Car dealerships dirty tricks revealed
Inside the dirty tricks of car dealers exploiting global supply shortages to praise Aussie motorists
- Honda’s Civic Type R advertised online for $20.00 over retail price
- A car dealership insider said: ‘There’s always a way around it’
Rival car dealerships buy up high-demand cars from competitors in the midst of a global supply shortage and resell them second-hand at exorbitant prices, helping customers avoid long waiting lists.
Honda’s $73,000 Civic Type R, a highly sought-after turbocharged model that just launched in Australia, has a staggering two-year waiting list, but Motoring editor David McCowen says car enthusiasts hoping to get their hands on one have another option.
More than a dozen have been listed for sale by some Toyota, Hyundai and Volkswagen dealers for over $90,000 – with less than 60 miles on the clock.
James Whitbourn of CarHelper.com.au told Daily Mail Australia global supply chain issues are driving up prices for anyone looking for a new ride.
“Since dealers have had a hard time finding good quality used stock in recent years, it would certainly make sense for them to jump at the chance to get some stock that they can use to make a profit,” he said.
There’s a two-year waiting list for the Honda Civic Type R (pictured)
Honda customer George Hitchens, who placed an order for the new Type R last August, said he is “furious” that dealers are “taking cars from legitimate customers”.
“The automotive world is cannibalizing itself to make money, make customers pay more and get even more offended when buying a new car,” he told the Courier Mail.
But Geoff Gwilym, CEO of the Motor Trades Association of Australia (MTAA), claims ordinary “gamblers” are responsible for the price hike.
“Some people buy cars from a dealer and before they pick it up they put it online and try to sell it for more than they bought it for,” he said.
“Say a car is in short supply, you buy the car for $58,000 and it comes in in six weeks or two months.
‘You put a picture of it on the internet and you try to sell it. So you could sell a $58,000 car for $64,000 because someone wants it now,”
He said revheads are willing to pay more if they can get a car faster.
So it’s not the dealers (who make big profits on scarce models), it’s the gamblers who do it.
“Car dealerships sell cars that are in high demand, but there’s no cheating, they just sell a car for the best price they can get.”
Another high-performance car that sells for high prices is Toyota’s GR Corolla.
Rival car dealerships buy up high-demand cars from competitors in the midst of a global supply shortage and resell them second-hand at exorbitant prices, helping customers avoid long waiting lists. Pictured: Toyota’s GR Corolla
Other vehicles affected by the malpractice include the Ford Ranger Raptor ute and the VW Golf R (pictured)
It officially costs about $67,000, but some online sellers are asking for more than $93,000.
Other vehicles affected by the malpractice include the Ford Ranger Raptor ute and the VW Golf R.
Mr Gwilym said how the cars end up being quoted well above sale price comes down to supply and demand.
“Because the wait times are way out, or there’s only a small number of cars coming in, so sometimes what a manufacturer does is they say a new car is coming out, we put four in each dealership,” he said.
“If you happen to be a person who goes to that dealership and gets one of those four, you can go online and sell it for a significant profit.”