is it possible that when we take delivery of the fortwo cars, we get hit with a "market adjustment" charge. I think I remember this happening when the PT cruiser arrived. At the prices quoted on the US web site, I would definately be pissed if I received an additional 3-5 thousand dollar supply/demand price adjustment that the dealer thinks is OK.. Your thoughts?
premiums paid at dealership for "market adjust"?
1 - 20 of 22 Posts
Joined
·
2,074 Posts
I thought that I read somewhere that there would be no dealer markups.
Joined
·
1,263 Posts
Previous thread on this subject
NAHHH.....They wouldn't allow that to happen.
This subject was covered at length in a previous thread and someone got the scoop right from SCOA that PAG was holding the line on that kind of crap. Roger's idea of marketing cars this way rests on the fact that no funny business (for lack of a better term to use here) would be occuring that would upset his better idea of marketing the Smart in the US. So many people would be PO'd it wouldn't be funny...especially after their waiting so long to get the car.
NAHHH.....They wouldn't allow that to happen.
All true (according to the hype).
what you are asking, is,
is mercedes stupid.
chryslers decision to allow some dealers to do this on the pt crusier, lead many to vow never to buy a chrysler vehicle, even if they offer a 50% discount off invoice.
it ruined it not only for the offending dealers, but also, for the dealers offering a normal discount off msrp on the pt.
the vow was especially true for those who liked the pt, and were going to buy one. but of course, never did, never will, nor will ever buy any chrysler product again, of any type, at any price.
mercedes did not become the most prestigious production automotive company in the world, by being stupid.
while mercedes did make an error of judgement to get involved with chrysler, mercedes righted the ship, by severing the chrysler affiliation.
the smart is gold. if they add hanky panky overcharging, and huckster the smart, smart gold will revert to fools gold. ie, worthless, or worse, with losses forever in the smart lifecycle.
they should be thinking of offering 'easy to qualify for' discounts from msrp. for example,
1) for cash purchases, (cashiers or personal check paid in full at delivery), a -1% or -2% cash discount from msrp.
2) a good reservation customer simple grocery gift bag at delivery, containing a) approved oil filter, b) quart of recommended grade engine oil c) approved convertible top cleaner & brush, d) approved spray can of upholstery protector, e) floor mats, f) $30 gas gift card (1+ later thank you fill-up), g) 5 year discount coupon for one extra exterior panel set, h) one year discount card for any smart products and services under $500.
causing customers reinforcing good mercedes thoughts weeks, months, years later, of
'thank you good guys, thank you. i'll be back.',
without mercedes employees having to even say another word.
is mercedes stupid.
chryslers decision to allow some dealers to do this on the pt crusier, lead many to vow never to buy a chrysler vehicle, even if they offer a 50% discount off invoice.
it ruined it not only for the offending dealers, but also, for the dealers offering a normal discount off msrp on the pt.
the vow was especially true for those who liked the pt, and were going to buy one. but of course, never did, never will, nor will ever buy any chrysler product again, of any type, at any price.
mercedes did not become the most prestigious production automotive company in the world, by being stupid.
while mercedes did make an error of judgement to get involved with chrysler, mercedes righted the ship, by severing the chrysler affiliation.
the smart is gold. if they add hanky panky overcharging, and huckster the smart, smart gold will revert to fools gold. ie, worthless, or worse, with losses forever in the smart lifecycle.
they should be thinking of offering 'easy to qualify for' discounts from msrp. for example,
1) for cash purchases, (cashiers or personal check paid in full at delivery), a -1% or -2% cash discount from msrp.
2) a good reservation customer simple grocery gift bag at delivery, containing a) approved oil filter, b) quart of recommended grade engine oil c) approved convertible top cleaner & brush, d) approved spray can of upholstery protector, e) floor mats, f) $30 gas gift card (1+ later thank you fill-up), g) 5 year discount coupon for one extra exterior panel set, h) one year discount card for any smart products and services under $500.
causing customers reinforcing good mercedes thoughts weeks, months, years later, of
'thank you good guys, thank you. i'll be back.',
without mercedes employees having to even say another word.
From: [email protected]
Date: 10/22/2007 4:09:33 PM
To: [email protected]
Subject: smart answer: RE: Warranty and Additional Dealer Mark-up
Dear smart Enthusiast, smart USA is dedicated to superior customer service! Therefore, no authorized smart USA dealer will be allowed to charge over the sticker price for a new smart fortwo. The Pure is set at a base price of $11,590; the Passion is set at $13,590; and the Passion Cabriolet is set at $16,590. The prices do not include taxes, license, destination charges, and other fees that come standard whenever purchasing a new vehicle. At this time, information regarding warranty is unavailable, as the car remains in its manufacturing stage. Thank you for your interest in smart USA. You will be hearing from us soon! Jessica Ratcliff Customer Service www.smartusa.com 1.800.smartusa This is the e-mail I recieved.
