$5,000 “Market Adjustment” Added To Chevrolet Bolt At California Dealership

6 months ago by Eric Loveday 173

$5,000 Market Adjustment Add To This Bolt - Image Via Damian McDonell

$5,000 Market Adjustment Add To This Bolt – Image Via Damian McDonell

Chevrolet Bolt EV

Chevrolet Bolt EV

It’s a practice that’s common with a lot of new, high-demand vehicles (yes, the Bolt is in the high-demand phase right now), but it’s widely frowned upon by potential buyers, as well as by the automakers that supply franchised dealerships with vehicles.

It’s known as price gouging, though dealerships often use a softer phrase such as “market adjustment,” as seen in the image above.

Tesla avoids this by selling direct at one price, but the franchised dealerships often engage in this practice, even though they’re directed not to by automakers.

The image above shows the sticker on a 2017 Chevrolet Bolt LT at a dealership in California (we’ve cropped the image to remove specific dealership information). Note the $5,000 market adjustment that’s added to the bottom line. This, along with other mostly worthless dealer add-ons have driven this price of this Bolt up to $44,824, despite an MSRP of only $38,245.

Damian McDonell shared this image on the Chevy Bolt EV Owners Group. He added a statement, which we’ve included below, but we omitted the specific dealership from his statement:

“Anyone else seeing “MARKET ADJUSTMENT” on the dealer stickers for the Bolt EV? Went to (Chevy dealer) CA and was seeing a “market adjustment” of $5,000! This is making the LT’s approach $45K!”

There’s usually a simple workaround to avoid this price gouging. For example, we know of at least one dealer in California who sells “all in stock 2017 Bolt EVs.”Β for $1,500 below MSRP. So shop wisely!

Hat tip to Lang R!

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173 responses to "$5,000 “Market Adjustment” Added To Chevrolet Bolt At California Dealership"

  1. Mike says:

    And this is EXACTLY why the majority hates dealers.

    1. mx says:

      How Dealers KILL Success.

      Kill Sales, Kills the BRAND.

    2. ericonline says:

      Well said Mike. While I want all EVs to do well, this is a reminder of why the Tesla Direct Sales model is superior to the antiquated dealership model.

      1. Viking79 says:

        It is superior for Tesla, it is easier for them to maintain their industry high profit margins. This dealer is an outlier, many dealers are offering Bolt EV for $1500 off MSRP. Competition is good.

        1. John Madison says:

          Competition is good? Which middleman takes the smallest cut? There’s only one GM making the Bolt. GM sets the price, there is no competition.

          1. ffbj says:

            GM does not set the price, they recommend a price. Haven’t you read the article? It’s about dealers jacking up the price, so clearly if the price has been set by GM it can not be raised.

            1. ClarksonCote says:

              So just to be clear… GM has dealers, one is charging $5000 over MSRP and one is charging $1500 under MSRP.

              Tesla is charging MSRP always.

              You are free to shop around.

              So how is GM’s $1500 MSRP worse than Tesla’s MSRP??

              1. Nick says:

                Few dealers will be willing to sell without making a profit. Dropping middlemen is a good thing.

                GM could drop the MSRP if they didn’t need to build a dealer profit into it.

              2. Nix says:

                Clarkson,

                Actually, you can get a discount off of the Tesla list price very easily.

                1) Take advantage of a Referral program when they are offered.

                2) Buy one of the few hundred Inventory cars that have been discounted based upon miles driven and days in inventory. There are even cars with less than 500 miles on them with thousands in discounts.

                1. ClarksonCote says:

                  Yes I do know that, but those are still fixed/known prices. In GMs case 99.9% of dealers will work with you for less than MSRP.

                  Now, the cynic may say that GM could just lower the MSRP then and sell at a fixed price across the board, but that completely ignores Tesla’s MSRP and doesn’t compare their margins to GM’s margins in the EV arena.

                  In other words, Tessa may make more “profit” on a vehicle sale as a percentage of their MSRP than GM makes at MSRP. I genuinely don’t know, maybe someone else does. But the GM critics tend to not even consider this.

              3. Trollnonymous says:

                It’s more of disparate pricing. Buy from one stealership and find out it’s less at the other makes one feel like they just got bent of and ram rodded by the stealership.
                Unless you like that kind of stuff, and it sounds like your OK with it, then that’s fine. Most others here aren’t into that kind of thing as you can tell.

        2. Trollnonymous says:

          Show us all the sticker and location for this please.
          Otherwise it didn’t happen. In this articles case, it’s happening.

    3. Viking79 says:

      But what I like about dealer model is that many dealers are selling $1500 below MSRP, won’t find that with the models from Tesla.

      1. no comment says:

        the reason why you get a better deal from a dealer is because you are buying from dealer stock. a dealer is not going to give you a deal if you buy a car on a made-to-order basis. so tesla is no different; if you want a car made-to-order, you are going to pay full price. if tesla maintained a network of dealerships with inventory on the lot (assuming that tesla could come up with the massive amount of cash that this would require), they probably would negotiate on price because of the pressure to recover the cash invested in inventory.

        1. Kubel says:

          Nissan gave me $500 off on a made-to-order LEAF when it first hit a neighboring market in 2012.

          1. no comment says:

            the dealer makes money just for selling the car, so a $500 knockoff is better than nothing at all, especially when you apparently had to option of going to another dealership. in your case, if the dealer didn’t have any in stock, he made money by selling to you and was not out any money since he didn’t have cash tied up in inventory for the car. but you probably would have saved a lot more if you had bought from dealer stock.

            1. ClarksonCote says:

              So I think you just contradicted your own stance. People are getting discounts off MSRP on made to order vehicles from dealers.

              Tesla does not budge off MSRP.

              Yet people are up in arms because this one dealer is acting in a way that will cause them to sell less Bolts. So what?

              1. no comment says:

                there is no contradiction. as i understood the situation as described by the previous poster, nissan Leafs were being sold by dealerships in a neighboring community but the dealer that he visited didn’t have any. since the dealer had no Leaf inventory, the options were to take the money from the customer or tell the customer to go to dealerships in the neighboring community, in which case the dealer got nothing.

                this case is a bit different from normal, because at the time the Leaf was apparently in limited availability in his area. under normal circumstances, he would have gotten a better deal if he had bought from dealer stock. if your question is why that would be the case, it’s because when the dealer has inventory on his lot, he has his own cash tied up in that inventory. so he wants to move the inventory to get his cash back. so he is willing to give you a better deal to move inventory.

