Buying (or trying to) a new car

[derbydad276]

My son wanted to order a new Maverick Hybrid .. dealer in Cleveland wanted him to put up $2500 deposit even though they could not place his order until the 2023 run ... he told them to pound sand

[Killjoy]

GM can't directly stop their franchised dealers from adding on these "market adjustments", but they certainly can adjust the vehicle production allocation for that dealer to 0 when they're aware a dealer is pulling this BS on GM's customers. I would encourage dropping a quick email or call to GM if you hear/see this going on. That dealer can "sell" all of the C8's they want with a $21k markup... won't do them any good when GM removes all their production allocation.

[Detroit Gearbox]

Spoke to a friend that works for a local company that owns many dealerships....wink
They told me everything they sell is well above sticker, and having a banner year in profits because of it.

[DetroitStyle]

I have been thinking about consolidating vehicles down to a single Tacoma. I realize I may need to wait 2-3 months for it to come in, but I will never pay over MSRP for a mass produced vehicle. It’s nonsense.


Sent from my iPhone using Tapatalk

[mrvids]

https://www.thedrive.com/news/44172/...D3VmTpshyla9RA


We’ve all seen it happening, especially in the last two years. Dealerships are cashing in on popular vehicles and maximizing the supply and demand cycle with big markups. At Ford, CEO Jim Farley has made it clear that he is keeping tabs on shops going above and beyond what is “reasonable” and won’t hesitate to levy consequences in the form of reduced vehicle allocations, which includes the new F-150 Lightning.

Farley said during an earnings call this week that about 10% of the dealer network has been charging above MSRP, and he’s not thrilled. According to Gary Gastelu at Fox Business, Barclays analyst Brian Johnson estimated the value of the markups at $3.6 billion. For scale, Gastelu says, that’s about half the increased revenue per unit Ford reported for 2021.

"We have very good knowledge of who they are, and their future allocation of product will be directly impacted," Farley said during the call. In my mind, I'm picturing him delivering this message with a hard stare. If a dealership has a middle name, Farley is using it right now like a father calling out a kid who is about to get in trouble.


FORD
Nearly a month ago, Ford threatened to pull F-150 Lightning allocations from dealers showing their green-eyed monster side. While dealerships are scrabbling for top dollar and trying to get all they can, headquarters made it clear they were not in favor of customers paying "additional deposits or payments" to dealers.


As The Drive reported in January, some Blue Oval dealers caught the attention of the boss late last year for putting their hands out in an unsavory way. Headlines popped up about dealerships offering Lightning reservation holders an opportunity to jump the line for thousands of dollars more, and that didn’t sit well with the boss. One dealership in Illinois even tried to sneak in a $10,000 markup on a Mach-e, and that shop got a quick smackdown from above.

"We’ve heard a limited number of dealerships are interacting with customers in a manner that is negatively impacting customer satisfaction," a Ford spokesperson confirmed to The Drive via email in January. "If Ford determines that a dealership is engaging in such practices, we reserve the right to redirect that dealership’s allocation of the F-150 Lightning for the entirety of the 2022 model year."

Ford isn’t alone in its watchdog approach; the Detroit Free Press reported that General Motors is also cracking down on markups. Between the chip shortage, supply chain disruptions, and overall imbalance due to the events of the past two years, automakers are keeping a close watch on how customers are reacting.

Negative press in the form of dealerships overeager to make a buck is going to be scrutinized. And while some say dealerships have the right to run their businesses they way they want, they still have to play by the rules set by the manufacturer. In the current market, toeing the line for the long-term health of the brand seems to be where Farley is focused. From a consumer perspective, I'm glad to hear it.

Agree or disagree? Comment here or send a note to kristin.shaw@thedrive.com.

[95 Z/28 LT1]

https://www.thedrive.com/news/44172/...D3VmTpshyla9RA


We’ve all seen it happening, especially in the last two years. Dealerships are cashing in on popular vehicles and maximizing the supply and demand cycle with big markups. At Ford, CEO Jim Farley has made it clear that he is keeping tabs on shops going above and beyond what is “reasonable” and won’t hesitate to levy consequences in the form of reduced vehicle allocations, which includes the new F-150 Lightning.

Farley said during an earnings call this week that about 10% of the dealer network has been charging above MSRP, and he’s not thrilled. According to Gary Gastelu at Fox Business, Barclays analyst Brian Johnson estimated the value of the markups at $3.6 billion. For scale, Gastelu says, that’s about half the increased revenue per unit Ford reported for 2021.

