Chevrolet Volt Price Gouging Starts Early; California Dealer Asking for $20K More Than List

Nick Chambers · Nick Chambers · 1 year ago

And let the price gouging begin!

After hearing that the lease price for the Chevy Volt would be $350 a month, staffers over at Edmunds.com decided that it was "too good to pass up," and emailed a local unnamed California dealer to seal the deal and put a deposit down. Thinking the affair would be a rather standard exchange, Edmunds was shocked to receive the following email back (identifiers redacted):

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

Is this one response a harbinger of things to come, or simply a rogue dealer taking extreme advantage of the situation? As I've commented before, GM's safeguards against price gouging are minimal. Essentially they have no strategy besides "strongly suggesting" to dealers that they should sell the Volt at MSRP. GM has placed the entire reservation, ordering and delivery process in the hands of their dealers and has no mechanism to protect customers—hence the risk for price gouging is very high.

The ordering process laid out for the Volt's nearest competitor, the Nissan LEAF, seems to have more safeguards against price gouging. With the LEAF, you place a reservation with Nissan which gets you in line. After your turn to purchase comes up you place the order with Nissan and then shop that order around to Nissan LEAF dealers until you obtain whatever price you want (or are willing to settle for).

Clearly this doesn't completely remove the risk for price gouging, but it at least puts the customer in the driver's seat. In contrast, Volt dealers are in control of everything from the initial reservation to the final delivery, so there's no way for you to shop your order around unless you're willing put money down at several dealerships (at whatever amount the dealer is requesting).

I've always said that it would be crazy for a dealer to try and mark the price of either the LEAF or the Volt up by much, given that it would be horrible marketing for their business if the word got out that they were trying to rape the consumer's wallet. Unfortunately, Edmunds.com has decided against publishing the name of the California dealer in this instance... but in the interest of the public (which media outlets seem to have forgotten they represent) Edmunds really should.

$20,000 is an insanely ridiculous and greedy markup for an opening offer, and does more harm than good for the plug-in movement. What do you think? Should this dealer's name be spread far and wide over the internet as a warning to those that might try similar tactics?

Comments

· Anonymous (not verified) · 1 year ago

IMO the federal tax credit should not be allowed for any sales over MSRP, but it's a bit late for that.

· Yegor · 1 year ago

"$20,000 is an insanely ridiculous and greedy markup for an opening offer, and does more harm than good for the plug-in movement. What do you think?"
I think this particular case does more good than harm :)
It is a great publicity advertising that Volt is so good that it sells $20,000 above MSRP because production is limited :)

· Nick Chambers · 1 year ago

Interesting take, Yegor. You don't think it will provide fodder for the critics who might say that it shows the Volt is a car for idiots and people who don't care about their money? You also don't think it will turn people off who might be looking at these cars as a real option to reduce their dependence on fossil fuel?

· Yegor · 1 year ago

Yes, $20,000 above MSRP will definitely turn lot of people off because they will not be able to afford it but let's look at the numbers - 10,000 cars only in the first year of production (2011). This very little! I guess that at $350 monthly lease the demand should be much more than 10,000. In this case the law of price is supply vs demand. 2011 Volt is the historic car - it is the first (along with Nissan Leaf) mass produced electric car - so it has some historic value in it. So it is not totally unreasonable for the dealers to ask for an extra premium for it.

· Nick Chambers · 1 year ago

Sure, I agree, as good capitalists dealers will reasonably ask for a premium, but $20K, you don't think that's just outrageously egregious?

· Yegor · 1 year ago

Yes, $20K is a lot (I think it will go down to $2,000-$5,000 thousands after a while) but Volt is not even on sale yet. I do not know may be the cars with first serial numbers are more valuable?
Anyway the price will go down - it will not sit in showrooms for a long time.
Still I think that it is a good publicity for Volt :)

· Chelsea Sexton · 1 year ago

I understand Yegor's point in the "even negative press is good press" sort of way, but I'm very concerned about the dealer experience. This is not only the first high-profile program from "the new GM", but it's GM's first foray back into EVs. Getting people to trust GM again will be (and has been) hard enough- making them jump though inconvenient, expensive hoops to do it will backfire, as evidenced by the contents of my email inbox. No one doubts that they can make a good plug-in car, or that they'll sell out the first year. But the experience of those first folks will dictate the success of the program, and that starts from the first moment of the purchase process.

As for the right of dealers to mark up...yes, they are absolutely entitled. But this is one of those things firmly in the category of "just because you can doesn't mean you should".

· Yegor · 1 year ago

I do not think anything can be done here: manufacturer sells cars to dealers at the invoice price and then it is up to a dealer to set any price based on supply and demand. It would have been the same story with Nissan Leaf but fortunately Leaf first year production is much bigger at 50,000 units so there should not be this kind of problems. It is supply and demand, nothing could be done here, buyers should be understanding. GM could have take advantage in this situation by setting a higher MSRP price (something like $44K-$47K) but they did not. The only thing that GM can do here is increase the production.

· George Parrott (not verified) · 1 year ago

I have been planning on replacing both of our family Toyota hybrids (a 2006 Prius and a 2007 Camry Hybrid) as soon as full EV and plug-in extended range options became available. I got one of the very first 2004 Gen II Prius models for as soon as that new body debuted at the NYC auto show, I got my order in with my local Toyota dealer for that car.

I also am quite high on the Nissan Leaf buyer list and expect a red Leaf in our garage in late December, BUT the ordering process for the Chevy Volt has been another experience altogether. I have not owned an American car since picking up a new Oldsmobile 442 when I got out of graduate school in 1969. I have considered American options a couple of times when I was needing minivan type carriage, but ended up with Toyotas and Hondas even then. The attempt so far at getting a Volt has been totally disgusting and a complete turnoff. I have been in contact with several Chevy dealers in the Sacramento area since June to be at the "top of the customer order list" but still have not had a follow up contact with an order confirmation ! I am also getting some mumbles of "waiting to set market prices" or more blatantly "how much we need to markup the MSRP." I am not sure about other "early adopters," but many of us valuing "green technology" also value our own "green" and will not pay a penny of dealer markup. I have owned Lexus, Acura, BMW, VW, Audi, Honda, Mazda, and Toyota over the last 35 years and NEVER paid a penny "markup." I have gone "out of area" to buy to avoid that practice and simply found other design options without that exploitation of "supply and demand" operation. If I cannot get a Volt for the advertised selling/lease price this November, then i will simply migrate to the soon arriving Hyundai Sonata Hybrid and wait until 2013 when the EV and extended range EV market is more mature for the second such vehicle for our garage, and I will NOT go back to any dealer who tries to gouge the market with any new model.

Once burned, the bridge of opportunity for my business is simply gone !

· Anonymous (not verified) · 1 year ago

Agreed 100%. I simply will not do business with a dealer that does gouging and will make sure all my friends know of them so they can go elsewhere as well.

· Yegor · 1 year ago

:(
I guess GM could implement ordering process and deliver cars according to order placement to a nearest dealership but is it lawful for GM to force dealers to sell cars not higher than MSRP?

· Harrier1970 (not verified) · 1 year ago

I have followed this car since 2007, test driven it and am first on the waiting list at my local dealership ($1000 deposit). I have never owned an American car. I talk to people about this car endlessly and try to find out news about it most days of the week.

If my dealership were to try to bend me over on the price I would have to walk away. They will probably sell it to someone else willing to pay the $5,000 - $20,000 extra. They will get the short term sale from someone. I can tell you that I will not be a quiet disgruntled consumer and that in the long term they WILL lose. I would make it my mission in life to spread my story far and wide, especially about the specific dealership, so that they pay for that premium in a ruined name. I will glory in victory on the day those greedy jackoffs go out of business because they don't know how to treat customers.

· Harrier1970 (not verified) · 1 year ago

GM can limit which dealerships they send cars too. If they determine that a dealership is going too far... BAM! Looks like the other dealers who have been selling at MSRP or just modest mark-ups (due to higher operating costs) will get those allocations. The federal government does the same thing to the states.

I have no problem with the dealership getting some money for their troubles... but I think most Americans know when their wallet is being raped.

· Harrier1970 (not verified) · 1 year ago

Publicity

Some people say there is no such thing as bad publicity. In this case... wrong answer.

GM has a bad name for a lot of reasons right now (killed electric car, recovering from bankruptcy, poor business decisions, etc.), and this is one they don't need. I can see this becoming a national story, especially given the high profile of the Volt.

The Volt means a lot to GM and if they care about their own name then they had better be prepared to do something about this and fast.

· Tom Moloughney · 1 year ago

Harrier:

Actually GM cannot limit which dealerships they send cars to and they have absolutely no ability to control or limit how much over MSRP the dealer charges. GM cannot "punish" a dealer because they are selling cars over MRSP by limiting their supply of that or any other car. I know it sounds wrong, but it's true.

· Yegor · 1 year ago

I understand that GM has some kind of agreement with their dealerships to sell all cars it manufactures exclusively through their dealerships (probably like any other car manufacturer) but it is a special case and because of this they should add an amendment to this agreement that cars that are in high demand can not be sold above MSRP and in that they should be sold in order of the single publicly announced waiting list.

· Harrier1970 (not verified) · 1 year ago

Tom M,

It certainly was the law of the land... Until GM was declared bankrupt. At that time, GM could shed all of its dealerships or make a "Participation Agreement" with them (i.e. A modified contract favoring GM). GM decided to present dealers with "Participation Agreements" that give GM a lot of power over the dealership... Including that of telling them to remove competitive brands from the showroom.

If GM wants to bully the dealerships, it can.

· Jesse Spears (not verified) · 1 year ago

I will not pay a mark up on ANY car.

I'm on the reservation waiting list for a Leaf, but if they try to jack up the price, I won't pay it.

I'm not desperate for a car. I can continue to drive my current car until enough competition arrives to prevent this type of nonsense from occurring.

I'm not willing to pay extra just to be first. It's not a competition.

I want an electric car because it's the right thing to do. I've been trying to buy one since the 1990's, but sadly, no major manufacturer's have ever sold one here (in Austin, TX). So, we've settled for a number of Hybrids from Honda and Toyota (2 car family).

So, any dealer that wants to lose my business (permanently) can go ahead and mark up the price.

And, frankly, for the amount of money we're talking about for the Volt, I could buy a NEW Prius and have it converted to a Plug-in, and not pay a cent of Mark up (and, for me, still get better mileage overall for my daily commute, and carry an extra passenger to boot).

· George Parrott (not verified) · 1 year ago

As of 4 pm on 5 August I now have a confirmed order for exactly the Chevy Volt I want (Red, premium leather in neutral, and the backup camera/parking assist) at MSRP.

ANY potential Volt buyers who want to avoid the more common hassles of trying to get this model confirmed should check with Fairfield Chevrolet (between SF and Sacramento). Ask for Danny Austin.

I got connected with them/him via Edmunds.com where there is full details for pricing on the Volt and at the end of the "pricing with options" stage the website then gives a set of dealers to automatically send out one's purchase interest. Fairfield Chevrolet has confirmed that it will order and deliver the Volt at MSRP for any customer.

Clearly, I hope it is obvious I am NOT affiliated with this dealership (I am a Professor of Psychology at CSU, Sacramento), but my experience with them today was such a relief compared to the frustrations of trying to get an order in with my closer Sacramento core dealers.

· xtian999 (not verified) · 1 year ago

Picket the dealerships that gouge. I live in Austin, Tx. and I intend to alert the local EV community about this and hope to get some people out in protest. Maybe the threat of bad press will force GM execs to put a lid on gouging.

· Anonymous (not verified) · 1 year ago

This might show that the Volt is in high demand, but it will also expose the awkwardness of the GM sales channel. Given the high profile of the Volt, this will go viral on the Internet. The next time I go shopping around for a new vehicle, EV or otherwise, I will probably stay away from the GM dealership; even as word is out that they are making better products. If I do go to a GM dealership, I will stay with my back close to the wall for fear of being raped, and I will NOT bend over to take a close look at their vehicles.

GM has done an acceptable job at putting trust back into its products by raising quality standards, killing obsolete products and replacing them with nicer ones. It should do the same for its sales channel. Otherwise I will know that GM fixed their product line, but the shopping experience is same-old same-old.

· ex-EV1 driver · 1 year ago

Hey all, thus far, we still live in a capitalist free country. That means that you don't have to pay anything to anyone at any time (except the government who takes our taxes at gunpoint). Of course, dealerships are also free to charge whatever they want as well. This seems quite fair and I don't see the need for all of the whining. If nobody pays $20,000 over MSRP then the dealers will have to drop their price premiums. Since GM is only making 10,000 Volts, not everyone who wants one is going to get one anyway. Just pick the price you want to pay and wait until it is available. If a few people with money to burn want to generously subsidize their local dealer so be it.
I went into one dealer inquiring about the Volt. The Salesman went white as a sheet when I asked about the Volt and took me to a cubicle with a comfortable seat, offered me a glass of water and then started with an apology. He said that I might not like the only option he could offer me. He said that they're looking for $20K over MSRP. I asked him if anyone had accepted so far. He said one person had cursed at him and then walked out, the other had just walked out. I told him that I really did want a Volt but I wasn't going to pay $20K or get into any bidding war over it. I then gave him a ride in our Tesla (to adjust his attitude toward EVs) and told him that I hoped they would encourage GM to build more Volts since EVs are too important to only be available to a few rich people. I reminded him that making $1000 profit selling 200 Volts will bring just as much money into their dealership as making $25,000 off of 8 Volts but the 100 Volts will do society a lot more good and they'll have a lot more happy customers - something the dealership seemed to be noticeably short on.
@Anonymous
I personally recommend that you stay with your back close to the wall at car dealerships no matter whether you're buying an Escalade, a Volt, or a Corolla. These guys want only to squeeze as much money out of you as they can - its one of the few things you can always count on in life.

· Chelsea Sexton · 1 year ago

Meanwhile, Nissan Leaf dealers have started offering discounts *under* MSRP. Wonder who's gonna win the battle for hearts and minds?

http://nissan-leaf.net/2010/08/09/dealer-offers-leafs-for-1000-under-msrp/

· Ben in Virginia (not verified) · 1 year ago

I think the Volt might be a great product except for the fact that there is no information available on the lifespan of the batteries or the replacement cost of them when they eventually die (usually 3-4 years...). Then there is the small matter of high purchase price which is only slightly mitigated by a big federal tax credit which could disappear at any time and which is the only thing making this car even close to affordable for the masses. Then there is the unknown on what sort of maintenance can be done by non-dealers (You, me or the local mechanic) on the vehicle. Not only is this a motor vehicle (still has a gasoline engine) but an electric vehicle too... This will make the maintenance situation more interesting for owners. Personally, I won't have anything to do with any machinery that has so many unknowns as this vehicle will have. To costly a risk for me and I believe for most Americans, especially in these times of economic and financial uncertainty. For me, as professional techie who understands "Mean time before failure", I am not willing to sink upwards of $50-$65K (price gouging at the dealer level included) in a vehicle with so many unknowns. I wish the potential and future owners of this piece of mystery machinery a heartfelt "Good Luck" with their purchases.

· ex-EV1 driver · 1 year ago

@Ben in Virginia,
What are you basing your "usually 3-4 years..." statement on? Have you and your friends actually been driving Volts or other PHEVs regularly since 2006 or 2007?
Where did you get them? How did I miss their availability?

· Chelsea Sexton · 1 year ago

Hmmm.....if it's known that the batteries will only last 3-4 years, then it seems even crazier that GM has committed to warrantee them for 8 years.

And while non-dealers may be able to perform certain maintenance procedures, the majority of work on all these cars should and will be performed by dealers for the next several years- since they'll all have bumper-to-bumper warranties in that time, there's no compelling reason to insist on an independent technician.

· Tomrdillon (not verified) · 1 year ago

I have avoided all GM cars for 40 years due to the poor quality, styling and dealers. I decided to peruse the Volt and sell my Prius. My local GM dealer said the price would be about $20k over list. I think the Volt is a critical car for GM. If it works well and has good fit and finish them it could draw customers in but a $20k markup would be about the worst thing they could let happen. I for one would forget all about it and wait for the plug in Prius.

· Chelsea Sexton · 1 year ago

Apparently AutoNation-owned Chevy dealers will not be marking up the Volt: http://gm-volt.com/2010/08/14/autonation-prohibits-dealers-from-marking-...

· TreeHugger (not verified) · 1 year ago

I am excited about getting a Volt. I tried several dealers in the Bay Area and they all said they would include a mark up of $7,500 to $10,000 or more. So I went to another city and that dealer said no mark-up. So I put gave my refundable deposit and the car is ordered. If he is square with me, I will lease the Volt. If not, I will walk.

· Yegor · 1 year ago

Kudos to "AutoNation" owned Chevy dealers!!!

· Level-Headed (not verified) · 1 year ago

I'm sure this "shanky dealer" will find at least 9 idiots with a lot more money than sense. To begin with, I have a strong aversion to all American autos (based on personal experience) due to persistent quality issues and its very difficult for me to even rationalize that people are going to shell out even $40K for what amounts to a Chevy Malibu with batteries. I think we'll stick with our Prius that cost $15,000 less and is going to last a whole lot longer.

