Being able to make a reservation for a car you want the day it goes live can be a satisfying thing. I can only imagine the anticipation of knowing your car is being built and it’s coming, only to have it all thrown off a reseller. That’s what’s happening to some GMC Hummer EV reservation holders, who are hit with markups when their trucks arrive at dealerships.
I was able to talk to a reservation holder that this happened to, who also happened to be here in Southern California. This man (who I will refer to as SP to protect his identity) reserved his Edition 1 Hummer within minutes of bookings going live.
After waiting for over a year, his Hummer finally arrived Penske Buick GMC in Cerritos, California. He went in to pick up his new ride on March 17th. The worst part about this is that he had no idea what he was getting into.
I was called and informed that the truck had come in. I came to the dealer, the salesman was great. My wife and I test drove the truck. When we sat down to do the paperwork, the manager put up the marker.
Beats a reservation holder with the mark after the test drive is lame as hell. I know it must sting. It gets interesting when the SP claims the seller had no idea this was going to happen, although I don’t see how he could not have known.
The seller says he wasn’t aware they were going to do that. The dealer never said there would be a markup until that moment.
And they never will. It’s part of the game. Had they informed him of the marking in advance, he would not have come down. At this point, the dealer gives SP the “take it or leave it” option: pay the markup or leave the truck.
The SP contacted the GMC concierge to see if there was anything they could do, but he said they were no help. All they did was take his information and create a case.
When something like this happens, it really highlights how flawed the booking system is. A reservation holder cannot exchange their reservation to another dealer when the vehicle arrives. And if the original buyer doesn’t accept the tag when the vehicle is eventually delivered, it simply goes to the next reservation holder in line for that dealer.
As convoluted as it sounds, it comes down to one thing… and it will benefit the dealer no matter how this scenario plays out:
The problem I see is that the dealer will keep trying to get the extra $50k out of all the edition 1 reservation holders they have lined up, and most likely every one will reject it, and the dealer will end up with the unit and put it on the market for $50,000+ over MSRP for anyone to buy.
And unfortunately, someone will pay for it.
It happens more and more buyers
This buyer is not the only one this is happening to. The forum are full of posts by people complaining about markups. Another local buyer was hit with a $100,000 markup South Bay Buick GMC in Torrance, California. But after the buyer mentioned GM recently told dealers to not mark these vehicles, the dealer changed their tune but not much:
After I told him about the GM warranty and all those public posts about not allowing dealers to mark up here we are…calls me back in 5 minutes and goes oops it’s 50k. 100k if you don’t have a reservation and $50k if you do. These guys are a joke.
Another buyer, who posted his ordeal on Facebook, apparently had his Hummer EV held hostage by the dealership. They never told him the markup with the manager calling him saying he still doesn’t know but he thinks it’s “worth $200-$300k.”
Ultimately though, it comes down to getting a signed purchase agreement from the dealer, something I pointed out to the SP that he should have gotten. He agrees that it is good advice. But he says he thought he’d be OK “because of all the press I’m reading about GM warning dealers not to label.”
Waiting a year for something you reserved already sucks. Not being able to get that vehicle because the dealer selfishly added a markup is even worse. It just further proves it if you are one of those willing to reserve a vehicle, get a signed purchase agreement before the vehicle arrives at the dealer. If the dealer refuses to sign it, you know it’s not a place you want to do business with.