No big shocker; Volt dealers may add $20,000 markup

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Danny, Aug 3, 2010.

  1. Danny

    Danny Admin/Founder
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    Ah, this story reminds me of the good old days back in late 2003 and all of 2004 when the Prius was facing huge markups by Toyota dealers across the country. Even then, the premium was usually only around $5,000. But the Chevy Volt is facing a whole new type of greed. FavStocks is reporting that "at least one GM dealer is planning to add a $20,000 dealer markup to each of the 9 Volts the dealer is to receive through 2011." $20,000 on top of the $41,000 sticker price! Obscene dealer markup is an issue that Nissan has supposedly already addressed with their dealer network regarding the LEAF, and Chevy would be smart to get out in front of this topic before those 600 "stealerships" all take matters into their own hands. The topic of dead weight GM dealerships holding Volt sales down is actually a discussion that we have brought up before on the What Drives Us podcast. Sounds like we'll have plenty more to talk about with regards to it over the next several months. Source: FavStocks
     
  2. nerfer

    nerfer A young senior member

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    I thought there was a good deal of resistance to go above MSRP by most dealers. When I purchased in early 2006 (still a waiting list) paying MSRP was standard.

    I'd be surprised if any GM dealer gets away with charging $20K above MSRP. Ain't gonna happen.
     
  3. Jedi2155

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    I contacted about 7 dealers in my area (Orange/Los Angeles County) for the Chevy Volt and 3 of them responded saying they will not be charging above MSRP.
     
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  4. rlr66

    rlr66 Junior Member

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    They're only going to kill the car. Then GM will say no one was interested in it. When the Prius first came out the idea was to keep the price affordable and the name got out there. These greedy dealers would be fools.
     
  5. SageBrush

    SageBrush Senior Member

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    If GM produces only a few 10s of thousands of the Volt, one might speculate the car will have collector value. Or if the car changes automotive history, first year cars could become extremely valuable.

    Or ... the car will sell second-hand in three years for $7500, a nice shell with a battery in mid-life stages of dying within.
     
  6. GrumpyCabbie

    GrumpyCabbie Senior Member

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    Until it happens it's all speculation.
     
  7. JimN

    JimN Let the games begin!

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    If they can find someone stupid enough to pay MSRP + $20000 then they should be stupid enough to accomodate them.

    I consider this marketing hype to boost demand. When there are cars on the lots we'll see what happens. Either they will be snatched up by speculators (good for GM as the warranty will expire due to age) or will be discounted like everything else on the market.
     
  8. The Electric Me

    The Electric Me Go Speed Go!

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    May Add?

    Sorry but it just sounds like anti-alternative car propaganda.

    With The Leaf arriving, The Prius in place, and Hyundai Hybrids as well as Fusion and other options, tacking $20,000 grand onto The Volt would kill it.

    I think they will want to make as much profit as possible, and maybe initial demand, wanting to be one of the first with a Volt could lead to significant mark ups, but overall? $20,000 dollar mark ups are something GM can't afford to have happen.
     
  9. Paradox

    Paradox Prius Enthusiast / Moderator
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    While I don't see them marking it up $20,000 I wouldn't be shocked to see dealers in niche areas marking them up and getting said markup... At least at the beginning.
     
  10. Hunter1

    Hunter1 Junior Member

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    I'm glad to hear about this, it makes the choice clear to let GM die like it should have. I was debating getting the Volt over the LEAF which I have a reserve on. GM should close this dealer down. They are part of the old school dead weight that needs to be cleared if they are ever going to shake their dirty past.:eek:
     
  11. robbyr2

    robbyr2 New Member

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    I don't know about the legalities, but they can try to get the markup if they want. Most folks would just wait for the Model S.
     
  12. a_gray_prius

    a_gray_prius Rare Non-Old-Blowhard Priuschat Member

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    I'm surprised that so many of you are all like "GM are teh evilz!" I mean the 2010 Prius had a markup when it first came out, as did the Nissan GT-R, as did the new Corette ZR1, as did the Honda Fit. New car pretty much means markup.
     
  13. spiderman

    spiderman wretched

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    Ha, not likely with the current administration... they will just continue to pump our $ into them. Gotta save the jobs not matter the cost.
     
  14. hill

    hill High Fiber Member

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    The Volt - only a $20,000 markeup above MSRP? Heck, that's chump change, right? Haven't auditers shown over the years that the U.S. military purchases pencils for $1,500 ... and toilet seats for $3,500 ... and office furniture for $49,000 ??? Now that GM is owned by the government . . . it makes perfect sense that the Government owned car company let their dealers get top dollar.

    :pound:

    .
     
  15. markderail

    markderail I do 45 mins @ 3200 PSI

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    Accurate if TCO - taking into consideration interest paid in financing, say like 5.9% over 7 years . . .
     
  16. Tech_Guy

    Tech_Guy Class Clown

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    Makes sense to me....

    GM (also known as Government Motors) is subsidized by the tax payer. You also get a nice energy tax credit as an incentive to do business with GM. Then as a final step, the dealer removes all the incentives (like pulling the carpet out from under your feet).

    Works just like our government.

    Keith
     
  17. UsedToLoveCars

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  18. adamace1

    adamace1 Senior Member

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    Yea hope the car does well. 99% of people on this site HATE GM. I'm glad to see them do something different and something thats good for the earth and something that may give the prius a run for it's money.
     
  19. bisco

    bisco cookie crumbler

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    i have to go with the collector theory. but who will be buying into it, the person who pays 20K above MSRP, the dealer who charges it, GM or all of the above?:rolleyes:
     
  20. evnow

    evnow Active Member

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    gm-volt is running a poll, asking How Rampant is Chevy Volt Dealer Price Gouging.

    Poll: How Rampant is Chevy Volt Dealer Price Gouging?

    A lot more than I'd have thought. More than 1/3rd say > $5,000 !


     
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