              2. Nix says:

                Clarkson, you are incorrect when you state that you cannot get a Tesla for less than their list price.

                You can get $1000 off for using the referral program, even on special order cars.

                You can get thousands off of inventory cars with less than 50 miles on them, on top of the referral bonus.

                Even more discount if you are willing to take a service loaner with a few thousand miles on it.

                1. no comment says:

                  the tesla referral program is not “negotiating”. the tesla referral program is more equivalent to a sales commission.

                  1. Pushmi-Pullyu says:

                    That’s correct. None of the examples Nix cited were actually negotiations.

                    In fact, it hasn’t been that long ago that one, or perhaps a few, Tesla sales specialist(s) got in very hot water with Elon when he/they negotiated a lower price for upgrading an (electronically limited) Model S60 to S75.

                    Tesla does sometimes make special offers, but Tesla’s official policy is they never haggle on price. Period.

              3. Pushmi-Pullyu says:

                “Yet people are up in arms because this one dealer is acting in a way that will cause them to sell less Bolts. So what?”

                It’s hard for me to understand why any reasonable person would say “So what?” to price gouging at the level of $1500. Are you, yourself, a salesman who works on commission? I can’t imagine any other reason for you to defend such a blatantly dishonest business practice.

              4. no comment says:

                it’s not that the dealer is trying to sell fewer Bolts; it’s more like they have few Bolts to sell at this point. since their sales volume is lower, they are going to want to make more money on each sale.

                this only works in an environment where demand is greater than supply. the way that markets really work is that the price for which you sell a product will attract everyone who is willing to pay that amount *and* those willing to pay a higher amount. so, with limited supply, what the dealer is trying to do is cherry pick those customers who are willing to pay a higher price. on the sticker in the image, that higher price is shown in the “market adjustment” line item. greater supply will eliminate this “market adjustment” premiums.

                it’s ridiculous for posters on this forum to complain about this practice because nobody is forced to pay the “market adjustment” premium. furthermore, if *nobody* was willing to pay it, the premium would disappear and the dealer would sell the Bolt at a lower price.

                it’s worth noting that this same dynamic occurred when the Volt was first introduced.

        2. All-Purpose Guru says:

          It all depends on the dealer. I bought a high-demand Toyota Sienna when it was being sold for $2000 above MSRP in the San Francisco Bay Area. At the time you could buy a regular Toyota off the lot for about $300 above invoice.

          I went to a dealer outside the Bay Area that predominantly sold trucks and small cars in a farm area. They were happy to give me the Sienna for $400 over invoice, because they typically couldn’t sell the vehicles so they would trade them for trucks from dealers in the Bay Area.

          It all depends on the dealer, how much they want to get rid of the car, and what they have being delivered next week off the truck.

        3. fred says:

          I got $2000 off a build to order Mini. Didn’t come easy. Dealers will deal even on custom orders. That said, I’m fine getting rid of the dealer markup.

          1. no comment says:

            how much would they have knocked off the price if you had taken delivery out of dealer inventory?

            how long did it take for you to get the car?

        4. Jonathan says:

          Tesla does have vehicles that are repirced just slightly lower for inventory cars.

      2. R.S says:

        Well, there is a big difference in a conventional MSRP and the price tag of a Tesla. An OEM doesn’t sell vehicles to the dealers at MSRP, but below.

        The dealer now decides at what price the car should be sold and most keep in mind that you might need some “convincing”.

        So the manufacturer gets, lets say 20k, the MSRP is 25k, the advertised price is 23.5k and the actual price the dealer wants to sell it for is 22.5k.

        Tesla just says its 22.5k. Saturn did the same, once, before GM got bankrupt. And Dacia does the same in Europe, to this day.

        1. no comment says:

          if you’re willing to pay $25,000 for a car, what incentive would tesla have to sell the car to you for *less* than $25,000? they’re going to sell you the car for $25,000 and keep what would have been the dealer markup as profit for tesla.

          1. Pushmi-Pullyu says:

            That’s right. And that’s one of the ways that Tesla manages to compete with larger, long-established auto makers. Tesla can’t compete on the low unit price larger companies get for the large volume of parts they order, so Tesla has to find a larger fraction of its profits elsewhere; in “cutting out the middleman” and selling carbon credits.

            The alternative would not be, as the anti-Tesla FUDster cultists claim, for Tesla to cease making profits altogether. The alternative would be for Tesla to raise its prices, and thus have to live with a smaller volume of sales.

      3. MaartenV-nl says:

        What you get from Tesla is even better. The sales model with dealerships is at least $2,000 more expensive than direct sales like Tesla does. The OEM knows a dealer needs “haggle room”, therefor it adds $1,500 -$3,000 to the MSRP to enable the dealer to make you that nice offer.

        The exactly same Bolt would have been offered at the Tesla website for $33,000 or less. And no haggling required, in the configuration you want.

        1. All-Purpose Guru says:

          GM tried this at one time. Remember Saturn? The one-price model worked for a while, but after a while the dealers started playing the same games they always do to try to undercut their competition.

          With GM, the one-price model died when they mixed it with franchised dealers. This is one reason why Tesla doesn’t want to go down that road.

          1. no comment says:

            so the “games” played by GM dealers resulted in customers getting lower prices, and you’re stating that you actually prefer the tesla model so that you can get rid of the competition among dealers and pay higher prices to tesla directly???

            strange thinking…

            1. Pushmi-Pullyu says:

              “…so the ‘games’ played by GM dealers resulted in customers getting lower prices…”

              Yeah, the article above shows how a case of $1500 price gouging by the dealer results in customers getting lower prices.

              Oh, wait…

              I guess, “no comment”, that your assertion here is what is now being called “alternative facts”? πŸ˜‰

        2. Doggydogworld says:

          “The exactly same Bolt would have been offered at the Tesla website for $33,000 or less.”

          Net dealer cost on 38k MSRP is around 34k. The Chevy dealer pays for facilities, utilities, insurance, salespeople, etc. Tesla has to pay those costs themselves, so their equivalent price would be $36-38k. The only way Tesla can price below that is by accepting lower margins. Which so far they’ve been willing to do.

