A GMC Hummer EV Pickup Edition 1 buyer who was excited to take delivery of their battery-electric pickup was instead left dismayed after the dealership applied a $50,000 markup to the vehicle at the last minute.
The customer, who anonymously relayed his experience to enthusiast blog Jalopnik, was able to secure a reservation for the limited-edition GMC Hummer EV Edition 1 when the automaker first opened reservations for the vehicle in 2020. On March 17th, he was informed by the dealer, Penske Buick GMC in Cerritos, California, that the vehicle he had pre-ordered had arrived at the dealership.
When he got to the dealer, the salesperson greeted his wife and him and offered him the keys to the vehicle to take a test drive. After a short spin in the vehicle, they walked into the salesperson’s office to do the usual financial paperwork. It was at this point he realized the dealership had applied a $50,000 market adjustment to the vehicle, bringing its pre-tax asking price from the manufacturer’s suggested price of $110,295 to $160,295. After taxes and other registration/licensing fees, the transaction would have totalled $177,013.85.
The customer obviously balked at this asking price and ended up walking away from the dealer. He later called GMC to ask if there was any recourse he could take, but he told Jalopnik the automaker was of no real help and only took his name and information to create a case file.
GM has already warned dealers over applying so-called market adjustment fees to in-demand products like the Hummer EV Edition 1. In a letter sent to dealers earlier this year, the automaker said it was aware of some dealerships that have been “demanding money above and beyond the reservation amounts set in GM’s program rules,” and would be “forced to take action if it learns of any unethical sales practices or brokering activities that undermine the integrity,” of its brands. This could include rerouting popular products like the Hummer EV SUV to other dealers or taking “other recourse prescribed by the Dealer Sales and Service Agreement.”
While GM is not a fan of this sales practice, the automaker has no legally-backed way to force a dealer to sell a vehicle for a certain price. We wouldn’t be surprised if the dealer was able to find a customer willing to pay this $50,000 market adjustment fee, either, as a Hummer EV Edition 1 recently sold for nearly $300,000 at auction – making this $177,000 price tag seem like a bargain.
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Comments
This junk isn’t even worth what they are asking now let alone a 50k mark up.
Where would you price it?
Nowhere near the 112,000 they want for the edition 1. $70-80k maybe. This potential buyer should of joined a forum like the bronco6g guys. Go look what happens when a dealer pulls this stunt on there. Those guys ban together and bombard the dealer and even get mike Levine he’s some big wig at ford involved. Now it hasn’t worked for everyone but it’s worked for a lot. Maybe no hummer forum exists but they should make one then and do the same thing.
a bit expensive I agree, but I think they did the 1st edition with the insane power and fully loaded features as a bit of a shock value and marketing. But now imagine if a couple years from now, they drop a smaller lower powered version for $70k. Then it competes with the Tesla Model Y. Kind of like with the H3 Hummer compared to the H2 Hummer from back in the day.
It is GM’s fault for pricing this so low, what were they thinking? Just make it $165K and call it a day. You can see why we don’t need any EV rebates from the US Treasury.
You are, of course, basing your “junk” judgment after your tens of thousands of testing miles in several examples, correct?
My neighbor got his about a month ago. Since receiving it I’ve not only rode with him I also drove it over two hours last weekend going to Vegas. It doesn’t have tens of thousands of miles on it yet but would you like me to report back when it reaches that mileage? If not please tell me a mileage you deem fit that allows me to say how I feel and think about it.
What a brainless remark. Really Shawn…
I’ve been inside and driven one have you?
Yes. And driven it. The market dictates the price, and GM is selling every example they’ve made. So apparently, the price is perfectly fine.
I’ve driven one as well my neighbor owns one. Why are you responding for the person above?
I mean, it’s a really cool EV, but I’m just not sure it’s $177k worth of really cool.
GM needs to do something to get serious about dealer markups, but I don’t know what they even can do. Do the laws permit anything to be done about this?
Pitiful you aren’t trying to hide it now. You continue to use my name instead of just your trump name, you just replied to yourself 3 times in 2 minutes.
Stick with your trump name. I get it you got embarrassed yesterday from being called out now you wanna use my name but sorry nobody is falling for it. You’ve already been caught twice placing the name in the wrong spot.
Today on the Chevy trax article at 2:02pm you wrote what are your thoughts on the future trax replacement. Also today on the watch the 2023 Cadillac lyriq being built at 2:17pm you wrote what are your thoughts on the lyriq’s styling? Only difference you wrote the lyriq response from the trump username. If you wanna impersonate me make sure you don’t make these mistakes next time.
