dispicable act and it should not be allowed to happen!
greed is what got america in the state it is currently in.
how can the average person afford just a vehicle purchase in this economy, let a lone $41'000 +20,000 premium, Gm set price high now the dealers want theres and what about the delivery guy and the custodian and...........rediculous
Internet Poll: Almost a Quarter of Dealers Planning on Price Gouging Chevy Volt Customers by $10K or More
Larry Nitz, GM's executive director of hybrid and electric powertrain engineering, might not be worried that $41,000 is too steep for what is, essentially, a midsize family sedan from Chevy with some majorly green bells and whistles, but what if that price were to average more like $48,000, or even $51,000?
Yesterday we highlighted one California dealer's attempt to rake in some seriously large price markups on the first generation Chevy Volt: at an opening offer of $20,000 above MSRP (yep, that's $61,000), the dealer entered the realm of "raping your wallet" to be part of the early adopter crowd. In that article, I quizzically wondered if that one dealer was alone in its desire to price gouge customers into oblivion, or if it was simply a harbinger of things to come. Well, if a poll posted by GM-Volt.com (and reposted below) is any indication, I believe the answer is "harbinger."
As of this writing, when looking at the people who've actually contacted dealers about ordering a Volt (357 of the 1,296 votes cast), roughly 61% of respondents say their dealers are planning on marking up the Volt to some degree, and nearly a quarter (23%) say their dealers are planning on marking the car up by $10,000 or more over the MSRP of $41,000.
If GM was hoping that the customer experience surrounding the Volt was going to be nice and happy, it seems that many customers are in for a sour experience—perhaps even more than half of those who inquire at a dealer about purchasing the Volt. As long time plug-in advocate, and PluginCars.com conributor, Chelsea Sexton said in the comments of yesterday's article, "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."
Comments
· Anonymous (not verified) · 1 year ago
· DutchInChicago (not verified) · 1 year ago
Finding 10000 people in the US who can afford a $61000 car is not going to be a problem. But this is more about PR then profit for GM. They are still trying to get over killing the electrical car and this is not the way to do it.
The fact that they are only building a small number of this car was always an indication to me that this is just a poor tempt to do the EV thing and it was predictable that they are going to leave a large number of unhappy people out there because there are going to be a lot more buyers then there are cars.
I am planning to go the full EV route with the Leaf but I am afraid that the same thing is going to happen there. Every Nissan dealer is guaranteed to sell out of whatever it's allocation is going to be and I would be very surprised if I will be able to find any dealer who is willing to sell near MSRP. Has anyone been checking out Nissan dealers yet?
· Harrier1970 (not verified) · 1 year ago
I have test driven the Volt and found it to be a great car. I have never owned an American car and I have been following this one for three years through GM-Volt.com and other sources. I have recently spoken with the Chevy Dealership in Redwood City, CA where I am first on the list and I am hearing so far that they are going to charge above MSRP... just not how much.
If they attempt to bend me over I will simply walk away and buy a Tesla Model S in 2012. Talk about short sighted. These dealers should be looking to sell multiple vehicles to people and their friends, not just this one. If I have a good experience, I will talk about it and tell everyone how awesome it all was; oh, and and let them take a drive in my new car! Conversely, if I am to be raped over the price and then don't get the car; well that is a different issue. I will tirelessly tell people about how stupid some companies are (like GM and their dealerships) until I am blue in the face. I will not only NEVER buy a GM car, I will advise everyone I know not to buy one and contact my representatives and demand that they NEVER give GM another dime as it will be wasted. I will call in to newspapers and radio shows to tell my story so that GM and their dealerships are exposed for the greedy jackoffs they are!
To say that GM has no power over the dealerships is foolish. If GM wants to have a good reputation, then they can just limit which dealerships get the Volt. If dealership A wants to rape people while dealership B just wants $1000 extra then I would give all the allocation of A to B. Problem solved. I know that the Redwood City dealership has a waiting list that exceeds its allocation. Just waiting to see if they are A or B.
· RichO (not verified) · 1 year ago
I think the Volt is a great idea. But the dealers are going to destroy all that.
Look at the New Camaro for history of the dealer greed.
GM designed a great car (for a change).
Instead of selling a great car at a great price, the dealers chose to add $5 - $10,000 to the MSRP or let them sit on the lot for 30 days. I saw used Camaros for $2k over MSRP on the lot. Stupid, stupid, stupid.
Who expects to even pay MSRP these days?
I usually start at invoice and work from there.
I bought my last car for $75 under invoice. Do some homework and get a deal.
If GM considers this greed by there dealers expectable, I won't be buying another Chevy any time soon.
Now Chysler has also been doing this on the new barracuda. That too is a nice car.
With this dealer greed, the buyers will go elsewhere and the manufacturers will fail once again. Nobody is going to pay to save them again.