          1. Nix says:

            Tesla has specifically addressed the issue of dealership overhead in two ways, so that Tesla does NOT have to pay the same overhead as dealerships.

            1) Separate the Service and Sales locations. This allows the Services location to be at a much lower priced location, with much less overhead.

            2) Use direct sales where customers order what they want, and keep inventory at minimum levels. This not only reduces lot size, and costs of maintaining cars on the lot waiting to be sold, it also removes “Floor Plan” financing costs. Dealerships also have costs associated with minimum purchase requirements that simply don’t exist without a dealership franchise relationship.

            ——————————-

            This is the kind of structural rework of the system that saves Tesla money over traditional dealerships. Tesla has identified the same kinds of savings throughout the traditional roofing business for houses. Where eliminating the current inefficiencies of getting shingles onto roofs will play a major part in making solar roofs price competitive with traditional roofing price quotes.

            This is no something new. This is the same model that Amazon has been following in their massive expansion.

            Traditional dealerships are to Tesla as is what Sears is to Amazon.

        3. no comment says:

          many of you posters seem rather gullible to me. do you really believe that tesla would sell you a car for less than the maximum price that they think that you would be willing to pay?

          1. Pushmi-Pullyu says:

            “no comment” said:

            “many of you posters seem rather gullible to me.”

            It wasn’t necessary for you to point out something so obvious. If you didn’t think that many readers here are gullible, you wouldn’t waste your time writing Tesla bashing posts… such as the complex question, “When did you stop beating your wife?” B.S. in your comment, which apparently you think the “gullible” here won’t realize isn’t a real question; won’t realize it’s actually Tesla bashing.

            If Tesla was only interested in selling its cars at the highest possible price, then they wouldn’t be working hard — very hard — to produce the lower cost Model 3, which is going to be sold at a smaller profit margin.

            1. no comment says:

              frankly p2, you come across as writing about a lot of topics on which you are poorly informed.

              do you actually believe that tesla is trying to produce a car AT THE LOWEST POSSIBLE PRICE??? pricing isn’t random, it is a marketing decision. specifically, you set the price of cars to reach target market segments. in the case of the tesla model 3, it appears that tesla is trying to reach the market segment occupied by mercedes benz c-class and bmw 3-series cars.

              maybe you missed the part about musk stating that he expected that the model 3 would be the least expensive car that tesla would ever make. that was a statement about the market segments in which tesla intends to compete.

              1. Pushmi-Pullyu says:

                “do you actually believe that tesla is trying to produce a car AT THE LOWEST POSSIBLE PRICE???”

                No, I believe Tesla is making a profit on selling its cars… which is something else you anti-Tesla cultists claim isn’t happening.

                Duh.

                And YELLING doesn’t make your B.S. smell any better.

      4. Mr.Mr says:

        I hear you brother.
        Dealers only do what they do to offer best deals to their valued customers. They just there to burn money,”buy high sell low” type of thing, because anything else would have to come out of the price of the car that the customer pays. And if that were the case, no one would want them around.

    4. Starr says:

      Ridiculous!

      That is more money than I paid for BoltEV Premiere:

      MSRP: $43,510.00
      Dealership Discount: -$2,000
      Rebate Savings ( Chevy Lease Deal ): -$2,500
      First Month Payment Included: -$380.79

      Total: Before Tax/Title = $38,629.21

      1. Nix says:

        Nice Deal!

        Congrats on your sweet new ride!

      2. Where did you get your bolt?

        I’m in the market.

        chris@… (eci) if you would prefer not to post the name publicly.

    5. Walllace says:

      I had a bad experience at a dealer a few days ago. They were offering almost every vehicle at great lease rates. Including a 2017 Cruze for $79/month with $99 only down, a 2017 Buick Enclave for only $89/month with $999 down. I asked if they had any deals on a 2017 Volt. They came back with $329/mo and $999 down. Not fair.

    6. Matthew Johnson says:

      YES.
      Tesla has proven dealerships are mostly useless, and bad for consumers.
      They will eventually go the way of the landline phone.
      $5000 mark up? If I was anywhere near that dealership I would stay far away from it and tell all my family and friends to do the same.
      Bad business doesnt win more customers.

  2. Spoonman. says:

    …Phantom Footprints?

    1. bro1999 says:

      Phantom as in they don’t actually do anything (or even exist), but we’re still gonna charge you $1,600 on top anyways because we think there is some sucker out there that will pay it.

    2. bro1999 says:

      Ok, I looked it up. They are a set of 6 stickers that the dealer places around a car…basically a fancier kind of VIN etching.

      6 stickers for $1,600. What a deal!! Especially when you get free anti-theft protection via your free Onstar trial that comes with the car. LOL

      1. bro1999 says:

        So basically, this Phantom Footprint thing would ONLY be beneficial if your car gets stolen AND the thief tries to part out the parts of your car tagged with these “footprints”.

        So basically, it’s $1,600 for absolutely nothing. And I also found most other dealers charge less than $300 for them, which is still a ripoff.

        1. Nix says:

          …and the cops catch them, and they haven’t removed the “footprints” stickers.

          I’m sure plenty of cars with “footprints” have been stolen and parted out, and the parts resold to people who put them onto their cars.

          VIN etching has effectively been dead ever since thieves found they could get some cheap Cerium Oxide from China off of ebay, and polish VIN etching right off with no problem.

      2. Al S says:

        To be fair, you’re not only getting the fantom footprints for $1,600. $40 of Scotch Guard and some spray-in wax are also included. And if you’re lucky they’ll remember to charge the car before delivery.

      3. Stimpy says:

        And don’t forget about the undercoating. These babies will rust right through!

  3. bro1999 says:

    Dealer is Glendora Chevy.

    Time for some new Yelp/Google reviews. πŸ™‚

    1. William says:

      Thanks bro, will bring the Luv to their stealership web reviews!

  4. Alan says:

    “Market Adjustment” meaning we can’t make much money on servicing & repairs so we’ll take it off you to start with !

    1. Zim says:

      It’s likely the large demand and limited supply of these cars. Take the long view and see it as a good thing. As GM produces more and the buyers that gotta have it first buy theirs, the price will decline. It’s the same for Ford GT350’s and Raptors and so forth.

      Many people negotiate prices for mainstream volume models that is below MSRP. No one posts angry rants about that.

      1. Alan says:

        I guess as we don’t have this practice here in the UK it just seems a little excessive to leave a 15% tip to get your car a few month earlier.

