THE central tenet of our capitalist system, that prices are set by supply and demand, is coming into play in Holden dealerships as buyers ready themselves for the the last Commodores ever made in this country.

Members of the public have told GoAutoNews Premium that some Holden dealers are apparently asking well above the odds for 2017 Commodores, with much-inflated dealer delivery fees and, in some instances, prices raised well above recommended retail.

The issue first bubbled up in the wake of the January announcement of Holden’s special editions to mark the end of local manufacturing, the Motorsport and Director sedans and the Magnum utility. Since then the matter seems to have broadened in some PMAs to encompass any 2017 model V8 Holden.

A dealer delivery fee on a Commodore might normally be around $1500, however GoAutoNews Premium has been told of some dealers charging $4000 dealer delivery for any 2017 plate V8 Commodore, and $6000 for an SSV Redline.

Quotes actually seen by GoAutoNews Premium don’t show quite that level of escalation, though a 2017 plate V8 Commodore dealer delivery charge was typically $3000, representing a $1000 premium over the same charge on a 2016 model from the same dealer.

One dealer in a regional Victorian centre was reportedly asking $10,000 above recommended retail price for an SSV Redline Sportwagon, with sales staff supposedly referring to a “Dealer Principal Tax” when asked why the car was so expensive.

Holden would not initially discuss the matter directly with GoAutoNews Premium, choosing instead to issue a statement.

“Holden is delighted with the passion shown and the demand for the MY17 Commodore,” it said.

“In a supply and demand market, vehicles are only ever worth what customers are prepared to pay and we are aware of instances of customers enthusiastically offering well above RRP to secure a car.

“Holden has reminded all dealers of their obligations to ensure customers are treated in a way to maximise customer satisfaction during this period of demand, and of course that any contracts previously signed are honoured. We know our dealers are as committed to their customers as we are.”

A Holden spokesman did later tell GoAutoNews Premium that, “we haven’t had any complaints directly at all, literally not one here at Holden HQ”.

Holden’s initial reluctance to speak directly on the matter may stem from the fact that it actually has little power to do anything immediate and formal about any dealer who is relying on demand to achieve higher margins on the final Commodores.

In the circumstance where demand exceeds supply, the company merely sets a recommended retail price on its products and stands back to let the market take care of the rest.

There will be an agreed manner in which a dealer is required to represent the Holden brand laid out as as part of the dealer franchise agreement. Quoting that document is one thing, and enforcing it quite another – unless Holden was prepared to consider drastic action such as termination.

GoAutoNews Premium has been quietly researching this matter for some time, with input from a number of bona fide customers in different parts of the country who are actively in the market for a 2017 V8 Commodore of one sort or another.

That research indicates that most Holden dealers are still playing well with others, and while there is no discounting or much in the way of bargaining going on, customers are still getting a fair shake on trade in values and accessories. The dealer delivery fee seems to be where most price variation is found.

All 2017 Commodore production is already allocated to dealers who know to the last VIN what stock of these final Australian V8s they will see.

A new Australian made V8 sedan or ute will soon be as common as a Tasmanian Tiger.

Under the circumstances who wouldn’t want full margin on every sale?

 

By Daniel Cotterill