When GM Price Protection is not Price Protection

[Richardlord]

On the Corvette Forum, someone commented that its dealer screwed him on the GM Price Protection. I normally read but don’t participate on that Forum as I figure one is enough. Plus, I like the folks on this Forum (although there are many of the same on both), and I read there can be some real nastiness on the other, so I stayed away from it. This is not to say I have not been barbed on this Forum. I did comment on that Forum for the first time, and the back and forth comments mushroomed. My initial impression is that Forum is a bit harsher and some folks a bit more prickly. This Forum sent me an email saying it had not heard from me for a while (I have been busy driving my C7) and so I’ll share with you the latest in my GM Price Protection sad saga. Feel free to barb away.

So, I finally got from my dealer a check for $2,768 (see attached) to cover the GM Price Protection. As I have a Z51, I should have gotten back $3,200. As some of you may recall from a prior thread, I fussed at my dealer for not adjusting the price up front, but it would not budge from its position. My choices were to do what I could with my dealer, or walk away, which I was not about to do after waiting 8 months for the delivery of my C7. I also would have been worse off financially. The way I left things with my dealer is that it knocked off another $100 off the price of the car (I originally got $1,000 under MSRP), it covered the $200 increase in sales tax (took that off the price), and said it would help me on the labor for mods I was planning. I told my dealer I would see what I got back from it, and then take up any difference with GM. My dealer had just given back $2,768 to another Z51 customer claiming that is what it got back from GM on that transaction.

I realize that is not how the GM Price Protection is intended to work. I have been clearly told this on both Forums. I understand.

That said, it is puzzling why my dealer would go through such price contortions and shenanigans for a net gain of some $300. Some may say I should count myself lucky I got back what I got. I do, but still, I’m not one to differentiate between being screwed a little or screwed a lot - a screwing is still a screwing.

So, I have taken this matter up with GM, and GM in small claims court if need be. Many have said it is not GM’s fault. However, the way I look at it is that this is GM’s Price Protection policy and program, not my dealer’s. If GM is going to have dealers act as its agent with us on Price Protection, GM needs to police its dealers, and assure that dealers correctly carry out its Price Protection policy and program. It’s called accountability, and in our lives and lines of work, the rest of us are held accountable to someone. As Bob Dillon wrote, “We all have to serve somebody.”

Yes, my address is on the attached, but with my Beretta CX4 Storm and PX4 Storm arsenal, and my wife’s Ruger 38 Special revolver, someone is to going to have to pry my C7 and guns from my cold dead hands.

Picture removed upon Forum reader advice - Shall redact address and add picture back - New redacted picture

[Hulkamaniac]

BARB! Take that you scoundrel! BARB! BARB!

I haven't been to other forums yet. I like the small town feel here. Plus everyone here seems to be more mature and doesn't care if you have a Z51 or not, a standard or automatic.

When you get your customer satisfaction survey, give them low ratings. They HATE that cuz they have explain to GM why and GM can pull their 5 Star Rating.

Report them to the Better Business Bureau and the local Chamber of Commerce too.

Don't get mad, get even. The "nuclear option" is always the best option.

[SidneyC]

This doesn't surprise me. It is standard corporate America procedure. When a corporation (GM) is not performing as projected, executive level doesn't lean on the under-performing divisions. They lean on the divisions that are meeting or exceeding their budgets to squeeze more profit out of them.

I really appreciate this information though because I just entered into this same discussion with my dealer. And I thought they (GM and/or my dealer) were just picking on me. At least I know the issue is much larger, the possible outcomes and I will be diligent to press for at least the same compensation. I enetered my order on January 24. When the increase came in March, both my salesman and the GM of the dealership assured me I would not be hit with the $3200 increase. I just got back yesterday from taking museum delivery this past Monday. Two weeks ago when we did the final paperwork I picked up on being charged the new price. My dealer advised me to do the same as you. Best to complete the transaction and fight the battle later or risk losing the car altogether. When I got back in town from Bowling Green yesterday I drove the car straight out to the dealership and asked if there was any resolution yet. He told me that he was still talking to GM about it.

So how long did it take for you to work out this issue?

[Richardlord]

Originally Posted by SidneyC

This doesn't surprise me. It is standard corporate America procedure. When a corporation (GM) is not performing as projected, executive level doesn't lean on the under-performing divisions. They lean on the divisions that are meeting or exceeding their budgets to squeeze more profit out of them.

I really appreciate this information though because I just entered into this same discussion with my dealer. And I thought they (GM and/or my dealer) were just picking on me. At least I know the issue is much larger, the possible outcomes and I will be diligent to press for at least the same compensation. I enetered my order on January 24. When the increase came in March, both my salesman and the GM of the dealership assured me I would not be hit with the $3200 increase. I just got back yesterday from taking museum delivery this past Monday. Two weeks ago when we did the final paperwork I picked up on being charged the new price. My dealer advised me to do the same as you. Best to complete the transaction and fight the battle later or risk losing the car altogether. When I got back in town from Bowling Green yesterday I drove the car straight out to the dealership and asked if there was any resolution yet. He told me that he was still talking to GM about it.