        How many people actually pay this ?

      2. Remember, this was supposed to be a car that beat Tesla to Market, and was an ‘Affordable’ EV for Everyone! So, starting with it already had an MSRP that was $2,500 over Tesla Model 3 Base Price, and adding another $6,500 (phantom stickers + price gauge), now puts it at $9,000 more than the Tesla! Net $44,824!

        For that price, people can get a dual Motor Model 3, with a larger Battery (quite likely to deliver over 250 Miles Range, maybe over 280 Miles Range!), All Glass Roof, and likely – at least basic Autopilot, if not the Full Autonomous package, and get it this year as well, with access to Level 2 Public Charging, Tesla Level 2 Destination Charging, CHAdeMO DC QC, and Tesla Supercharger Network, if not also access to CCS Charging Stations as well, by adapter – like the CHAdeMO option!

        I guess this dealer thinks that since ‘A Sucker is Born Every Minute’, and ‘A Fool and His Money are Soon Parted’, that it would be Immoral, to not ‘Part That Money’ from The Fools that Shop with Them! ;*)

        1. bro1999 says:

          You are leaving out the $1,200 delivery fee Tesla charges on all its vehicles…so the mythical $35k Model 3 is actually $36.2k. Also, NO ONE will see a $36.2k Model 3 until MAYBE late 2018. Fully loaded 3’s will have priority over the money-losing $36.2k stripper models.

          Meanwhile, I bought one of the first Bolts my CA dealer sold last month for $1k under MSRP. πŸ™‚

        2. no comment says:

          the pricing of this Bolt is comparable to what tesla expects will be the typical selling price of a model 3.

          what i don’t get is, what is the deal with the “phantom footprints”? is this some sort of theft prevention gizmo? wouldn’t a stolen Bolt already be traceable?

          if this option really is about theft prevention, then it seems like one of those money-wasting options that is equivalent to the old “rust proofing” dealer add-on option that the dealers use to offer with cars (when the cars come from the manufacturer with rust proofing treatment already applied).

          1. Trollnonymous says:

            It’s only good AFTER your Bolt is stolen.
            It doesn’t prevent sh1t.

            1. Nix says:

              It really doesn’t do any good until the car is parted out and the parts are recovered by police. Until it is parted out you can just use the regular VIN to identify it, like in the vast majority of theft recoveries.

              Personally, I really don’t want the parts back after my car is stolen and parted out…

              1. Trollnonymous says:

                Typically, if you have insurance, you will never get those parts back. Insurance will most likely get you a new car before one part is found.

                So, a worthless additional cost applied to the cars price…..lol, stealerships.

                1. Nix says:

                  Exactly!

        3. Texas FFE says:

          Give me a break!!! Tesla cars get the worst price gouging of any car I’ve ever seen. When the Model X came there were units for sale tens of thousands over MSRP.

          With the slow ramp up of the Model 3 and the ability of deposits on two cars you are going to see heavy price gouging when the Model 3 comes out. The comment in the article that indicates that somehow the Tesla models are immune to price gouging is ridiculous. Even insideevs had an article Ford buying a Model X for $50k over MSRP.

          1. Nix says:

            Texas FFE — Your Alternative Facts are just lies. Tesla doesn’t sell at above their listed prices. They don’t price gouge.

            Ford NEVER bought a Tesla directly from Tesla. Ford bought it in the used car market, and paid $55K over the price the original owner paid, because there were no used Model X’s available. Tesla did not collect a single penny in this deal:

            “The original owner of the Model X that was ultimately purchased by Ford was Wayne Skiles, 71, who owns and operates the Carousel Coin & Jewelry Exchange in San Bernardino, California”

            https://www.bloomberg.com/news/articles/2016-04-20/ford-pays-199-950-before-taxes-for-tesla-s-64th-model-x-suv

            Why do you post stuff that is so easily and immediately debunked by 3 seconds on any search engine? Do you WANT to make a fool of yourself in public?

            1. no comment says:

              ford paid $55,000 over msrp for the tesla model X because it was a limited edition “founder’s series” car. i guess ford assumed that this founder’s series car would have all the bells and whistles so they probably preferred this car over a regular production model X.

            2. Texas FFE says:

              You didn’t debunk anything because there was nothing I said that YOU could debunk. I saw a bunch of Model Xs on AutoTrader just after they came way over list price and that’s a stone cold fact. It looks you are the one that’s spreading alternate fact.

          2. Pushmi-Pullyu says:

            Texas FFE said:

            “When the Model X came there were units for sale tens of thousands over MSRP.”

            I guess you’re referring to a few cars sold at auction by resellers… essentially scalpers. Rather disingenuous of you to imply that Tesla did that, innit?

            “With the slow ramp up of the Model 3 and the ability of deposits on two cars you are going to see heavy price gouging when the Model 3 comes out.”

            What a troll! Now you’re just making up anti-Tesla FUD B.S.

        4. Viking79 says:

          My guess is the Model 3 you speak of will be closer to $60k. Look at price of base Model S, and what you are mentioning is better featured. Maybe even $70-80k for a loaded Model 3.

          1. William says:

            $80K for a Totally loaded Model 3? That will make for at least a few upset people that are on the Preorder list. If your in the ballpark, the Model S starts to look like a pretty dam good deal.

        5. Kdawg says:

          “For that price, people can get a dual Motor Model 3”
          ————-

          We can get a Model 3 now? And we have official pricing? WOW, I must not have been paying attention.

      3. przemo_li says:

        You forgot that GM do not sees that money, so it do not have influence over weather they will allocate more production capacity at LG to increase Bolt sales.

        Dealers will have next new car to price gauge anyway, so they will not want more Bolts either.

        * GM is battery production constrained. It’s to be seen if LG can scale that capacity in next few years.

      4. Pushmi-Pullyu says:

        “Many people negotiate prices for mainstream volume models that is below MSRP. No one posts angry rants about that.”

        You’re not making any sense. The MSRP that legacy auto makers use isn’t a fair market price, it’s an inflated price which both the auto maker and the auto dealer expect most customers to negotiate to a lower price.

        Are Tesla cars priced closer to a fair market value? Well obviously that’s a matter of opinion, but I think it’s safe to say that most Tesla car buyers think they are. Those who don’t think so, probably don’t become Tesla car buyers.

