California Dealers Marking Up MME

[4sallypat]

Price gouging during pandemic might be proven against dealers charging over MSRP ?

I saw this and reminded me to contact the state of CA Attorney General about overcharging for necessity items.

Would this work since prices were increased during the pandemic by some CA dealers?

Smart & Final being fined $175 million by the state for price gouging:
https://www.nbcbayarea.com/news/california/smart-final-to-pay-175k-for-egg-price-gouging-in-pandemic/2855759/#:~:text=California Attorney General Rob Bonta said that between March 4,during a state of emergency.

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[Chuck]

I assume they don't add a markup at the store just because a certain bathroom fitting is in high demand!

That's an incorrect assumption about retail. Prices fluctuate, often week to week.

Also, the markup is much greater in retail. I work for a retailer and if our cost is $25 it will sell in the stores for $100. That's not something that a car dealer could ever do.

 

[Avelli]

That's an incorrect assumption about retail. Prices fluctuate, often week to week.

Also, the markup is much greater in retail. I work for a retailer and if our cost is $25 it will sell in the stores for $100. That's not something that a car dealer could ever do.

Prices fluctuate based on an agreement between the manufacturer, distributor(s), and vendor(s). Should any of the latter two misbehave, the manufacturer can and will slap down their availability. If that wasn't the case, then Costco could have reaped millions during the great toilet-paper shortage of March '20, the rich would be wiping their asses in the comfort of their homes, while the rest of us would have to make do with what we got. There is government intervention to prevent this, thankfully, but all in all outside of gouging shortages, the fluctuation in prices is held in check by good business models.

The dealership model in this equation is the unscrupulous one, point blank. They are able to create an artificial demand of new cars by lobbying laws preventing direct-to-consumer sales. Meanwhile near me there are several car dealerships that are all owned by the same dealer network, so if they decide to charge ADM on all Dodge cars, they can also do the same for their neighboring Mazda, VW, Kia, etc dealerships, removing my ability to shop with my wallet without considerable expense and go out of area or out of state.

I've never seen a retail profit margin go like this:

Source: Forbes.com, "Car Prices Are Above MSRP Because Of Price Gouging Rather Than Inflation"

 

[ridgebackpilot]

Washington Post Story on Price Gouging by Car Dealerships

According to the story, Ford is considering withholding deliveries of the Lightning and other EVs from dealerships that apply high levels of ADM. Good for them!

 

[4sallypat]

Washington Post Story on Price Gouging by Car Dealerships

According to the story, Ford is considering withholding deliveries of the Lightning and other EVs from dealerships that apply high levels of ADM. Good for them!

That's great news!

Hit them greedy dealers with an allocation reduction!

 

[Dancefreak]

Washington Post Story on Price Gouging by Car Dealerships

According to the story, Ford is considering withholding deliveries of the Lightning and other EVs from dealerships that apply high levels of ADM. Good for them!

That news is from two months ago (and was reported widely from many outlets at the time) but seems like the situation has deteriorated rather than improved since.

 

[mb36]

I have a question. If you ask a dealership what the price of a mach e is that is sitting on the lot and he replies with not sure I'll send you the window sticker, but doesn't mention anything about ADM........I know I should have asked.....can they bump the price of the car above MSRP and if they do, can I push back and say they never mentioned anything about marking it up?

 

[Chuck]

I have a question. If you ask a dealership what the price of a mach e is that is sitting on the lot and he replies with not sure I'll send you the window sticker, but doesn't mention anything about ADM........I know I should have asked.....can they bump the price of the car above MSRP and if they do, can I push back and say they never mentioned anything about marking it up?

Of course they can. Until you sign on the dotted line nothing is final. And, the best way to push back is have them spend a lot of time with you and draw up all the documents and then get up and walk out if they don't negotiate.

 

[yngwenli]

I have a question. If you ask a dealership what the price of a mach e is that is sitting on the lot and he replies with not sure I'll send you the window sticker, but doesn't mention anything about ADM........I know I should have asked.....can they bump the price of the car above MSRP and if they do, can I push back and say they never mentioned anything about marking it up?

Personally, I think it's just a waste of your time. Everyone knows cars are in short supply now and in CA, EVs are super hot since our gas is still close to $6/gallon.

I feel if anyone seriously wants to buy, just find a good dealer, get everything in writing on terms you need (pricing/x-plan) and order/wait. Today is the last day to get a Select or GT order in. CARt1 and Premium already can't be ordered.

If someone can't wait, then accept some ADM and be willing to be flexible and travel. Some have gotten what they wanted for minimal ADM (< $4k) which if you think about it, with the tax credit reduced, inflation, price increases, democrats probably losing house/senate in mid-terms, there will probably be no way any new EV credit passing so the MME will be $3750 less in credits next year.

It shows 32+ weeks now for delivery, but I'd not hold my breath since there could be more delays. Mine was maybe 20 weeks ETA when I ordered but I'm 30+ weeks and expecting to be 34 or so for delivery.