Just don’t make those mistakes next time. The spelling and the way you type gives it away. I get it makes you mad you got called out but you’re super sloppy with the impersonating.
You two. Get a room!
Apparently, it is to someone…
“we fly high, no lie, you notice…. baaaaalllllllliiiiiiinnnnnnnnn”
Seeing stuff like this makes me mad. This is not right, and is doing harm to GM’s image.
For example when GM released the new C8 Corvette Stingray, it was supposed to have an MSRP of $60k USD ($70k CAD). Which was the selling point, you could get into a mid engine sports car for a really affordable price. Then these sketchy dealerships mark them up to like $100k. Which COMPLETELY defeats the point of the car, because Corvettes are supposed to be affordable sports cars for the WORKING CLASS. GM is still the best for giving us such a great car for such a low price, but these dealerships should get fined by GM for doing this.
Yes, the dealers did this, because some people have to be The First Kid on the Block to have [insert new thing here]. It was done with the Honda Civics. PT Cruisers were in very high demand and dealers were marking them up so high that Chrysler laid down the law. Some dealers skirted this by selling the cars to their own employees, driving them a few miles, then putting them on the used car lot at crazy prices, but out of reach of Chrysler’s demands. (I loved it when within two model years, the cars went from high demand to manager specials.)
The way autos are marketed, these high prices are both legal, and done every day. People can’t say “no”.
Imagine being the guy who was willing to spend $110k on a GM product, then after waiting months to get his car with all the anticipation and anxiety, goes to the dealership and was told now he has to fork over another $50k. This stupid dealership probably made GM lose a good customer permanently. Customer loyalty is worth way more than the money made on ONE sale. That dealership lost a lifetime worth of sales from a good customer over one greedy sale.
I’m a bit surprised it’s one of Penske’s stores, their reputation WAS better than that. I more expect that sort of thing out of a dealer network in Portland whose name is the same as a certain gulf near Vietnam.
Sounds like the sort of story a local TV station’s Consumer attack dog would pounce on.
That is his best recourse, some of the news hounds love to get involved in cars & this would get their panties all in a bunch!!
Burn the dealer on social media! Name names.
They would not get away with that if it was Ashton and Mila.
GM needs to start selling direct.
Cut out the middle man.
Let the dealers make their profit off service and parts.
The funny thing about this article is not that dealers are marking up prices. It’s the fact that GM posted this article on their website saying they have acknowledged that dealers are just jacking up the prices because they can. They have sent a “LETTER” to all dealers, warning them not to do this or they will take action. So, this dealership went against GM, and then the customer turned to the manufacturer like “what the heck,” and GM “turn a blind eye” and does not help. GM doesn’t care. GM is all bark and no bite. GOD forbid them to put their customers first.
Consumers are flipping them for 300k. Easy way to make 100k.
There are some people with so much money they don’t know what to do with it. Sounds kind of sad and boring
What is really sad is that the dealership could care less about the effort and anxiety endured by the person that made the original reservation to just sell it to the idiot that is willing to tremendously overpay what the vehicle is worth. These actions by all dealerships make the reservation systems that both GM and Ford put in place worthless. The dealership did NOTHING beyond any other normal vehicle order to a committed customer to EARN the $50,000 adder. Too many fools in this world think that they are so much better than the rest of us because they can overpay for something that they want more.
I don’t see GM selling more than 5,000 Hummer EV’s a year due to the many reasons mentioned here. Some GMC dealers don’t even want them in their showroom.
Every GMC dealer wants one in the showroom.
In the next downturn, let these M-fers go broke ,like they should have done in 2008!!!!!!!
Every dealer doing such exorbitant practices deserve to go out of business…period. And GM ought to put their money where their mouth is as its bad PR at least for them.
My dealer in GreenBay wis Gandrude Chevy doesn’t do that. That’s why I just bought 2 new 2022 trucks from them . Others here in area do … thanks Gandrude Chevy GreenBay wis.
Out of line dealer markups like this just add more fodder to those that oppose EVs. You are already paying a premium right now over an ICE vehicle and then get hit with a dealer adder that is than you would spend in 20 years on a 3/4 ton pickup that gets 10-12 mpg. Boils down to greedy short sided dealerships. Reminds me of the time I had a sales manager come in to talk me into paying a price that was too high for a used middle of the road Corvette. He made the statement that “we know you can afford it”. I told home politely that yes I can afford it, but the car is not worth near what you are asking. I walked out the door and never dealt with that stealer ship again since.