  5. bro1999 says:

    Meanwhile Rydell, Fremont, Dublin are offering at least $1,500 off MSRP on their Bolts. Volume dealers can afford to take money off the top in order to move Bolts en mass to hit those volume incentives.

    1. ItsNotAboutTheMoney says:

      Then, when they sell them fast, they get more of the future allocation.

      I’m sure this dealer is happy to have it sit for a while to see if they can get a fish to bite.

  6. bro1999 says:

    Here’s their Yelp page: https://www.yelp.com/biz/glendora-chevrolet-glendora

    Let them know what you think. πŸ˜‰

    1. Brian R says:

      The dealer had a friend with username “Gen S” post a fake review claiming to have gotten a Bolt there with no charge for markup, when you look at the 5 reviews by Gen S they were all within 1 hour of posting about the dealership hahahaha so sad

  7. pjwood1 says:

    To think this once happened to me with a Clean Diesel.

    1. Alan says:

      That sounds like a joke within a joke !

  8. Eric says:

    It’s never funny to pay more for goods, but this is really a good old supply and demand thing. Nothing new here.

  9. Ken_3 says:

    It is also one way to keep sales low to “prove” that people don’t want to buy EV’s.

    1. bro1999 says:

      This is not some corporate conspiracy to tank Bolt sales.

      This is just 1 dumbass dealer trying to find a sucker to rip off. Simple as that.

      1. John says:

        I doubt they really believe anyone will pay this. But what it does do is give the salesman an excuse to get up and leave you in the office for 20 minutes while he goes and talks to his boss to see what he can do to get you a good deal.

        “GREAT NEWS! My boss says we need to sell one more car TODAY to hit our quota. If you sign RIGHT NOW, I can take FIVE GRAND off the price!”

        Just more stupid dealership games.
        This is why I buy almost new cars private party. Someone else takes the depreciation for driving it off the lot, and I don’t have to mess with any of that crap. Win/Win.

    2. William says:

      People don’t want to buy expensive or low range EVs. Now Leasing EVs is a different story, there are some good car values to be had by savvy shoppers. One has to be willing to accept 1/2 the range (100mi.+) and the amenities of the Chevy Bolt. The savings are around half of the Lease price of the Bolt as well.

    3. Kdawg says:

      Oooohhh a conspiracy theory! Wait. Let me get some popcorn.

      1. Ken_3 says:

        Not a conspiracy theory. Just one dealer proving his bias. I think Chevy wants this car to do well and is marketing it at a slim margin to move many into the marketplace.

  10. no comment says:

    tesla does constructively the same thing when they set their delivery schedules according to how much the customer paid for the car. so this practice really has nothing specifically to do with the independent dealership model and everything to do with the common sense proposition that if people want to be “the first kid on the block with the new toy” that they should pay for the privilege.

    nobody is forced to pay these markups so the advice in this article is well taken: “shop wisely”.

    1. mx says:

      No, you actually get content with the money you part with.

      1. no comment says:

        if you paid for a reservation for a tesla model 3, and you end up paying more than you intended to pay in order to get the car earlier, then you have effectively paid a “market adjustment” premium. at least with a dealership, if you don’t like the premium charged by one dealership, you can go to another dealership and get a better deal since the dealership are not (supposed to be) coordinated in their sales activities. but when you are dealing with tesla directly, it’s pretty much take it or leave it.

        1. Pushmi-Pullyu says:

          No matter what kind of snow job you try to use to confuse the issue, your B.S. is still B.S.

      2. Kdawg says:

        What “content” was there for paying for a “Signature Series”? Seems like designer jeans to me.

        1. Pushmi-Pullyu says:

          The only people who paid for a Signature series Tesla car were those who actually ordered one. That is, those for whom it was worth the extra money to get something that was more “exclusive”.

          There wasn’t any dishonest “Market Adjustment” price gouging involved.

    2. TalkWithYourFeet says:

      It’s very different.

      Pay higher amenities, get faster service, like room upgrades. Tesla, you buy more amenities, get faster delivery. Spend $50+ at Amazon, get free delivery (or Tesla buy unlimited charging, and get bumped higher in line!)

      One can barely justify the $1700 in fluff upgrades/’protections’. There’s nothing tangible in ‘market’.

    3. Nope! Tesla doesn’t set delivery schedules based on inflated add ons that offer no value to the buyer, like this $5,000.00 ‘extra’ fee. Even this $1,500 ‘Phantom Stickers’ is more Dealer Level Scam.

      How many chop shops steal EV’s anyway? With just 1% of the market, how much black market demand is there?

      1. Kdawg says:

        Tesla has a history of doing this. They deliver higher-priced / more-optioned cars first.

        1. Trollnonymous says:

          ….and being late!

        2. SecondSun says:

          I think you’re not quite getting it.

          This dealer is charging over $6,500 for what essentially amounts to “nothing” (ok, ok… a few stickers).

          When you pay more for the Tesla, you actually get something for the money you spend. Oh, and you happen to get your car sooner to boot!

          Does it cost more to get your car sooner? If that’s why you’re requesting the extra equipment, sure. But my guess is most people buy the car they want and get it when they can.

          1. no comment says:

            in the non-EV enthusiast world, there are few people who would pay a deposit and say that they don’t care when the car actually arrives.

    4. Pushmi-Pullyu says:

      “no comment” commented:

      “tesla does constructively the same thing when they set their delivery schedules according to how much the customer paid for the car.”

      No, we’re not gullible enough to swallow that B.S., either.

      What’s with the multiple anti-Tesla FUD posts today, “no comment”? Are you staring down the barrel of a “short squeeze” on your TSLA investment, or what?

  11. TalkWithYourFeet says:

    Hopefully EV enthusiasts are better than the regular ‘gotta have it’ American. This isn’t Christmas with a hard dropdead delivery date and have to buy that Cozmo/Hatchimal NOW.

    Bolt is nice. 10% markup? Wow. -smh

  12. Michael says:

    There is absolutely no reason not to show the dealer’s name. Call them out and SHAME them! It’s obviously publicized by them to the public so why YOU hiding it?

      1. bro1999 says:

        “Protecting the consumer”

        LOL

        1. ffbj says:

          The theft protection does not include not being ripped off by the dealer.

          1. Pushmi-Pullyu says:

            ROTFL!!
            πŸ˜€ πŸ˜€ πŸ˜€

            ffbj, you just won the Internet for today.