Date: 10/22/2007 4:09:33 PM
To: [email protected]
Subject: smart answer: RE: Warranty and Additional Dealer Mark-up
Dear smart Enthusiast, smart USA is dedicated to superior customer service! Therefore, no authorized smart USA dealer will be allowed to charge over the sticker price for a new smart fortwo. The Pure is set at a base price of $11,590; the Passion is set at $13,590; and the Passion Cabriolet is set at $16,590. The prices do not include taxes, license, destination charges, and other fees that come standard whenever purchasing a new vehicle. At this time, information regarding warranty is unavailable, as the car remains in its manufacturing stage. Thank you for your interest in smart USA. You will be hearing from us soon! Jessica Ratcliff Customer Service www.smartusa.com 1.800.smartusa This is the e-mail I recieved.
Joined
·
671 Posts
I got the same response from smartUSA as well on not allowing the dealers to charge over the MSRP. Then somewhere else I read where a person posted that, by law, they could not keep the dealer from charging what they wanted to. Is there any truth in that?
possibly.
but mercedes likely can cancel their dealership, and/or make it very tough on them (gee, we didn't get to your orders this week, call us next quarter), for any number of reasons, effectively at their discretion.
keep in mind, there were 1,400 applications to be a dealers, and only 90 or so have been granted?
mercedes has honest, normal dealers begging to sell the car,
without having to resort to classless, brand destroying, short term greed lust, medium & long term fool ignorant, huckster dealers.
Joined
·
1,982 Posts
Just pointing out that there are car lines out there who dictate their dealers sell at MSRP
Joined
·
306 Posts
Dealerships may still try to hide some ADM in their destination fees, doc fees, etc.
Tom
Tom
Joined
·
1,982 Posts
The destination fees whould be shown on the original factory sticker. So not a part of dealer markup. Doc/title fees don't usually appear until you see the purchase order and those are usually pass throughs to the DMV.
Extra dealer installed equipment is one place to watch out for. Also there is dealer profit in the extra factory service plans.
Try to ask for the "actual factory invoice." Its as close as you can get to the price the dealer pays for the car, less dealer holdback.
Extra dealer installed equipment is one place to watch out for. Also there is dealer profit in the extra factory service plans.
Try to ask for the "actual factory invoice." Its as close as you can get to the price the dealer pays for the car, less dealer holdback.
Interesting you mention Saturn because believe it or not people are waiting in line for Saturns and Saturn dealers ARE marking up their cars. The basic response from dealers is that you can't haggle to get a better price, they will not sell for less than MSRP, but nothing says they can't sell for more than MSRP. Don't expect GM to help, their response is to remember what the "S" in MSRP stands for. Basically dealers are independent and they can set their own prices.
And some dealers brag that they don't add mark-ups but they require you to spend $3,000 to buy overpriced rims and other accessories.
The smart situation is a little different because you actually have both the manufacturer and the dealer network saying they will sell for MSRP and there isn't any real competition between dealers since they are all PAG.
And some dealers brag that they don't add mark-ups but they require you to spend $3,000 to buy overpriced rims and other accessories.
The smart situation is a little different because you actually have both the manufacturer and the dealer network saying they will sell for MSRP and there isn't any real competition between dealers since they are all PAG.
In the case of smart, PAG's primary role is that of distributor. Although PAG does own a large number of dealerships, most of the (proposed) smart dealers are not in fact part of the PAG empire.
Nonetheless, PAG appears to have a very tight rein on the new smart dealers. Right now they all seem to be singing from the same "there shall be no mark-up" hymn book. Don't know how that works from a legal standpoint. It'll be interesting to see if anyone breaks ranks, and if so what happens to them.
Have PAG or smartUSA themselves ever used the term "MSRP?" I know they use the descriptors "starting at..." and "Total Price:," but I haven't seen MSRP anywhere that I can recall.
What can they do to a dealer not playing ball? Perhaps shut them off for a while or terminate their dealership.
What can they do to a dealer not playing ball? Perhaps shut them off for a while or terminate their dealership.
I had not paid attention to this before, but the official press release from smart USA on pricing does use the term MSRP:
http://www.smartusa.com/smart-media-press-pricing-announcement.aspx
http://www.smartusa.com/smart-media-press-pricing-announcement.aspx
1 - 20 of 22 Posts
Join the discussion