That or consider another vehicle. I think Kia/Hyundai seem more available in CA lots.

 

[ridgebackpilot]

Personally, I think it's just a waste of your time. Everyone knows cars are in short supply now and in CA, EVs are super hot since our gas is still close to $6/gallon.

I feel if anyone seriously wants to buy, just find a good dealer, get everything in writing on terms you need (pricing/x-plan) and order/wait. Today is the last day to get a Select or GT order in. CARt1 and Premium already can't be ordered.

If someone can't wait, then accept some ADM and be willing to be flexible and travel. Some have gotten what they wanted for minimal ADM (< $4k) which if you think about it, with the tax credit expiring, inflation, price increase, democrats probably losing house/senate in mid-terms, there will probably be no way any EV credit passes so the MME will be $3750 less in credits. That or consider another vehicle. I think Kia/Hyundai seem more available in CA lots.

I'm certainly willing to travel but no one should resign themselves to pay ADM, which a friend of mine calls the dealer's "F@ck You Fee".

If you do your homework, you won't have trouble finding a few dealers (perhaps 10 percent) that don't charge ADM. Most of them are well-known and they consider ADM a shortsighted, unscrupulous business practice that will chase away their customers.

We'll see what happens later this year but for now, it's still possible to find abandoned special orders for the higher trim levels being sold at MSRP.

 

[mb36]

I'm certainly willing to travel but no one should resign themselves to pay ADM, which a friend of mine calls the dealer's "F@ck You Fee".

If you do your homework, you won't have trouble finding a few dealers (perhaps 10 percent) that don't charge ADM. Most of them are well-known and they consider ADM a shortsighted, unscrupulous business practice that will chase away their customers.

We'll see what happens later this year but for now, it's still possible to find abandoned special orders for the higher trim levels being sold at MSRP.

That's what it is. It's a mach e CR 1 from an abandoned order, but I wasn't sure if they would tack on the ADM from it.

 

[ridgebackpilot]

That's what it is. It's a mach e CR 1 from an abandoned order, but I wasn't sure if they would tack on the ADM from it.

Call and ask your dealer. If they tell you they'll apply ADM, find another dealer that doesn't. They're out there if you look carefully!

 

[4sallypat]

That's what it is. It's a mach e CR 1 from an abandoned order, but I wasn't sure if they would tack on the ADM from it.

Problem with the CR1 is that they are rare and no longer being made for new orders.

Would have loved to get a CR1 but my dealer (Norm Reeves) said the price it ultimately goes for is about $10-$15K over MSRP for an abandoned order.

I had to settle with the Select because I may flip it if my F150 Lightning shows up later this year....

It's an Ford EV race in my mind....

 

[mb36]

Problem with the CR1 is that they are rare and no longer being made for new orders.

Would have loved to get a CR1 but my dealer (Norm Reeves) said the price it ultimately goes for is about $10-$15K over MSRP for an abandoned order.

I had to settle with the Select because I may flip it if my F150 Lightning shows up later this year....

It's an Ford EV race in my mind....

That's my fear. I'm going to walk in and they are going to throw an ADM at me for that high. I'm really praying that they play nice on this. I don't want to get my hopes up until I am driving that car off the lot. I should have gotten it in writing first with an agreement first. Well, I guess this weekend will be happy or a learning experience.

 

[yngwenli]

I'm certainly willing to travel but no one should resign themselves to pay ADM, which a friend of mine calls the dealer's "F@ck You Fee".

If you do your homework, you won't have trouble finding a few dealers (perhaps 10 percent) that don't charge ADM. Most of them are well-known and they consider ADM a shortsighted, unscrupulous business practice that will chase away their customers.

We'll see what happens later this year but for now, it's still possible to find abandoned special orders for the higher trim levels being sold at MSRP.

Good luck and let us know if you can find one with no ADM and no wait. I think for Premiums, CA Rt1 probably, you will not be able to find one honestly anytime soon and your odds are very very low IMO. I look around me and there are always the fewest Premiums within 500 miles of me.

I've been reading/researching since August of last year. I see your account is new (less than 2 weeks), but plenty of folks here have done the calling around dance and all that to avoid ADM for an on lot car and had little/no luck. Some paid MSRP way way back, but had to travel/ship it which, to me, is the same as ADM.

Again, it's possible, but pretty unlikely in the current situation to get a car right now. You posted some in your 1st post, but I as mentioned, there's probably a line for cancellations and people signing up now aren't going to be getting a car tomorrow.

As for not paying ADM, my advice is still just order and wait like most people. I will pay below MSRP with X-Plan and have everything in writing/screenshots and did tons of research before I even placed an order so yeah, no ADM is possible (but you have to wait), but not so much to get a car today when other folks are happy to pay ADM for various reasons. It just takes waiting for MSRP or less.

I think if someone seriously wants a Select, that's the highest chance to get one with no ADM.

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