Anyone who has tried buying a car in the past year knows the market is a mess. And if you haven’t been in the car market lately, trust me when I tell you, it’s a mess. The supply chain issues, COVID lockdowns, and increased demand created quite the log jam. As inventory numbers continue to shrink, dealers are grossly inflating prices, and some OEMs are over it. Ford is now taking action against pricing gauging on the most popular models like the Ford Mustang Mach-E, Ford Raptor, and the Ford Bronco. GM is getting involved in the crackdown as well.

What can Ford and GM do to end car flipping and price gauging?

The new car shortage has created a hot side market of people buying popular new models and immediately flipping them for more than MSRP. Dealers are not only involved with these flips but are also charging, in some cases, much higher prices than the OEM’s MSRP. This is creating a bit of stink between the dealers and the automakers.

Check Reddit, Instagram, or Twitter, and you’ll find no shortage of people posting photos of car stickers with an extra $20k, $30k, or even sometimes as much as $100,000 over MSRP. It’s wild. While dealers hide behind obtuse excuses like “market adjustments,” OEMs aren’t having it.

The first step in trying to fix this issue is Ford and GM are beginning to threaten the greedy dealers with limiting or even canceling allocations for highly-anticipated models.

Ford needs to end price gouging on Ford Mustang Mach-E, Ford Raptor, and Ford Bronco

dealership, ford

Ford Bronco two-door | Ford

Car and Driver says that while GM is also involved in the crackdown, Ford is catching more flak for this dealer greed than any other OEM.

According to Carbuzz, Ford admitted that a “limited number” of dealerships were demanding customers to pay more than a previously agreed-upon price for the 2022 F-150 Lightning electric truck, even after the order had been placed. This pissed Ford off because it was “negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation,” Ford said in a letter to dealers. The letter threatened to pull the Lightning from dealers caught raising prices.

Ford caught some dealers going as far as giving Ford fake customer names so Ford wouldn’t know that the order was for the dealership, which would then raise the price of the car discretely. Ford is increasing its security and verification on this process.

Just last week, Ford sent another more threatening letter to dealers who still weren’t getting the message. The letter told dealers that for the first offense, it would be a 1:1 punishment; get caught marking up prices, and your next order will be short a unit. Get caught a second time, and the model that has been marked up will not be allocated to that dealer at all for the current and maybe even the next model year.

GM is also taking new car prices seriously

dealership, ford

2023 Chevrolet Corvette Z06 | Chevrolet

GM has had plenty of trouble from dealers grossly marking up cars and flipping models like the new Corvette Z06, Cadillac Escalade V, and the GMC Hummer EV. General Motors is following Ford’s lead by limiting allocations to guilty dealers, but it is also taking the flippers to the woodshed.

GM just announced that not only will they incentivize customers to keep the Corvette Z06 for at least 12 months with added goodies, but you might also get punished if you don’t abide. Corvette Blogger reported that GM will also limit warranty transfers on these highly sought-after models. This will hopefully make flipping a brand-new Corvette or Hummer EV a bit less appealing.

Listen, the car market is jacked up enough right now without dealerships, and third-party sellers are getting grabby with unethical markups and bait and switch pricing. Stay frosty out there, and don’t let the dealerships take you on a ride.

TECH NEWS RELATED

What Are the Cons of Owning a 2022 Ford Ranger?

One of the most well-reviewed midsize pickups on the market is the 2022 Ford Ranger. As a popular model, it’s no surprise if you have questions about it. Although the majority of reviews are positive, there are always cons to owning any vehicle. Before you buy the midsize truck, what ...

View more: What Are the Cons of Owning a 2022 Ford Ranger?

Senate improves EV tax credit in largest climate bill ever

The Senate has voted to pass the Inflation Reduction Act, which includes nearly $400 billion over 10 years in funding for climate and energy related programs, and an extension and improvement of the US electric car tax credit. The bill passed with a vote of 51-50, with all Democrats ...

View more: Senate improves EV tax credit in largest climate bill ever

Senate Passed Inflation Reduction Act; what it means for EVs

Today, the U.S. Senate passed the Inflation Reduction Act, and included in that bill are changes to the $7,500 electric vehicle tax credit. BREAKING: The US Senate has just passed the $740 billion Inflation Reduction Act, which contains the $7,500 EV credit. The House is set to reconvene from ...

View more: Senate Passed Inflation Reduction Act; what it means for EVs

Nissan Navara-R Is a Pickup Truck With the Heart of a GT-R

Nissan is an automaker that has made a wide variety of cars, from practical work trucks like the Nissan Frontier to extremely powerful sports cars like the Nissan GT-R. As a result, Nissan has quite a few fans, and like any other fans, some Nissan fans have begun modifying their ...

View more: Nissan Navara-R Is a Pickup Truck With the Heart of a GT-R

Luxury and Performance Go Hand-in-Hand with a New Italian Car

Nothing is better than shopping for a new luxury car that offers incredible performance. Some of the best cars available that offer that combination are Italian. There are some tremendous new Italian cars every year, which will provide drivers and passengers with a driving experience that is out of this ...

View more: Luxury and Performance Go Hand-in-Hand with a New Italian Car

Quartararo: ‘We made a mistake not trying the hard compound rear tyre’

Fabio Quartararo reckons the fact he and Yamaha neglected to try the hard compound rear tyre across the British Grand Prix weekend was a “mistake” that ultimately doomed his race. Having won the race at a canter 12 months ago, the Yamaha rider was expected to fight for victory ...

View more: Quartararo: ‘We made a mistake not trying the hard compound rear tyre’

Paretta Autosport expands schedule with fourth IndyCar event

De Silvestro’s best finish with Paretta has been an 18th place run in Mid-Ohio. Photo: Kevin Dejewski Paretta Autosport has announced an extension to its 2022 IndyCar plans, and will now contest a fourth race at the end of the season. Originally announced as an single entry in this ...

View more: Paretta Autosport expands schedule with fourth IndyCar event

Lundqvist Dominates Nashville For 5th Indy Lights Win

NASHVILLE, Tenn. — Linus Lundqvist proved why he is the class of the Indy Lights Presented by Cooper Tires field this season, leading all 35 laps from pole Sunday to win the Indy Lights Music City Grand Prix on the streets of Nashville. Lundqvist earned his series-leading fifth victory ...

View more: Lundqvist Dominates Nashville For 5th Indy Lights Win

3 Ways the 2023 Chevy Tahoe Beats the Toyota Sequoia

Wayne Taylor Racing Acura Wins Road America, MSR Acura Crashes

Filipe Albuquerque take the checkered flag at Road America.

Dave Cuell’s 355-cube HZ Premier - AANGRY

4 Potential Major Downsides of a Cheap Auto Insurance Rate

4 Advantages of Buying a Dodge Charger Over a Toyota Avalon

Just How Safe Is Your SUV’s Infotainment System?

Final AMA Classes Crown Champions

Fifth Third Bank Extends Rahal Sponsorship Through 2025

UK: Plug-In Car Sales Down Again In July 2022

Want One of the Safest Cars in the World for 2022?

The Owner of Mercedes-Benz Also Made This Brand No Longer Sold in the U.S.

OTHER TECH NEWS

Top Car News Car News