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Honda Civic Type R Sees Big Markups at Dealerships

On Tuesday, July 9th, 2019

It has been two years since the FK8 Honda Civic Type R came to America. Priced at $35,700, this Type R was the first time Americans could acquire the small, affordable, front-wheel-drive JDM legend.

Honda Civic Type R

The problem is finding a Type R on sale today at or below MSRP. The new Type R inventory is still selling for well above sticker price. Since the cars went on sale in the U.S. in June 2017, they have not stopped selling with a markup. There appears to be no sign this trend is stopping any time soon.

The Type R has won praise around the world for its competency on road and track. It has built a reputation for setting the fastest front-wheel lap of the Nürburgring Nordschleife, at 7:43. Although lap times are great for bragging rights, the Type R has also won praise for its communicative driving experience and daily practicality. That was perhaps best displayed in impressive fourth-place finish the 2018 MotorTrend Best Driver’s Car competition against the likes of Lamborghini, McLaren, Porsche, and Aston Martin.

With such a wide breadth of capability, the 2019 Civic Type R should be a performance bargain. But Honda dealerships (who, to be fair, have seen new car profit margins dwindle to nearly zero in recent years) have used demand for the Civic Type R to pad their profits with fake markups on the car.

Typically dealerships will entice customers with sales of their new inventory below MSRP. Their profit margin rests somewhere between the invoice price (the price the dealership bought the car from the manufacturer) and the final sale price. It’s easier to negotiate on a price with large inventories and multiple dealerships competing for customers. If a dealership sells a car at MSRP, its profit margin is somewhere between 8 and 15 percent, depending on the brand and the car. But limited edition performance cars are a different animal.

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