BLOOMFIELD HILLS, MI (FOX 2) – Mercedes-Benz of Bloomfield Hills, located in Bloomfield Township, MI, is facing accusations of unethical pricing practices after allegedly attempting to charge a substantial markup on a custom-ordered vehicle. The dealership is under the spotlight following a customer complaint regarding a significant price increase above the manufacturer’s suggested retail price (MSRP).
According to reports, a client of Mercedes-Benz of Bloomfield Hills had custom-ordered a Mercedes G63 in 2019, which had an original sticker price of $184,000. However, when the vehicle was finally ready for delivery recently, the dealership allegedly sought an additional $120,000 on top of the agreed-upon sticker price. This action has sparked outrage and raised questions about ethical business practices within the automotive industry.
Azzam Elder, the attorney representing the client, voiced strong disapproval of the alleged actions by Mercedes-Benz of Bloomfield Hills. “They’re taking advantage of a consumer, and it’s just unacceptable,” Elder stated, highlighting the long-term relationship his client’s family had with the dealership, having purchased 11 vehicles over 25 years. The client, who had even customized the Mercedes G63 with a unique olive green mango exterior and red and black interior, proceeded with the order amidst pandemic-related uncertainties, hoping the vehicle would retain its value.
In response to the allegations, Mercedes-Benz USA issued a statement clarifying their position on pricing. “The MSRP is a suggested price,” the statement read. “While we do not encourage markups for specific, high-demand models, the final sale price is ultimately negotiated between the dealer and the customer.” This statement underscores the existing framework where dealerships have some autonomy in setting final prices, especially for sought-after vehicles.
However, automotive expert John McElroy weighed in on the matter, describing such markups as “price gouging” and ethically questionable. “It may not be illegal, but it’s definitely unethical, and they shouldn’t be doing this sort of thing,” McElroy commented. He further noted that major automakers like GM and Ford have previously cautioned their dealerships against similar practices, indicating a broader industry concern about maintaining ethical pricing standards.
The Michigan Attorney General’s office has acknowledged the allegations against Mercedes-Benz of Bloomfield Hills and confirmed their corporate oversight division intends to review the situation. This suggests a serious examination of the dealership’s pricing conduct and potential implications under consumer protection laws. While the dealership declined to disclose the final sale price for the custom Mercedes G63, the accusations have undoubtedly cast a shadow over the reputation of Mercedes-Benz of Bloomfield Hills within Bloomfield Township, MI, and the wider community. The unfolding situation serves as a stark reminder of the importance of transparent and ethical practices in the automotive retail sector, particularly concerning luxury brands and high-demand models.
