Price Gouging

[Rdr854]

I stopped by a GMC dealer in Northern Virginia to look at a Yukon XL. The dealer only had Denalis and one AT4. While I understand that there is a shortage of new cars, I thought that a $15,000 market adjustment was ridiculous. I get that dealers are getting short on inventory and that a reduction in incentives and discounts is reasonable based upon supply and demand. But adding $15,000 for the privilege of buying a vehicle is just plain wrong.

As an aside, my Chevy dealer said that OEMs have taken notice that vehicle transaction prices have increased substantially with limited manufacturer incentives and that we should not expect inventory levels to return to the overstocked levels that we have seen for the past 30 years or so. He predicts that there will be more special ordering in the future, which will significantly reduce the need for dealer discounts and manufacturer incentives.

 

[EMTPete]

Sounds like you have come across Koons in Tysons. I agree the $12.5k and $15k they are trying to charge on the new Denalis is absolutely crazy. I also live in NOVA and have realized that dealers that just a short drive away (such as Leesburg and Warrenton) are not nearly as greedy.

 

[MelloYello95]

Its a crapshoot everywhere

 

[Rdr854]

Sounds like you have come across Koons in Tysons. I agree the $12.5k and $15k they are trying to charge on the new Denalis is absolutely crazy. I also live in NOVA and have realized that dealers that just a short drive away (such as Leesburg and Warrenton) are not nearly as greedy.

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

 

[Stbentoak]

I see this as a new paradigm shift in vehicle purchasing. Just like housing, prices will start at MSRP. There will be no negotiating 5 to 10% off like there was in the past. MSRP will be the sales price and if the vehicle is a hot ticket it will be MSRP plus if you want it. I’ve read that many places, and by a year from now this will be the new normal.

 

[Quark]

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.

 

[Stonefort]

Can't blame them if you have people out there paying it. Try somewhere else.

 

[Stbentoak]

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.

That's one reason NOT to wait for a 2022. GM could easily raise base prices 2-3K and still be sold out. There won't be any material changes to the 2022's. Things could get better... But they could go higher too !

 

[Quark]

That's one reason NOT to wait for a 2022. GM could easily raise base prices 2-3K and still be sold out. There won't be any material changes to the 2022's. Things could get better... But they could go higher too !

I just keep reminding myself how enjoyable $125 plates are while watching my earmarked funds go up with the market. Besides I'd like to see what they do to the Navigator as I kind of prefer the styling. Everyone's situation is different but for me I choose to keep my options open for the moment to see where this is going.

The direction we're headed there may be gas shortages by next year and these things will have $9,000 rebates, one never knows.

 

[Thislife1977]

Sounds like you have come across Koons in Tysons. I agree the $12.5k and $15k they are trying to charge on the new Denalis is absolutely crazy. I also live in NOVA and have realized that dealers that just a short drive away (such as Leesburg and Warrenton) are not nearly as greedy.

While not 15k greedy, all GMC dealers in the DMV are adding “market adjustment” fees. Most are charging between 1500-5000. If you want to purchase a vehicle at MSRP in the DMV, buy a Chevy. FYI Country GMC in Leesburg is on the highside of “market adjustment. Look further west....Roanoke, Harrisonburg, etc......

 

[91RS]

They wouldn't do it if people weren't paying it.

 

[Rdr854]

While not 15k greedy, all GMC dealers in the DMV are adding “market adjustment” fees. Most are charging between 1500-5000. If you want to purchase a vehicle at MSRP in the DMV, buy a Chevy. FYI Country GMC in Leesburg is on the highside of “market adjustment. Look further west....Roanoke, Harrisonburg, etc......

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!

 

[Stbentoak]

The direction we're headed there may be gas shortages by next year and these things will have $9,000 rebates, one never knows.

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.....

 

[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!

The reason the Woodbridge store moves more units is its close proximity to Quantico. Young Service Men/Women love to purchase new vehicles and they get the Military discounts.

 

[Sparksalot]

They wouldn't do it if people weren't paying it.

What the market will bear.

on the other hand, my twins have a lot of miles left in them.

 

[Bob2C]

If you really want a new vehicle search nationwide if your willing to travel. I will not buy a new car in the DMV area. I usually go to North Carolina but haven’t tried under this new atmosphere. The Yukon’s are in tighter supply than the Tahoe’s. But like many said if people keep paying the price then they will keep charging. We have to remember, people have boat loads of money. No vacations, no eat out dinners, forbearance on their mortgage etc last year. I have friends that never lost their job or had a decrease in pay, made boat loads in the stock market but yet called their bank and did the forbearance. No verification needed just say you fell on hard times. Most used kids home from school as justification in their mind but nothing required. So what’s an extra 15k to them when they didn’t have a mortgage payment for a year and made boat loads in the market. Just my .02


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[tomgilk]

Want the best deal? Use Auto Trader and search nationwide. Shipping is nothing compared to the markup or fly out and road trip it back. There's always deals to be had.

 

[tomgilk]

It's crazy to think even in October I was able to walk into Miami Chevy and get it for less than the 58k sticker. Things change quick.

 

[Rdr854]

The reason the Woodbridge store moves more units is its close proximity to Quantico. Young Service Men/Women love to purchase new vehicles and they get the Military discounts.

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.

 

[Rdr854]

Want the best deal? Use Auto Trader and search nationwide. Shipping is nothing compared to the markup or fly out and road trip it back. There's always deals to be had.

Sound advice. I’ve always used cars.com to research prices to make sure my local price was reasonable. When I looked at LT Suburbans this weekend online, I recall that the starting price was MSRP.

There are advantages to buying local, and a few hundred dollars in price difference is not a reason to go out of town. Having a relationship with a good service department is paramount because they can go to bat for you when you get into a grey area.