So how long did it take for you to work out this issue?

I am still working this out. I put this to GM to resolve as I have gone as far with this as I could with my dealership, and ultimately the buck stops with GM as Price Protection is its policy and program. I know GM has taken this up, but there is no resolution yet. My dealer says it is acting in good faith, that this is GM's fault, but the Forums say differently, that the dealership is trying to screw me. I understand what everyone is saying, and regardless of who is right, between my dealership and GM, I am expecting a positive resolution or off I go to small claims court and everything else Z51Stingray has suggested. We shall see.

I have not done the survey yet. GM keeps emailing me to fill it out. I told GM I'm not going to do it until this is resolved. I shall do as Z51Stingray has suggested as he is almost always right (small barb back).

[Dada]

Originally Posted by Richardlord

I am still working this out. I put this to GM to resolve as I have gone as far with this as I could with my dealership, and ultimately the buck stops with GM as Price Protection is its policy and program. I know GM has taken this up, but there is no resolution yet. My dealer says it is acting in good faith, that this is GM's fault, but the Forums say differently, that the dealership is trying to screw me. I understand what everyone is saying, and regardless of who is right, between my dealership and GM, I am expecting a positive resolution or off I go to small claims court and everything else Z51Stingray has suggested. We shall see.

I have not done the survey yet. GM keeps emailing me to fill it out. I told GM I'm not going to do it until this is resolved. I shall do as Z51Stingray has suggested as he is almost always right (small barb back).

RIchardlord, if you don't get anywhere let me know I know someone senior at GM

[Glen e]

We'll let me add a diff slant...I just finished up 30 years working as a field rep for 3 diff car mfrs.... My job was the one that would get this situation. As others have told you, the dealer is at fault here, not GM. Bring whatever legal guns you want to bear, it's going no where but back to the dealer.

[Richardlord]

Originally Posted by Glen e

We'll let me add a diff slant...I just finished up 30 years working as a field rep for 3 diff car mfrs.... My job was the one that would get this situation. As others have told you, the dealer is at fault here, not GM. Bring whatever legal guns you want to bear, it's going no where but back to the dealer.

I appreciate your insight - That's fine if it goes back to the dealer to properly address and resolve - Thus far, I've done what I can with the dealer that says it's GM fault, and as a result, I have elevated it to GM - I am going through channels, and between my dealer and GM, the proper channel(s) shall sort out - GM says it is working on this with my dealer - If GM pushes it back to the dealer, fine, I shall take it up again with my dealer, as well as GM, in court if I must, and see where the chips fall - I'll see them both in court as co-defendants, and let them sort out responsibility and culpability between them - Maryland small claims court, in which I have had success, is a good venue for complainants to sort out such matters - I don't think my dealer and GM shall want this to get that far - But, I shall not let this go, and shall take it as far as I can - Never have and never will no matter what - I don't question your assessment, but my dealer and GM best not question my resolve - When I worked in law enforcement, I always, always, got what I was seeking taking no quarters - Don't care the time or cost as principle is principle, and am retired after all, and I am both patient and relentless - Again, thanks for your comments.

[purpleRac3r]

I wish you the absolute best of luck in your search for resolution. It's a shame some dealers have to jerk their customers around like yours is. Fortunately, my dealer wants to treat customers right the first time, so they come back for future purchases. A friend in my Corvette club was caught by the price increase just as you were. The dealer flat told him the price increase was the dealership's problem, not his, and they honored the originally ordered price with no games whatsoever. Your dealer is just trying to make as much money as it can off your higher purchase price before it is forced to refund you the difference. A couple percent on several thousand bucks can add up over several weeks, especially on a number cars.

I applaud you for standing your ground! Dealers who employ shady practices must be brought to task.

[Richardlord]

Originally Posted by purpleRac3r

I wish you the absolute best of luck in your search for resolution. It's a shame some dealers have to jerk their customers around like yours is. Fortunately, my dealer wants to treat customers right the first time, so they come back for future purchases. A friend in my Corvette club was caught by the price increase just as you were. The dealer flat told him the price increase was the dealership's problem, not his, and they honored the originally ordered price with no games whatsoever. Your dealer is just trying to make as much money as it can off your higher purchase price before it is forced to refund you the difference. A couple percent on several thousand bucks can add up over several weeks, especially on a number cars.

I applaud you for standing your ground! Dealers who employ shady practices must be brought to task.

Gee, thanks.

