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View Full Version : Dealership Price Gouging


Resist
05-27-2006, 01:05 AM
With the cost of fuel it seems demand is high for Hybrids or dealerships are just price gouging. My local Honda dealership wants $2,000 above MSRP for the new Civic Hybrid. When I asked them about this increase they reminded me about the tax credit. My reply was that the credit was for customers and not for Stealerships.

I really want this Hybrid but can't see paying anything over MSRP, heck I even have a hard time paying MSRP. When dealerships pull stunts like this on pricing it makes people think we don't have an oil shortage or get people over to the Hybrid side. Hybrid vehicles cost more to begin with and then to have dealerships gouging, just turns customer towards less expensive non-Hybrid vehicles.

krousdb
05-27-2006, 07:22 AM
Hybrids aren't your only option. You could look for a good used Honda Civic HX , CX or VX which would get nearly the same mileage as a Hybrid. Instead of buying a second hybrid, I decided to look for something used that had good hypermiling potential. For me, it was the right choice. With my Del Sol, I am averaging 10-15 MPG higher than what my wife gets in the Prius. Great car, low mileage, great FE for only $4500.

Sledge
05-27-2006, 07:48 AM
There's no need to pay MSRP. Use the internet and contact other dealerships. If you get a good deal in some faraway state, it may be worth it to buy a one way plane ticket and drive the car home.

I paid MSRP for my car, but I got $500 worth of dealer addons (that I wanted) for free.

xcel
05-27-2006, 08:13 AM
Hi Resist:

___If you do in fact want to purchase a hybrid, Sledge is right. There is no difference between the dealership down the street and one 500 miles away. The car is the same and all you should consider is its price. Your local dealership will do any service, maintenance, or repair to a Honda purchased somewhere else in the exact fashion they will do the same for a Honda purchased at their store. It is in their franchise agreement and it’s the law. There may be a complimentary loaner for over night repairs or similar for a local purchase but most Honda dealerships do not have that service in the first place. Secondly, how many times is your HCH-II going to be in the shop? I would guess around … maybe … Zero except for oil changes if you want them to do that ;) That whole idea of dealer markup above MSRP should make you cringe to ever visit that stealership again!

___If you were to consider a new non-hybrid alternative, we have plenty of new, fuel efficient, non-hybrid’s listed in the New Automobile Spec (http://www.cleanmpg.com/forums/forumdisplay.php?f=27) forums. If you were to consider a Used car as Dan suggested, What if you cannot afford a “new” fuel efficient automobile? ( http://www.cleanmpg.com/forums/showthread.php?t=665) article is yet another option.

___Good Luck

___Wayne

tigerhonaker
05-27-2006, 10:54 AM
With the cost of fuel it seems demand is high for Hybrids or dealerships are just price gouging. My local Honda dealership wants $2,000 above MSRP for the new Civic Hybrid. When I asked them about this increase they reminded me about the tax credit. My reply was that the credit was for customers and not for Stealerships.

I really want this Hybrid but can't see paying anything over MSRP, heck I even have a hard time paying MSRP. When dealerships pull stunts like this on pricing it makes people think we don't have an oil shortage or get people over to the Hybrid side. Hybrid vehicles cost more to begin with and then to have dealerships gouging, just turns customer towards less expensive non-Hybrid vehicles.
Resist;

You do-not have where you are "Located".

I purchased my HCH II out of State and {Saved-Major-Bucks}. I suggest (You) do the same. I can assure you that there are dealers around that do-not Price-Gouge you on the Hybrids.

However, you will have to do the Leg-Work to find them. In the end it is worth it I think.

Good-Luck, :)

Terry

Do you want to drive to Bowling Green, KY. to purchase a Hybrid? Would You?

Resist
05-27-2006, 06:28 PM
I understand I can purchase the car from out of state and realize any Honda dealership will still warranty it. I did this with my last new car. But sometimes it is just easier to be able to see, test drive and then drive it home, without having to wait for it to be shipped to me. I guess I was just venting at how California dealerships are gouging residents. Like we don't have to pay enough to live here. I would rather see fixed pricing on vehicles, like Saturn does it. I'm just sick of the negotiating games and price gouging.

I have been searching the Internet but have failed to find one at or below MSRP.

I also understand I don't have to purchase a Hybrid but want to, because I believe the in the technology. They have much better emissions and don't waste fuel at stops.

xcel
05-27-2006, 07:05 PM
Hi Resist:

___I remember some California folks finding good deals on HCH-I's out of Oregon a few years back? Then there is Psy's local Honda dealership near Tulsa that has sold many a new HCH-II for well under MSRP. Not invoice mind you but well under MSRP. Do a search for Oklahoma here at CleanMPG and you should find his Honda dealership as well as kudos’ from many who have purchased their own from there since the HCH-II’s release.

___As for having it shipped, that would remove quite a bit of the $ incentive for purchasing an automobile out of state in the first place from my vantage point. When I picked up the Insight, she was out of Sioux Fall's, SD so I rode the Greyhound. About the worst ride you could ever imagine but for $59.00 at the time, I was driving the Insight home in less then a week after making the deal.

___The Ranger was purchased from a rural Ford dealership just south west of Milwaukee. A nice 40 + mile drive but given the 03 XLT cost just $9,695 brand new back in 03. That was an absolute steal! For that automobile, my father and I drove out in the Corolla and he drove the Ranger back with me following behind.

___The Accord was a similar story although the farthest distance by far … A couple who lived in MA. wanted to purchase my Insight. I wanted a PZEV equipped Accord (available only in the 5-clean states w/ MA. being one) so the deal was set. I drove the Little Beauty out, they put me up for the night in a local motel (decent one at that), and I picked up the Accord the following day. I had all the Accord paperwork and such setup prior to driving out of course.

