Watch any car commercial, and you will almost always see the abbreviation “MSRP” come up next to the price of the car. Many people don’t know that this stands for the Manufacturer’s Suggested Retail Price. In other words, this is what the big corporations “suggest” their dealerships sell their cars for. But dealerships are independently owned and operated, and they can set the price as high, or low, as they want.
Which plays into two upcoming, potentially world-changing cars; the Chevy Volt and Nissan LEAF. While many Chevy dealerships seem prepared to gouge initial Volt buyers by as much as $20,000 over MSRP, many Nissan dealers are taking the opposite route, actually going under the MSRP for the LEAF by as much as $1,000. What gives?
At least one dealership in the L.A. area is planning on charging around $60,000 (before tax credits) according to Edmunds Inside Line, for the first Volts to roll through its doors. Why? Because the demand is there apparently. This is not an uncommon thing, mind you. When the first Corvette ZR-1′s rolled into showrooms, dealerships were charging a premium of $100,000 (over the $110,000 starting price), same as many dealerships charging upwards of $80,000 for the first 2010 Camaros (which max out around $40,000).
People have the right to make a buck, no doubt, and if there are customers out there willing (and able) to pay, more power to them. However, compare the price gouging on the Volt with the route many Nissan dealers are taking. That is, some Nissan dealers are offering discounts of up to $1,000 off of the MSRP off of the Nissan LEAF. Other dealerships are offering to install the 440 volt quick charger for free. Why?
Is it because the LEAF is an electric car while the Volt is a fancy hybrid? Are Chevy dealers inherently greedier than Nissan dealers? Or do Chevy dealers feel that much stronger about their product that they are sure people will pay a premium for it, while Nissan dealers feel they need to “sweeten the pot” to draw in customers? I don’t rightly know. Maybe it is a combination of these and other factors.
I did decide to call a few Chevy dealerships around the Connecticut area to see if the same price gouging applies here. Most of the dealerships I called said they were getting just one or two Volts in the first year, so availability would be extremely limited (especially given the demand). Even so, they said they have no plans on charging more than the MSRP. That could all change in a few months. It will be interesting to see how this pans out.
Source: Edmunds Inside Line | My Nissan Leaf
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About Christopher DeMorro
The reason is quite simple. Volt is ordered & allocated to dealers. Nissan is ordered & allocated to customers.
The reason is quite simple. Volt is ordered & allocated to dealers. Nissan is ordered & allocated to customers.
GM has given their dealership a quota limiting how many cars they can sell, customers need to go through a dealership which places the order for them. When the car arrives if the customer doesnt want to buy it the dealership can sell it to whoever walks through the door with the most money, so its in the dealerships interests to charge as much as possible on a limited resource.
Nissan allows the customer to reserve a Leaf through their web site, then assins them a number, they are definitively getting the car, they just need to pick which dealership will handle the transaction. So its in the dealerships interest to convince customers to deal place their order through them, that way they can process more orders and make more money.
Also I’m guessing Nissan dealerships offered free 240v charger installations, 440v chargers are $20K+ monsters not for home use.
GM has given their dealership a quota limiting how many cars they can sell, customers need to go through a dealership which places the order for them. When the car arrives if the customer doesnt want to buy it the dealership can sell it to whoever walks through the door with the most money, so its in the dealerships interests to charge as much as possible on a limited resource.
Nissan allows the customer to reserve a Leaf through their web site, then assins them a number, they are definitively getting the car, they just need to pick which dealership will handle the transaction. So its in the dealerships interest to convince customers to deal place their order through them, that way they can process more orders and make more money.
Also I’m guessing Nissan dealerships offered free 240v charger installations, 440v chargers are $20K+ monsters not for home use.
The market will fix it all. If there are not buyers for the Volt at inflated prices, then you’ll soon see the prices plummet back to earth. If there are buyers at the inflated prices (most likely, the very rich who want to show “green cred”), then the Chevy dealers will end up being the smart ones.
Conversely, given the limited production of the Leaf, if the Nissan dealers price them too low, you may see “scalping” where used car dealers and/or individuals, buy them up and sell them for a higher price on the used market. If you’re in the market for a Leaf, you may want to place an order soon.
The market will fix it all. If there are not buyers for the Volt at inflated prices, then you’ll soon see the prices plummet back to earth. If there are buyers at the inflated prices (most likely, the very rich who want to show “green cred”), then the Chevy dealers will end up being the smart ones.
Conversely, given the limited production of the Leaf, if the Nissan dealers price them too low, you may see “scalping” where used car dealers and/or individuals, buy them up and sell them for a higher price on the used market. If you’re in the market for a Leaf, you may want to place an order soon.
aGREED (emphasis on greed) American companies have it in abundance.
I suppose it’s all good. If some wealthy putz wants to throw their money away, it might as well land in an American company’s pocket.
Any rich brainless guys out there want to by my line of designer toothpicks? They are just $100 a box. I am only making a few boxes so supply will be limited. Make that $200 a box.
aGREED (emphasis on greed) American companies have it in abundance.
