There is a universal truth that virtually every American knows: dealerships are indeed dens of scum and villainy. I say this as a former salesperson who couldn’t stop the dishonesty and it went on for exactly three months. But it’s a truth that anyone who has ever purchased a vehicle from a dealership knows in their heart, because it’s a place you go to get robbed.
Perhaps that is why, according to a survey conducted by KPA a few years ago, More than three-quarters of Americans don’t trust dealerships. In particular, they don’t trust dealerships about their advertised pricing, which is why the Federal Trade Commission (FTC) has recently gone after dealership pricing practices and levied hefty fines against the worst offenders throughout the United States.
they also put one naming names list.
But so far, public shaming and fines have been only for cars, trucks and SUV dealerships. The FTC has not set its sights on the powersports market. At least, not yet. However, those dealerships are starting to worry that they are next, as powersports pricing is often far more confusing to the average consumer than any car, truck or SUV due to a number of factors that they completely control.
As detailed in a recent Dealership Fixit podcast episode Powersports BusinessGene Silas of Brightline Dealer Advisors told the hosts, “Powersports is 100% next. I’m giving it 12 months or less.” Silas is referring to the FTC’s crackdown on dealership price fixing, because the FTC has not been given any new rules or regulations, it is just taking existing books and turning them over to dealerships across the country.
Basically, the issue boils down to powersports dealership pricing, and often, the price you see advertised, whether online or on the showroom floor, has nothing to do with your out-the-door price. Why? Because powersports dealerships have additional mark-ups, i.e., assembly, freight, pre-delivery inspection, and many other add-ons that are not disclosed when you look at the price tag. This, in turn, causes outrage when you arrive at the finance office and your motorcycle has gone from $5,600 to $10,000 in a matter of moments.
Who could have guessed that people would go so crazy over this?
And that type of pricing has been blamed on the automotive industry, but to a lesser extent, because assembly, freight and some other additional charges are not as prevalent there. Still, the FTC is going after those dealerships like my dog is going after the grouse – they’re going for the kill. It’s no surprise that the powersports industry is now nervous about a potential FTC defeat.
However, nothing has yet been telegraphed that the FTC is coming. And the podcast itself is more about what dealerships can do to guard against the coming war between the two groups, with Silas saying that dealerships need to be proactive and, you know, not deceptive. But these are dealerships we’re talking about, so it’ll probably take the might of the United States government to really change them.
Also a good public shaming. However that would require them to be able to feel shame, and I’m not sure that’s possible based on my own experience…
