty profit margin.
Each car that arrives at a dealership comes with a Manufacturer Suggested Retail Price (MSRP), which serves as a recommended price set by the manufacturer. However, it’s important to note that dealerships are not obligated to adhere to this price. While there have been attempts to introduce legislation to allow automakers to regulate pricing by dealerships, as of the time of this article, such regulations remain illegal.
A recent example of this practice can be seen in Maryland. A Facebook user named Frederick Barnes shared a case of what might be considered one of the most extreme instances of dealer markup. Via the post, the Darcars Automotive Group acquired a 2023 Dodge Demon 170 Last Call, a car with a suggested retail price of $133,131 when equipped as pictured. However, the dealership anticipated a hot market for the vehicle and decided to add a substantial profit margin to their pricing.
In this case, the dealership imposed a $250,000 “market adjustment” on the car, significantly exceeding the MSRP.
Opinions on such market adjustments vary. Some argue that cars should be sold at their MSRP to ensure fairness. However, if a hot market exists, selling at MSRP might lead to speculators and resellers benefiting from the process instead of the dealer. On the other hand, some contend that this specific Demon, which boasts 1,025 horsepower and is limited to just 3,300 units, could become a future classic, thus justifying the adjusted price.
The Dodge Demon 170 promises breathtaking performance, including a massive amount of horsepower and the claim of being the first factory muscle car to complete the quarter-mile in under nine seconds to the tune of a projected 8.91-second elapsed time in the quarter mile at speeds of just over 151 mph. If the Demon 170 Last Call follows the pattern of the previous Demon, it’s likely to become a sought-after collectible.
However, the question remains: will potential buyers be willing to pay nearly three times the car’s MSRP to own one? Also, is it fair that a dealership can charge such prices?