It’s no secret that buying a new car is an absolute circus these days. Between inventory shortages and pandemic-related shopping woes, it can be a real pain to be on the hunt for new vehicle. Some automakers are taking action against dealers that are marking up cars to make more money in all the madness. Last week, we saw news that Ford sent a letter to dealers with threats to divert vehicle allocation if they were caught marking up the new F-150 Lightning, and now it’s GM’s turn. In a letter posted to Corvette Action Center, the automaker tells its dealers to stop the markups and start being more transparent with pricing.
The news comes as General Motors prepares for some of its highest profile vehicle launches to date. The Silverado EV will be here soon, along with the Cadillac Lyriq, and that’s before we even get into the circus that will be the Corvette Z06 launch. The letter states that dealer markups put everyone’s interests at risk, including GM’s, and notes that it generates negative press that reflects badly on the brand and its dealers.
GM’s letter is clear that being shady with pricing or not providing complete information relating to the reservation and order process could lead to a reduction in the number of vehicles a dealer is allocated to sell. It’s also a notice to dealers that continue working with brokers after GM’s policy change that disallows any such activity. In the letter, the automaker outlines its policy, stating “Dealer agrees that it will not sell new motor vehicles for resale,” continuing on to say that dealers are not authorized to sell vehicles to “persons or parties (or their agents) engaged in the business of reselling, brokering (including but not limited to buying services) or wholesaling of motor vehicles.”
The letter goes on to note that dealers caught violating GM’s rules may see their vehicle allocations redirected or other corrective action taken.