Chevrolet dealer ready to charge $20,000 over MSRP for Volt...
#1
Lexus Fanatic
Thread Starter
Chevrolet dealer ready to charge $20,000 over MSRP for Volt...
http://green.autoblog.com/2010/08/03...er-msrp-for-v/
Researchers from Edmunds decided to drop their local Chevrolet dealer a line to inquire about staking a claim for one of the first available Volts, and the response was shocking at best and galling at worst. Here's the email, sans names:
Hello *****
Thank you for your online request, as you know the Volt is going to be a very limited production vehicle for the first 2-3 years. Demand is going to far exceed supply for this vehicle, initially our asking price for the Volt is going to be MSRP plus $20,000, we are expecting only receive 9 Volts all of next year.
I will keep you in my customer base for when the Volt comes out and I will contact you with any information as I receive it. We are taking orders right now for the Volt, if you would like more information, please let me know and I will be more than happy to help you. Thank you.
***** *****, Internet Specialist
******* Chevrolet
********, CA
You read that right. A $20k markup over MSRP for a 2011 Chevrolet Volt.
As Edmunds' AutoObserver points out, this email exchange took place before General Motors announced its plans to increase Volt production by 50% for 2011, churning out approximately 45,000 units in its first year. But even with that knowledge, would the unnamed dealer still avoid bilking early adopters? We doubt it.
While it's not clear if any other Chevy dealers plan to follow suit, history would suggest that big markups are likely – the Corvette ZR1 initiated this sort of fervor when it was announced, too. On the flip side of the coin, AO sites a report from GM-Volt.com this past June, in which a GM spokesperson is quoted as saying: "We also aren't expecting our dealers to overcharge anyone for this vehicle, either, and will monitor the situation closely when we launch," adding, "we'll be paying close attention when the vehicle launches and do our best to strongly discourage this kind of behavior, as we always do with any GM-branded vehicle."
GM is allowing Volt buyers to lease the plug-in hybrid for $350 a month (with a $2,500 down payment) when sales begin later this year, so it strikes us as odd that someone would choose to purchase a Volt outright if the dealer would tack on such an astronomical amount to the MSRP. Then again, there's the possibility that dealers might only allow purchases, negating the option to lease.
With so much riding on the Volt's success – from GM's long-term environmental program to the political pressures over the federal bailout – the General better get its dealers in line post-haste. If not, the fallout has the potential to stymie the Volt's success before the first owner takes delivery.
Researchers from Edmunds decided to drop their local Chevrolet dealer a line to inquire about staking a claim for one of the first available Volts, and the response was shocking at best and galling at worst. Here's the email, sans names:
Hello *****
Thank you for your online request, as you know the Volt is going to be a very limited production vehicle for the first 2-3 years. Demand is going to far exceed supply for this vehicle, initially our asking price for the Volt is going to be MSRP plus $20,000, we are expecting only receive 9 Volts all of next year.
I will keep you in my customer base for when the Volt comes out and I will contact you with any information as I receive it. We are taking orders right now for the Volt, if you would like more information, please let me know and I will be more than happy to help you. Thank you.
***** *****, Internet Specialist
******* Chevrolet
********, CA
You read that right. A $20k markup over MSRP for a 2011 Chevrolet Volt.
As Edmunds' AutoObserver points out, this email exchange took place before General Motors announced its plans to increase Volt production by 50% for 2011, churning out approximately 45,000 units in its first year. But even with that knowledge, would the unnamed dealer still avoid bilking early adopters? We doubt it.
While it's not clear if any other Chevy dealers plan to follow suit, history would suggest that big markups are likely – the Corvette ZR1 initiated this sort of fervor when it was announced, too. On the flip side of the coin, AO sites a report from GM-Volt.com this past June, in which a GM spokesperson is quoted as saying: "We also aren't expecting our dealers to overcharge anyone for this vehicle, either, and will monitor the situation closely when we launch," adding, "we'll be paying close attention when the vehicle launches and do our best to strongly discourage this kind of behavior, as we always do with any GM-branded vehicle."