Again, for those who have commented, I understand and appreciate what you have said, that it's the dealer's fault, not GM. But, my dealer says its GM's fault, and won't budge from that position. So, my first recourse is to go to GM. I can't go back to my dealer for just compensation without corroboration from a higher authority, GM. If and when GM tells me it's the dealer and not it, and absolves itself from responsibly, then I can go back to my dealership. Right now, for me, its a matter of going through proper channels. At this point in time, my dealership is not going to do anything unless compelled by someone else that is not me, or until I can go back to it with an evidentiary based response. The ball is now in GM's court. GM says it is contacting my dealer, and so until it says otherwise, I have to take it at its word that it is trying to amicably resolve this. I shall give GM the opportunity to resolve this with my dealer. If GM and my dealer put this back in my court, than I shall put this into Smalls Claims Court, but I hope not to have to resort to that, and I can't imagine GM or my dealer wanted that as well. Small Claims is usually before a judge, not a jury, and without lawyers. The net loss to me is a little over $300, and if GM and/or my dealer want to fight over that amount in Court, so be it.

I don't believe GM is powerless in this situation with my dealer. GM controls allocation after all and could use that leverage. Does GM want my dealer and others to continue screwing price protected customers? If GM threatens to cut a C7 allocation or two, and give it to some other dealer, that may get my dealer's attention. Right now its a measure of GM's will in this matter. If GM does not measure up, than I go on as I feel I must back to me dealership, but now armed with the tool I need, a GM authenticated argument. If that fails, then, it's off to Court.

[Glen e]

ok a few things:
1. gm will show that this is a dealer issue and needs to be resolved between you and the dealer
2. any court will agree that since gm is just in a sales sgreement with the dealer, they cannot be joined in court. They refunded to the dealer the same amount as other dealers also received.
3. you and the dealer will fight it out legally
4. state laws prohibit from gm punishing a dealer by reducing allocation. Until a dealer is cancelled for bankruptcy or creation of a felony, allocation is off limits.

[Richardlord]

Originally Posted by Glen e

ok a few things:
1. gm will show that this is a dealer issue and needs to be resolved between you and the dealer
2. any court will agree that since gm is just in a sales sgreement with the dealer, they cannot be joined in court. They refunded to the dealer the same amount as other dealers also received.
3. you and the dealer will fight it out legally
4. state laws prohibit from gm punishing a dealer by reducing allocation. Until a dealer is cancelled for bankruptcy or creation of a felony, allocation is off limits.

Again, thanks for your insight. As for,

1. I am waiting for GM to resolve this with my dealer as it says that is what it is trying to do. If GM comes back to me and says it cannot resolve this on its level, that this is the problem and responsibility of my dealer and not it, then I can go back to my dealer armed with that argument. Until then, my dealer shall continue to put this on GM as it shorting me and not it.
2. Never-the-less, I shall bring it to court if need be, and have the court so advise me I cannot bring suit against GM on its failed Price Protection policy and program over which it has no control with its dealer agents. Then, on to my dealer if so ruled. I understand you are saying GM gives back $2,768 to all dealers on a Price Protected Z51.
3. Yes, likely my dealer, but first GM, and the court shall have to tell me not GM. In the interim, I imagine there would be further discussion between GM with my dealer if and when I file first against GM. In any case, I shall maintain engagement with GM and my dealer for as long as possible and as far as I may go with this. Neither GM or my dealer should have a comfort zone on this for as long as I can engage them.
4. GM has been pretty loosey goosy with dealers about allocation on C7s. Allocations change continually with a fluidity as to rhyme and reason. GM does not have to "punish" dealers per say, but it still controls allocation on its terms whatever they may be.

Again, thanks, your insight shall help me as I go forward with this.

[laborsmith]

I am not sure what loosey goosy with allocation means. Dealers get assigned allocation units in a way that is somewhat predictable based on prior model year history. Nothing requires a dealer to use an allocation which results in some redistribution which is one of the elements of consensus. I know it may be hard to believe but there are hundred of Chevrolet dealers who will not use all of their Corvette allocations and a few hundred who will not use any. So one is correct to say allocations change continually but one is correct because that is the nature of the business and not because of wilful action by GM - those days are long gone.

Laborsmith

[Richardlord]

In updating this, I continue to get responses from GM. Maybe I hit a chord. I just can't see GM knowingly allow dealers to continue to screw Price Protection C7 customers in situations such as this, and not on just C7s, but all GM Price Protected cars. I am sure this is not just my dealer. I would not be surprised to see some Class Actions shark lawyers take a bite out of something like this.

[laborsmith]

I would be surprised as there are just not enough price protected retail sold orders to make such an action worth it, Corvette included. Excluding the Corvette, very few Chevrolet cars are retail sold order and of those few, very few would fall in line to qualify.

Laborsmith