Concerns about Surcharge

[azurecardinal]

Called my Genesis dealer in NJ, and they told me they are expecting to put a $8,000 markup on the GV60 when it releases.

Called Genesis Concierge "Priority One" and they said they don't care about what the dealer does.

Get your act together Genesis! This entire process feels bootleg and is the opposite of what "luxury" should be.

Recommend calling Priority One and making the complaint about dealers charging above MSRP. It would at least force them to think about it.

 

[princelybug]

Hello @azurecardinal your frustration is understood. But this isn't anything new. Dealerships have been charging markups on vehicles forever! When Ford came out with the Focus RS, they were marking them up $10K all across the country...for a Focus!

Dealerships are private franchises and they can each charge what they want. Corporate has 0% say in the prices each franchise charges for vehicles. Your voice can be heard by which vehicle brand you choose to purchase from. Unfortunately, markups are here to stay.

Wait and see how the market plays out for GV60's. If they aren't selling, you'll see prices go down. I wouldn't pay a markup, let alone MSRP for any vehicle, either.

 

[azurecardinal]

Hello @azurecardinal your frustration is understood. But this isn't anything new. Dealerships have been charging markups on vehicles forever! When Ford came out with the Focus RS, they were marking them up $10K all across the country...for a Focus!

Dealerships are private franchises and they can each charge what they want. Corporate has 0% say in the prices each franchise charges for vehicles. Your voice can be heard by which vehicle brand you choose to purchase from. Unfortunately, markups are here to stay.

Wait and see how the market plays out for GV60's. If they aren't selling, you'll see prices go down. I wouldn't pay a markup, let alone MSRP for any vehicle, either.

This is the traditional mindset for ICE orders sure, but this is definitely not how it works for EV purchasing. Compared to Ford Mach-E, Tesla, and even Cadillac Lyriq, what you see is what you pay, plus doc fees.

It's very frustrating that Genesis isn't taking this issue seriously (yet), combined with how clunky the GV60 order process is shows that they are not remotely ready for prime time in the EV space.

 

[EdP]

Called my Genesis dealer in NJ, and they told me they are expecting to put a $8,000 markup on the GV60 when it releases.

Called Genesis Concierge "Priority One" and they said they don't care about what the dealer does.

Get your act together Genesis! This entire process feels bootleg and is the opposite of what "luxury" should be.

Recommend calling Priority One and making the complaint about dealers charging above MSRP. It would at least force them to think about it.

Genesis, or any car maker, has no say, no control. Change the franchise laws and they maybe can do more.

Watching a couple of car commercials on TV is much different than a few years ago. Instead of bragging about the free big screen TV they give with a new car, now they brag they only charge sticker price. What a bargain.

I;m keeping my car another year, maybe more. Not a good time to buy, new or used.

 

[ohnoyuji]

Called my Genesis dealer in NJ, and they told me they are expecting to put a $8,000 markup on the GV60 when it releases.

Called Genesis Concierge "Priority One" and they said they don't care about what the dealer does.

Get your act together Genesis! This entire process feels bootleg and is the opposite of what "luxury" should be.

Recommend calling Priority One and making the complaint about dealers charging above MSRP. It would at least force them to think about it.

Seriously? The car isn't even up for sale yet, too early to stage a coup to boycott genesis. It's only for reservation, if the dealer charges this much, no customer will buy. They will only end up losing more sales than what they want to intended to do.

 

[EdP]

Seriously? The car isn't even up for sale yet, too early to stage a coup to boycott genesis. It's only for reservation, if the dealer charges this much, no customer will buy. They will only end up losing more sales than what they want to intended to do.

Have you checked? Do a Google search about car prices and 80% are paying over sticker.

With limited inventory due to a computer chip shortage, 82% of consumers are paying above sticker price for a new car

The average amount paid for a new car is $45,717, which is $728 more than the average manufacturer's suggested retail price of $44,989, new research shows.

www.cnbc.com

 

[PMCErnie]

Called my Genesis dealer in NJ, and they told me they are expecting to put a $8,000 markup on the GV60 when it releases.

Called Genesis Concierge "Priority One" and they said they don't care about what the dealer does.

Get your act together Genesis! This entire process feels bootleg and is the opposite of what "luxury" should be.

Recommend calling Priority One and making the complaint about dealers charging above MSRP. It would at least force them to think about it.

I doubt that they said they “don’t care” what the dealer does. You are embellishing, I think. More likely they said they are not in control of the dealer’s pricing. Words do matter. Why distort them?

 

[mc137]

I believe old school is best here. Calls and texts disappear into the memory hole.

I suggest a respectful letter (yes, with a stamp) re: your disappointment to:

Claudia Marquez
COO, Genesis Motor North America
10550 Talbert Ave.
Fountain Valley, CA 92708

Writing it now would be good since the cars are likely arriving in a month or so.

