California car dealers - report to state AG for ADM price gouging during pandemic?

[metroshot]

Has anyone thought about reporting CA car dealers to the state of California for price gouging?

My interest was piqued when I saw the big grocery chain: Smart & Final was fined $175 million for increasing prices during the pandemic.

Now there is talk about the CA fuel prices being manipulated, rental homes/apartments increased above normal allowed amounts, and other businesses who practiced predatory lending during the pandemic.

Cars are a necessity for many people and we might be able to get complaints to be investigated by the state AG: Rob Bonta

Since car prices were jacked up during the pandemic with ADM above MSRP by car dealers - what's your thoughts ??

https://www.10news.com/traffic/gas-...s-attorney-general-to-look-into-price-gouging


https://www.nbcbayarea.com/news/cal...5k-for-egg-price-gouging-in-pandemic/2855759/


https://www.independent.com/2022/03/18/landlords-beware/

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[Graygoose2021]

Its always a money grab.........

 

[Tomatoboy]

I’m not in California nor am I a California attorney (nor is this legal advice, merely my personal thoughts), but just based in a quick look, I doubt it would work. What is California’s threshold for price gouging? I think it’s like 10% when there’s a declared emergency. But not all consumer goods are included, and I don’t see vehicles listed anywhere. I also think the declared emergency ended 3/2021 for purposes of price gouging, so even if vehicles were somehow included and the ADM was over 10%, it would presumably have to have been before that. You could talk to somebody, but I wouldn’t go into it expecting a high chance of success, if it were me.

https://www.natlawreview.com/article/end-price-restrictions-california-or-merely-step-towards-normal

https://oag.ca.gov/consumers/pricegougingduringdisasters

(Plus, side note, you’d be opening a whole can of worms with private sellers and the user car market, which has experienced similarly massive price jacks…at what point is it a markup vs an increase in Blue Book value, for example, are you only allowed to use Blue Book value and have to wait for the prices to update?)

 

[Graygoose2021]

The irony, is the state alleging others price gouge, why they add more to the residents taxes. LOL

 

[metroshot]

I’m not in California nor am I a California attorney (nor is this legal advice, merely my personal thoughts), but just based in a quick look, I doubt it would work. What is California’s threshold for price gouging? I think it’s like 10% when there’s a declared emergency. But not all consumer goods are included, and I don’t see vehicles listed anywhere. I also think the declared emergency ended 3/2021 for purposes of price gouging, so even if vehicles were somehow included and the ADM was over 10%, it would presumably have to have been before that. You could talk to somebody, but I wouldn’t go into it expecting a high chance of success, if it were me.

https://www.natlawreview.com/article/end-price-restrictions-california-or-merely-step-towards-normal

https://oag.ca.gov/consumers/pricegougingduringdisasters

(Plus, side note, you’d be opening a whole can of worms with private sellers and the user car market, which has experienced similarly massive price jacks…at what point is it a markup vs an increase in Blue Book value, for example, are you only allowed to use Blue Book value and have to wait for the prices to update?)

I think CA ended the emergency orders in January 2022 after the Omicron wave.
https://www.usnews.com/news/health-...overnor-ends-12-emergencies-but-not-for-covid

My issue is that I have been trying to purchase a Ford from last year till now and the dealers in So Cal are all charging anything from $5K to $20K over MSRP.

Most recently, I have received price quotes on a Mustang Mach E from my local dealer for $20K over sticker - they said it's supply and demand and said it's non negotiable via text.

For a $50K car, charging $20K ADM is a 40% up charge.

 

[Tomatoboy]

I think CA ended the emergency orders in January 2022 after the Omicron wave.
https://www.usnews.com/news/health-...overnor-ends-12-emergencies-but-not-for-covid

My issue is that I have been trying to purchase a Ford from last year till now and the dealers in So Cal are all charging anything from $5K to $20K over MSRP.

Most recently, I have received price quotes on a Mustang Mach E from my local dealer for $20K over sticker - they said it's supply and demand and said it's non negotiable via text.

For a $50K car, charging $20K ADM is a 40% up charge.

Oh, I totally get *why* you are thinking about it, I just don’t think it’ll work.

But anyway… Are those the off-the-lot prices, or are they talking ADM on orders as well? By me dealers want MSRP for vehicles on the lot, sometimes a tad more, but are giving their usual deals for orders, so if you’ve already waited a year, you might consider ordering in lieu of trying to find one on the lot, if they aren’t applying the ADM to orders. Any chance of buying out of state?

 

[Tomatoboy]

Most recently, I have received price quotes on a Mustang Mach E from my local dealer for $20K over sticker - they said it's supply and demand and said it's non negotiable via text.

Oh, wait…what vehicles are you trying to buy? The Mach-E isn’t just due to COVID parts shortages, it’s a new vehicle in *extremely* high demand. If you’re trying to buy something that high demand, yeah, there’s gonna be an ADM at a lot of dealers. That’s actually not uncommon in a normal time, there were dealers charging ADMs on Thunderbirds back during the 2002-2005 run, too, since demand so far exceeded supply. (I know dealers are putting ADM on regular vehicles in CA too, I’m just trying to gauge how uphill of a purchasing battle you’re fighting). Did you ask what they’d take a Mach-E *order* for, or was that a vehicle on their lot?

 

[metroshot]

Oh, wait…what vehicles are you trying to buy? The Mach-E isn’t just due to COVID parts shortages, it’s a new vehicle in *extremely* high demand. If you’re trying to buy something that high demand, yeah, there’s gonna be an ADM at a lot of dealers. That’s actually not uncommon in a normal time, there were dealers charging ADMs on Thunderbirds back during the 2002-2005 run, too, since demand so far exceeded supply. (I know dealers are putting ADM on regular vehicles in CA too, I’m just trying to gauge how uphill of a purchasing battle you’re fighting). Did you ask what they’d take a Mach-E *order* for, or was that a vehicle on their lot?

I was looking at buying a business owned vehicle for my small business and looked at ICE vehicles that are very common and not in high demand.

Yes, I could have used my business line of credit to buy the vehicle above MSRP, but coupled with the higher interest rates from either my SBLOC or business credit card - the added price above MSRP negates any reason to buy it (according to my accountant).

For my personal purchase (actually the wife) wanted the Mach E and we were shocked at how high prices are for incoming stock as well as cancelled Mach E orders.
For her, I'd order and find a non ADM dealer.

In both cases I would have been fine with MSRP but that's not been the case since the pandemic started.

 

[notabot]

These high $ settlements go right to the government and lawyers running the circus. The end result is higher cost to the consumer.

For essentials, sure ding the gouger. For a shiny, brand new car that is in short supply when there are other options? No way.

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