Suggestion for DCX: dealer markup crackdown

[Mike Penner]

I'd like to make a suggestion to DCX. I have been following events with the SRT-8 charger involving dealer markups (ie price gouging) and I wanted to voice my opinion on this subject, even if it is tantamount to shaking my fist at the sky.

I think alot of us are in for an unpleasant surprise when the high end SRT-8 Challenger models roll into Dodge showrooms. I believe the dealer markups will be astronomical and I want to voice my disgust with this practice. I'd also like to urge DCX to launch a large scale crackdown on the practice of dealer markups for a couple of reasons:

1. dealer markups cost DCX sales

I am like many people here, having waited for this car for nearly 20 years. I have specific needs for this car and I won't deviate from them. I will buy a SRT-8 6sp or buy nothing at all. First let me say I have NO problem paying the price that DCX corporate feels is appropriate for the car, hell even somewhat beyond to give the dealer some gravy. But I can tell you I will not tolerate being raped by a dealer for an additional 5-15k over and above MSRP. This is totally unacceptable. If dealer markups of this magnitude occur (and don't ever subside during the production run of the car) it means I will be forced to avoid buying a new car (costing DCX a sale) and instead buy the car used (putting money in the previous owners pocket).

2. dealer markups are an embarrassment for DCX

Lets face it Dodge dealers appear to be an extension of DCX as a company, whether they are or not. When dealers rip me off I feel like DCX as a company is ripping me off. I don't want to walk away from the transaction while on one hand thanking DCX for having the vision (and the stones) to reintroduce the car while on the other hand grinding my teeth. I want to walk away elated, and with this car why shouldn't I be?

3. dealer markups are inconvenient for customers

Actually, in more ways than the obvious (price). They force me as a customer to hunt high and low to find the car I want at a price thats reasonable. I don't want to have to canvas the whole damn state looking for MSRP when there's a dealership 5 miles up the road with the car I want. Its really inconvenient and inconvenienced customers don't buy products.

In light of these considerations I would like to propose the following approach: carrot and stick. The stick would be dealers who are caught gouging will have some (or all) their high end Challenger allotment reallocated. The carrot is dealers with a clean record who charge prices in line with DCX corporate suggestions will receive these extra cars. So, dealers who overcharge lose cars and sales. Dealers who charge appropriately get those cars and sales.

The benefits for the dealers are as follows: Those who play by the rules gain more cars, more sales and more commission based on increased volume (as opposed to price gouging).

The benefits to the customers are as follows: We get the cars we want, brand new (instead of used) at prices that leave us with a warm fuzzy feeling, instead of grinding our teeth.

The benefits for DCX are as follows: Increased volume, more sales. The sales you stand to gain are on the lucrative, high end models that many people would have avoided due to 10k markups. Remember many folks who can't get what they want for a price they can stomach won't go with a lower priced model, they'll not buy at all (or buy a competitive model from another player like Ford).

That's pretty much all I have to say on that subject. I hope someone at DCX is reading this and takes it to heart.

[BigL]

I concur completely. I too have waited too long to be disappointed at the end of the road. This may be the last time anyone has a chance to own a truly legend car with a legendary pedigree.

[allhemi]

I'm with you 1000%!! The dealer cost sales by doing the ''Market Adjustment'' thing.

[Mike Penner]

What I'd love to see is DCX set up a way for the masses (us) to buy directly from DCX corporate and bypass the price gouging middle men completely. This would really reward DCX for the risks they are taking. But in the absence of that DCX has GOT to crackdown on these absurd price hikes because it WILL COST THEM SALES.

[BigL]

That would bring too many issues to the table for DCX, such as warranty. I don't mind buying from a good dealer but I don't feel as though the dealers should be trying to make enough money as to go and take a European vacation on one or two sales. Usually a good dealer is in it for the long haul and sees the bigger picture, but not in every case.

[brasskeys22]

We are lucky here in Canada.....dealers are not allowed to sell over manufator list price. Price on the window is the price you pay. Some dealers will license the car as a demonstator so they can then sell it as a used car, ask any price.
But Canada is very well regulated and if you get caught doing that too often, the parent companies hold back on car allotments and so forth as punishment.

[Mike Penner]

Fair enough, I'm just kicking out ideas. Brasskeys22 I'm a dual citizen (US & Canadian) living in sunny CA. Looks like I wound up on the wrong side of the border for this one. Rats

[PhantomR/T]

dirty rotten thieves

[DARK AGE 53]

Couldn't DCX price the Challenger like what G.M does with the Saturn, dealers that don't get punished.

There's always this also for dealers that like to rape people.




I know alot of people say " don't worry the market will even it out ", in the mean time DCX has lost sales and has allowed dealers give DCX a bad image. JMO

[Legion681]

I totally agree as well.

I would also like to point out that as well in Europe (or at least I know for sure in Switzerland and Italy), dealers are not allowed to sell at above the manufacturer's retail price; as far as I know it's only a US practice...
Markups are a total disgrace and when I got my 05 Mustang GT, it took me a month to find one without any markup, it was such a disgusting experience.
And also, comparing the Charger SRT8's situation with the Shelby GT500, it's all the same crap: so far it seems that everyone that inquired about it, received at least a 10k markup forecast from dealers, with most being around 20-25k (!!!)...

I have one question: is it confirmed that in Canada there wouldn't be any markups ? If so, does anyone know if it's possible to go buy a car up there and bring it here in the USA ?