To be clear, Genesis has no legal control over their dealers pricing in the US. Expect to receive a standard response.

Nonetheless, Genesis will get the message - again. They already know the biggest brand liability is the dealers. The lawsuit still weighs heavily on the relationship and that makes their PR dance even more delicate.

There are other dealers in the the tri-state area. 'Priority One' has told me we are not arbitrarily locked to a dealer. Their goal is to match allocations with the pre-order selections and there is some flexibility.

Travel hopefully.

 

[azurecardinal]

I believe old school is best here. Calls and texts disappear into the memory hole.

I suggest a respectful letter (yes, with a stamp) re: your disappointment to:

Claudia Marquez
COO, Genesis Motor North America
10550 Talbert Ave.
Fountain Valley, CA 92708

Writing it now would be good since the cars are likely arriving in a month or so.

To be clear, Genesis has no legal control over their dealers pricing in the US. Expect to receive a standard response.

Nonetheless, Genesis will get the message - again. They already know the biggest brand liability is the dealers. The lawsuit still weighs heavily on the relationship and that makes their PR dance even more delicate.

There are other dealers in the the tri-state area. 'Priority One' has told me we are not arbitrarily locked to a dealer. Their goal is to match allocations with the pre-order selections and there is some flexibility.

Travel hopefully.

Thank you. All of the other responses here are exactly the type of attitude that allows dealers to be so brazen about their actions.

"Just because it's been done before means it's acceptable" is exactly the type of attitude not getting us anywhere.

I'll write a letter as suggested.

 

[HeadRush]

Hello @azurecardinal your frustration is understood. But this isn't anything new. Dealerships have been charging markups on vehicles forever! When Ford came out with the Focus RS, they were marking them up $10K all across the country...for a Focus!

Dealerships are private franchises and they can each charge what they want. Corporate has 0% say in the prices each franchise charges for vehicles. Your voice can be heard by which vehicle brand you choose to purchase from. Unfortunately, markups are here to stay.

Wait and see how the market plays out for GV60's. If they aren't selling, you'll see prices go down. I wouldn't pay a markup, let alone MSRP for any vehicle, either.

If you don't pay MSRP in today's market, you don't get a vehicle. They supply chain issue is brutal. I have purchased a new sports car and truck recently and had to pay MSRP on both which I have NEVER done prior. If you want to wait 2-3 years, sure. But in today's market, good luck!

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[G-677294]

If you don't pay MSRP in today's market, you don't get a vehicle. They supply chain issue is brutal. I have purchased a new sports car and truck recently and had to pay MSRP on both which I have NEVER done prior. If you want to wait 2-3 years, sure. But in today's market, good luck!

This is simply not true for the big EV manufacturers. You always pay MSRP for Teslas and less for Ford Mach-E. Why should Genesis electric vehicles be allowed to be scalped by dealers?

Poll: Nearly All Ford Mustang Mach-E Owners Paid MSRP or Less

Despite the buzz surrounding dealer markups, most Ford Mustang Mach-E battery-electric vehicle buyers paid MSRP or less over the past 13 months.

www.torquenews.com

 

[azurecardinal]

If you don't pay MSRP in today's market, you don't get a vehicle. They supply chain issue is brutal. I have purchased a new sports car and truck recently and had to pay MSRP on both which I have NEVER done prior. If you want to wait 2-3 years, sure. But in today's market, good luck!

This is simply not true for the big EV manufacturers. You always pay MSRP for Teslas and less for Ford Mach-E by getting on a waitlist after paying a deposit, then taking delivery at MSRP when it's ready. Why should Genesis electric vehicles be allowed to be scalped by dealers?

Poll: Nearly All Ford Mustang Mach-E Owners Paid MSRP or Less

Despite the buzz surrounding dealer markups, most Ford Mustang Mach-E battery-electric vehicle buyers paid MSRP or less over the past 13 months.

www.torquenews.com

 

[EdP]

This is simply not true for the big EV manufacturers. You always pay MSRP for Teslas and less for Ford Mach-E by getting on a waitlist after paying a deposit, then taking delivery at MSRP when it's ready. Why should Genesis electric vehicles be allowed to be scalped by dealers?

Poll: Nearly All Ford Mustang Mach-E Owners Paid MSRP or Less

Despite the buzz surrounding dealer markups, most Ford Mustang Mach-E battery-electric vehicle buyers paid MSRP or less over the past 13 months.

www.torquenews.com

Tesla is a different category altogether. They do not have dealers, you buy direct.


I've not followed Ford so have no idea what they are doing.