      2. speculawyer says:

        Footprints?

        Someone’s muddy boots in the new car and they charge $1500 for it?

  13. Kubel says:

    Why did you censor the dealership that did this? They should be accountable.

    1. no comment says:

      i don’t represent insideevs, but i would presume that their position is that they are just trying to provide readers with the relevant information and they aren’t in the business of organizing boycott campaigns against any dealership. notice that the article mentioned that some dealers are selling Bolts below msrp without mentioning which dealerships are doing so. the most relevant information is that that there are some dealerships that selling Bolts above msrp and some that are selling Bolts below msrp. it’s up to you to use this information to “shop wisely” and find your best deal if you are in the market to buy one of these.

      1. Β―\_(ツ)_/Β― sven says:

        Well that, and being sued for libel if InsideEVs named the wrong dealership. It’s also a pain in the butt to open and read those Cease and Desist letters that the dealer’s lawyer would undoubtedly send to InsideEVs.

        1. Nick says:

          What?

          How would posting a straight out of camera picture possibly be liable?!

          1. Independent Observer says:

            Nick – Inside EV’s does not have the ability to investigate the accusation and verify. The internet is the wild west. Someone could have an ax to grind and easily create a false photo. “If” it were false and they published as real, they would be open to a lawsuit.

            1. Pushmi-Pullyu says:

              Not only that, it’s good journalism to avoid using evidence in an article when that evidence can’t be verified.

              Something to keep in mind in this era in which “the new abnormal” is so-called “alternative facts”… also known as lies.

            2. no comment says:

              of course insideev could investigate this claim – they could call the dealership up directly and ask if it is truly theirs. but what would the point be? while some of the posters in this thread write like a bunch of juveniles, my impression is that all that insideevs was trying to do was to make people aware of the fact that there are dealers who are taking premiums on to the price of Bolts.

      2. ffbj says:

        I doubt if you could find comparable price 5k below. So quit trying to say their price is being counterbalanced by dealers that you think are giving you a deal. It’s sad people defend this sort of thievery.

      3. Trollnonymous says:

        β€œshop wisely”….
        Because most stealerships will rip you off, just like this one.

    2. bro1999 says:

      Glendora Chevy.

    3. Pushmi-Pullyu says:

      I certainly would not presume to speak for InsideEVs’ editors, but I will note that we occasionally see comments here from editors (or at least from Jay Cole), about calling around to various dealers to get information on EVs and EV sales. I would guess that InsideEVs doesn’t want to “call out” any specific dealership for dishonest or unethical business practices, because that might well have a chilling effect on their future ability to get info from them.

  14. Texas FFE says:

    Actually in a way I think this is great news. It shows that the demand is so high that dealers think they get more than MSRP. Hopefully demand will remain high and GM will kick out the Bolt in numbers comparable to a popular ICE car.

    Of course this is bad for people who can’t wait and have to have thier Bolt now. But hey, these guys are willing to pay extra to have the first Bolt on the block. For those of us willing to wait we should benefit from greater selection and lower price due economies of scale when GM ramps up production to meet demand.

    1. Pushmi-Pullyu says:

      Early buyers of any new model, including the Bolt, are already paying above fair market value by paying full MSRP, instead of negotiating a lower price, as new car buyers usually do.

      The so-called “Market Adjustment” is blatant, greedy price gouging, and nothing else.

      1. Texas FFE says:

        i still don’t read your inflammatory nonsense.

  15. Someone out there says:

    It’s just simple market economics. Some people might be willing to pay $5k extra to have it now. If not, this $5k will go away and later you might even buy the car at a discount.

    1. Trollnonymous says:

      I give it 6 to 8 months.

  16. Lou Grinzo says:

    Welcome to the mainstreaming of EVs. Once we get to substantially over 200 miles/charge + affordable vehicles, demand will outstrip supply and we’ll see combinations of long waits and dealer markups.

    The only reason some dealers are selling below MSRP is that not enough people know about EVs and the Bolt in particular. Once the light comes on over their heads, and people like my neighbors who think my Leaf is a toy car for tree huggers, figure it out, we’ll be competing with them for the limited supply of EVs.

    My hope is that that situation won’t last long because it will push car makers to bring out more models and increase production volume. But for a while, EV shopping will be a far more “interesting” experience than it’s been up to now.

  17. Bill says:

    Vote with your feet and walk away from a dealer that asks you to pay an extra $5,000 for no particular reason. It is nice (for them) for you to be a sucker, but you are certainly under no obligation to be a sucker.

    Also, everything in life is negotiable, even if the other party says it isn’t. It has been quite a while since I have bought a new car off a dealer lot… The dealer had a line item on the sticker that was labeled something like, “regional cooperative advertising surcharge: $500.” I told them that advertising is simpy a cost overhead for them just like paying their rent, electric and phone bill, and I would not pay extra for it. The dealer said it was non negotiable and, “it was done by all dealers in the area.” I got up and walked for the door after waiting for the dealer to waste its time generating all the sales paperwork. Not surprisingly, the sales droid came running out the door after me. I told them I’d give them $250 over their cost minus the holdback and I got it. Of course, I did my homework before I went shopping and knew in advance whst the cost and holdback were.

    Be smart and play the same game with the dealer that the dealer plays with you. Dealers try to get you to waste your time, so that you don’t want to let go of something in which you have a lot of emotional involvement. The same thing works on them. Let the dealer get the taste of the impending deal and have an emotional stake, then assert yourself.

    Also, don’t settle for any binding arbitration stuff in the sales contract. A contract is a two party AGREEMENT and you can modify anything you don’t like just as much as the other party can. Cross out and initial any binding arbitration clauses. If the dealer doesn’t like it, walk out.

    1. ffbj says:

      All true, including the part where he says all the dealers are doing it. Cheating customers that is.
      Not all are as sharp as you though almost everyone knows that dealers are scum sucking middlemen just running up the price of your future vehicle. This not conjecture it’s just fact, and not an alternative one.

    2. no comment says:

      you’re exactly right. the bottom line is as suggested at the end of this article: be an informed consumer. that is true for any purchase you make.

  18. Rashiim says:

    I was looking at that very Bolt 2 weeks ago. I couldn’t believe the words coming out of the guys mouth when he told me the price. And for an LT!? The only Bolt on the lot?

