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Old 02-25-2022, 06:29 AM   #1
AVANTI R5
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Default Subaru Tells Dealers To Cut It Out With The Markups After Customer Complaints

Subaru Tells Dealers To Cut It Out With The Markups After Customer Complaints

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The automotive market is seeing huge demand thanks to a number of factors including the global chip shortage. As a result, automakers canít build cars fast enough. In response to that shortage of vehicles, many dealers across the country have put markups on their products. Today, Subaru of Americaís CEO sent a lengthy letter to all dealers condemning the practice.

That letter, obtained by Jalopnik, details how important it is for Subaru that markups arenít a part of dealer pricing. In it, Thomas J. Doll, president and CEO of Subaru of America reminded dealers that as a brand, Subaru doesnít want to be anything like the ďtypical car dealerĒ.

He then goes on to say ďTaking advantage of the current market imbalance between supply and demand is something a Ďcar dealerí would doÖ itís NOT something a ĎSubaru Retailerí would consider doing.Ē

Thatís about as clear as it can get. Doll doesnít say that retailers shouldnít practice dealer markups Ė he says that they shouldnít even consider it. It seems that the letter is a product of what Doll says is ďincreasing numbers of customer letters and emails voraciously complaining about sales of our vehicles at prices above MSRP. Please see an example of a customer letter on the following page.Ē

According to the same report, that letter was quite pointed: Ē Iím writing to you as a very satisfied Subaru owner of almost 20 years but Iím having concerns as Iím planning on buying my next Forester. The ďLow Inventory SurchargeĒ of $4,000 Ė $6,000 is puffing a new car out of reach for me. I do understand the supply chain problems and issues around getting parts but this is a very troubling situation. Are you planning on eliminating this tax in the near future? Iím certainly hoping youíll be changing this so I can once again look forward to my (3rd) new Forester. Ē

Subaru isnít alone in dealing with similar markup issues. Ford, General Motors, Hyundai, and Kia have all sent similar messages in one form or another to their dealers. In his letter, Doll very clearly leans on the principles of the Subaru brand as his main reasoning point but doesnít specifically clarify what penalties might be imposed to dealers who donít end the practice.

Photo Subaru of America via Jalopnik

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Old 02-25-2022, 09:34 AM   #2
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This is occurring across many manufacturers now. The manufacturers are finally saying something whether it's Hyundai or Ford.
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Old 02-25-2022, 10:19 AM   #3
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pants everyone

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The automotive market is seeing huge demand thanks to a number of factors including the global chip shortage.
Like the great run on toilet paper of 2020

Yeah, demand is driven by a number of factors including fear and stupidity.
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Old 02-25-2022, 10:40 AM   #4
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Originally Posted by 4S-TURBO View Post
Like the great run on toilet paper of 2020

Yeah, demand is driven by a number of factors including fear and stupidity.
I hate to think how many people hoarded all that TP that have a basement full of it in 2022.
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Old 02-25-2022, 12:20 PM   #5
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If only we could outlaw dealer markups like some countries.
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Old 02-25-2022, 12:52 PM   #6
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Is it possible to implement a policy that states if a complaint is filed against your dealership for a markup, you will not be given allocations for future inventory of that model?
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Old 02-25-2022, 01:00 PM   #7
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To bad we can't order direct from the manufactures
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Old 02-25-2022, 01:58 PM   #8
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Have a Nice Day?

Just ordered a Limited WRX. It was sold at MSRP plus dealer add ons of $1500. This consists of LoJack and two other items I donít recall. I told the salesman I didnít want them. He said I had no choice, the new owner of the dealership adds them to all new vehicles.
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Old 02-25-2022, 02:04 PM   #9
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Originally Posted by 782278 View Post
Just ordered a Limited WRX. It was sold at MSRP plus dealer add ons of $1500. This consists of LoJack and two other items I donít recall. I told the salesman I didnít want them. He said I had no choice, the new owner of the dealership adds them to all new vehicles.
I'd have walked...
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Old 02-25-2022, 02:15 PM   #10
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Those add ons have become the norm at a lot of dealerships. Dealerships I have zero interest in doing business with.
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Old 02-25-2022, 02:45 PM   #11
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Originally Posted by 782278 View Post
Just ordered a Limited WRX. It was sold at MSRP plus dealer add ons of $1500. This consists of LoJack and two other items I donít recall. I told the salesman I didnít want them. He said I had no choice, the new owner of the dealership adds them to all new vehicles.
yeah, but did you feel loved?
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Old 02-25-2022, 03:37 PM   #12
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Is it possible to implement a policy that states if a complaint is filed against your dealership for a markup, you will not be given allocations for future inventory of that model?
No. Itís illegal for manufacturers to tell a dealer how to price their cars. The only power they have is the price the dealer advertises a car at, but they have zero legal levers to pull regarding selling price.
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Old 02-25-2022, 03:39 PM   #13
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Originally Posted by 782278 View Post
Just ordered a Limited WRX. It was sold at MSRP plus dealer add ons of $1500. This consists of LoJack and two other items I donít recall. I told the salesman I didnít want them. He said I had no choice, the new owner of the dealership adds them to all new vehicles.
Adding LoJack to a vehicle equipped with telematics is massively redundant.
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Old 02-25-2022, 04:15 PM   #14
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Originally Posted by 782278 View Post
Just ordered a Limited WRX. It was sold at MSRP plus dealer add ons of $1500. This consists of LoJack and two other items I donít recall. I told the salesman I didnít want them. He said I had no choice, the new owner of the dealership adds them to all new vehicles.
LoJack? People still use this service?
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Old 02-25-2022, 04:27 PM   #15
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Probably a security measure for dealership financed vehicles for repo....

