Detroit Car Dealer Accused of Charging $120K Above Sticker Price [VIDEO]
New car prices are at an all-time high right now. In fact, the average price for a new vehicle in December was more than $47,000 and last month 80% of new vehicles were sold above the Manufacturer's Suggested Retail Price or MSRP.
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While some automotive manufacturers like Ford and General Motors are starting to crack down on dealers who are inflating vehicle prices above the MSRP, some luxury car dealerships are taking advantage of the disparity between supply and demand, according to Quartz.
One Detroit Car Dealership is Accused of Taking it Too Far
A Metro Detroit car dealership has been accused of price gouging to the tune of $120,000 above the sticker price.
Attorney Azzam Elder tells Fox 2 that Mercedes-Benz of Bloomfield Hills jacked the price of a new vehicle from $184,000 up to over $300,000 for his client.
"They're taking advantage of a consumer, and it's just unacceptable," Elder says.
As you'll see in the video below, the car is a one-of-a-kind, custom-made Mercedes G63 with an olive-green exterior. Elder says his client has been doing business with this particular dealership for a quarter-century and thinks the price increase is excessive.
Dealership Markups Aren't Illegal
While charging customers more than the MSRP is not illegal, the Michigan Attorney General's office is looking into allegations of price gouging by the dealership.
Mercedes Benz issued a statement saying it doesn't recommend excessive dealership markups.
"The MSRP is a suggested price. While we do not encourage markups for specific, high-demand models, the final sale price is ultimately negotiated between the dealer and the customer."