Price Gouging

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Thislife1977

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I’m not sure why anyone would pay so much over MSRP. I had an interesting email exchange with Koons this week. In a nut shell he told me it’s a sellers market and I should not having any issue with them charging $5 or $10k (even $15k on some) because used car trade in values are up some…. Koons will never get any business from me.


DO NOT DEAL WITH KOONS!!!!! Especially the one by Tysons and Woodbridge! They will **** you. Generally NOVA is an affluent area so people WILL pay a premium for the vehicles they want. I purchased/ordered mine from Joyce Koons (not affiliated) and I purchased an AT4 $4000 under MSRP! They are good people. Ordered in March and took delivery at the beginning of May.
 

Thislife1977

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What makes you think a dealer HAS to accept an "ordered" vehicle at MSRP?

If you have a purchase agreement in Virginia, they HAVE to sell you the vehicle at the agreed price when you ordered the vehicle. Otherwise they will be in violation of the Consume Protection Act and you can file a lawsuit against the Dealer and GM! I’ve discussed the issue with a Lawyer. They will get in big trouble and can lose their Dealer license!
 

Stbentoak

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If you have a purchase agreement in Virginia, they HAVE to sell you the vehicle at the agreed price when you ordered the vehicle. Otherwise they will be in violation of the Consume Protection Act and you can file a lawsuit against the Dealer and GM! I’ve discussed the issue with a Lawyer. They will get in big trouble and can lose their Dealer license!

Yes this is true, but you are missing my point.... They do not have to agree to MSRP on orders.. They can still tell you +5k on an order or pound sand....
 

Gibby13

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We got the GM Supplier discount on our Denali, MSRP was 88k and we paid 80k. We were looking on GMC's website I called all the dealers within 2000 miles and it was probably close to 50/50 on if dealers were accepting the discount code, we were getting ready to fly to MI from SC to purchase one and decided the check the inventory again and found one within 3 hours that had just popped up, took off work and headed there.

Half way there they called and said someone else from my city wanted to put a deposit down and said if we wanted it we had to put a deposit down, so we put down 3k over the phone and came home that night in a sweet ride.
 

Chloe_21

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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.
I wish this was illegal. It’s unethical at least.

but it’s people who do not walk away because they have to have it now, that affect the rest of us!
 

Chloe_21

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We got the GM Supplier discount on our Denali, MSRP was 88k and we paid 80k. We were looking on GMC's website I called all the dealers within 2000 miles and it was probably close to 50/50 on if dealers were accepting the discount code, we were getting ready to fly to MI from SC to purchase one and decided the check the inventory again and found one within 3 hours that had just popped up, took off work and headed there.

Half way there they called and said someone else from my city wanted to put a deposit down and said if we wanted it we had to put a deposit down, so we put down 3k over the phone and came home that night in a sweet ride.


I ordered my vehicle at supplier pricing, before they jacked the prices up by $5K! I got a 2WD Denali for $80.6K in preliminary. Man I hope they don’t screw me over when it’s built and I get a purchase agreement. Lol.

I placed the order back in April. Since then, dealerships near me will not budge off markup or MSRP. =\
 

Bob2C

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If you don’t “need” a vehicle right now hold off. Let them sit on the lots. Gas will keep going up and there will be a glut of SUV’s for the picking with big discounts.


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91RS

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I wish this was illegal. It’s unethical at least.

but it’s people who do not walk away because they have to have it now, that affect the rest of us!

Why is it unethical? If people are lined up willing to pay it then the price is obviously too low. That's just business. Don't take what I said the wrong way, I didn't say I like it or agree with it. You're right that it will affect the rest of us because now the manufacturers know people will pay more than full price so don't expect to see many cheap cars down the road and don't expect full dealer lots either.
 

WaHooWa

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I ordered my vehicle at supplier pricing, before they jacked the prices up by $5K! I got a 2WD Denali for $80.6K in preliminary. Man I hope they don’t screw me over when it’s built and I get a purchase agreement. Lol.

I placed the order back in April. Since then, dealerships near me will not budge off markup or MSRP. =\

I posted this in another thread, I’m in a similar situation:
I ordered an AT4 in April and the dealer was offering $3,000 off msrp. They agreed to give me that along with the first responder discount. They contacted me today, the vehicle comes in this week, and told me GM is not doing supplier pricing and they would only do $1,500 off msrp. I asked to speak to the general manager but instead the finance manger called me back and said they’d give me $3,000 off plus an additional $500 off because that’s what the first responder discount is at. I also have a supplier code but they refused to do take that. I understand the supply and demand issue at this time but I would have bought one off the lot a month and a half ago if I knew they we’re going to change the price on me. Unfortunately I didn’t have anything in writing and I think I’m still getting a decent deal.
 

garymyman

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You guys who are getting supplier discount... are you suppliers? Or is that a general discount dealers can toss around if they want?
 

Gibby13

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You guys who are getting supplier discount... are you suppliers? Or is that a general discount dealers can toss around if they want?
You need a supplier or GM friends code.

Searching around and you can find someone that can get you a code, they are only good for 90 days usually though.

Sometimes GM will run a promotion where the supplier code is as good as an employee code.
 

