While the 2023 Cadillac Lyriq Debut Edition has a rather reasonable manufacturer’s suggested retail price of $59,990, this price is just that: suggested. GM can’t force its dealers to sell its products for a certain price, so it should be no surprise that some of them are trying to charge much more than MSRP for the highly sought-after Lyriq.
One of which is a dealership in Thousand Oaks, California that’s attempting to apply a markup to a customer’s 2023 Cadillac Lyriq Debut Edition. The customer in question, Melanie, managed to successfully place a pre-order for the 2023 Cadillac Lyriq Debut Edition when GM first opened the order books last year. When she inquired about her vehicle online, a sales rep from Silver Star Cadillac informed her they would be applying a $5,000 market adjustment fee to her allocation due to “high demand and limited supply.”
“I was able to independently confirm a preorder for Lyriq and was asked to select a dealership,” Melanie said in a post on Markups.org. “I had inquired online and was told nothing of this mark-up until they received MY allocation. No way, no how! I don’t suffer fools gladly, especially greedy fools!”
While we can understand this customer’s frustration and certainly don’t blame her for walking on the sale, this isn’t such a bad markup compared to others we’ve seen in recent months. For example, a GMC Hummer EV Pickup Edition 1 reservation-holder was slapped with a $50,000 markup when he turned up at Penske Buick GMC in Cerritos, California to pick up his vehicle. Not surprisingly, that customer also walked on the sale, as the transaction price would have totaled a frankly ridiculous $177,013.85 after taxes and other registration/licensing fees.
GM warned dealers in January about applying so-called market adjustment fees to in-demand products like its latest EV offerings. In a letter sent to dealers, 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 future products like the Cadillac Lyriq Luxury AWD to other dealers or taking “other recourse prescribed by the Dealer Sales and Service Agreement.”
The 2023 Cadillac Lyriq Debut Edtion, which sold out in minutes after GM began accepting pre-orders last year, began rolling off the line at GM’s Spring Hill plant in Tennessee in late March, with initial deliveries of this version of the battery-electric luxury crossover set to begin this summer.
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I thought I read an article that GM was cracking down on the dealerships that are charging markups by not giving them new vehicles? Maybe I was mistaken or maybe it's just more virtue signaling from GM. Pretending that they give a sh!t.
GM implemented an allocation system (namely on the Corvette, but it applies to all vehicles right now) that punishes dealers who sit on inventory longer by giving them less future allocation. The reasoning was that a vehicle with a price markup will sell slower, and therefore the dealer down the road who didn't mark up the product and sold it quicker will earn another one faster and gradually outgrow the competition. Unfortunately, it loses its effectiveness when the dealer who sells a product at sticker has no idea if or when he'll actually earn another one because of production stoppages, so the incentive is lessened.
Even if you can afford it why would I want to buy an electric $70,000. Car that goes 270 miles on a charge. Can’t even drive to Chicago with on a charge. Infrastructure is not in place. Stupid Biden is chocking us with dumb policies.
lol can’t tell if you’re serious. Blaming all life’s problems on your president is hilarious. I suppose the Canadian dealer markups I’m dealing with are his fault too? Please.
Go brandon
If like you see GM eliminate the “allocation” to a dealer for such in demand vehicles. Take a customer order and allocate a vehicle to a customer. Set the base price with the customer and let the dealer select a customer. Then GM provides an amount to the dealer for handling the paperwork and additional product. If a dealer refuses this, they get removed from the list that a customer can choose from.
Find a solution that fits within the franchise agreement and provides reasonable accommodations for all parties.
GM needs to get tough on this. This is damaging their brand. That is not acceptable!
having a luxury product that outstrips supply is bad news?
No.
But trying to nickle and dime your potential client is.
Good squeeze these suckers for every penny.
This will leave a bad experience in the back of people's minds for GM and more broadly, for EVs. I can see why Tesla nixed the dealership since it's often predatory, but I don't think it has to be that way. A good dealership offers a personal touch and human relationship goes far in promoting a positive experience. Maybe a new dealership model would work? Something like a credit union is to banks. A dealership co-op, lol.
How does 10% interest rates sound?
The free money cheap debt economy ends now.
good. let it rip!!! the tide of cheap money is going out and the economy needs a good cleaning. drown the speculators.
Amen. Time for a big beautiful 2009 style recession to put an end to the piggish excess in our society.
It seems to me that GM speaks out both sides of it’s mouth. On one hand, GM ( and other manufacturers) expressed their “concern” and condemnation of dealers taking advantage of the market and charging tens of thousands above sticker, threatening to take actions against dealerships that are “damaging” the brand image
BUT, at the same time, didn’t GM recently state they no longer have incentive to produce ample inventory…acknowledging that tightening supply benefits them through increased demand leading to larger margins
So is GM part of the problem or part of the solution?
GM got quiet as they themselves have recently gotten piggy and have had 3 substantial price increases in HD pickups in less than 100 days plus customers so it also, I saw two Hummer EVs bring 234k each at an auction. I don't think GM ran those units.
Spoke with the agent last week and tap in an extra $5K for additional mark-up. Asked her about the mark-up, she said that's the dealers, because of high demand order and shortage of supply(limited production). What's the incentive of buying electric vehicle, since GM is no longer entitled for any federal tax credit or rebate. Dealers are taking advantage of the situation and GM is not taking this seriously.
I have a deposit down, when it comes time for delivery and/or proper order and I get hit with a markup, I'll just take my deposit back and walk away. I'll never understand people wanting something so desperately they're willing to pay tons more than what it's worth...
It's America's instant gratification syndrome
A true luxury experience by Cadillac.
And they want to rival Rolls Royce and Bentley?
Please........
Not excusing this behavior, I think it's bad business, but try buying a Mercedes or Audi right now. Some of their dealers are charging well over sticker, particularly for hot models like the G Wagon, and their fanbase complains less about it unsurprisingly.