BLOOMFIELD HILLS, MI (FOX 2) – A luxury car dealership in Bloomfield Hills, Michigan, is facing accusations of unethical pricing practices after allegedly attempting to charge a significant markup on a Mercedes-Benz G63. According to reports, Mercedes-Benz of Bloomfield Hills allegedly tried to add an extra $120,000 to the agreed-upon sticker price of a custom-ordered vehicle.
The vehicle, a Mercedes G63 with a sticker price of $184,000 in 2019, had been custom-made for a client who had been a loyal customer of the dealership for 25 years, purchasing 11 cars previously. However, upon delivery of the vehicle last week, Mercedes-Benz of Bloomfield Hills allegedly demanded an additional $120,000 on top of the original sticker price.
Attorney Azzam Elder, representing the client, voiced strong criticism of the dealership’s actions. “They’re taking advantage of a consumer, and it’s just unacceptable,” Elder stated, emphasizing the long-term relationship his client had maintained with Mercedes-Benz of Bloomfield Hills. He highlighted the apparent unfairness of the situation, especially considering the client’s history with the dealership. Despite the lack of a written contract or down payment, the client had secured a special custom order for an olive green mango exterior with a red and black interior, indicating a serious intent to purchase.
Elder further elaborated on the timing of the purchase, suggesting that the client’s decision to buy during the Covid pandemic, with a two-year wait for delivery, was partly motivated by the expectation that the vehicle might retain its value. “Because we have Covid he actually bought a car two years ago and now he can drive off the lot, and maybe it’s going to retain its value. I mean is that too much to ask for, of Mercedes-Benz? I don’t think so.”
In response to the allegations, Mercedes-Benz USA issued a statement clarifying their position on pricing. “The MSRP is a suggested price. While we do not encourage markups for specific, high-demand models, the final sale price is ultimately negotiated between the dealer and the customer,” the statement read. This statement suggests that while Mercedes-Benz USA does not endorse excessive markups, they ultimately leave pricing decisions to individual dealerships like Mercedes-Benz of Bloomfield Hills.
Automotive industry expert and reporter John McElroy weighed in on the situation, describing the dealership’s alleged actions as “price gouging.” “It may not be illegal, but it’s definitely unethical, and they shouldn’t be doing this sort of thing,” McElroy commented. He also noted that both General Motors (GM) and Ford had recently sent letters to their dealerships discouraging similar practices, indicating a broader industry concern about unethical markups.
The Attorney General’s office has acknowledged the allegations against Mercedes-Benz of Bloomfield Hills and confirmed their intention to investigate the matter through their corporate oversight division. This suggests that Mercedes-Benz of Bloomfield Hills may face regulatory scrutiny as a result of these pricing allegations.
When questioned directly about the dealership’s integrity, attorney Elder responded cautiously, “Not all of them,” but added, “Based on the reviews, in this case, I believe they are being crooks. You made a promise keep your promise.” The specific selling price of the olive green-red interior Mercedes, and whether it included the controversial markup, remained undisclosed by Mercedes-Benz of Bloomfield Hills.