· Ben in Virginia (not verified) · 1 year ago

@Ex-EV1 Driver.... I base this on my 20+ years as an electronics tech who knows something about Lithium ion battery technology. Batteries have life spans, that is a fact that is beyond dispute. It is a matter of physics and chemistry. The state of the art in that technology has not advanced much in the last 5 or 10 years other than in increasing the size and output of batteries and in the cooling technology which will increase the life span somewhat. The real problem is that there are a finite number of times a battery can be charged and discharged. Each time this cycle is done, the battery becomes minutely less able to charge to full output. Eventually it will reach a point where it will become unusable. Then it will have to be replaced and the old one recycled. I don't have to drive a Volt or any other vehicle with such technology to know this. It is simply a fact that hasn't been put out there much. Those of us who chase trons for a living know it and so do the engineers....But they ain't talking either because their livelihood depends on this system to succeed.

· Ben in Virginia (not verified) · 1 year ago

I base what I have said on the fact that pure electric vehicles have had some problems along this line too... Perhaps there will be some extension of life span with a hybrid but I would still worry about lifespan...

· Tom Moloughney · 1 year ago

Ben, I do agree the volt has a lot of parts to maintain since it has both an ICE with all it's parts and an electric drive system that has fewer parts, but one big, expensive item, the battery so it will probably be expensive to maintain. Much more so than a BEV at least. However I think you are selling the battery packs short with your 3-4 year life span. What degree of degradation to you predict in 4 years with and average of 15k miles per year? From what I have read most predict 85-90% in 4 years and 60K.
My MINI-E has 38,000 miles after 14 months and I keep very detailed records about charge% per mile driven, temperature and driving conditions and I haven't experienced any noticeable reduction in range yet. I'm sure it will happen, but when is the unknown question. I know it's only 14 months old, but it has has over 600 charging cycles so far which would probably represent about 2 years of "normal" use.

· John in Calif (not verified) · 1 year ago

I'm in California and just put a deposit down on a Volt. Dealer is selling at MSRP. So why does the "$20K over MSRP" make the news and get repeated over and over again? Just like the rest of the news media in this country - going for the sensational despite the facts. If a dealer asks over the MSRP, then buy elsewhere, or don't buy. Hello?

· ex-EV1 driver · 1 year ago

Ok Ben in Virginia,
I think you're being pretty harsh sight unseen and this is a bit off-topic. I, too, am in the 'tron business and have worked with Li-ion a bit. If treated poorly, you're right about 3 - 4 years is all you'll get from them. This is what we see from consumer electronics junk built by Chinese manufacturers just trying to push product out the door. If taken care of, Li-ion can last a lot longer. NASA's Mars Rovers are a testament to this. They're still going after over 6 years of life in the harsh Martian environment.
I'm sure that if done poorly, EVs will have short battery life but it is way too early to know what kind of job GM has done.

· Nick Chambers · 1 year ago

John in Calif,

It's not just one dealer in California that's planning to sell far above MSRP. If this non-randomized internet poll can be believed, almost 25% of Chevy dealers are planning on charging more than $10K above list, and more than half are planning on charging something above MSRP.

So before you blame it all on "the media," realize that there is often more information out there to be had that might make the media's concern valid and worthwhile.

· Anonymous (not verified) · 1 year ago

I don't understand why dealerships still exist. Automakers should sell their own products over the internet for a defined, no-haggle, price (much like most commodity producers... consider Apple, Sony etc.). Dealers would continue to exist only if they were capable of adding value for the consumer.

Yes, that means that automakers would have to buy some land in each state and put cars there for people to pick up.

If this happened most "dealers" would close up shop quickly, or completely specialize in the used car market.

It would be a big win for consumers, as the middleman, in this case, takes a big chunk of change.

· Tom Moloughney · 1 year ago

A good dealer can add value for the customer and some do. It is unfortunate there are many dealers that really don't and will take advantage of any uninformed buyer that comes through their doors. I liked the model Saturn used with fixed pricing, like you are promoting. Without dealers where would we get our cars serviced? The trend has been for local independent auto repair facilities to close since the new cars are more and more complex and computer controlled. Only the dealers have the expensive computer diagnostic units and specialized technicians for their unique, sometimes proprietary equipment.