Chloe_21

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I posted this in another thread, I’m in a similar situation:
I ordered an AT4 in April and the dealer was offering $3,000 off msrp. They agreed to give me that along with the first responder discount. They contacted me today, the vehicle comes in this week, and told me GM is not doing supplier pricing and they would only do $1,500 off msrp. I asked to speak to the general manager but instead the finance manger called me back and said they’d give me $3,000 off plus an additional $500 off because that’s what the first responder discount is at. I also have a supplier code but they refused to do take that. I understand the supply and demand issue at this time but I would have bought one off the lot a month and a half ago if I knew they we’re going to change the price on me. Unfortunately I didn’t have anything in writing and I think I’m still getting a decent deal.
Damn! All I have is an email stating the agreed upon OTD price. When it’s built, I’m going to ask for a purchase agreement. I asked before but said they needed a ViN n umber
 

Chloe_21

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You guys who are getting supplier discount... are you suppliers? Or is that a general discount dealers can toss around if they want?


I do not have a supplier code. What happened was I sat down with a salesman and I basically told him what I wanted to pay out the door. I didn’t want to pay very much more he said that they did not do educator or college student discounts, which I qualify for both, so he looked at it; he said the only way he could do it is with the supplier pricing at the time. He priced a four-wheel-drive so it was going to be 82,000 out the door, at the time I didn’t know what Carvana would’ve bought my car for had I known I would’ve okayed it right there and ordered, but I said I needed to think about it. Well thinking about it and with the person I brought with me when I test drove, I wasn’t very fond of that dealership or sales people. They had tried to screw me over before when I bought my previous vehicle, and just the attitude for asking to test drive I wasn’t liking very much. The person I had with me noticed what I was seeing in the attitude and all that.

So I looked around elsewhere, like a dozen or more dealerships even out of state asking about college discount & educator discount, none of them were doing GM pricing some we’re not even doing employee pricing.

I asked around if they would match with my local GMC was going to do the way that they were going to do it was a supplier code or supplier pricing to get around the educator and college student discount that they were not doing. No luck for days, until I found one that was like an hour away from me; they said that they would honor it. I even heard about the supplier code and I got so nervous so I asked him do I need a code for this he responds I don’t understand what you mean a code, so to me that was looking pretty good!

prior to agreeing to on an out the door price, before placing the order, I completely explained the situation on how my local dealership was going to do supplier pricing in exchange for the GM Educator and College student and the supplier pricing was actually the same amount as a college student pricing and to me it seemed like he was OK with it . I even explain why I didn’t really want to do business with them from my past and recent experiences.

I understood GM incentives may change and may not get an additional $500 towards my purchase and what not, so that was never priced, that was gonna be left for at the time of delivery but he always left it open that the state could change the taxes by the time I take delivery.

But there is no purchase agreement due to the fact that there was no Vin number for the vehicle. I even spoke to him recently on the phone and it still sounds like I am good on my out the door price unless if GM decides to revoke the supplier pricing by the time the vehicle hits the lot unless if I get a purchase agreement which I will ask for again once my vehicle has a production week or is in transit.

i’m honestly hoping this works out because I placed this order way back in April. I have been waiting seven weeks, this week, for allocation and I check in every now and then; plus I’m next in line for allocation.

There are people who do get lucky like Rivard GMC in Florida, they take off a good chunk of $ and don’t BS you from what I hear. There’s someone in a Facebook group that I follow he got very lucky too! he got a little bit over 8000 off the MSRP price with them and he said that is the price that he will pay, they will not go up on the price at all; but they will go down in like if incentives come in. But he’s locked in to that price. he is extremely lucky that the dealership did that for him. I heard that there are dealerships that will completely BS you and have you come all the way to the dealership only to be told they’re going to mark up the price an additional $2500 or more and people of had to walk away from vehicles they ordered. Or they’ve had to get a manager involved in order to get the price that they were guaranteed.

i’m sorry this is so long.
 

Tiki

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Y’all should see Alaska pricing. Used vehicles don’t depreciate, people selling spots in the que for $1000. Bonkers.
 

K2 Kaiju

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Well, you can always buy a ford [emoji1787]
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Rdr854

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Don’t knock the Expedition. The new one is not a bad vehicle. When I got my 2019, I seriously considered an Expedition Max. However, for the out the door price, the Suburban was a better value and better equipped as a base LT vs. an XLT that was not loaded. As one who does not tow, both vehicles could easily meet my need as a people hauler and as a cargo hauler.
 
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Bob2C

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What I have always wondered if GM was charging dealers more for the vehicles, not giving holdbacks etc? Just like dealers are doing to retail consumers or are dealers still getting all incentives, paying what they always have and making more money from the average buyer.


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K2 Kaiju

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Don’t knock the Expedition. The new one is not a bad vehicle. When I got my 2019, I seriously considered an Expedition Max. However, for the out the door price, the Suburban was a better value and better equipped as abase LT vs. an XLT that was not loaded. As one who does not tow, both vehicles could easily meet my need as a people hauler and as a cargo hauler.
Im not saying they are bad, but value is also determined by trade in which blows with the expy. People say they arnt brand loyal, and thats fine. I AM brand loyal because of trade in value and very few issues with my gm body on frame vehicles. I NEVER buy the first 2 years of a new gen, finding the best value as a left over previous gen. There is no way I would pay sticker right now as these will be heavily discounted again as gas rises...

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mikew2069

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What I have always wondered if GM was charging dealers more for the vehicles, not giving holdbacks etc? Just like dealers are doing to retail consumers or are dealers still getting all incentives, paying what they always have and making more money from the average buyer.


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Pretty sure the dealers are getting all the benefits here.
 

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