Anyone who needed to buy a new car during the pandemic has found that many dealerships are marking them up because of the shortage of vehicles. You certainly can’t blame dealer markups on the pandemic because dealerships from all brands have been marking up in-demand vehicles for years, trying to squeeze as much money as possible out of customers. Chevrolet is now taking steps to stop some unscrupulous dealerships from squeezing more money out of customers.
GM North American President Steve Carlisle recently wrote a statement reportedly sent out dealerships. In the statement, he notes that General Motors has been working very hard to get vehicles to dealers so they have something to sell and noted that the Corvette Z06, Silverado EV, GMC Hummer EV, GMC Sierra EV, and Cadillac Lyriq have all been in very high demand. Carlisle wrote that it has come to GM’s attention that a small number of dealers are engaging “in practices that do not support a positive sales experience for our customers.”
He goes on to say that the practices the dealerships are engaging in generate negative press reflecting poorly on the GM brand and their dealerships. Specifically, Carlisle calls out some dealers demanding money above and beyond the reservation amounts for these vehicles under GM programs and dealers demanding these customers pay in excess of MSRP to purchase or lease a vehicle they want. The statement goes on to point out that GM dealerships are required under their Dealer Sales and Service Agreement to “effectively, ethically, and lawfully sell and promote the purchase, lease, and use of products by consumers.” GM says that any dealer who conducts unethical sales practices will see their allocation of in-demand vehicles redirected, meaning they won’t get any to sell.