 

[gideyup1]

I have a family member who pre-ordered his F-150 lightening EV and he is in the first batch of deliveries this summer. He contacted his Ford dealer in NJ and he confirmed there won't be a markup over MSRP. In fact, Jim Farley (Ford CEO) has stated that there are repurcussions from Ford Corporate if any dealer marks up their EVs. So much respect for how Farley is changing the culture at Ford.
p.s. I'm interested in purchasing the GV60, but will absolutely NOT pay dealer mark-up over MSRP. Will buy Lyriq, Mustang Mach-E or Tesla Y instead then. Hyundai is seriously damaging their Genesis brand if they allow their newish Genesis dealers revert to "old days" sleazy dealer tactics.

 

[PMCErnie]

Thank you. All of the other responses here are exactly the type of attitude that allows dealers to be so brazen about their actions.

"Just because it's been done before means it's acceptable" is exactly the type of attitude not getting us anywhere.

I'll write a letter as suggested.

So you admit that you distorted what Genesis told you. Just because you are angry doesn’t mean you have a “license to lie.”

 

[EdP]

if they allow their newish Genesis dealers revert to "old days" sleazy dealer tactics.

Not sure what you mean by "old days". I don't recall a time when car dealers were not sleazy. Every brand, all 50 states. They worked for and deserve the reputation they have.

 

[Chad86tsi]

I was an early watcher of the Ford MachE, it was heavily marked up, even for those that reserved through Ford itself where markups were not supposed to be possible. Many walked away from cars they ordered a year in advance because the dealer tacked on BS upcharges at delivery, and then sold the then abandoned car to some dufus that was willing to pay that markup. People complained to ford, Ford told them to sell at MSRP, and the dealer told Ford, "sorry, that car was sold the minute the customer walked away, it's not here anymore."

Many had to fight to get what Ford promised them. Dealer insiders said there were long lists of names that would take any abandoned pre-order with pre-determined markups, the dealers were incentivised to do this to pre-orders. There were even examples of written contracts at MSRP that were canceled by the dealer at delivery to sell to someone else at an upcharge. Other than ill-will, there was no down side to the dealer.

For a long time (over a year) they still had large markups due to supply issues across the country. A quick glance at car.com on local dealers just now, they are still $5K Over MSRP minimum.

 

[gideyup1]

Not sure what you mean by "old days". I don't recall a time when car dealers were not sleazy. Every brand, all 50 states. They worked for and deserve the reputation they have.

Interestingly, I've had nice experiences with some car dealers, pre-pandemic of course. Over past 10+ years, every car we've purchased has been through dealing with a dealer's Digital team through an online car buying service (I used Consumer Report's car buying service). Several dealers would respond, I won't show up at dealer to buy until I have a copy of the invoice I will be signing. I set expectations clearly and respectfully, and any responding dealer who didn't treat me the same way (through email) were eliminated from my consideration list. So I don't agree that all dealers are sleazy.

That said, I would say that what Genesis is proposing to do in next few years is different (challenging the German/Japanese luxury brands, migrating to all-EV lineup, setting up a new dealer network denovo), and requires them to think about how they should re-introduce the brand to consumers. Let's face it, to-date Genesis hasn't made a dent in the luxury market. If they revert to typical "old days" dealer tactics (vs. what Tesla is doing, vs. what Saturn used to do, vs. as mentioned what I've experienced with some dealers), then good luck to them. Jim Farley is getting a lot of press for how they are launching their EV lineup, I'd suggest Hyundai/Genesis Corporate study what Farley is doing to create brand goodwill for a legacy brand that doesn't have cachet with the "EV crowd".

 

[EdP]

Interestingly, I've had nice experiences with some car dealers, pre-pandemic of course. Over past 10+ years, every car we've purchased has been through dealing with a dealer's Digital team through an online car buying service (I used Consumer Report's car buying service). Several dealers would respond, I won't show up at dealer to buy until I have a copy of the invoice I will be signing. I set expectations clearly and respectfully, and any responding dealer who didn't treat me the same way (through email) were eliminated from my consideration list. So I don't agree that all dealers are sleazy.

Glad you had a good experience. What about the guy in the showroom of that same dealer? What did they try to upsell on him? I've had decent experiences too, but that does not mean others at the same dealer at another desk were not getting shafted.

 

[gideyup1]

Glad you had a good experience. What about the guy in the showroom of that same dealer? What did they try to upsell on him? I've had decent experiences too, but that does not mean others at the same dealer at another desk were not getting shafted.

Well, I certainly cannot speak for every staff member at a dealership even one that I had a good experience with. My experience has been that working with a dealer's Digital team is always better than walking into a showroom and working with a floor salesperson. Most car buying research sites online say the same (including Consumer Reports). I'm of the belief that car buying (as in buying anything substantial) requires you to do your research, set expectations clearly and respectfully, and be prepared to walk away if you're not treated the same way back. If you don't want to be upsold or "shafted", then arm yourself with information, clearly but respectfully decline the upsell and don't put yourself in that situation.