Is this price-fixing or not?

[TheGrimm]

So I went to a dealership here in town to negotiate the price of a new car which I had ordered and put a security deposit on. It's a 2015 just released so there aren't a ton of them available here yet. While I was negotiating via SMS with the sales rep he said that they wouldn't provide me ANY discount as "All the dealers made an agreement to not discount the <model>."

I am no legal expert but isn't this price fixing? I immediately asked him about it and he said that so long as they aren't agreeing to inflate the price beyond MSRP they are fine. Seems pretty sheisty to me.

Anyone know if I am crazy or whether this is something that shouldn't be happening?

[guzzy]

No they set the price. When demand is high and supply is low they can all agree to charge MSRP.

[jar_e]

No.

Its the same company, selling the same product, just at a different dealership. Its no different than buying a bottle of pop at one Walmart and them selling it at the same price at another.

[The Fonz]

Shame on you pylon.

[Table 5]

I kind of feel like if customers can get the benefit of a lower price when demand is down for cars, dealers should be able to get the benefit when demand is up. So I don't have a huge issue with them wanting to stay to a price. At least your car is sticking to MSRP...some go over.

However, if you had already negotiated and agreed the price of the car, but now the dealer is changing the number, that's pretty low.

[hatty]

Once, years ago we were quoted from a manager at a toyota dealership that Toyota themself had sent down a memo to all dealerships not allowing them to discount specific models to keep the integrity of the pricing, and therefore the only discount they could give us was in our trade in value and that was all the room they had to negotiate.

I see what you mean about price fixing, but I could also see it as if all dealers are corporate, and the head office states no discounting, then not so much price fixing as policy, but then again, I don't know how many dealerships are corporate or private.

[TheGrimm]

Originally Posted by Table 5

I kind of feel like if customers can get the benefit of a lower price when demand is down for cars, dealers should be able to get the benefit when demand is up. So I don't have a huge issue with them wanting to stay to a price. At least your car is sticking to MSRP...some go over.

However, if you had already negotiated and agreed the price of the car, but now the dealer is changing the number, that's pretty low.

No, definitely didn't change from MSRP. Could be the fact that I've never run into this before but it left a sour taste in my mouth. It's one thing to not negotiate much but I've never had someone flat out tell me that all the dealers in town have agreed to keep the price fixed. Which I am pretty sure is not cool at the very least, if not illegal.

[undercoverbrother]

Originally Posted by Table 5

I kind of feel like if customers can get the benefit of a lower price when demand is down for cars, dealers should be able to get the benefit when demand is up. So I don't have a huge issue with them wanting to stay to a price. At least your car is sticking to MSRP...some go over.

However, if you had already negotiated and agreed the price of the car, but now the dealer is changing the number, that's pretty low.

That is the real bull#### part.

[Derek Sutton]

If GM, Ford, Dodge, Toyota, Honda, Nissan etc... all set the same price for a standard 4dr sedan, that could possibly constitute price fixing. Toyota dealers (or whoevere) agreeing to sell one model for one price is actually making things fair for all involved. Though the toyota dealers compete with each other, they are not considered competion in the same sense that Ford or Honda would be competition, therefore it is not price fixing.

Just like when you go to Sobeys, the price of bananas is the same at every store in the city. But Co Op can sell bananas for whatever price they want.

[Derek Sutton]

Originally Posted by TheGrimm

No, definitely didn't change from MSRP. Could be the fact that I've never run into this before but it left a sour taste in my mouth. It's one thing to not negotiate much but I've never had someone flat out tell me that all the dealers in town have agreed to keep the price fixed. Which I am pretty sure is not cool at the very least, if not illegal.

I always appreciate the truth, check out one of the other dealers and see what they say about the pricing and if in fact this is the case. Or could they offer any extras for the same price (gas card)? They may have to sell the car for the same price but there is always something else can they do for you. Maybe they could knock 300 off the undercoat.

[Knut]

Originally Posted by TheGrimm

No, definitely didn't change from MSRP. Could be the fact that I've never run into this before but it left a sour taste in my mouth. It's one thing to not negotiate much but I've never had someone flat out tell me that all the dealers in town have agreed to keep the price fixed. Which I am pretty sure is not cool at the very least, if not illegal.

Not illegal.

But If i were you I would call a dealership in Edmonton (or Wetaskawin!) and price out the same Vehicle. Ask them to include shipping to Calgary.

Take that price to the dealership and see what they say.

[undercoverbrother]

Originally Posted by Hesla

Not illegal.

But If i were you I would call a dealership in Edmonton (or Wetaskawin!) and price out the same Vehicle. Ask them to include shipping to Calgary.

Take that price to the dealership and see what they say.

^^^^^ this is good advice.


If you know what you want, then shop around to other cities.

[cam_wmh]

Originally Posted by TheGrimm

No, definitely didn't change from MSRP. Could be the fact that I've never run into this before but it left a sour taste in my mouth. It's one thing to not negotiate much but I've never had someone flat out tell me that all the dealers in town have agreed to keep the price fixed. Which I am pretty sure is not cool at the very least, if not illegal.

I see no problem with it.

Especially, if it's a low quantity/Halo vehicle.

[TheGrimm]

Well, part of the issue is that this car is one of the first ones to arrive in the city, so they know they have the negotiating power. Ordering another or waiting for one with the same options etc to come available could take months. It's unlikely I will have success calling around, so the other option might just be to go with another brand/car. For me it's not so much the amount as the principle. I get myself riled up pretty easily in that way.

[photon]

Yeah I'm with Table 5, as long as they're not breaking the law, dealerships taking advantage of high demand because they can sell all their stock at MSRP is no different than customers taking advantage of low demand because they can't sell all their stock at MSRP.

[Coach]

Originally Posted by TheGrimm

Well, part of the issue is that this car is one of the first ones to arrive in the city, so they know they have the negotiating power. Ordering another or waiting for one with the same options etc to come available could take months. It's unlikely I will have success calling around, so the other option might just be to go with another brand/car. For me it's not so much the amount as the principle. I get myself riled up pretty easily in that way.

If the supply of the car is so low and you had to specially order it, why did you think they were going to give you a discount? You put a deposit down on it, so did you not already negotiate a deal for the car and now you are the one looking to change the pirce?

[Table 5]

Out of curiosity, what's the car?

It would be funny if it was the GTI that pylon was talking last week.

[Super Nintendo Chalmers]

Originally Posted by TheGrimm

Well, part of the issue is that this car is one of the first ones to arrive in the city, so they know they have the negotiating power. Ordering another or waiting for one with the same options etc to come available could take months. It's unlikely I will have success calling around, so the other option might just be to go with another brand/car. For me it's not so much the amount as the principle. I get myself riled up pretty easily in that way.

Sounds like simple supply and demand. If you went with other brands/makes and they all said the same thing, I'd start wondering. Even then, it could just be demand for that particular niche of vehicle outstripping the supply.

[Cowboy89]

Originally Posted by fotze

Is that true? I've always felt certain Safeway location in the city had different pricing.

Even so, the point is that if they maintained exactly the same price for the same items in all their stores there's nothing illegal or wrong with it. When it comes to cars for some reason people think it's their god-given right to be able to knock a few grand off MSRP even for high in demand vehicles. When apple insists on all it's retailers selling it's products firm at the prices they want, no one comes on here and accuses Future shop, the apple store, etc. of illegal price fixing. What's so special about cars?

[Erick Estrada]

What's the car? Must be a low volume or special version of the car for yours to be the first to arrive. If that's the case you don't have a lot of bargaining power.