In my market, most things from appliances to vehicles are in short supply and have “mark-up”
Local dealers are more like used car lots. I expect another year of this. Broken global supply chains aren’t quickly repaired. All i can hope is we learned our lesson, but i fear not
He should say “let me take it out for one more drive just to be sure”…then “oops, sorry”…abuse that hummer so it would be hard to sell as new. What today’s world needs is greater consequences for unsavory behavior…
How I’d this not “bait and switch”? Which IS illegal, and could have the dealer looking at Civil liability as well as criminal. If the price was agreed upon, prior to ordering and then suddenly the price is switched after delivery, this is THE DEFINITION of bait and switch!!!
Karma will be coming for dealers that are not up front and gouge customers. Especially in this case. The guy was patient, waited 2 years and then got slapped with a big FU charge. Their excuse is the tough time they have gone through during the pandemic. Welcome to the club. It is also incumbent on buyers to ensure when placing a deposit that they have a contract which states no more than MSRP.
Yep and when this is over that dealer will want to be “your friend can I help you?”
Yes, OOPS! I hit a fire hydrant! Sorry, thanks anyway.
I have been on record for some time now that if Legacy Automakers do not Lobby Congress to rid themselves of these awful 100 year outdated laws they will die a slow death. The startups are ONLY making BEV’s and younger people want absolutely nothing to do with Dealerships. I ordered my Tesla in literally 5 minutes from my iPhone. Then when the Vin was being built it took me another 30 minutes to finish off my load requirements……again all from my iPhone.
Then I picked up my car with everything done remotely at the Tesla store. I spoke to not one single person. It was an amazing experience and I will NEVER again go to a dealership.
I would love to come back to GM but they need a car that is fast like a Tesla and where I don’t deal with any dealer at all. Maybe just to pickup my car but everything is done on my cars screen and the paperwork is sitting in my car to sign or something. I know it most likely will never happen but one can hope and pray. Maybe by the time there will be a Lyriq Blackwing or something…..Please GM make it happen!!!
Legacy better figure something out and figure it out ASAP in my humble opinion.
I too was given a $50K markup and had to walk away. Signal Hill, CA dealership.
If more people walked away Corvettes would fall like a rock. Some how it’s not the dealers or the brokers charging the extra money it’s the people THAT BUY THE CARS. In my opinion if they are dumb enough to pay those prices it’s on them. Don’t get me wrong I am not siding with dealers. I can buy a Corvette at sticker but who wants all of the hassles involved and wait 18 months if I am lucky(?)
Plenty of owners took their H1’s off road– it is arguably the best performing (in stock form) and comfortable 4- wheel drive vehicle out there!
I see Lebron James in a commercial for the HUMMER He probably got one for payment.
When your manufacture date of your Hummer is coming due you will receive an options order request and final order. They give you contact info for an outside EV charger install broker of sorts for your charger, which is free for the Edition 1. They tell you to contact your dealer NOW to finalize your price. If you either don’t like the answer or they won’t give you one you have the right to change your Dealership for delivery. I called the dealer that I had chosen and asked about any market adjustments while mentioning that another local dealer had already assured me that they don’t have them. Of course my dealer agreed in the email that they would not add any market adjustments either. Got Them!
Roger Penske needs the premium dollars to support his racing division and trucking operations.
To me the $300K price realized at auction for a Hummer EV is bogus. Promotional marketing con job.
No Marc Spence it’s like when someone gets arrested they spend time in jail, then they go on trail with a lawyer… Which can be delayed or they make a decision right there then the person goes to real jail time for the crime… It’s not call the police and you go to the state penitentiary! The same thing here it has to be investigated and see how the dealership marked up prices, how many times… Then hand out judgement the person said that GM said this… It’s the same with any company! What really needs to be done is to get rid of dealerships once and for all.
😂😂😂😂
300k at auction….
177k after markup
110k at the gate😛
Get real….. their employees would have to work longer than the battery would last to pay it off😂😂😛😛facts
I’m good!
The auctioned vehicle price went to a charity with no commission to the auction company.
How I’d this not “bait and switch”? Which IS illegal, and could have the dealer looking at Civil liability as well as criminal. If the price was agreed upon, prior to ordering and then suddenly the price is switched after delivery, this is THE DEFINITION of bait and switch!!!
Penske is knowen for that crap. I when to one of tjere dealers for an Escalade at was 40k over MSRP.
