Price Gouging

[Thislife1977]

Koons is an interesting case study. Suburbans have a significantly lower market adjustment than comparable Yukons (even at the same store) and apparently Woodbridge, Virginia in Prince William County has higher demand and values for vehicles vehicles than Tysons Corner in Fairfax County. Who knew?

One would think that the same dealer group with two stores close by would use a consistent mark up. Additionally, it is interesting that they have variation with their Maryland stores as well and that Maryland is significantly less costly.

The one thing I can say is that I am “wowed” by the Koons WOW price, but not in a good way![/QUOTE

I think the Woodbridge store was a fairly low volume store in recent years - especially compared to the Chevy store down the road. While there is a military presence because of Quantico and other military facilities in the general area, we do not see the saturation that we once saw even 15 -20 years ago where half my bock was active duty military. Now, I think we only have a handful of active duty families in our subdivision.

Im referring to the young enlisted still living on base, not the NCO’s with families who live in lakeridge and other subdivisions

 

[Bob2C]

You can also check Chevy and gmc site for inventory. They list vehicles in transit to dealers as well. I have been looking at a suburban with the duramax now for about 2 weeks. As of Friday it was still at the dealer. They are moving fast but I think it’s mostly driven by the locality. I noticed if you do the buy online now option some give first responder discounts and some don’t give that option. Just dealer dependent I guess and the discount is not the same across the board. So it pays to shop around.


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[Rdr854]

Im referring to the young enlisted still living on base, not the NCO’s with families who live in lakeridge and other subdivisions

I understand. Very rarely see young enlisted Marines off post.

 

[vcode]

Once supply catches up with demand, prices will come back down. My local GM dealer has about 25 new cars on their lot when they normally have at least 200. Hell, Kia Telluride's are going for $5K over list around here. For a KIA!!!!!!

 

[Stbentoak]

Once supply catches up with demand, prices will come back down. My local GM dealer has about 25 new cars on their lot when they normally have at least 200. Hell, Kia Telluride's are going for $5K over list around here. For a KIA!!!!!!

With this chip issue, supply isn't going to catch up with demand for the foreseeable next 12-18 months min.. I don't think people have a concept of how big, or how damaging, this chip shortage has been and will continue to be for automakers. There won't be any dealer concessions or incentives for a good while....

Also FWIW, Tellurides have been selling over list price for well over a year in SWFL. It basically started within about 6 months of when they were introduced and hasn't stopped since....

 

[Quark]

With this chip issue, supply isn't going to catch up with demand for the foreseeable next 12-18 months min.. I don't think people have a concept of how big, or how damaging, this chip shortage has been and will continue to be for automakers. There won't be any dealer concessions or incentives for a good while....

Also FWIW, Tellurides have been selling over list price for well over a year in SWFL. It basically started within about 6 months of when they were introduced and hasn't stopped since....

Blame the global economy and offshoring for that. GM at one time produced chips in Kokomo, IN by their subsidiary, Delco Electronics. Delco was bundled with a few other parts manufacturers spun off and named Delphi. A few years later Delphi declared bankruptcy and those plants were shut down and the parts were sourced offshore.

The huge parking lots where electronic products for GMs and many other auto manufacturers were produced with over 15,000 tax paying employees sit empty and crumbling with weeds growing through the cracks. Today GM is begging the ***** administration for seed money to produce chips domestically. Yeah, I'm aware it's just one of many pathetic examples.

 

[2010gmcyukon]

Once supply catches up with demand, prices will come back down. My local GM dealer has about 25 new cars on their lot when they normally have at least 200. Hell, Kia Telluride's are going for $5K over list around here. For a KIA!!!!!!

Yeah I also noticed that this weekend. The Chevy/Cadillac dealer near me probably had 30 cars total on their lot. It looked so bad I was thinking they had shut down until i noticed the big sign "WE ARE NOT OUT OF BUSINESS, WE ARE STILL OPEN TO SERVE YOU".

 

[Quark]

Highly,Highly doubtful.The world is awash in oil. The price may be higher, but it won’t be because of a shortage....That’s what makes the Dmax attractive in this vehicle. Side benefit... no valve spring issues.....

We were more awash in the 70s.

 

[vcode]

With this chip issue, supply isn't going to catch up with demand for the foreseeable next 12-18 months min.. I don't think people have a concept of how big, or how damaging, this chip shortage has been and will continue to be for automakers. There won't be any dealer concessions or incentives for a good while....