    I live 5 minutes away from that dealership but I haven’t been back and I ignore their calls.

    1. William says:

      If you can’t source a MSRP Bolt less $1K+, in the So. Cal area, consider a GM Bolt delivered to your door at MSRP less $1,500.oo . Just pay pay the extra delivery fee of approximately $300.oo, and probably get it by the end of next week. Bay Area car deliveries are a good value, if you don’t want to step onto a Stealership lot.

  19. unlucky says:

    Oh. That’s just on the sticker. You’d have to start negotiating with them to find out if it’s really going to be added.

    I wouldn’t touch that Volt with a 10 foot pole, not with all that dealer added garbage on there.

    That dealer deserves to watch that thing litter the lot for months if not forever.

    1. bro1999 says:

      And accrue interest that is due to GM/GMF every day it sits on the lot

  20. ffbj says:

    So what’s dealer added paint and interior protection. Did some guy take a $5 bottle of Armor All and spray it on the car? Yep you go that true coat or you will oxidation.

    1. Trollnonymous says:

      lol…. +1

  21. Trollnonymous says:

    lol……. stealership markup.

    I like the “Phantom Footprints” bullsh|t.

    $6579.00 is the total markup!!!!

    Now somebody post a sticker of one without these markups and give the address on where it’s at so many Model 3 line holders can jump out of line and get a Bolt…..lol

    yeah, selfish line cutting for me. πŸ˜›

  22. Trollnonymous says:

    WOW!

    People actually believe MSRP is real????

  23. Anon says:

    Told you guys this was gonna happen. No one believed me.

    AHAHAHAHAHAHA!!! Go Go GM Stealerships!!!

    1. bro1999 says:

      A car dealership tries to rip off customers….

      Nice prediction, Nostradamus. No one saw that coming.

      1. Anon says:

        I SPECIFICALLY mentioned “Market Adjustment” Fees, Captain Obvious. πŸ™‚

        1. ffbj says:

          I do recall a post you made where you said just this sort of thing would happen. I think that was months ago.

          1. ModernMarvelFan says:

            Yes, Anon is Capt Obvious…

            Shocking that some dealer decides to mark up a “great car in high demand”.

            Geez, if you aren’t as dumb, then you don’t have to shop there.

            This is like complaining about DeWalt for having Home Depot selling the same DeWalt Drill for $50 more than Lowe’s instead of buying direct..

            1. ffbj says:

              True. It’s obvious that the auto dealers have many arrows in their quiver to wound unsuspecting buyers and they will use them that much is obvious. So true, that wasn’t hard to predict.

        2. Nix says:

          I remember that post. I even remember riffing off of it later myself….

        3. unlucky says:

          That is a very common term for this kind of thing. Again no special marks, Nostradamus.

          1. ffbj says:

            I think properly you should refer to him as, wait for it: NostrAnonomous.

    2. ModernMarvelFan says:

      “Told you guys this was gonna happen. No one believed me.”

      I also know that Anon will find every way to make stupid comments attacking Bolt and GM.

      Only an idiot would pay this. Simply go to one of the SF Bay Area dealership and you will pay MSRP or less for SURE!

  24. speculawyer says:

    ” It’s known as price gouging”

    It is also known as capitalism. Don’t panic. This happens with EVERY POPULAR NEW CAR. It will disappear as more Bolts are produced.

    I view it as kind of a good thing . . . this means there must be very high demand for the Bolt!

    1. s says:

      Exactly. The $5k ‘added adjustment’ merely pads the dealership ‘asking’ price. As the old salesman’s credo goes, You’ll Never Get Something If You Don’t Ask For It.

      If I were shopping that dealer, I would tell the salesman right away that the added adjustment is to be thrown out the window before any further discussion. And if they don’t agree, I’d get up and walk out. Chances are they’d change their tune before I reached the door out.

      It’s all a game of numbers, not a personal combat. Know what you’ll pay before going in, and stick to your guns.

      1. Nick says:

        Or skip all that BS and order direct from Tesla. πŸ™‚

        1. no comment says:

          …and then you can pay the $5k directly to tesla instead of paying it to a dealer.

  25. Nix says:

    It is actually a good sign that it took so long for this to happen, and so far it is only being reported at this one dealership. For the last month since sales first began, I haven’t been hearing about this happening.

    This is very much unlike the initial Volt rollout, where the opposite was true. Where starting on day 1 you had to search to find the few dealerships who didn’t have some type of market adjustment.

    Instead, this seems to be the exception that proves the rule, that dealerships generally are not trying to rake consumers over the coals on buying Bolts.

  26. jim stack says:

    That’s another reason to LOVE TESLA. They have high demand but don’t add extra charges. They even have a few referral programs that give you $1K off.

    1. unlucky says:

      You might be shocked to find Tesla jerked Roadster buyers something awful. It was so bad that Musk even apologized for it in Who Killed the Electric Car 2 and justified it by saying they were really, really broke at the time.

      At the time even if you had prepaid completely for a Roadster (something Tesla encouraged because they needed the capital) they called you up and threatened to put you at the end of the line if you didn’t buy a bunch of accessories. Some of these accessories were even items that had been listed as included when you prepaid for the car like wheel packages and a “high speed charging cable”.

      1. Pushmi-Pullyu says:

        It’s easy to be a “Monday morning quarterback” and say that Tesla should have simply priced the Roadster higher, rather than belatedly giving absurdly high prices to accessories to make up for a cash flow problem.

        But as I recall, Tesla had already raised the price of the Roadster 10% above the initial announced price, and I guess they thought that it would be better not to do it a second time, even if the solution they chose looked very much like price gouging on accessories. Objectively, it was price gouging.

        But Tesla overpricing those accessories was due to desperation and economic necessity. Contrariwise, the Chevy dealer in question here appears to be motivated by mere greed.

        1. unlucky says:

          I didn’t say anything like that.

          Nonetheless if you take money to deliver a product you have a contract now and you should honor it.

          And this was before the Roadster price was raised.

          None of that matters though. Tesla took money and then shafted their customers. They threatened non-delivery if the customers didn’t pay more than was already agreed upon. This is a terrible thing to do to your customers. Full stop.

          And sure it happened for different reasons. But it’s also not the same situation. This company is presenting an open offer, they don’t have preexisting agreements with customers. They didn’t take down payments years in advance and then slap this on. With this scummy dealership if you don’t like the price you look at the sticker and walk away, nothing lost. With Tesla they have already had your money for months (over a year) before they pulled that crap.