GM is allowing Volt buyers to lease the plug-in hybrid for $350 a month (with a $2,500 down payment) when sales begin later this year, so it strikes us as odd that someone would choose to purchase a Volt outright if the dealer would tack on such an astronomical amount to the MSRP. Then again, there's the possibility that dealers might only allow purchases, negating the option to lease.
With so much riding on the Volt's success – from GM's long-term environmental program to the political pressures over the federal bailout – the General better get its dealers in line post-haste. If not, the fallout has the potential to stymie the Volt's success before the first owner takes delivery.
#2
Lexus Test Driver
iTrader: (1)
Bummer. I hope not all the dealers do this. When its time to buy my mom a new car hopefully sometime next year, the Volt was on the list as well as the Camry, Camry Hybrid, Hyundai Sonata, and even the Venza. I was really hoping the Volt would meet all the needs as it appears to do on paper, but no way I'm paying over MSRP. Probably would just get the Sonata.
#6
Lexus Test Driver
Not surprised. GM has long been known for huge price gouging with new/popular models. The irony is these new models always end up with heavy rebates within a year or two. The Saturn Skyy and Pontiac Solstice are a good examples.
#7
Lexus Fanatic
Whether Chevy dealers can charge this kind of mark-up (and get it) will probably depend on how long it takes for the extended-range hybrid Prius to be released, which will have comparable mileage to the Volt. Once the extended-range Prius hits the market, the Volt will have some real competition, and price gouging will stop.
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#9
Lexus Fanatic
Three things. First of all, GM itself (and most other auto firms) have little or no control over what individual dealerships charge.....dealerships are usually privately-owned enterprises. GM simply builds the vehicles, ships them to the dealers, and charges the dealerships whatever the wholesale price, including freight (minus holdback fees) is...the dealerships take it from there. Second, a few companies, like Scion and the now-discontinued Saturn, require all of their dealerships (per the franchise requirements) to sell at list-price only, plus tax/tags. Third, the Solstice was, as you note, a good example of price-gouging (though a friend of mine bought an early-model at list), but not its sister Saturn Sky, because Saturn required dealerships to sell the Sky, like all of their other products, at list, without mark-ups. So, to get around that, Saturn dealerships sometimes added dealer/manufacturer-approved accessories, which bumped the price up a little....(legally). But actual Saturn price mark-ups, for the vehicle itself, were not allowed.
#10
Lexus Fanatic
Three things. GM could take control of what dealers charge, if they wanted to (Saturn is a recently expired example). $20K over list for a Chevy, don't expect to sell many at that markup (they can park them out front with all the Vette's collecting dust out front). Yes, most of us have low expectations of auto dealerships, especially the business as usual practices of GM.
#11
#14
Lexus Fanatic
$20K over list for a Chevy, don't expect to sell many at that markup (they can park them out front with all the Vette's collecting dust out front).
Yes, most of us have low expectations of auto dealerships, especially the business as usual practices of GM.
the Nissan 350Z in 2002, the Toyota RAV4 in 1996, the BMW Z8 in 2000, and of course, many other examples. Of course, some dealerships held the line and sold these cars at list...or for a very small markup. They were, obviously, more concerned with customer satisfaction and repeat ownership than quick profits.
#15
Lexus Fanatic
I agree. But we routinely saw that in 2001 on 40K Thunderbirds. And people were willing to pay it. I actually watched a lady walk into a dealership in 2001, whip out her checkbook, and drive off in a new 38K T-Bird after paying almost 56K for it.
And early last year, when the Camaro SS came out, on the few that were available, I saw 35-38K models marked up, likewise, into the mid-50s. (In fact, I did a partial, static-review on one, since they weren't allowing test-drives)
And early last year, when the Camaro SS came out, on the few that were available, I saw 35-38K models marked up, likewise, into the mid-50s. (In fact, I did a partial, static-review on one, since they weren't allowing test-drives)
Last edited by mmarshall; 08-05-10 at 08:58 AM.