Also FWIW, Tellurides have been selling over list price for well over a year in SWFL. It basically started within about 6 months of when they were introduced and hasn't stopped since....[/QUOTia's are a supply and demand issue as well.

With this chip issue, supply isn't going to catch up with demand for the foreseeable next 12-18 months min.. I don't think people have a concept of how big, or how damaging, this chip shortage has been and will continue to be for automakers. There won't be any dealer concessions or incentives for a good while....

Also FWIW, Tellurides have been selling over list price for well over a year in SWFL. It basically started within about 6 months of when they were introduced and hasn't stopped since....

It is supply and demand for the Kia's as well. The GMC dealer has plenty of Acadia's with a $5000-6500 incentive. The Honda dealer is packed full of new vehicles, but the Toyota dealer is lucky if they have 10 on the lot.

 

[vcode]

Blame the global economy and offshoring for that. GM at one time produced chips in Kokomo, IN by their subsidiary, Delco Electronics. Delco was bundled with a few other parts manufacturers spun off and named Delphi. A few years later Delphi declared bankruptcy and those plants were shut down and the parts were sourced offshore.

The huge parking lots where electronic products for GMs and many other auto manufacturers were produced with over 15,000 tax paying employees sit empty and crumbling with weeds growing through the cracks. Today GM is begging the ***** administration for seed money to produce chips domestically. Yeah, I'm aware it's just one of many pathetic examples.

And what is strange....they talked about turning the barely used Foxconn facility in SE Wisconsin into a chip manufacturing facility. But the critics say it is too far from the vehicle manufacturing plants. Really? You mean China is closer? How many chips fit on a semi-truck? It's gotta be better than what we are dealing with now.

 

[Rdr854]

Thankfully, I am set with my cars for the next few years.

 

[Marc Marc]

Just received my factory ordered AT4, with the max trailering package, and paid full MSRP despite normally getting the GM family discount and customer loyalty discount. Guess at least I avoided a second sticker cost!

It is not only us customers suffering the consequences of shortages; the dealer can't get inventory. When my AT4 was built a couple of weeks ago, the plant only built 11 that whole week. I was one of the lucky ones.

 

[tlockhart]

I found my Denali and had to pay sticker for it. I'd been chatting with every dealership within about 100 miles of me, and almost all of them were selling above sticker, or had some mandatory "green" "red carpet" type special. Usually adding about 2500-3k to the vehicle.

I actually got really lucky with mine, it seems that when mine was ordered, the destination charge was less than now, and the upcharge for paint was less. Got mine for 81,300 and the same exact specs were going at 82,600.

 

[Jwedge]

Nope, another location, same organization. On there website, they call it an “upfit” fee, although the supplemental dealer sticker calls it a market adjustment.

I worked as a district manager for GM and they call that "ADM" or additional dealer mark up. Have you checked with Zoom and the internet dealers?

 

[vcode]

I worked as a district manager for GM and they call that "ADM" or additional dealer mark up. Have you checked with Zoom and the internet dealers?

Which us buyers simply call gouging...... Same thing when a sheet of 1/2" OSB is over $50........

 

[Stbentoak]

I found my Denali and had to pay sticker for it. I'd been chatting with every dealership within about 100 miles of me, and almost all of them were selling above sticker, or had some mandatory "green" "red carpet" type special. Usually adding about 2500-3k to the vehicle.

I actually got really lucky with mine, it seems that when mine was ordered, the destination charge was less than now, and the upcharge for paint was less. Got mine for 81,300 and the same exact specs were going at 82,600.

Same tlockhart from the FPace forum? Did you buy a Yukon too? What did you get?

 

[swathdiver]

So how did we get here, indiscriminate buying? It looks like GM will use any component they can get on these high profit vehicles and people continue clamoring for them. For GM there is no downside.

The edumication and culture of millennials...

 

[abearsfan]

my friend wholesales cars for a dealer in NOVA and he showed me an auction price for a used 2021 Tahoe AT4 that went for 79K which does not include the fees! I asked him to sell mine if he can!

 

[Quark]

The edumication and culture of millennials...

Now it all makes sense.

 

[Bill Barnes]

Nope, another location, same organization. On there website, they call it an “upfit” fee, although the supplemental dealer sticker calls it a market adjustment.

I bought my 2005 Yukon XL new at Joyce Koons in Manassas. I have 202K on it, and I'm on a Historic Route 66 trip, returning home. I have 6600 miles on the trip so far, with relatively minor issues. I had been thinking about going to Koons to look at inventory, but after your post, I think I'll keep what I have!