I would like to see the fixed price become the norm though. I know I get a good deal when I go to a dealer, but I have friends and family members that have really been taken advantage of by unscrupulous salesmen because they go in to buy without the proper information like dealer cost, manufacturer rebates and other incentives. Instead of getting rid of dealers, we can force them to be better by patronizing the dealers that do a good job and staying away(and warning others) of the dealers that underperform.

· Ogden Lafaye (not verified) · 1 year ago

Someone here is actually thinking of buying a first generation VOLT? The first year problems with this car will be legion.

With the Volt you will have many disappointments...However it will be in the shop, leaving lots of room in your garage...Your life will be very interesting.

Your weight is 213 lbs.

· ex-EV1 driver · 1 year ago

Hey! easy there Ogden Lafaye,
You may have to eat your words. I drove GM's last EV for 3 years, sure, there were a few problems (motor mounts broke a couple of times because of the awesome torque:-). We were expecting this and it certainly spent the overwhelming majority of its time on the road.
The same story goes with the Tesla and it was made by a company that had never made a car before. A few problems but I still manage to put 20K miles per year on it last year.
Sure, the Leaf suffers from having to carry a ICE but GM actually knows a bit about those and it isn't going to do much anyway except to burn off a tank of gasoline every 3 months whether it is needed or not.

· senna007 (not verified) · 48 weeks ago

If GM or any other manufacturer for that matter really wanted to prevent dealers from selling with high mark ups over MSRP it could. If there is nothing preventing dealers from selling at above MRSP then i assume (and i realise that is a big assumption that could wreck my argument, but it would only require a small rewording of the manufacturer and dealer agreement contract to address) that there nothing preventing GM increasing the cost of the car to the dealer. So all GM has to do is insist that a customer question-air is completed and submitted to GM with every volt order placed in it it asks how much did the customer have to pay for the car. If a dealer charges $20,000 over list price then GM charges that dealer another $20,000 next time they order that model. This way at least the additional premium paid by the end user goes to the company who has spent money developing the new technology and not some greedy middleman dealer.

· Tom Moloughney · 48 weeks ago

Senna007: GM cannot charge one dealer more than they charge the others for the same vehicle. The dealerships can sell cars at whatever price they want. These dealerships that are charging way over list will suffer in the long run from their own greed as customers will remember. There are plenty of dealers selling volts at MSRP, so there is no reason to pay way over list. Soon, the supply will increase and more more areas will be getting them and nobody will be able to sell them over list. All you have to do is wait a few months, it's not like we're being gauged for drinking water or heating oil.

· EVNow · 48 weeks ago

@senna007

There are various state laws that prevent many of the things you suggest. The car dealership lobby is very powerful and they have got many anti-free market laws passed in various states. It is a big racket.

· maxb1818 · 48 weeks ago

Several dealerships in Houston were asking $5,000 extra for the Volt. Houston received only 2 cars per dealership. Yesterday I was able to get my Volt without paying any extra - I want to mention the dealership name because of the very profesional way the sale went - Davis Chevrolet.

· Laura in Marin (not verified) · 48 weeks ago

Buyer beware of Nissan Santa Cruz! Today is 03/20/11. I called 15+ Nissan dealers in the SF, Sacto area and even Modesto and Fresno to add my name to the waitlist for a Nissan Leaf should any of those who pre-registered and rec;d notice that their Leaf is ready change their minds, fail to get financing, etc.

Beware: Gouging is alive and well and will be increasing as the Leaf arrives in the US. Of all the dealers I called, all agreed to add me to their waitlist. One dealer, Nissan in Santa Cruz, said they had one in stock to sell as someone just got it and "changed their mind" a few days ago. Salesperson "Scott" told me that a "$5K premium was being added since they had several people interested in the buying the car". He then said "plan to be here tomorrrow, Mon. 3/21, at 10a" and he would sell it to me. I was planning to re-arrange my work plans, take a day of vacation, and drive the 100+ miles from north Marin to Santa Cruz to get the car. Something told me to double check so when I called back Scott "was busy" so I was given to "Mike the manager". When I asked Mike if he was sure the car would be held for me, he said "don't worry, I'll hold the car for you, but wait for Scott to call you". When I called back again right before they closed (since Scott never called me back), another sales guy said he was planning to lease the same car to clients of his who were out of state.

