Nissan Z Proto dealer markups upset the Z Community

Overview

In a classis scenario of supply and demand gone wrong, the release of the limited-edition Nissan Z Proto, has seen dealer markups of the car being offered between $5,000 to + $50,000USD (9% – 93%) over the $53,990USD MSRP* and upset the Z community.

With 240 limited edition Proto’s available for US customers, the Proto spec was always going to be a hot ticket item for car collectors and as such, command a higher price than MSRP, but the Authorized Dealer Markups (ADM) on the Proto Z have shocked the Z community with the blatant price-gouging that dealers have initially presented.

Nissan Z Availability and Proto Z Release

As the new 2022 Nissan Z Proto spec is being released across the world, there has been a high level of anticipation of the car arriving in the USA and other countries, after many recent favorable reviews across various car media and YouTube content providers.

But the launch and release of the 2022 Nissan Z has been delayed globally due to due to manufacturing and resource constraints, and while the Proto edition is the first model to be publicly available for sale, overall Nissan Z availability has been delayed as Sports and Performance specs are not expected to be available to consumers until 2023.

Subsequently with a slow release to market, starting with the limited quantity launch edition and a 2022 car market which has seen increased markups of new cars, it is unsurprising that dealers have applied large markups to the latest 2022 sports car.

Nissan Z Dealer Markup

It is noted that this is not the first case of exorbitant mark-ups on launch or limited-edition cars and certainly not the last, but these types of activities diminish the reputational value of Nissan or in fact any car manufacturer, and reduce the desire to own a new Nissan Z, potentially directing sales to other sports cars which are available and more accessible.

Dealers are already making a profit on a car they sell, as they buy the vehicle from Nissan at wholesale. So not only are they already making a profit at the MSRP, and authorized dealer markup (ADM) is just the dealer adding cream+ on top of the jelly donut.

Example 1: Nissan Irvine, CA: $53,990 +$71,000 ADM = ~$125,000
But Nissan Irvine, CA modified their initial advertisement for the Proto below.

Example 2: Mike Rezi Nissan, Atlanta: $53,990 +$26,000 ADM = ~$80,000

And what’s Nissan USA’s response? From thetruthaboutcars:
“As Nissan invests in our future together, we are focused on delivering strong customer satisfaction. Our Manufacturer’s Suggested Retail Prices (MSRP) are determined after extensive research to provide the right value proposition for the customer, however, the final price of a vehicle is determined by the selling dealer. We expect dealers to be transparent with customers regarding pricing, which will help to increase loyalty for future purchases and service.”

In short, nothing can be done by Nissan USA to manage any additional costs on MSRP, so it is up to the buyer to make a choice whether to pay the ADM or go somewhere else for a better deal.

In fact, in response to a possible $50,000 markup initially suggested by Jeff Wyler Nissan, KY, the general manager responded to the Jalopnik and confirmed that such a markup was not going to be applied to the Nissan Z Proto. Then again, we don’t know what kind of ADM will be applied, but at least they were responsive to queries.

Nissan Z Dealer Markups in Canada, Australia and other Countries

While dealer markups are common in the USA, these markups are not as common or simply non-existent in other countries. In fact, dealers applying an additional markup or fee to a cars MSRP in other countries is illegal.

Dealers in Canada, Australia and New Zealand do not have Authorized Dealer Markups (ADM) and cars are allocated on a first come, first served basis. Typically this means there is a waiting list to join and maybe a small deposit to put down to demonstrate intent/commitment, and if you act fast enough and get at the top of the waiting list, then you can get a new release/launch edition car. And if you don’t get a launch edition, then too bad.

There is a caveat to this, were a dealer may buy a car at MSRP and then resell it, but we hope these practices are few and far between.

Buying a 2022 Nissan Z?

So what can be done about these dealer markups? As a customer, you can take your business to another dealer who will sell closer to the MSRP, or you can delay your car purchase and wait until the price is right for you. Alternatively, you can take your money and spend it elsewhere or put the money in some investments and wait until the Nismo Z is available.

While some people will get a case of FOMO (Fear Of Missing Out) and want to pay a premium for a limited edition Nissan Z, history does tell us that there is no certainty that a limited edition Proto Z will be worth more in the future, but only that a Proto is worth what someone is willing to pay at the time.

While it is great to have an early edition car, there is a lot to be said for waiting until the price point is right or early release technical issues are identified and resolved before you purchase. It is recommended to be patient, conscious of the market conditions and allow early customers to spend/waste they money on marked up cars and get your car when it is the right time.