Dealership Gouging for Orphan Leafs

[mknuth]

We should figure out how to make the unethical dealerships regret their choice to frustrate customers to make profit.
Ideas- multiple reports to BBB, get hold of TV reporters (like Turko here in SD), maybe get a few Sept/Oct people together to picket
the dealerships. Any other ideas or folks interested in turning up the heat? Or are we going to sit around and hope we are treated fairly?
Should we start a separate thread to discuss ways to make fixing the problems worth Nissan's attention?

 

[Stoaty]

We should figure out how to make the unethical dealerships regret their choice to frustrate customers to make profit.

Well, so far this is only hearsay. Unless someone reports here a specific problem with a specific dealer, there isn't anything to be done.

 

[LALeaf]

We should figure out how to make the unethical dealerships regret their choice to frustrate customers to make profit.

Well, so far this is only hearsay. Unless someone reports here a specific problem with a specific dealer, there isn't anything to be done.

Well said. Again I doubt its true, but something to watch out for in the remote chance it is actually happening.

 

[astralfish]

Today at Mossy Kearny Mesa they marked up an orphan Leaf to $41,900. So much for Nissan leading the "zero emissions revolution"

 

[Stoaty]

Today at Mossy Kearny Mesa they marked up an orphan Leaf to $41,900. So much for Nissan leading the "zero emissions revolution"

I don't see anything wrong with that. If someone wants to get an orphan, they are going to have to pay through the nose. The rest of us who are in line will be getting a good price, thanks to the way Nissan set up the order process. If you don't want to pay that price (I don't), then don't buy an orphan.

Edit: now if they pressured someone to try to get them to cancel their order (to make the car an orphan), that would be a different story.

 

[LALeaf]

The problem I have with that is that Nissan should be grabbing all the orphans and filling the orders that it skipped over due to its own mistake. I know, I know, the dealers are separate entities from Nissan corporate, but to most customers it's all Nissan. Considering how much Nissan screw up the ordering process, this is something that they really should be doing.

 

[Mx5racer]

As a retailer I really don't see anything wrong with that. All day long people tell me that I need to sell for less, match others prices, give me a discount. They think nothing of it. Why when the retailer is selling at market value should he be called a cheat.

 

[Stoaty]

The problem I have with that is that Nissan should be grabbing all the orphans and filling the orders that it skipped over due to its own mistake.

Once Nissan has sold the car to the dealer, they have no control over what the dealer does with the car if the person who ordered it doesn't take delivery.

 

[avanti5010]

I am not surprised. I rememer the diesel Rabbit from the 70's gas crunch and what they were going for. You could sell it used for more than you paid for it new.

And those VW Wabbits were pure junk!

 

[Clippy]

I am not surprised. I rememer the diesel Rabbit from the 70's gas crunch and what they were going for. You could sell it used for more than you paid for it new.

And those VW Wabbits were pure junk!

One of the best cars I ever owned was a 1978 VW Rabbit Diesel. During the '78 gas crisis I found an "orphan" at a dealer 1K miles away, flew in dropped a wad of cash on the table and drove it home. Diesel was 55 cents a gallon and I put 10K miles on it in three months before some old fart totaled it with my wife in it. Got an injury and total loss settlement, bought the salvage and drove it for another year. Once drove it from Dallas Texas to Columbus, Ohio on a single tank (I had an auxiliary tank fitted). Sold it in '79 for $6000 and the guy knew it was a total!

Only one way to drive it, foot to the floor. Used to routinely corner on three wheels. Great car.

 

[thankyouOB]

Recently, I've been perusing CA dealerships for orphan Leafs. I thought I might get lucky and find something for $1,000 - $4,000 over MSRP. Today I found my first available orphan at a southern CA dealership. The sales manager was asking for $15,000 over MSRP!

Might be a high price but it is not gouging as there are plenty of transportation alternatives.

GOUGING and GREED!!!!!!!!!!

 

[LakeLeaf]

There are also dealers who have sold orphans at MSRP - a lot depends on the local demand.

 

[Train]

First of all, the original poster has not responded, so there's no way to validate this. Anyone can say anything on the internet. Seems like a drive by post to troll and boy, did some people bite. Didn't name the dealership, the location, nothing.

Regarding the orphan Leaf at Mossy Nissan, that's their prerogative. It's not gouging. It's supply and demand. No one needs a Leaf. No one is forcing you to buy it.

The dealer sells cars. They make a profit to stay in business. It's not a charity. They can mark the price whatever they feel the market will pay. Would it be OK to pay $5000 UNDER MSRP? That would be OK, right? Sure! Sweet deal!

But if the dealer asks $5000 OVER MSRP, somehow that's unethical.

If you were selling your house and you had two offers, would you take the lower offer or higher offer? All other things being equal, someone offers you $20,000 more for your house, you take the lower offer? Is it "unethical" to take a higher offer so you can pocket $20K more?

They're in business to make money. Again, no one is making anyone buy this car. It's like this with most consumer goods. Cars aren't any different. This is nothing new.

 

[mgoleta]

First of all, the original poster has not responded, so there's no way to validate this. Anyone can say anything on the internet. Seems like a drive by post to troll and boy, did some people bite. Didn't name the dealership, the location, nothing.