SO...long annoying story short: Nissan Santa Cruz is price gouging, they are promoting "biddng wars", and they have no concept of customer service. They are trying to having a bidding war go on much like I experienced when buying a home in Marin in 2006. Even if the Leaf has people lining up around the block, customer service is ALWAYS first. If you want to work with a bunch of liers that have no consideration for how busy customers are and could care less if you take a day off from work, scramble to make work arrangements at the last minute, then drive 100+ miles and be told the car you wanted is already gone, then Nissan Santa Cruz is the place for you. Thank goodness I caught them in their lie before I was made a fool.

· Michael (not verified) · 46 weeks ago

This sort of gouging occurs with every new vehicle the dealers think will be in high demand. The gouging for the Volt is dissipating quickly, though. I went on AutoTrader and found many Volts within 25 miles of me under $45K, and one at $41K. All you have to do is exercise a bit of patience, and a good price can be had.

· beemonski (not verified) · 46 weeks ago

Laura, how were you going to get this vehicle home if the dealership is 100+ miles away? Hopefully you were expecting to tow it back. Unless that 100+ miles is all downhill, you're not getting there in a leaf. It may have been a good thing that you didn't get that vehicle from that dealer.

· ex-EV1 driver · 46 weeks ago

@beemonsky,
I have an idea! Maybe Laura could charge her Leaf at one of the J1772 charging stations along the way!
@the rest of you
Where do these people come from that seem to think there is only one electric car charging facility in the entire world?

· EVNow · 46 weeks ago

@Laura in Marin "$5K premium was being added since they had several people interested in the buying the car".

Can't say I blame them. Afterall, there were people posting in the Leaf forum volunteering much more than $5K for anyone who would part with their car (used !). Afterall you are trying to jump over the queue of people who have been waiting patiently for nearly a year.

But as you say, they should treat people with more respect ....

· Alan (not verified) · 46 weeks ago

Did we not learn, dealerships do not make money on EV's - good idea to sell at $20k over msrp. 1. you get no sales, or 2. you get your sales and money up front for the projected loss in maintenance fees! - That dealership is sharp!!! (tongue in cheek!) - best of all 3. you scare away prospective EV buyers - no dealership wants to deal with them folks !!! ;)

Add comment

·

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

All Discussions

Presidential Politics, Rising Gas Prices and Electric Cars

Article · 27 comments

Brad Berman says:
The biggest factor affecting electric car sales is the price at the pump. And it’s on the rise. The national average...

How Much Will Electric Vehicle Buyers Pay for Additional Range?

Tesla Model S Article · 8 comments

Eric Loveday says:
Range costs money, right? Now, with the looming launch of the Tesla Model S and its numerous range variations, Tesla...

Maps & Apps: How to Find Charging Stations in the Wild

Article · 22 comments

Patrick Connor says:
Many modern EVs such as the Nissan LEAF come with telematics systems that include charging station data. This is the...

Chinese Vehicle Makers Arrive, With Electric Cars Not Far Behind

Article · 1 comment

Laurent J. Masson says:
The auto industry has long feared the arrival of a Chinese electric car that would be vastly cheaper than anything...

Nissan LEAF Now Available in Seven More States

Nissan LEAF Article · 9 comments

Eric Loveday says:
Nissan officially began taking orders yesterday for its 2012 LEAF from residents of Delaware, Indiana, Louisiana,...

Think Quietly Sets Price of City Electric Car at $41,695 (Update)

Think City Article · 44 comments

Brad Berman says:
In November, I received word from Think’s top marketing executive that the price of the Think City two-seat electric...

The Challenge for Plug-In Cars

Chevy Volt Blog Post · 49 comments

Michael Coates says:
Plug-in cars are going to face a serious challenge in the marketplace during the coming decade--not from naysayers or...

Chevy Volt MSRP is $41,000, But Will Lease For Same Price as Nissan LEAF

Chevy Volt Blog Post · 8 comments

Nick Chambers says:
GM used the stage at Plugin 2010 this morning to let the long-awaited cat out of the bag: the Chevrolet Volt will start...

Best Buy to Provide Ford Focus Electric Charging Stations At Lower Prices Than Competition

Ford Focus Electric Article · 35 comments

Nick Chambers says:
Highlighting their increasing push into selling electric car accessories—and supporting their nationwide rollout—Best...

Plug-in Hybrid Volkswagen Golf Expected in 2015

Article · 6 comments

Eric Loveday says:
The next-generation Volkswagen Golf will feature a slew of powertrain options, including a plug-in hybrid version that...