"We have very good knowledge of who they are, and their future allocation of product will be directly impacted," Farley said during the call. In my mind, I'm picturing him delivering this message with a hard stare. If a dealership has a middle name, Farley is using it right now like a father calling out a kid who is about to get in trouble.


FORD
Nearly a month ago, Ford threatened to pull F-150 Lightning allocations from dealers showing their green-eyed monster side. While dealerships are scrabbling for top dollar and trying to get all they can, headquarters made it clear they were not in favor of customers paying "additional deposits or payments" to dealers.


As The Drive reported in January, some Blue Oval dealers caught the attention of the boss late last year for putting their hands out in an unsavory way. Headlines popped up about dealerships offering Lightning reservation holders an opportunity to jump the line for thousands of dollars more, and that didn’t sit well with the boss. One dealership in Illinois even tried to sneak in a $10,000 markup on a Mach-e, and that shop got a quick smackdown from above.

"We’ve heard a limited number of dealerships are interacting with customers in a manner that is negatively impacting customer satisfaction," a Ford spokesperson confirmed to The Drive via email in January. "If Ford determines that a dealership is engaging in such practices, we reserve the right to redirect that dealership’s allocation of the F-150 Lightning for the entirety of the 2022 model year."

Ford isn’t alone in its watchdog approach; the Detroit Free Press reported that General Motors is also cracking down on markups. Between the chip shortage, supply chain disruptions, and overall imbalance due to the events of the past two years, automakers are keeping a close watch on how customers are reacting.

Negative press in the form of dealerships overeager to make a buck is going to be scrutinized. And while some say dealerships have the right to run their businesses they way they want, they still have to play by the rules set by the manufacturer. In the current market, toeing the line for the long-term health of the brand seems to be where Farley is focused. From a consumer perspective, I'm glad to hear it.

Agree or disagree? Comment here or send a note to kristin.shaw@thedrive.com.

Farley is way off with his 10% of network statement and I'm surprised that someone didn't call him out on that.

[moneypit]

this has been going on for decades, Remember when PT cruisers sold above sticker

[mustangmike6996]

this has been going on for decades, Remember when PT cruisers sold above sticker

LOL, I try to forget how popular the PT Cruisers were when they came out.

[mrvids]

More dealership shenanigans.>>>https://gmauthority.com/blog/2022/03...upon-delivery/
A GMC Hummer EV Pickup Edition 1 buyer who was excited to take delivery of their battery-electric pickup was instead left dismayed after the dealership applied a $50,000 markup to the vehicle at the last minute.

The customer, who anonymously relayed his experience to enthusiast blog Jalopnik, was able to secure a reservation for the limited-edition GMC Hummer EV Edition 1 when the automaker first opened reservations for the vehicle in 2020. On March 17th, he was informed by the dealer, Penske Buick GMC in Cerritos, California, that the vehicle he had pre-ordered had arrived at the dealership.
When he got to the dealer, the salesperson greeted his wife and him and offered him the keys to the vehicle to take a test drive. After a short spin in the vehicle, they walked into the salesperson’s office to do the usual financial paperwork. It was at this point he realized the dealership had applied a $50,000 market adjustment to the vehicle, bringing its pre-tax asking price from the manufacturer’s suggested price of $110,295 to $160,295. After taxes and other registration/licensing fees, the transaction would have totalled $177,013.85.

The customer obviously balked at this asking price and ended up walking away from the dealer. He later called GMC to ask if there was any recourse he could take, but he told Jalopnik the automaker was of no real help and only took his name and information to create a case file.
GM has already warned dealers over applying so-called market adjustment fees to in-demand products like the Hummer EV Edition 1. In a letter sent to dealers earlier this year, the automaker said it was aware of some dealerships that have been “demanding money above and beyond the reservation amounts set in GM’s program rules,” and would be “forced to take action if it learns of any unethical sales practices or brokering activities that undermine the integrity,” of its brands. This could include rerouting popular products like the Hummer EV SUV to other dealers or taking “other recourse prescribed by the Dealer Sales and Service Agreement.”
GM has already warned dealers over applying so-called market adjustment fees to in-demand products like the Hummer EV Edition 1. In a letter sent to dealers earlier this year, the automaker said it was aware of some dealerships that have been “demanding money above and beyond the reservation amounts set in GM’s program rules,” and would be “forced to take action if it learns of any unethical sales practices or brokering activities that undermine the integrity,” of its brands. This could include rerouting popular products like the Hummer EV SUV to other dealers or taking “other recourse prescribed by the Dealer Sales and Service Agreement.”

[Stalker]

How is the agreement signed when the deposit taken not considered a contract?