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LoJack? People still use this service?
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Old 02-25-2022, 04:39 PM   #16
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Bu bu but how else can they continue to make record profits??
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Old 02-25-2022, 05:27 PM   #17
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Originally Posted by 4S-TURBO View Post
[...]Dealerships I have zero interest in doing business with.
Exactly. It's basically up to us consumers to fix this.
They NEED to sale cars but many of us don't really need to buy any.
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Old 02-25-2022, 08:28 PM   #18
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Originally Posted by Scooby-Doode View Post
LoJack? People still use this service?
There is another company that starts with a K that is the same deal. The Honda dealership where I bought my truck, they put that garbage in all their vehicles. As well as pinstripes, and tint, and I donít remember what else. Real PITA because I had to have my clearbra shop remove those horrible pinstripes. I refused to pay for any of it. It was straight F you, Iím not paying for that crap. ďWell we put that on all of themĒ and I said, well your loss homey. I ainít paying for it so it took a few months to get the price I wanted. Right now, best of luck negotiating that off. Ainít happening.
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Old 02-25-2022, 08:38 PM   #19
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Originally Posted by Pre View Post
There is another company that starts with a K that is the same deal.
Karr. Absolute useless garbage. I ended up with it on one of our cars too ***128580;
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Old 02-26-2022, 01:07 AM   #20
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Originally Posted by phoenix96 View Post
Karr. Absolute useless garbage. I ended up with it on one of our cars too ***128580;
I donít know what is in my truck but that isnít the name. Itís like Kumo or some such ****. Iíll pull the stealer paperwork out of it and figure it out. I put a full audio system in the truck and a tricked out Compustar alarm. I didnít think to have my installer rip that fíer out because I didnít know it was there when I had everything put in. Got damn tru coat BS.
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Old 02-26-2022, 07:07 AM   #21
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There's no way I'd pay for Lojak if the car I'm buying comes with locator services from the factory.
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Old 02-26-2022, 09:38 AM   #22
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Originally Posted by SoDealer View Post
No. Itís illegal for manufacturers to tell a dealer how to price their cars. The only power they have is the price the dealer advertises a car at, but they have zero legal levers to pull regarding selling price.
Good to know. I thought I remember reading Dodge doing this with the demon when it launched. But I guess I remembered incorrectly. Thanks for the clarification.
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Old 02-26-2022, 11:25 AM   #23
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That's kind of a cringey letter for a variety of reasons.
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Old 02-26-2022, 02:39 PM   #24
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So does anyone know what happens to the vehicle if one were to disconnect the BS Starlink so the GPS and the telelmatics can't get back to Subaru? With Android Auto and Carplay, what advantage is their to the buyer to them keeping tabs on your stuff? Diagnostics with the constant flooding of your email, the off chance your vehicle is stolen.

Honestly is there a real downside to disconnecting it?
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Old 02-26-2022, 05:31 PM   #25
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Originally Posted by kayen View Post
So does anyone know what happens to the vehicle if one were to disconnect the BS Starlink so the GPS and the telelmatics can't get back to Subaru? With Android Auto and Carplay, what advantage is their to the buyer to them keeping tabs on your stuff? Diagnostics with the constant flooding of your email, the off chance your vehicle is stolen.

Honestly is there a real downside to disconnecting it?



Remote services. Starting your car(biggest one I bet). Locating it. Locking, unlocking. Sending destinations to your NAV(if equipped). I strongly suggest to people to keep the lower "Safety Plus" plan......being a firefighter for 24 years.......for it's collision notification feature. Immediately calls for help. Seconds can and do matter.

Don't know if someone tried to disconnect it themselves, would it mess something up. Will have to remember to ask.
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