As VE continue to make waves across the country, dealers have seized the opportunity to increase the profit margin of these vehicles. This forced potential buyers to pay the outrageous new amounts or rethink their intentions of getting an electric model. That’s not a good look for electric vehicles right now, especially given the increased attention they’re getting in the market. Gasoline prices in the United States soared earlier this year, a situation that has increased the focus on electric vehicles, mainly because buying them saves money on car purchases. ‘essence.


Automakers usually set an MSRP, and authorized dealers are expected to sell at or slightly above the same price. When a car dealership chooses to charge a little more for a car, it’s usually to manage costs like destination charges, taxes, emissions test fees, insurance, and more. However, there are times when dealerships go against the wishes of automakers and charge significantly more for a vehicle.

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Some dealerships have arbitrarily increased EV profit margins, as one Twitter user BeardedBard underline. In a photo taken at a car dealership, a new Ford F-150 Lightning is shown with posters on the truck window. It’s clear that the MSRP of the truck is $81,584, however, due to “market adjustments,” that amount jumped to $131,584. It appears that the dealership chose to dramatically increase the retail price without even considering market adjustments. This is one of many cases where EV dealers are raising model prices while using market adjustment as an excuse. Besides dealerships, manufacturers have reportedly increased the MSRPs of their electric models. In March, Rivian announced a price increase for its electric adventure vehicles, the R1S SUV and the R1T pickup truck. This caused an outcry from potential buyers and reservation holders. Following the backlash, Rivian apologized and reverted to the original prices.

Why Electric Vehicle Prices Are Rising

Electric vehicles are known to be equipped with the latest technology as they are seen as the future of mobility. Unfortunately, some parts like semiconductors that are used in their production have not been running as usual due to the COVID-19 pandemic and Russia’s invasion of Ukraine. This has dampened supply amid growing demand for electric vehicles. As a result, the number of cars delivered to dealers for sale has decreased, causing them to sell well above MSRP.

With growing concerns about the environment and the known benefits of electric vehicles, dealerships are unlikely to stop the trend of high profit margins. While GM has threatened to sanction dealers who engage in markups, concerted efforts are needed from automakers to quell the problem.

If electric models continue to sell above MSRP, it could deter people from buying an EV. It will be bad for the manufacturers since the dealers increase the sales of a new version. Fortunately, a proven way to escape dealer markups is to order online from the manufacturer’s website. Volvo is currently accepting orders for the XC30 Recharge only on its website. Additionally, people may consider non-luxury models instead of popular options, although battery life, a vital VE characteristic, will be sacrificed.

Source: TheeBarbard/Twitter


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