Chicago Tribune: Don't pin the blame on GM for dealer's greed

[camaro5]

AUTO LETTERS BY JIM MATEJA


June 28, 2009


Question:

In November, I was promised a price on a new Camaro at $500 below invoice, and I would be in the dealer's third allotment of vehicles. I called about my vehicle last week and was told my order couldn't be placed because they were selling cars only for well over sticker. The dealer has three Camaros and each is listed at $15,000 over sticker. I think I know why GM is going out of business.

A.B., Chicago





Answer:

Here's a few things you don't know. General Motors sells cars to dealers, not, repeat, not, to consumers. The dealer is the factory's customer. If the dealer is adding a premium over sticker, he's the one playing games, not GM. That $15,000 goes right in his pocket.

And GM can't turn the dealer over its knee and spank him without violating federal and state franchise laws.

Likewise, GM can not tell the dealer what to sell a car for because that would be price fixing, another federal offense.

So your episode isn't why GM is going out of business, but a story of a greedy dealer, which we've written about dozens of times.



You have two choices: Pay $15,000 over sticker and get a car, or wait for supply to catch up with demand and pay a more respectable price.

Actually, you have a third choice: Get your $1,000 deposit back and shop around, though lopsided demand means you won't get a Camaro at $500 under sticker anywhere.

If you want to let Chevy know what dealer is charging $15,000 over sticker, e-mail general manager Ed Peper at ed.j.peper@gm.com.

http://www.chicagotribune.com/busine...tory?track=rss

[drivingincamaro]

BOOOO at Greedy Dealers

[jdbaker82]

GM going out of business has nothing to do with certain dealerships marking up 2010 Camaro's they are going out of business because the 2010 Camaro is the only vehicle they have even had a chance to mark up because the demand was higher then the supply.

[marticus24]

Also - last time I checked, GM wasn't "out of business". Business is slow, but they're not OUT of business.

[UCI CamaroFan]

ima email ed pepper.

[electlatino]

you know, i'm kind of tired of this double standard. when it comes to anything that would lower the cost and put the customer in a better position, it's always the same answer...sorry, the manufacturer won't let us do that. and this is true of all car companies, not just GM

but when it comes to screwing us out of more money, it's no longer up to the car company! because, of course, the car companies have no power over the dealers in any way!! it's a double standard that we buy into. and it's pure and complete

and we're not talking about dealers that just want to charge high prices. they are free to do that, no problems from me on that ground...i'll just shop somewhere else. i'm talking about dealers that make a deal to sell at a certain price, then after the fact, change prices, start marking up, refuse to sell the car to the person who made the order. this is dishonest, breach of an agreement, and in some states, illegal. but of course, GM (and all other car companies) don't want any part of it...once the car leaves their hands, you left to fend for yourself dear customer.

[paulsandhu]

Thankfully in Canada... its against the law for dealers to sell above MSRP for new cars.

[DntWrryBeHappy21]

Originally Posted by paulsandhu

Thankfully in Canada... its against the law for dealers to sell above MSRP for new cars.

thats freakin awesome

[marcgo2]

All the indignation in the world isn't going to change anything. Dealers are greedy and some people have more money than brains. Just remember who these dealers are and don't give them your business now or in the future.

[len56]

Originally Posted by paulsandhu

Thankfully in Canada... its against the law for dealers to sell above MSRP for new cars.

wait, really? that's sick

[Captain Awesome]

Originally Posted by paulsandhu

Thankfully in Canada... its against the law for dealers to sell above MSRP for new cars.

So, what do the dealers do? Drive 'em for 100 miles and sell them as USED for $5000 over sticker?

[levi1922]

Originally Posted by paulsandhu

Thankfully in Canada... its against the law for dealers to sell above MSRP for new cars.

one step closer to socialized auto dealerships

[Andro]

[Rodrunner]

Originally Posted by Captain Awesome

So, what do the dealers do? Drive 'em for 100 miles and sell them as USED for $5000 over sticker?

Nasty thought, Captain, but you're right, there's almost always a way around the law.

Originally Posted by levi1922

one step closer to socialized auto dealerships

I SO don't like the sound of that , but must admit you might be right.



So, C5, while I agree with the report, I can't help but see the two-sided coin here....uncontrolled dealer greed & buyer ignorance, or in some instances, buyer greed too....I'll pay anything to have that car. Those without limitless finances must be be cautious and informed! Thus....Camaro5!!!!!!!!!!