Regarding the orphan Leaf at Mossy Nissan, that's their prerogative. It's not gouging. It's supply and demand. No one needs a Leaf. No one is forcing you to buy it.

The dealer sells cars. They make a profit to stay in business. It's not a charity. They can mark the price whatever they feel the market will pay. Would it be OK to pay $5000 UNDER MSRP? That would be OK, right? Sure! Sweet deal!

But if the dealer asks $5000 OVER MSRP, somehow that's unethical.

If you were selling your house and you had two offers, would you take the lower offer or higher offer? All other things being equal, someone offers you $20,000 more for your house, you take the lower offer? Is it "unethical" to take a higher offer so you can pocket $20K more?

They're in business to make money. Again, no one is making anyone buy this car. It's like this with most consumer goods. Cars aren't any different. This is nothing new.

Well said.
Once the the dealer is invoiced for a car, it doesn't belong to NNA anymore. If the customer doesn't want to buy it at that point. It belongs to the dealer to sell not give back to NNA. I am very appreciative that Nissan created an order system that guarantees me a price that isn't over MSRP if I am willing to go through their system and not be just at the mercy of the open market. It made the difference in me being able to buy the car. If you aren't willing to wait for your order then you have the option of buying an orphan at the market rate. Right now it doesn't appear that orphans are a significant percentage of sales. Don't be upset at the dealers for orphans. The orginal orderer could have cancelled their order before it went to the dealer and the car would have gone back into the queue.

 

[MrTivo]

First of all, the original poster has not responded, so there's no way to validate this. Anyone can say anything on the internet. Seems like a drive by post to troll and boy, did some people bite. Didn't name the dealership, the location, nothing.

Regarding the orphan Leaf at Mossy Nissan, that's their prerogative. It's not gouging. It's supply and demand. No one needs a Leaf. No one is forcing you to buy it.

The dealer sells cars. They make a profit to stay in business. It's not a charity. They can mark the price whatever they feel the market will pay. Would it be OK to pay $5000 UNDER MSRP? That would be OK, right? Sure! Sweet deal!

But if the dealer asks $5000 OVER MSRP, somehow that's unethical.

If you were selling your house and you had two offers, would you take the lower offer or higher offer? All other things being equal, someone offers you $20,000 more for your house, you take the lower offer? Is it "unethical" to take a higher offer so you can pocket $20K more?

They're in business to make money. Again, no one is making anyone buy this car. It's like this with most consumer goods. Cars aren't any different. This is nothing new.

Yep, I'm the drive by poster . . . AKA Troll. It seems that some of the Nissan dealerships have taken to posting their marked up Leafs on CraigsList. I guess they don't want to advertise their price gouging since they don't even mention in their Craigslist ads that they are affiliated with dealerships. Here is the link to a Craigslist ad that I called:

http://losangeles.craigslist.org/sgv/ctd/2353676203.html

The person who answered the phone works at the dealership and was asking for $15,000 above MSRP for a new orphaned Leaf. Sure the dealers are in the game to make a profit. But it's a little shady when you have to hide behind Craigslist while doing business as a Nissan dealer. I guess it's legal but I don't think I want to do business with this dealership. Sorry for the rant. Now I can continue my troll ways.

 

[davewill]

Yes, it's gouging, since these are the only mainstream electric cars available, and the new owners who get fleeced are going to feel pretty dumb in a year or so, when production is cranked up and the prices tumble back to earth.

 

[Amary]

The problem I have with that is that Nissan should be grabbing all the orphans and filling the orders that it skipped over due to its own mistake. I know, I know, the dealers are separate entities from Nissan corporate, but to most customers it's all Nissan. Considering how much Nissan screw up the ordering process, this is something that they really should be doing.

My PD told me they sold 2 orphans at MSRP. They didn't want the bad PR from charging a premium. They also said they would have just offered them to the next people on their list with the same configurations, however Nissan told them exactly who to sell these 2 cars to. (Of course, they are not required to do so, but it's probably in their best interest to comply.)

 

[hodad66]

It's silly to pay a premium for an already overpriced vehicle.

WooHoo, I was first on the block!

 

[Randy]

Here is the link to a Craigslist ad that I called:

http://losangeles.craigslist.org/sgv/ctd/2353676203.html

Interesting that the ad uses the phrases "in stock" and "Available for you to take home tonight", which seems dealerish, but then uses the letter "I" in the phone number instead of the number "1"....What's that all about?

 

[gbshaun]

Today at Mossy Kearny Mesa they marked up an orphan Leaf to $41,900. So much for Nissan leading the "zero emissions revolution"

I don't see anything wrong with that. If someone wants to get an orphan, they are going to have to pay through the nose. The rest of us who are in line will be getting a good price, thanks to the way Nissan set up the order process. If you don't want to pay that price (I don't), then don't buy an orphan.

Edit: now if they pressured someone to try to get them to cancel their order (to make the car an orphan), that would be a different story.

+1

Remember months ago how we were wondering if dealers would be able to mark up the price of our reserved car, and in the end we mostly ordered (and bought) UNDER MSRP,.. well maybe it wasn't such a poor deal in the end for the savy dealer!
I'm sure right now there are many Nissan dealers eying the +$7k extra profit on orphans, and wishing they'd agreed to sell to us at $1000 off to get the order.