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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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.