Cadillac Dealer Price Gouging

[Rob]

Now this is interesting!

Cadillac Price Gouging: GM North America President Puts Dealers on Notice - Cadillac V-Net

Earlier today, GM North America President Steve Carlisle issued the following notice to dealers regarding market adjustments.

www.cadillacvnet.com

 

[Drozboyz]

Except he does not mention blackwings

 

[Rob]

Except he does not mention blackwings

I don't think he's going to single out just Blackwings when the communication pertains to the brands in general

 

[Drozboyz]

I don't think he's going to single out just Blackwings when the communication pertains to the brands in general

Understood, but he could have mentioned the blackwings in the list as we all know the price gouging going on

 

[Beamz27]

You beat me to it lol

 

[macky]

I don't think he's going to single out just Blackwings when the communication pertains to the brands in general

Agreed. It’s better the more generic he makes it. Among various GM vehicles I’ve searched for in the last year-ish, I’ve seen markups on Colorados, Tahoes, Yukons, and Escalades — in addition to the obvious cases of corvettes and blackwings. As a customer, I want the dealer network on notice across all brands and models.

 

[BrakeFade]

So will GM follow through with any punishments? Some markups are just ridiculous.

 

[Drozboyz]

Ouch

 

[Dirto-93]

I'm all for the 1 year agreement with a dealership that "thou shall not flip". I think Ford is going to do that with the new F150 lightning?

I feel like preventing customers from flipping will give dealerships less incentive to markup since that's what really gives them the evidence that they can do it.

 

[Rob]

I'm all for the 1 year agreement with a dealership that "thou shall not flip". I think Ford is going to do that with the new F150 lightning?

I feel like preventing customers from flipping will give dealerships less incentive to markup since that's what really gives them the evidence that they can do it.

Flipping new cars is a much bigger problem than a lot of people realize

 

[Speed Racer 007]

I don't think he's going to single out just Blackwings when the communication pertains to the brands in general

Agree. The fact he mentions the various agreements and ethics in place pretty much covers it and certainly puts the bad apples on notice

 

[RDATLTE]

They’re just following Ford’s lead once again. I believe that it’s a lot more pervasive than he wants to believe as well.

 

[Megamike55]

Ouch

Those bastards in Sarasota are cocky too. Said they’ll sell them easily when I asked if the mark-up was negotiable.

I went to Vera Motors in Pembroke Pines - very good dealer and put my order in at MSRP with $1k deposit

 

[Ryan]

We need to parse his words carefully. Selling cars lawfully and ethically does not prohibit dealerships from employing ADMs. Bribing politicians and exploiting capitalism is the shitty american way of life after all. Sports cars are not necessities, and your free to choose other options.

I think this is targeting dealerships that agree to MSRP when they take the order and a deposit, but then hit people with ADM as the delivery gets closer. One could argue this is an unethical practice, as a deal was made in good faith, even without a binding contractual agreement.

 

[Blackwing61]

I think this is targeting dealerships that agree to MSRP when they take the order and a deposit, but then hit people with ADM as the delivery gets closer. One could argue this is an unethical practice, as a deal was made in good faith, even without a binding contractual agreement.

Per Ryan's response above, that is how I read the letter. If the car is already at the dealership, not a customers pre-order, they can charge an ADM.

 

[Drozboyz]

Per Ryan's response above, that is how I read the letter. If the car is already at the dealership, not a customers pre-order, they can charge an ADM.

In the rarest of occasions, you will only see a bw at a dealer that was not ordered unless the dealer cheated (i know of one who did) or someone cancelled an order Proof is in the pudding, just look at how many folks here are at 1100

 

[Blackwing61]

In the rarest of occasions, you will only see a bw at a dealer that was not ordered unless the dealer cheated (i know of one who did) or someone cancelled an order imoa

Agreed. And if someone ordered a BW and put a deposit down with the agreement it would be at MSRP then it showed up and the dealership wanted a mark-up, I would be calling Steve Carlisle and the President of Cadillac. If this did happen to someone and they still paid the ADM I would be calling. I would bet they would get the money back.

 

[Drozboyz]

Agreed. And if someone ordered a BW and put a deposit down with the agreement it would be at MSRP then it showed up and the dealership wanted a mark-up, I would be calling Steve Carlisle and the President of Cadillac. If this did happen to someone and they still paid the ADM I would be calling. I would bet they would get the money back.

Its a damn shame… the owners of these dealerships are hosing people with adm because of lack of available inventory …. Sad but true

 

[SIX 40]

We need to parse his words carefully. Selling cars lawfully and ethically does not prohibit dealerships from employing ADMs. Bribing politicians and exploiting capitalism is the shitty american way of life after all. Sports cars are not necessities, and your free to choose other options.

I think this is targeting dealerships that agree to MSRP when they take the order and a deposit, but then hit people with ADM as the delivery gets closer. One could argue this is an unethical practice, as a deal was made in good faith, even without a binding contractual agreement.

That's pretty much what my dealer told me. No ADM for my sold order but if I back out it's going to be a stock order sold with ADM. Seems fair enough (as these things go lol)

 

[RupertH]

Flipping new cars is a much bigger problem than a lot of people realize

Is this the place where we hate on flippers? Cause I've got thoughts...