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 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?