markup on past vehicles are nothing new -- when "Cash for
Clunkers" was in full effect last fall, we revealed that some
dealers were marking
up Toyota's best-selling Prius hybrids by $4,000 to
$5,000.That markup may be downright tiny, however, compared
to what some Chevrolet dealerships have in store. A reporter
from Edmunds inquired at
a local dealership about the price of the 2011
Chevy Volt electric vehicle and was told that they were
going to be charging $61,000 USD for the vehicle ($52,750 after tax
credit). That price includes a $20,000 USD markup going
directly into the dealer's pocket.The dealer writes:
*****Thank you for your online request, as you know
the Volt is going to be a very limited production vehicle for the
first 2-3 years. Demand is going to far exceed supply for this
vehicle, initially our asking price for the Volt is going to be MSRP
plus $20,000, we are expecting only receive 9 Volts all of next
year.I will keep you in my customer base for when the
Volt comes out and I will contact you with any information as I
receive it. We are taking orders right now for the Volt, if you would
like more information, please let me know and I will be more than
happy to help you. Thank you.***** *****, Internet
Specialist******* Chevrolet********, CA
the email exchange, General Motors announced that it would increase
Volt production by 50 percent in 2011, producing about 45,000 units
next year.The markup also seems particularly ironic, given
that a GM spokesperson in June stated, "We also aren't expecting
our dealers to overcharge anyone for this vehicle, either, and will
monitor the situation closely when we launch. We'll be paying
close attention when the vehicle launches and do our best to strongly
discourage this kind of behavior, as we always do with any GM-branded
vehicle."If dealerships do choose
to add a $20K or even a $10K markup to the vehicle, some customers
may decide to jump down to the Nissan Leaf. Many already
complain that the Volt is overpriced.No one is questioning
that the Volt is a highly anticipated vehicle right now. But if
GM dealers let greed get in the way, they may be sabotaging the
Volt's launch which GM worked so hard towards.If your dealer
does charge some sort of astounding markup, you can lease
a Volt for $350/month (with $2,500 downpayment). If
you can find one, that is.In related news, the base price of
the Volt has also come
under criticism. Ford’s vice president of global
powertrain engineering, Barb Samardzich states, "Our perspective
is we want to be able to provide a solution that works for all of our
customers, and at $40,000 or $41,000, you are taking a lot of
customers out of that equation."Larry Nitz, GM’s
executive director of hybrid and electric powertrain engineering says
that his company has a captive market, arguing, "It’s in a
market of its own. Where else are you going to go to get one of
these things? There is no other choice. Look, it’s not like
we’re trying to sell two million of these."He adds, "I
look at it and say with a federal tax credit, it is $33,500. We
think there will be a plentiful supply of customers at that
price."The company's chief rival will be the 2011
Nissan Leaf EV, which retails for $32,780 USD ($25,280 after tax
credit). The all-electric Leaf, however, has a much shorter
overall range of 100 miles.
quote: You're just not making up the money you lost when you bought it.
quote: there's actually a majority of folks whose commute is <40 miles/day.
quote: Take a grade school geography class as you don't know most people live in cities and don't commute past 20 miles.
quote: Does anyone actually go to the bank, anymore ?
quote: Unless gas hits $8-10 a gallon which I'm sure liberal Democrats and some idiots on this site would love to see.
quote: They seem to think being focused on getting rich and spending all your time at work is not the way to happiness.
quote: AKA, trying to better yourself and the life of your family.
quote: Only in America do we think that "slaving away making someone else rich while not spending time at home" means "better yourself and your family's lot".
quote: Right, but when you take a look at people's subjective opinions of their own happiness and Americans rate their own happiness lower than, say Danes rate theirs...
quote: I'm sure if you took most Americans and dropped them in Denmark, they'd be even more unhappy than they are now.
quote: If there is no tax credit for new technology to help bring them to market
quote: Seems like they don't need any help bringing it to market in the first place if dealers are contemplating a 20k markup.
quote: No what is sad, really, are the arm chair quarterbacks that think they have a right to tell a private enterprise how to they should conduct their business.
quote: The point is to use less fuel, not to save money on it.
quote: The less fuel we use, the more we'll have later on, the less fuel prices will rise.
quote: Of course as human population keeps growing exponentially and cities keep getting more crowded the move is going to have to be towards mass transit.
quote: I should be allowed to store at least one box of junk in their garage.
quote: No one is questioning that the Volt is a highly anticipated vehicle right now.
quote: If anything, Edmunds or DT should publish the name of the stealership that quoted them that price. I think it is only fair, actually, as then the people will truly decide if that is a price they want to pay for that car.
quote: If dealerships do choose to add a $20K or even a $10K markup to the vehicle, some customers may decide to jump down to the Nissan Leaf.
quote: "It’s in a market of its own. Where else are you going to go to get one of these things? There is no other choice. Look, it’s not like we’re trying to sell two million of these."