The manufacturers need to have a serious chat with there dealers!
Making a profit is expected. Being greedy is not.
· Christof Heinrich (not verified) · 1 year ago
Yes, sadly, it appears car dealers are living up to their stereotype as charlatans and schmucks -- no big surprise there, but still disappointing.
Hopefully, Nissan will do a better job of snapping its dealers into line than GM with an approach that appears to be much more top-down and much more organized than the Volt process -- at least so far.
· Yegor · 1 year ago
Nissan Leaf first year production is 5 times higher than GM Volt (50,000 vs 10,000) and is much closer to the demand. For this reason Nissan Leaf price gouging is much less likely.
· Tom Moloughney · 1 year ago
Yegor: That figure is for world wide production. The US isn't the only country getting LEAFs. I believe the number is close to the 10,000 Volts that will be sold here, something like 12,000. Still I don't expect the same buying frenzy that is happening with the Volt. There are a lot of folks that want to see how the car performs in hot and cold environments before actually buying one.
The range extender of the Volt allows for flaws or overstatement of range (say the car really only gets 30 miles in charge depleting mode, you'll just need to use more gas) However if the LEAFs range is overstated, there really is no way around it. If you need to drive 80 miles a day and the car only goes 70 with the heater on, you're out of luck. There are a lot of people out there excited about it, but want to hear what real people say they are getting per charge under different driving conditions.
· Yegor · 1 year ago
I think that most of the Leafs will be sold in USA because Nissan set the Leaf price in USA at $32,800 (plus $7,500 government rebate) when in all other countries it is much higher at $43,000-$45,000:
http://en.wikipedia.org/wiki/Nissan_Leaf
· Tom Moloughney · 1 year ago
I remember reading the 12,000 unit figure a while ago so I wouldn't be surprised if it moved upward because of expected demand. I know we're not getting all 50,000 as was indicated in the above post though.
· George Parrott (not verified) · 1 year ago
After more than 6 weeks of attempting contacts and inquiries TRYING to get a confirmed order on a Chevy Volt, I finally found a responsive and non-exploitive dealer. Yesterday (5 Aug.) I did a price outline for the Volt on Edmunds.com and then at the end of that process, their website lists some possible REGIONAL dealers to have my specific request reviewed. I noted FAIRFIELD CHEVROLET on that list, a dealer enough distance from Sacramento that I had not thought of contacting them, so ....
Within about 3 hours I had a call from Danny Austin, their internet representative who reviewed my options list and about an hour later he called to confirm selling me my specific vehicle for MSRP. I now have my deposit paid ($1000) and an order number and by Monday or so I should have the full "production schedule" for the delivery of the first customer car (besides the 2 they will be keeping as demonstrators) they will receive. Fairfield Chevrolet is about half-way between SF and Sacramento, and Danny says their internet office will even DELIVER cars to out of town customers !
I never was able to get a final price quote from ANY Sacramento area Chevy dealer and one dealer simply told me "All Volts will come in without prior sales confirmations" and implicitly ..be subject to onsite markups ....Another dealer suggested that "market adjustments" would be placed on the Volt model somewhere around $3500.
Fairfield Chevrolet was a breath of fresh air in a very stifling sales atmosphere.
· Yegor · 1 year ago
George Parrott,
Thank you for the useful info!
I think this is exactly what we should do - share the information where there are honest car dealers and go there to buy the cars. Not all people are bad - there should some few honest people among the car dealers too. If these honest dealers will start to sell more Volts, GM will have to continue to supply them with new Volts.
If we fight together against dishonest dealers we will be able to beat them!
· Samie (not verified) · 1 year ago
I always say the key to future success by any auto-manufacture will be how fast they can scale-up or down production to meet consumer demands. This also means the ordering process and loan programs must change to meet new demands or to follow successful customer initiatives by other companies. So far GM as failed with the Volt to follow Nissan's ordering process, as created PR blunders, and acted as if they still own most of the American market, which means ignoring consumer demands and car buying expectations.
Picking up on George Parrott's great comment, his experience only works when there is enough suppliers of Volts in each state to be able to force actual competition among Chevrolet dealerships. Sure you can go out of state to buy your Volt but depending on the state, expect heavy taxes and fees to get your Volt registered in your home state.
Will we ever see auto manufactures try to muscle over the powerful dealership lobby? Not anytime soon but it is possible that in 20-30 years this will happen due to control issues and streamlining vehicle profits.
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Yeah, it is getting ugly. :(
Unfairness here is in the following: with regular cars a dealer get a sales commission for making a sale - for convincing a customer to buy a particular car. But here they do nothing! - the cars sale themselves. So it is a pure rip off :(
Yes, GM should do something about - create an order list and force dealers to sell car not higher (lower is OK) than MSRP.