Letter to PAG- please join in!

[bucketboss]

Supply and Demand in all it's glory.

We should applaud the fact that PAG is actually trying to hold it's dealers to some standard where they can.

Some non forward looking dealers found a loophole through which they can jump. Maybe PAG can threaten with allocations. Be glad they aren't letting the free market determine pricing........

Dealers like these last only so long. When there isn't a line out the door for cars, they are the ones looking around with the long faces.

[gotwavs]

Thank's E-SMART. I added that to the list above.

[bumblebee]

Originally Posted by Lewis

I have sent a letter to PAG today protesting the price gouging of my assigned dealer (a last minute $500 "fee") and also telling PAG that I know that with the power of setting allocations I KNOW they have the power to stop this gouging. I also told them I will be canceling my order at the time of delivery (I'm an 1189) unless these fees are gone.

I want to encourage all of you to have the guts to join me in this effort. If any of you think negotiating individually will get you any where with you dealer you are sadly mistaken.

Lewis

This probably won't mean a thing to them unless you get everything single reservation holders to complain to them about. And if you don't like the way your dealership is doing things there are plenty of people waiting in line for this car.

[bumblebee]

Originally Posted by gotwavs

If anyone pays 10,000 over sticker they should be shot.

There's a HONDA dealership here in North Texas that charges a $5,500 market adjustment fee for their Honda Fit that needs to be shot.

[maxtraxduffy]

Special equipment

Extras


Fog lamps
$ 110.00


Anti-theft alarm system
$ 160.00


Additional instruments (analog clock and rev counter)
$ 120.00


Total price[*]:
$ 13,980.00






[*]
Excluding tax, license, registration, destination charge, and dealer installed accessories.


Illustrations contained in this website are based on product information available at the time of posting applicable to vehicles available for sale outside of the United States and Puerto Rico. smart USA reserves the right to make changes at any time, without notice, in colors, materials, equipment, specifications, and models. Any variations in colors shown are due to variations in monitor resolution. Illustrations may include test situations. Some vehicles may be shown with non-U.S. equipment. Some vehicles are shown with optional equipment.

[bobnyuma]

Originally Posted by bumblebee

There's a HONDA dealership here in North Texas that charges a $5,500 market adjustment fee for their Honda Fit that needs to be shot.

Well unfortunatelly, if people pay the ADM fee then shame on them, because it feeds the dealer to keep doing it. There is a Chrysler dealer here in Brunswick that does that too. I dont know how he stays in business either.

[tipo158]

Originally Posted by Lewis

I have sent a letter to PAG today protesting the price gouging of my assigned dealer (a last minute $500 "fee") and also telling PAG that I know that with the power of setting allocations I KNOW they have the power to stop this gouging.

Reservations are assigned to dealers based on zip code. Most locales only have one dealer for a large geographic area. I am getting my car later than others who reserved at the same time just because of where I live.

So, let's say smart center Seattle was charging excessive fees and smart USA reduced the allocation to Seattle. Would cars for the Seattle reservation holders go to Portland? And what if they don't have the capacity to move all of those cars plus the Oregon reservation holders' ones?

[dagwood]

Which smart center are you dealing with? What did they say the $500 is for?

[dagwood]

Sorry - I missed that part of the thread - questions answered.

[Jarrod Weaver]

If the dealership is averaging a 7% margin on a car with average sale price of $15,000 you only get $1,050 gross profit per unit. It looks like most dealerships are going to get around 250 cars which would equal $262,500 gross revenue for the year.

Having been in a very similar business (motorcycles) I will tell everyone that $262,500 isn't enough to operate a new dealership. Rent, debt service on improvements, salaries, state francise tax, electricity, insurance, and so on, will take all of that and more.

No one likes paying prep and doc fees but without them your local Smart center might not exist.

I would take it one step further and say that manufacturers should not determine what a dealership can sell their units for. The market should determine the price. If manufacturers want to call the shots they need to deliver them soley through corporate owned outlets.Remember that MSRP is Manufaturers SUGGESTED Retail Price. It isn't the MGRP or Manufacturers GUARANTEED Retail Price.

I would guess that those of you who want to take up torches and lambast your dealership have never run a business. Be happy to pay your $500 and nothing more. Form a great relationship with your dealership and the $500 will seem like a bargin.