Car dealers in the US were fined up to 1 million USD for selling price channels, but people look sad

Measures to deter the behavior of selling car price channels

Selling the car price channel is considered a violation of the law of the state of Maryland (USA), so the sanction of Kia car dealers is considered a deterrent move for dealers who have been, are and intend to take similar actions.

In addition to having to reimburse the difference in fees as well as compensate customers for more than $1 million, the agent also had to pay the state $200,000 in investigation fees.

Accepting the judgment of compensation from the authorities, however, the agent’s representative still did not admit his fault.

In fact, in addition to the listed value, when selling the car to a customer, this dealer intentionally charged additional fees such as handling fees, freight charges and a variety of other fees….

Kia car dealers in the US have to compensate more than 1 million USD for customers for selling the price channel compared to the company’s listed price.

The sale of the price “channel” may stem from a shortage in the market. Stemming from the global supply chain crisis, the lack of semiconductor chips and components has slowed down auto production activities. Many popular car models are in a state of no cars for sale and delivery to those who have pre-ordered. This situation has not only happened in the US but also in many other markets recently.

Look people, think me

The case of the Kia dealer in the US being heavily fined for selling price channels made many consumers in Vietnam a bit embarrassed. In fact, selling cars in the style of “beer with peanuts” or exorbitant prices at motorcycle dealers like Honda’s HEADs in Vietnam has been common for many years. Accordingly, popular motorcycle models such as Honda SH, Honda LEAD, Honda Vision, etc. will have a higher actual selling price than the listed price of the company from a few hundred thousand to several tens of millions of dong depending on the time. Especially, in periods like before the annual Lunar New Year, the price of Honda motorbikes skyrockets.

For example, a survey by PV ICTnews at the time of mid-January 2019, at a Honda car dealer, the price of SH 2019 cars (both SH 125 and 150) was sold higher than the proposed price from 13 to 12 months. 22 million dong; SH 150 matte black version is 19 – 22 million VND difference for CBS or ABS version. The SH Mode scooter model is also being sold at a higher price than the proposal from 7.5 to 13 million VND depending on the version.

Honda motorbikes are often overpriced at authorized dealers, the situation has been going on for many years and shows no sign of stopping.

Another survey conducted by PV Traffic News at a HEAD near the 2022 Lunar New Year, the SH model alone has a channel price from 5 million to more than 26 million dong depending on the version.

Not only Tet, many other times of the year, the price of Honda motorbikes at HEAD also falls into a state of “arrhythmia”. At the peak, in the middle of June 2020, the price of SH 2019 cars sometimes increased by 40 million VND.

Although the situation of price appreciation has lasted for many years, it seems that there is no sign of stopping. Recently, at the beginning of April 2022, Honda Vietnam also made an official announcement about adjusting the suggested retail prices of its motorcycle products. Accordingly, there are up to 20 models of scooters and motorcycles that increase in price, the lowest is Lead, only from 500-600 thousand. The highest belongs to the SH series in the range of 2-3,7 million VND depending on the version.

The reason given by Honda Vietnam (HVN) is “In the context of global economic fluctuations that continue to affect the raw material market, leading to a change in the selling price of input materials has a direct impact on the market. On the production process, HVN officially adjusts the suggested retail prices of motorcycle models manufactured and distributed by HVN. to maximize the benefits for customers in order to maintain the best support”.

The company officially raised the price, but what about the reality at the HEAD? According to a survey of reporters at some HEADs in Hanoi, for Vision cars alone, the price difference compared to the new listed price of the company is from 8-11.5 million VND. This is one of Honda’s most popular models since its introduction in the Vietnamese market. In March 2022 alone, Honda Vision sold 46,667 vehicles, accounting for nearly 26% of the Japanese brand’s motorcycle sales.

As the price increases, many consumers can’t help but give up their intention of buying a new means of transport. And the HEADs continue to “song” with shortage of goods and prices.