Inflated new vehicle prices are still very common.
80% of buyers in May and June paid MSRP or higher.
A recent study has shown that greedy new-car dealers that tack on surcharges to the price of a new vehicle face the very real possibility of losing future business.
The new-car dealership model is under pressure. All new start-up companies are choosing a B2C sales approach, and some legacy automakers are actively developing scenarios where dealers will no longer be involved in transactions. In many ways, dealerships have made their own beds.
We’ve reported countless times on establishments adjusting new vehicle prices with often-times insane markups. The decision to act this will not be without consequences as a new study from GfK AutoMobility, shared by CarScoops, shows that consumers are not happy.
In fact, and largely as a result of the ongoing chip crisis and low inventories, 31% of buyers did not get the car they really wanted, 30% compromised on features, and a further 30% signed on the dotted line with a dealer who wasn’t their first choice. Factor in that 80% bought at MSRP or higher, of which 34% paid unknown extra fees, and you have a scenario where the customer will seek out a different dealer for maintenance.
The bottom line is that greedy gouging will end up costing dealerships in the medium and long term. 25% of buyers will not return to the store where the purchase was completed and 31% will tell others not to buy from that same dealer.