          Why is it necessary to excuse the bad things Tesla did? Do they have to be flawless somehow?

          Tesla added extra costs when the Roadster was in higher demand than they could produce. I mentioned this because the other poster seemed to think this was confined to other companies.

    2. no comment says:

      you sound like the kind of customer from whom tesla would LOVE to take money.

      1. Pushmi-Pullyu says:

        So, how much money have you lost on short-selling Tesla stock, “no comment”?

  27. Vexar says:

    So GM is losing $9000. off the MSRP. I’m sure Glendora Chevrolet is trying to help, and they will give all of that back to GM. I think they are being at least a little generous here. What would help is if all the dealerships sold the Bolt for $9000. over MSRP, then gave it all back to GM and they would be incensed to make even more Bolt vehicles. GM has beaten Tesla to the market for a long range EV under $50k, so they have at least five months here to get their prices down to $35k. If you don’t pay attention to gadgetry like self-driving or HUD interfaces, or any other differentiators like size, comfort, and performance… or hardware differences in general, they are practically the same car!

  28. Kakkerlak says:

    $5000 seems to be a typical markup when a dealership decides that a vehicle is in high demand. To my surprise, while trying to buy a 2014 Ford Focus Electric, I found one dealer who had a line item for $5000 “ADP”.

    That salesman told me that he was able to sell every Focus Electric that came in the door for $5000 over list price.

    And you know, I couldn’t prove him wrong, not without attempting to contact and interview every buyer. This was a car that Ford was, at the time, offering $6500 incentives on.

    While I’m happy with the Focus Electric I’m driving now, it remains a startling memory of exactly how dishonest and unhelpful the dealerships I tried to buy from were.

  29. Markitup says:

    This is very simple. If they mark the Bolt up for reasons of demand, greed or whatever, just don’t buy it. Nobody is twisting arms.

  30. realistic says:

    As a couple of people stated, if the Doistribution chain is able to mark up Bolt prices and sell every one they can get at a significant profit, then the demand for the car must be very strong. If you fervently hope for widespread popularity of EVs, and that the McKinsey view of “pent-up demand for EVs” is real, then this should be viewed as marvelous news. This was exactly what happened when Prius sales hit their upward inflection in 03/04. Be happy, and don’t buy from this guy. It’s that simple.

    I love the idea of the Bolt and have great expectations for abiding owner love of the cars, but unlike the Prius case I don’t think this sort of thing will last. Thirty-to-forty thousand in 2017 will be an awesome year and a great harbinger of success, but demand won’t support supranormal dealer margins.

    1. Vexar says:

      With that logic, given the demand for the Tesla Model III, Tesla Motors should easily be charging much, much more than $35k.

      What’s really going on here is the dealers are stifling EV adoption. They need to get the Sonic’s and Cruze’s off their lot first.

      1. no comment says:

        you can rest assured that the first tesla model 3 cars that get delivered will cost a lot more than $35,000. the people who run tesla are not fools.

  31. ModernMarvelFan says:

    That isn’t surprising at all and it is a good thing.

    If dealers don’t do this, then it means there is very little demand which means there are very little demand for a great affordable 200 miles+ EV.

    With this, it means that at least the dealer thinks there are enough demand to pay for that or at least enough to still come in for a negotiation.

    For buyers, just got another dealer that are willing to deal so you can pay less. It isn’t like Tesla, where you have to pay the full retail price. You have a choice. The S in the MSRP means merely a suggestion.

  32. Len Marshall says:

    I’ve been in the business 50 years and the greed and stupidity never ceases to amaze me. This is a case of predatory programs pedalled by unscrupulous marketing firms. This is the deal: Customer comes in with a worthless or underwater trade. The dealer gives him a fraudulent trade in value, enough to actually look like a decent percentage down payment, the financial institution does a wink, wink at the fraudulent deal, and everyone gets what they want. The customer gets a vehicle that will be underwater 2 years after the payments stop, or the wheels fall off. The dealer sold a vehicle and shows a huge profit on paper, the manufacturer moves another piece, and the bank makes a percentage on a hugely inflated price and very long term while then paying the dealer a percentage based on those factors. What could possibly go wrong.

  33. Pushmi-Pullyu says:

    This is something I predicted would happen, and I was very pleasantly surprised at initial reports that it wasn’t happening.

    In this case I’m very sorry to be proven right, and I strongly hope this is an isolated case!

    1. ModernMarvelFan says:

      It is a good thing in a way…
      1. It means that dealer thinks there is demand to sustain it.
      2. It means that people are showing interest to lead the dealer in believing so.

      Both are good things.

      But I know plenty of SF Bay Area dealers that will more than gladly to sell you one at MSRP. Some are willing to sell below that by about $1K to $2K for the higher volume dealers.

      My local dealers were marking up Volt for $5K before it even arrived on the lot! But after 7 months, they were willing to sell at $500 below MSRP.

      So, only time will tell.

      1. Pushmi-Pullyu says:

        Thanks for your comments, MMF.

        A few years back I read an article which analyzed the market for new cars. It pointed out that new automobiles are the only product for which the average selling price declines significantly over the course of a single year; with the price the highest when new models are introduced, and lowest at the end of the year when dealers are trying to close out the old year’s stock to make room for th new.

        Perhaps, in hindsight, that should have been obvious. But when I read the article, it was a real eye-opener for me.

        * * * * *

        MMF, your comment is one of several in this discussion thread pointing out that a $5000 “dealer markup” is actually a positive sign showing that one dealer, at least, thinks there is high demand for this car. So yes, that’s a good thing.

        As Realistic said: “Be happy, and don’t buy from this guy.”

        I think that’s something that most of us (everyone except the anti-EV trolls) can agree on.

  34. CVVH says:

    I’m glad some people have posted the dealership name so others can avoid them. Disappointed by inside EVs for not putting it in the article.

  35. steve says:

    The following article in Clean technica surveyed 1/4 of the CA dealer network to see what they are doing with the Bolt.

    https://cleantechnica.com/2017/01/11/chevy-bolt-sales-investigation-california/

  36. Jim Schillinger says:

    Sorry if repeated, I see on the Internet that Freemont Chevrolet is offering $1,500 off Bolt