The Dark Side of Market Adjustment Fees - Kunes Auto and RV Group

Mar 16, 2023

When it comes to purchasing a new vehicle, hidden fees and bait-and-switch tactics can make the experience stressful and overwhelming. At Kunes Auto Group, we believe in transparency and honesty, and we want to make the process as easy and stress-free as possible for our customers. Our goal is to help you find the perfect vehicle that suits your lifestyle and fits within your budget, without any surprises.

One of the reasons why the auto industry has become synonymous with hidden fees is the prevalence of market adjustment fees. Market adjustments are necessary due to circumstances that are out of our control. These fees have become more common since the pandemic hit in 2020, but at Kunes Auto Group, we don’t engage in predatory practices. While it’s true that some dealerships add extra fees on top of the selling price, this is typically only seen in cases of extremely rare vehicles with high demand.

During the pandemic, when so few vehicles were available, consumer demand caused a bidding war, leading to market adjustment fees. Manufacturers are now looking to financially recover from the supply chain issues and have increased the prices of their vehicles, taking a huge toll on consumers. To dive further into this issue, read our blog post “The Death of the Affordable Car: How Automakers’ Profit-Focused Strategy is Affecting the Market

It’s important to keep in mind that the auto dealership industry is one of the few realms where market adjustments are legally required to be disclosed to consumers. Some dealerships may try to take advantage of the current market conditions, but at Kunes Auto Group, we believe in transparency and honesty. We will always be upfront about our pricing and the features included in our vehicles.

We know that purchasing a vehicle is an important investment, and we want you to feel confident in your decision. That’s why we encourage our customers to shop around and do their research before committing to a purchase. In a recent interview with The Street, Scott Kunes, our Chief of Operations, suggested that the best way our customers can be prepared before visiting a dealership is to have an understanding of the current market by using tools like CoPilot or Kelly Blue Book to research vehicle pricing.

“We educate our buyers to see the car as an entire purchase that includes the price of the car, insurance, and any applicable taxes”

Scott Kunes, Chief of Operations, Kunes auto and rv group

We will make sure our customers are aware of any additional fees associated with financing a vehicle. As indirect lenders, we do add a small fee to your APR to pay for our service. While a 1-2% increase in APR is not the norm, we strongly believe in being transparent about any additional fees. We encourage customers to get pre-approved for an auto loan from their local bank or credit union to have negotiating leverage and to consider all financing options.

As a car dealership, we’re pretty good at getting loans for our customers. Every month, we work with banks to help 10-20 people secure a loan. We’re proud of the relationships we’ve built with lenders, which allow us to get better rates for our customers than their own banks can offer. We’ve even helped employees of banks get loans at the same great rates we offer. We want our customers to get the best deal possible, and we’re excited to keep working with lenders to make that happen!

Kunes Auto Group takes the laws surrounding illegal hidden fees very seriously. We will never add any features to a vehicle without first disclosing the added charge and receiving the customer’s consent. Our goal is to provide a positive, stress-free experience for all of our customers, and honesty and transparency are essential components of achieving that goal.

At Kunes Auto Group, we value your time and want you to feel comfortable asking all the questions you need to make an informed decision. Our goal is to provide a positive, stress-free experience for all of our customers. We understand that purchasing a new vehicle is a significant investment, and we want to ensure that you’re getting a fair deal. By doing your research and asking questions, you can make an informed decision that works best for you. With Kunes Auto Group, you can trust that there won’t be any hidden fees or surprises – just transparency and honesty.

Read the full article by The Street here.