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Un-Australian! Holden dealers triple their fees as demand for final Commodore V8s rev up

HOLDEN dealers have been accused of trying to charge more than double or triple their normal fees for the last ever Commodore V8s.

 First look at the 2018 Holden Commodore

HOLDEN dealers have been accused of ripping up customer contracts and trying to charge more than double or triple their normal fees for the last ever Commodore V8s.

Some customers are being charged between $6000 and $10,000 for the “dealer delivery fee”, rather than the regular price of $2500.

Holden says it’s a case of supply and demand and dealers are entitled to charge a premium for the handful of final edition Commodores they have to sell.

However, Holden has taken exception to dealers who have cancelled signed contracts with the regular $2500 dealer delivery charge — so they can sell the car to someone else at a higher price.

The limited edition Director (left), Magnum ute (centre) and Motorsport sedan (right) go into production in April ahead of a midyear delivery. Picture: Supplied.
The limited edition Director (left), Magnum ute (centre) and Motorsport sedan (right) go into production in April ahead of a midyear delivery. Picture: Supplied.

A statement from Holden said: “Holden has reminded all dealers of their obligations to ensure customers are treated in a way to maximise customer satisfaction during this unprecedented period of demand, and of course that any contracts previously signed are honoured.”

News Corp Australia understands Holden has had to intervene in a small number of deals after head office received complaints from customers.

While it is up to the dealer and the customer to negotiate a price when buying any new car, it is against the law to change the terms of a deal after it is signed.

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There are 1200 “Motorsport” editions planned, 240 “Magnum” utes and 360 “Director” luxury models, which amount to a fraction of the number of V8s sold last year.

“Clearly, demand is outstripping supply with both customers and dealers grappling with how best to manage that demand given each dealership was allocated only a limited number of cars,” the Holden statement said.

“In the car industry the release of vehicles like these often create situations where passionate customers are prepared to pay well above the odds to secure a piece of history. Dealers are within their rights to negotiate pricing and customers are within their rights to negotiate pricing.”

Perhaps the biggest embarrassment for Holden dealers, however, is that the scam exposes the car industry’s “dealer delivery fee” exactly for what it is: extra profit on top of the price of the vehicle.

Holden dealers are charging big bucks to prepare limited edition Commodore V8s for delivery ... even though some buyers want them untouched and unregistered. Picture: Supplied.
Holden dealers are charging big bucks to prepare limited edition Commodore V8s for delivery ... even though some buyers want them untouched and unregistered. Picture: Supplied.

When News Corp Australia mystery-shopped Holden dealers in three states, we were told the limited edition V8s had a “special” delivery process, and quotes ranged from $5000 to $10,000 over the standard cost of the car.

Bizarrely, dealers are charging extra even though in some cases buyers are asking them not to touch the car.

Some buyers are so fanatical they are having their Commodore V8s delivered with the original wrapping and freight stickers on the windows, never to be registered.

Reports of overcharging come a month after News Corp Australia revealed dealers were paying over the odds for near-new, ex-Holden V8 company cars.

At the beginning of the year, Holden took the unusual step of informing dealers of their entire allocation of V8s in the lead up to the shutdown of the factory in October — which sparked panic buying as many believed they weren’t getting enough vehicles.

Demand for V8s in recent years has accounted for one-third of Commodore sales, but now V8s account for half of all Commodores sold as enthusiasts rush to buy one of the last.

When the Commodore imported from Germany goes on sale in 2018 it will have a choice of four-cylinder petrol or diesel power, or a V6 all-wheel-drive. There will not be a performance version.

Deliveries of the final limited editions — the “Motorsport” sedan, “Magnum” ute and “Director” luxury model, all names a tribute to, or created by the late racing legend Peter Brock — are due to start mid year after production commences in April.

This reporter is on Twitter: @JoshuaDowling

Originally published as Un-Australian! Holden dealers triple their fees as demand for final Commodore V8s rev up

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Original URL: https://www.goldcoastbulletin.com.au/business/companies/manufacturing/unaustralian-holden-dealers-triple-their-fees-as-demand-for-final-commodore-v8s-rev-up/news-story/86e058fe68b97cb0fe17244e217bf659