zzdcar
Home
/
Reviews
/
Buying
/
NPR Dives Into the Rise of the 'Stealership'
NPR Dives Into the Rise of the 'Stealership'-June 2024
2024-02-19 EST 22:09:21

Image for article titled NPR Dives Into the Rise of the 'Stealership'

I’ve heard countless from people trying to lately. We all know that this market is a seller’s heaven and a buyer’s hell, but when you’re in desperate need for a vehicle, those concerns kind of move to the wayside, leaving people dealing with a network of so-called “stealerships.”

The catchy portmanteau refers to dealerships that sell vehicles or perform maintenance for exorbitant fees. Yes, dealers need to make a profit to stay in business, but what differentiates a dealership from a stealership is the stealership’s insistence on adding thousands of dollars of markups at every possible opportunity. You’ll also usually find fast-talking sales folk who are adept at gauging your willingness to pay a lot of money just to get out the door with a vehicle.

is currently facing this issue as he searches for a vehicle after his was stolen. After going through a frankly exhausting search for a vehicle only to have it topped off by duplicitous sales tactics, he decided to look into the rise of the stealership.

These sales tactics usually target a certain type of person. From the story:

A slew of economic studies has found patterns in who bears the brunt of this pricing strategy. It’s not pretty. For example, a of that dealerships tend to charge people of color more than white folks. Another finds that older people tend to be charged higher prices than younger people, and that older women tend to be charged the highest price of all.

One found that dealerships tend to treat a buyer’s decision to trade in their used car like a neon sign on their foreheads, flashing, “Charge me more!” That’s because trading in your used car, while easier than selling it directly, also fetches less money. Dealerships apparently see this as an indicator that you’re either unsavvy or willing to burn cash — so they jack up the price of the car they sell to you. The type of car you trade in also offers a wealth of information on how much they can charge.

As we’ve noted here before, dealership inventories are extremely low. People scooped up cars at every possible opportunity during the COVID-19 pandemic, but plant closures and supply chain hiccups mean automakers are still struggling to build enough cars to satisfy that hunger. NPR chatted with Cox Automotive executive analyst Michelle Krebs, who noted that this is the first time in her career that most dealerships are charging exactly or more than MSRP.

In the past, so-called stealerships were a little bit more difficult to come by. If you felt like you got screwed over by a dealership, you wouldn’t come back, and you’d tell your friends not to go there. Shady sales tactics had repercussions.

Now, though, just about everyone knows they can get away with charging a ton of extra money, so just about everyone is happy to do so. After all, if you’re not getting enough vehicles to satisfy customer demand, you’re probably going to want to make up for those lost funds somewhere.

The full is worth a read. It digs into the traditional automaker-to-dealership pipeline and also shows how some automakers like Tesla and Rivian are trying to skirt those rules. It also explains how lobbying groups like the National Automobile Dealers Association are hesitant to change a status quo that benefits the dealerships it represents. There’s a whole slew of political and financial reasons these stealerships are able to do what they do — and the first step to countering their tactics is to know about them.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Buying
BMW 740i Wears the M Badge of Courage for $13,200!
BMW 740i Wears the M Badge of Courage for $13,200!
When the Bangle-ized E65 7-series was released, the values of the preceding E38s immediately rose. Things have obviously settled down as this contender 740i has a price that's styled for mass appeal. John Kerry blamed his unsuccessful run at the White House, not on his being an elitist snob, but...
Jun 25, 2026
Alcuni Di Assemblaggio Richiestoe Lancia for $2,800!
Alcuni Di Assemblaggio Richiestoe Lancia for $2,800!
While finding a Lancia that's unable to move under its own power may seem more the rule than the exception, thinks that this Scorpion with your choice of engines could prove very motivational. Yesterday's didn't buck the trend of overwrought restos not bringing anywhere near the cost of rejuvenation. Horse...
Jun 25, 2026
I-Da-Ho V8 Datsun for $3,000!
I-Da-Ho V8 Datsun for $3,000!
Idaho's state bird is the Mountain Bluebird. Datsun's 240Z is a derivation of the Bluebird sedan. Today, has a Ford-powered Z from the potato state that might just flip your blues the bird. When it was first introduced, the Datsun 240Z was praised for being the poor man's E-Type. And...
Jun 25, 2026
Mercedes-Benz SLS: Once Upon A Time In Mexico
Mercedes-Benz SLS: Once Upon A Time In Mexico
Let's cut to the chase: This is a 563-hp , those are its amazing doors, and I took this picture in Mexico while hanging out of the car at 50 mph. Safety is for pansies. Viva velocidad! Full disclosure: Mercedes-Benz flew us to Mexico City and put us up in...
Jun 25, 2026
Riding Honda's Cybernetic Unicycle In Times Square
Riding Honda's Cybernetic Unicycle In Times Square
Japanese engineers thought that allowing Matt Lauer to ride the on the Today Show this morning was "too risky," but I sweet-talked them into letting me roll through Times Square on it. Cybernetic unicycle, meet New York. In return for permission to use the U3-X in Times Square, we promised...
Jun 25, 2026
Cadillac CTS Coupe: First Ride
Cadillac CTS Coupe: First Ride
Cadillac's chiseled, sexy surprised everyone when it debuted at the in 2007. Now we've gotten an exclusive first ride. Is GM's latest baby everything we had hoped? Since its inception, the CTS line has rewritten the Cadillac tome, maturing the division's "Art & Science" design theme into something handsome and...
Jun 25, 2026
Copyright 2023-2026 - www.zzdcar.com All Rights Reserved