GougeReport

Dealers will gouge for the Chevy Volt

admin — Sat, 07 Aug 2010 17:53:27 +0000

The long awaited Chevy Volt will greet prospective buyers with at least a $20,000 dealer gouge markup. Edmunds obtained an email from a dealer to a potential buyer who inquired about the cars availability, and was shocked to learn the $41,000 base price wasn’t enough for the dealership:

Hello *****

Thank you for your online request, as you know the Volt is going to be a very limited production vehicle for the first 2-3 years. Demand is going to far exceed supply for this vehicle, initially our asking price for the Volt is going to be MSRP plus $20,000, we are expecting only receive 9 Volts all of next year.

I will keep you in my customer base for when the Volt comes out and I will contact you with any information as I receive it. We are taking orders right now for the Volt, if you would like more information, please let me know and I will be more than happy to help you. Thank you.

***** *****, Internet Specialist
******* Chevrolet
********, CA

Your Neighbors are Gouging you too…

admin — Fri, 20 Feb 2009 17:11:28 +0000

They hadn’t saved a dime, put zero down, thought a no-interest, adjustable rate mortgage would last forever, and assumed the housing market would rise indefinitely. Now they’re about to lose their home and are looking for a handout. They feel “entitled” to stay in their home. You can blame the brokers, the banks, the government, the economy, and everyone else – but you wouldn’t be addressing the issue that is your neighbor is a loser who overextended him or herself, and one way or the other will bring you down with him. If the government doesn’t step in with some sort of bail out, then your neighbor forecloses. Over 3 million did so in 2008. That means an increase in supply and a drop in the value of your home. And, if your homes value drops too much (most already have or are headed this direction) you can’t refinance because banks don’t want to lend you more than the collateral is worth. On the flip side if the government pumps money into the economy to bailout these losers you artificially increase the money supply, drive down interest rates, increase inflation, and put a bunch of falsely valued assets on the books of banks. Not to mention, the country digs itself deeper into debt – tacking on another trillion to the trillion amassed by the last administrations poor spending habits.
What to do? If you are one of the increasingly few who work hard, don’t spend beyond your means, and make sound financial decisions pat yourself on the back and rest easy knowing you’ll be the ones leading the country out of this mess. Throw a block party or BBQ for others like you, and commiserate about the neighbors who are bringing you down. That’s about all you can do.

Circuit City – going out gouging

admin — Tue, 17 Feb 2009 21:51:41 +0000

Electronics retailer Circuit City is in the process of closing its remaining stores. All of its remaining US and abroad locations are flanked with liquidation-sale signs, and claims of as much as 40% off on electronics and other inventory. However, a stroll into one of their stores reveals the full story. Sure there are deep discounts, but they are primarily limited to open-box and display units. Most inventory has been depleted – we assume the manufacturers have taken it back, or that Circuit City has sold it off to other retailers. What major electronic remain are offered at very slight discounts, and come with the burden of an as-is, no-return policy. I also noticed that the store was stocked to the rafters with el-cheapo accessories such as headphones, cell phone cases, and the like. I’m not talking brand name, but rather the cheapest almost give-away variety. They were all made to look like they’d been significantly marked down, but this was merchandises that I am sure Circuit City normally never carried. In any case, it’s worth checking out, just don’t get fooled by the big percent off claims. Shop pricegrabber.com for comparing prices between retailers. Also, read what others are saying: Closeout Stores Not Offering the Best Deals and Liquidation doesn’t mean the best prices.

Priceline – opaque services are a form of gouging

admin — Tue, 17 Feb 2009 04:18:41 +0000

Travel gurus call Priceline’s deals opaque fares, because you can’t see the prices. Of the three times I have used Priceline, I have been deceived twice. The first experience was successful – I used the website to find and book airfare. The next two experiences were both to book a hotel room, using their “name your price” feature. You don’t get to pick the actual hotel, but rather offer a price to hotels matching your criteria for location and quality. The one accepting your price is where you’ll be booked. In both cases Priceline first displayed a number of and their rates, and then offered a link to “name your price” if you weren’t happy with the displayed rates. A prominent disclaimer informed that you do not have a choice in which hotel accepts your price. It would stand to reason, however, that your offer would be submitted to the hotels listed on that page. Yet in both instances I was booked at hotels never before mentioned or listed on Priceline. This is deceptive, and frankly a form of consumer gouging. It is akin to any other form of bait and switch – whereby a consumer is shown one thing, as if to represent what shall be delivered, but then is given something entirely different. Furthermore, when I checked the website of the hotel at which I was booked, I found that their advertised rate for the same night and same room was $10 less than what Priceline got me a “great deal” on.

Do you see how the scam works? If I show you several high-quality, brand named, televisions…and tell you to place a bid, well naturally you’ll come up with a price based on the percevied value of the choices presented to you. The broker, Priceline in this case, takes your bid and colludes with an inferior version of a similar product, and then comes back to you and says “congrats, your bid was accepted.” Of course it was, and the margin is split between Priceline and the provider of the inferior product. I’ll be avoiding Priceline until they become more transparent in how they do business.