___I know many who have flown out to pick up a new or used car, driven out with car trailers to haul them back, ridden the Greyhound out to pick one up, and/or have had them shipped to their home from a reputable car hauler. In the end, it is about saving money but if you have a trade, you can forget about purchasing from a distance, as you have no idea what they will offer other then a few grand under KBB TIV when you arrive more then likely.

___I have found car shopping to be an exhilarating experience. I hope you will come to the same conclusion once you are armed with a little knowledge as well. A good place to start might be the Edmunds - Townhall forums. Once there, find the Honda Civic or Civic Hybrid - Prices Paid and Buying Experiences forum. That forum may lead you to a local dealership (local being in CA.) that might be willing to deal on an HCH-II a small amount when pushed. Remember, you are the one paying for the privilege of driving it off their lot, not the other way around ;)

___Good Luck with the hunt.

___Wayne

Resist
05-27-2006, 07:23 PM
As for having it shipped, that would remove quite a bit of the $ incentive for purchasing an automobile out of state in the first place from my vantage point.
Depends on how much I save. On my last new car I saved more then the cost to have it shipped directly to my door. And I didn't have to put unnecessary mileage on the car or get paint chips from the drive. It was well worth it!

I just contacted some dealerships in Arizona. They won't charge above MSRP but have added some much unwanted dealership accessories to the car that the price is back up to California standards.

mds2
05-28-2006, 12:21 PM
I bought my Insight out of state to avoid the California markup. I found the car on autotrader.com (http://www.autotrader.com) and used demoise.com (http://www.demoise.com) for shipping. Autotrader is a good resource for finding cars all across the country. DeMoise was a bit expensive but the service and communication and safer enclosed transport made it worthwhile in my opinion. You will be hard pressed to find a better transport.

-Mike

Resist
05-28-2006, 06:32 PM
I want to buy a new car not used. Anyone know of a non California Dealership that will actually deal?

xcel
05-28-2006, 11:01 PM
Hi Resist:

___Did you use the search function? The following thread should get you started. Civic Hybrid in short supply (http://www.cleanmpg.com/forums/showthread.php?t=332&highlight=dealer). Do not forget to check out the Edmunds forums I spoke about last night. There is gold to be discovered if you don't mind doing a little digging for it ;)

___Good Luck

___Wayne

Resist
05-29-2006, 12:20 AM
Yes I did. Still nothing.

xcel
05-29-2006, 12:22 AM
Hi Resist:

___Hint - hint; check the link I posted above as found using search …

___Good Luck

___Wayne

Resist
05-29-2006, 02:36 PM
All I want is a decent Dealer others here have used to get a good price.

xcel
05-29-2006, 02:45 PM
Hi Resist:

___The thread is linked above. “My dealer in Bartlesville …” Now look up where Bartlesville, Oklahoma is and find the closest Honda dealers to it if it is not located directly in Bartlesville …” Do you know how to find a Honda dealership in or near any town in the US? That is an entirely different lookup but Google is just one of many sites that can lead you to that answer.

___This dealership was posted multiple times in the Edmunds - Civic - Prices Paid forums a few months ago when people were searching for HCH-II’s back then as well.

___Good Luck

___Wayne

Chuck
05-29-2006, 03:00 PM
Before anyone activates their "Smug Alert", let me thumbnail the circumstances shopping for my Insight in Sept 2000. My 1988 CRX HF was totalled in a rear-ender - my only vehicle. Spent the weekend looking for a car getting above 35mpg. Considered used vehicles, new Civic, Insight. It was not long before I gravitated to the Insight as it was very similar to what I had, plus it's FE was far and beyond anything else available in 2000.

Got lucky - David McDavid Honda in Irving had five Insights. I think all of them were silver. Anyway, it was a process of working out finances - they were more flexible than another dealership.

Resist
05-29-2006, 03:12 PM
Delta Flyer,

Thanks but I already have an Insight. Now I just want something more conventional looking. Plus Aluminum is harder to repair and I need more interior room.

Chuck
05-29-2006, 03:17 PM
I know - it was sort of an off-topic remark...

brick
05-30-2006, 09:28 AM
I think the point was that the dealership was willing to work with him, not that they sold Delta Flyer an Insight.

johnf514
05-30-2006, 09:49 AM
I may be a bit out of line (sticking to the original topic), but isn't this the way our economy works?

When something is heavily in demand, the price will tend to gravitate upwards. Grant it, doubling the price overnight is absolutely wrong (as is obviously restricting the flow of goods [think oil]); however, goods that are wanted will be sold to the highest bidder. The economy is nothing more than a big auction block. ;)

For example, take the iPod. When it first came out, its high price hampered its sales, and demand for MP3 players was relatively low. Now that folks have dozens of gigabytes of music, they "need" a $300-400 player and are willing to pay the higher price.

Similarly, the Prius was not heavily in demand 2-3 years ago (same with the Insight), but now with the high price of gas, the demand (and the price that will be paid) has risen. I know that it can be frustrating for those attempting to buy this product; they must realize what market they are in and look into the alternatives. I believe krousdb covered some of those options.

In no way am I attempting to offend, I just thought the point should be presented. :)

Resist
05-30-2006, 02:55 PM
John, I understand what you are saying but, if we in fact are facing an oil shortage then wouldn't it make sense that the industry would want us to switch over as to extend their business? I'm starting to think it's all phoney because all that dealerships are doing is making it so potential customers are turned away because they can't afford Hybrids. At some point gouging just has to stop.

Chuck
05-30-2006, 02:57 PM
I think this is simply a case of the individual dealerships are short-sighted and don't care about the long-term

Resist
06-01-2006, 04:06 PM
Well California is a huge state and not one dealership here is willing to sell for MSRP or below. They all have mark ups.



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