I suppose it’s all good. If some wealthy putz wants to throw their money away, it might as well land in an American company’s pocket.
Any rich brainless guys out there want to by my line of designer toothpicks? They are just $100 a box. I am only making a few boxes so supply will be limited. Make that $200 a box.
I believe the article misses the point 40K for a car is pretty much out of the range for the 80 to 90 percentile of car purchasers. The touted federal rebate is limited to a certain number. I think it is 20,000 but it in any case 33K is still too much for the “model T” of electric vehicles considering a Chevy Malibu is abouit 8 or 9K less. So other than a very well heeled few and those given away for publicity Not may volts will be seen on the road. Given your recent article on the 5K or so difference in hybrid prices over teh standard models, 8K appears worse especially since you need to plug it in every night.
I believe the article misses the point 40K for a car is pretty much out of the range for the 80 to 90 percentile of car purchasers. The touted federal rebate is limited to a certain number. I think it is 20,000 but it in any case 33K is still too much for the “model T” of electric vehicles considering a Chevy Malibu is abouit 8 or 9K less. So other than a very well heeled few and those given away for publicity Not may volts will be seen on the road. Given your recent article on the 5K or so difference in hybrid prices over teh standard models, 8K appears worse especially since you need to plug it in every night.
The Chevy dealers want to make their money up front on a car that will depreciate like a brick in water.
Nissan knows their cars will last and be around for quite some time.
Honorably keeping the price down on the LEAF. While the greedy americans jack the prices up to get all they can while they can.
Honda had a policy on the S2000 when it came out that dealers could not jack the prices.
Go Nissan. Keep it honest.
Gee, wonder why the american brands have had so much trouble making it…
The Chevy dealers want to make their money up front on a car that will depreciate like a brick in water.
Nissan knows their cars will last and be around for quite some time.
Honorably keeping the price down on the LEAF. While the greedy americans jack the prices up to get all they can while they can.
Honda had a policy on the S2000 when it came out that dealers could not jack the prices.
Go Nissan. Keep it honest.
Gee, wonder why the american brands have had so much trouble making it…
To me the price discrepancy between the Volt (over MSRP) and Leaf (MSRP or less) is explained by the gas motor. If I want an electric car, but I don’t want to compromise my options, the Volt is the logical choice.
If I’m buying a strict commuter car, then there’s a competition. Of course, the Leaf’s utility as a commuter car is questionable as well. I’d rather buy a Versa and pocket the extra thousands than buy a Leaf for the sake of avoiding the gas pump.
Volt prices will come down, and they both might just flop…but it’s cars like this that pave the way for the next generation. I remember thinking the 1st gen Prius was a joke about 10 years ago – boy was I wrong!
To me the price discrepancy between the Volt (over MSRP) and Leaf (MSRP or less) is explained by the gas motor. If I want an electric car, but I don’t want to compromise my options, the Volt is the logical choice.
If I’m buying a strict commuter car, then there’s a competition. Of course, the Leaf’s utility as a commuter car is questionable as well. I’d rather buy a Versa and pocket the extra thousands than buy a Leaf for the sake of avoiding the gas pump.
Volt prices will come down, and they both might just flop…but it’s cars like this that pave the way for the next generation. I remember thinking the 1st gen Prius was a joke about 10 years ago – boy was I wrong!
GM is following again the bad way.
The Volt is a plug-in hybrid,so have an additional gasoline engine and deposit. This increases the costs, compared with a pure electric, as the Nissan Leaf (only one motor, that is electric).
GM is going to be forced by circumstances to offer an all-rlectric version of the Volt, to compete with the Nissan Leaf (Renault in the same group is going to offer the pure electric cars at the same price than combustion cars). Also the”a” in Leaf means affordable.
The Nissan reaction to continue being the leader in (pure) electric cars is increase the range to 500 km (range parity with combustion cars, so hybrids become unnecessary).
In the near future, combustion cars (including plug-in hybrids) are going to be banned (as nowhappens in some city centers) and only allowed pure electric vehicles (bicycles, motorcycles, cars, buses, trucks…)
Regards.
GM is following again the bad way.
The Volt is a plug-in hybrid,so have an additional gasoline engine and deposit. This increases the costs, compared with a pure electric, as the Nissan Leaf (only one motor, that is electric).
GM is going to be forced by circumstances to offer an all-rlectric version of the Volt, to compete with the Nissan Leaf (Renault in the same group is going to offer the pure electric cars at the same price than combustion cars). Also the”a” in Leaf means affordable.
The Nissan reaction to continue being the leader in (pure) electric cars is increase the range to 500 km (range parity with combustion cars, so hybrids become unnecessary).
In the near future, combustion cars (including plug-in hybrids) are going to be banned (as nowhappens in some city centers) and only allowed pure electric vehicles (bicycles, motorcycles, cars, buses, trucks…)
Regards.