2023 Cadillac Lyriq Dealer Markups Have Started
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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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Added dealer markup (ADM) on in-demand cars is nothing new. I pre-ordered a Lyriq AWD, and the dealer I specified informed me that there will be a $5,000 ADM. My deposit is fully refundable, so I expressed my dismay but proceeded with the order anyway. I called all the other nearby dealerships, and their ADM ranged from $5,000 to $10,000. Delivery won’t take place until early 2023, and I’ll look at market conditions at that time. Meanwhile, I have two used cars I plan to sell; their values are around 40% higher than under “normal” market conditions, more than enough to offset the ADM on the new vehicle.
As with the CT6, the dealers and GM are working with a “halo” car. GM is responsible for making sure this car “works” and the dealers are responsible for making sure that the entire “experience” is positive. They are competing for their lives over the next 10 years. Here is some advice for those of you who are running into the “scalpers” and scum who are trying to extort large sums over MSRP..
Write to Mary Barra and Fedex it to her attention. I had the identical problem when the CT6 came out and I wanted to “be the first on the block” to have one and the nearest dealer wanted $7500 over MSRP. I wrote to her, explained the situation and she (or her assistant.. but it was under her name) had a regional manager contact me immediately and I was given one for the Cadillac “Executive” pricing, which was almost $9,000 under MSRP. I also got the first one in my area!!
Was it through the same dealer that wanted to charge over sticker or did they move it to a different store?
I called Cadillac concierge and here what they said:
Customer may move their pre-order to another dealership or cancel for a full refund at any time for any reason.
Please don’t cancel your order or walkway from it, call other dealers tell them that you would like to move the order to them if they don’t mark up the price, anyway its extra money for them.
Some of you may know me from my posts on Chevrolet articles. Both our GM stores (Genesis Chevrolet and Genesis Cadillac) do not charge over sticker for any ordered vehicle (including C8’s and Lyriqs) and will honor employee and supplier pricing on applicable vehicles. We’re located in metro Detroit, but can ship anywhere in the country. Anyone who has questions or would like to order/pre-order a Lyriq or transfer an order to us can find us by our zip from Cadillac.com’s order system: 48080, or can send me an email: coleg(at)genesischevy.com
I’d walk if I’m up charged for my Lyriq pre-order. I can head to Tesla with no shrill dealership BS. This is one reason I was actually excited about EV entering the market by not being manipulated by untrustworthy dealers. Yuck. This will harm the brand.
Agreed, but Tesla raises their prices every few weeks, your price isn’t locked in when you put an order in either.
i received confirmation on a pre-order Cadillac Lyriq. i was contacted by the dealership and i was told there is a $5k market adjustment on top of the price and also a delivery fee. disappointed that looking forward to getting a Cadillac Ev and now everything is extra and oh by the way not all the features are set up yet and will be released later.
i received confirmation on a pre-order Cadillac Lyriq. i was contacted by the dealership and i was told there is a $5k market adjustment on top of the price and also a delivery fee. disappointed that looking forward to getting a Cadillac Ev and now everything is extra and oh by the way not all the features are set up yet and will be released later.
Where are you located approximately? We have a Cadillac store in metro Detroit. Like our Chevrolet store, we don’t charge over sticker and don’t have a delivery fee. You can easily transfer your reservation to us by contacting Cadillac, we will handle the rest. Shoot me an email if you want my assistance: coleg(at)genesischevy.com.