Anyone needing to buy a new car during the pandemic has found that many dealerships are charging a markup due to car shortages. You certainly can’t blame dealer markups for the pandemic, because dealerships of all brands have been jacking up the prices of hot-selling cars for years in an attempt to squeeze as much money out of customers as possible. Chevrolet is currently taking steps to stop some unscrupulous dealerships from squeezing more money out of customers.
GM North America President Steve Carlyle recently wrote a statement that is reportedly sent to dealerships. In the statement, he notes that General Motors is working very hard to get cars to dealers so they have something to sell, and noted that the Corvette Z06, Silverado EV, GMC Hummer EV, GMC Sierra EV and Cadillac Lyriq have all been at a very high demand. Carlisle wrote that what has come to GM’s attention is that a small number of dealers are using “practices that do not contribute to a positive sales experience for our customers.”
He goes on to say that the dealerships’ practices are causing a backlash in the press that reflects badly on the GM brand and their dealerships. Specifically, Carlisle is asking certain dealers for more than the GM program reservations for these vehicles, and dealers requiring those customers to pay in excess of the manufacturer’s suggested retail price to buy or rent the car they want. The statement goes on to state that GM dealerships are required under their Dealer Sales and Service Agreement to “effectively, ethically and lawfully sell and promote the purchase, rental and use of products by consumers.” GM says any dealer that engages in unethical sales practices will see its distribution of best-selling vehicles redirected, meaning they won’t get one to sell.
Categories: Auto News
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