zzdcar
Home
/
Reviews
/
Buying
/
NPR Dives Into the Rise of the 'Stealership'
NPR Dives Into the Rise of the 'Stealership'-November 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
Barb's 1988 Volkswagen Cabrio from Stranger Things Is for Sale
Barb's 1988 Volkswagen Cabrio from Stranger Things Is for Sale
I’m still currently going through a withdrawal. And if you’re in the same boat as me, then there might be a some relief for you in buying Barb’s 1988 Volkswagen Cabriolet. In the , the seller claims that this is the car that Barbara Holland drove in season one of...
Nov 6, 2025
The 2019 Genesis G70 Is as Great as It Needs To Be
The 2019 Genesis G70 Is as Great as It Needs To Be
Hyundai’s cars are a long, long way from the punchline they used to be. Everyone knows that. But with , its new luxury nameplate, the company’s ambitions have never been higher. It’s a measure of how far the company has come that , its challenger to the BMW 3 Series...
Nov 6, 2025
Do Banks Require a Service Contract For a Used Car?
Do Banks Require a Service Contract For a Used Car?
As Jalopnik’s resident car buying expert and professional car shopper, I get emails. Lots of emails. I’ve decided to pick a few and try to help answer your burning car-buying questions. This week we are talking about buying a service contract to get a loan on a used car, cosmetic...
Nov 6, 2025
Craigslist Seller Knows What They Have, a Truck Not On Fire (Anymore)
Craigslist Seller Knows What They Have, a Truck Not On Fire (Anymore)
Many of us feel we are living in pessimistic times at best, so it’s like a ray of sunshine on a cloudy day to see some pure, unadulterated optimism. Let this Craigslist ad for a Chevy S10 suffering from a heap of problems—the least of which was temporarily being on...
Nov 6, 2025
Sweet Christmas: Get a Load of This $2.3 Million BMW Dream Car Sale
Sweet Christmas: Get a Load of This $2.3 Million BMW Dream Car Sale
If you’re like me—and God help you if you are, legitimately—you’ve browsed the website of Ohio’s and said “Yeah, one day when I get on, I’m going to dump , because why the hell not?” The dealer is famous for its collection of rare and wonderfully well-kept old BMWs. Now,...
Nov 6, 2025
At $7,500, Does This 1995 Mazda MX5 Have You Saying
At $7,500, Does This 1995 Mazda MX5 Have You Saying "I Could’ve Had a V8"?
The seller of today’s MX5 says in his ad that the car needs little to be perfect. With a Ford 5.0 under its hood it’s already a good way there. Let’s decide if its price pushes it over the top. I’m really disappointed that the vast majority—as in, not a...
Nov 6, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved