[ad#post_ad]Of the many fascinating topics surrounding the Chevy Volt, probably none evokes as much passion as the car’s price.
The car is likely to MSRP anywhere from low to high 30s but buyers will be eligible for a $7500 tax credit, bringing the effective price likely below $30,000.
There are always concerns, however, about possible dealer price gouging.
When highly desirable new technology products are available in limited supply and at limited locations, economic forces often dictate price escalations. It the simple supply and demand equation.
GM has said they will roll the Volt out gradually in waves, and reports suggest as little as a few hundred copies will make it to showrooms in late 2010. GM has also said only Chevy Dealers willing and able to take on the rigorous technical and training requirements will be given Volts to sell.
So with a symbolic waiting list here of over 51,000 people here and more than 40,000 handraisers on the Chevrolet.com site, and such intensely limited supply, one would think price escalations and bidding wars could turn out to be a big problem. Right?
Not so says GM nor should anyone be putting down deposits yet.
“We haven’t fully determined our go to market strategy, so any talk of a deposit is premature – we haven’t even announced pricing yet,” states GM spokesperson Phil Colley.
“We also aren’t expecting our dealers to overcharge anyone for this vehicle either and will monitor the situation closely when we launch,” he says.
Phil clarifies this statement a bit further saying “we’ll be paying close attention when the vehicle launches and do our best to strongly discourage this kind of behavior as we always do with any GM-branded vehicle.”
I asked Volt spokesperson David Darovitz what if anything GM could actually do to clamp down on this behavior if it is observed to occur.
“We strongly discourage dealers from this activity when it occurs, but we cannot direct their business decisions,” he says. “They are independent business owners.”
So will they gouge or won’t they?
Here’s what GM-Volt commentator Gordon Green had to say yesterday:
I checked with my local Chevy dealer, saying I’d like to order a Volt if I could get it for MSRP.
“No I can not guarantee that. The first few will probably be over MSRP.”
This entry was posted on Friday, June 25th, 2010 at 6:17 am and is filed under Dealers, Financial. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.