Rival car dealerships are buying up competitors in-demand vehicles amid a global supply shortage and selling them used at massively inflated prices so customers can avoid being put on a long wait list.
Honda’s $73,000 Civic Type R, a highly sought-after turbo-charged model just launched in Australia, has a staggering two-year wait list, but Motoring editor David McCowen says car nuts hoping to get their hands on one have another option.
More than a dozen have been listed for sale by some Toyota, Hyundai and Volkswagen dealerships at more than $90,000 – with less than 100km clocked up.
James Whitbourn of CarHelper.com.au told Daily Mail Australia global supply chain issues are driving up prices for anyone searching for a new ride.
‘Because dealers have had a hard time coming across good quality used stock over the past few years, it certainly would make sense that they could seize upon an opportunity to get some stock they could make a profit on,’ he said.
There is a two-year waiting list for the Honda Civic Type R (pictured)
Honda customer George Hitchens, who placed an order for the new Type R last August said he is ‘furious’ that dealers are ‘taking cars off legitimate customers’.
‘The automotive world is cannibalising itself to make a buck, ensuring customers pay more and become even more aggrieved when buying a new car,’ he told the Courier Mail.
But Geoff Gwilym, CEO of the Motor Trades Association of Australia (MTAA), argues ordinary ‘punters’ are to blame for the price gouging.
‘Some people are buying cars at a dealership and then before they pick that up, they put it online and try and sell it for more than they bought it for,’ he said.
‘Let’s say a car is in short supply, you buy the car for $58,000 and it’s going to come in in six weeks or two months.
‘You then put a picture of that on the internet and you try and sell it. So you might sell a $58,000 car for $64,000 because somebody wants it right now,’
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He said revheads are willing to pay more if they can get a car quicker.
‘So it’s not the dealerships (making a big profit on scarce models), it’s actually punters doing it.
‘Car dealers are selling cars that are in high demand, but there’s no trickery in it, they just sell a car for the best price they can get.’
Another high-performance car selling for inflated prices is Toyota’s GR Corolla.
Rival car dealerships are buying up competitors in-demand vehicles amid a global supply shortage and selling them used at massively inflated prices so customers can avoid being put on a long wait list. Pictured: Toyota’s GR Corolla
Other vehicles affected by the rogue practice include the Ford Ranger Raptor ute and the VW Golf R (pictured)
It officially costs around $67,000 drive-away, but some online sellers are asking for more than $93,000.
Other vehicles affected by the rogue practice include the Ford Ranger Raptor ute and the VW Golf R.
Mr Gwilym said how the cars end up being listed at far above the retail price comes down to supply and demand.
‘Because the wait times are a long way out, or there’s only a short supply of cars coming in, so sometimes what a manufacturer will do, they’ll say we’ve got a new car coming out, we’ll put four in each dealership,’ he said.
‘If you happen to be a person that goes into that dealership and gets one of those four, then you can go online’ and sell it at a significant mark up.’