Went some to other dealer out of state and got it for MRSP.
Just a $50k markup? My dealer—Freeman Buick GMC in Grapevine, TX—wouldn’t even give me the final price when it came in. They just said they were thinking of marking it up $80-180k based on recent sales prices. Total BS because they had me verify the build and price right in front of them, but they didn’t offer anything committing to the price before it came in. They knew they could jack it up when it arrived and I would decline it. GMC/GM needs to get control over these dealers. How hard is it to make the final price part of the process?
I know it’s unpopular but I’m forever astonished that people cannot understand supply and demand. If a product’s demand increases, so will the price. Why should dealers be forced to sell a wildly in demand vehicle at MSRP to then have those buyers sell them on a secondary market at an absurd markup? Why does someone who got their name on a list early get to make a windfall when a business that has to pay employees and market these products need to make a predetermined amount per car? Do you think dealers are sitting pretty selling 25% volume because of supply chain issues? Are sales persons not entitled to make a living with significantly reduced volume of sales available? Vehicles are commodity products and pricing is dictated by the buyer not the seller. Remember that.
If you were a GM dealer salesman or any car salesman and did a surprise $50K premium price markup on a pre agreed good faith deal on a vehicle in the Northeast or New Jersey, to a Paisan, you would end up either horizontal in a back alley or swimming with the fishes at the bottom of a lake.
Of course dealers and any business should be able to make a profit. The concepts that seem to be eluding both you and these particular dealers are ethics & ethical business practices. Laws address some of this in business at the most egregious and/or easily defined levels, but not all aspects of ethical human behavior can be governed…in other words, just because you can do something (including but not limited to taking advantage of your customers), doesn’t mean you should.
There is a way of doing business. What was described is just plain wrong and unethical. No-one is against a dealer making a profit and if you want to stop the flippers, you write it into the contract that they cannot re-sell within a specified timeframe. What is clear to me is the sheer greed of some people.
When we changed my wife’s car early last year, all this nonsense was just starting. Having bought 5 Acuras over a 20 year period, at the same dealership, they lumped me in with everyone else and gave me the same tired BS. Long story short, they have lost my business FOREVER. Never will be back to buy an Acura.
Buyer should file complaints with the California Attorney General’s office and California Consumer Protection agency for unjust enrichment by Penske. Also complaint to California auto dealer licensing authority for fair dealing breach.
I hate to see rip off stuff like this.
Well, GM could just do as Tesla does and sell directly to the customers.
In the 21st century, almost anything which can be sold in a physical store can also be sold online so just cut out the middlemen if they’re too much trouble for their worth.
I can’t understand why, an individual comment on a GM post, just to trash their products?????
Some unfortunate people are vicious and vindictive. They were not loved as a child and possibly bullied and molested as a child.
The dealer model is anti-consumer. I will never buy a vehicle that way.
And just wait until the GenZ kids really start buying new vehicles. This is going to seem antiquated and ridiculous to them. And they’ll end up buying a Tesla/Rivian/etc.
I’d be filing a lawsuit. Bait and switch is illegal.
This experience is the perfect example of GM’s poor customer experience. GMC should find that buyer another Hummer at another dealer or another off the assembly line and deliver it to the customer. It would be a lose for the gouging dealer, but it would be a win for the customer and for GM as a brand. GM better take notice that if you piss of the loyalists at this point, they are not coming back.
At the reservation process, you choose the dealer. I’ll bet the customer regrets choosing that dealer!
we saw a Hummer EV clocked in at 200k Markup! ha
https://markups.org/gmc/seth-wadley-gmc.html
I wasn’t surprised one bit that the Chevrolet dealer was Penske in Cerritos. They have one of the highest markups on C8 Corvettes in the area. I’ve read some awful reviews regarding their customer service. Personally, I’m staying away from this dealer.
Eric: Roger Penske should be informed about this as his otherwise good name and reputation is taking a big hit.
Wonder if Roger is in a nursing home and his lieutenants are running the show like what they did to Howard Hughes in his senior years. ???
I’m from Cleveland, Ohio, Roger’s hometown ( Shaker Heights ), and I know Roger would not stand for hosing the customer.
BTW: The Penske’s and the Paul Brown family ( Cleveland Browns ) lived close to each other in Shaker Heights ( suburb of Cleveland ).
We should get the government to create a car dealer mark up bill that gives every prospective customer extra 50k mark up rebate upon signing for the vehicle in finance. Lol