Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Employee / Supplier Purchase Programs
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Comments
Thanks for the help. (You too wireless1).
hang in there...it will be worth the wait. We are all in the same situation...locating a P5 stick has become a joke. We are expecting a mad scramble of swaps the minute they hit the ground.
Rich
I still believe (And this is how I work) that a trade is only worth what it is worth (Wholesale). Irrespective of what Black Book, Galves, Blue Book, NADA, Edmunds..etc say.
On an X/A/S/J/Y/Z plan deal, there is no room for an overallowance though.
Bill
If the x-plan price is 35000 ( A-plan plus 4% ) is that the price used to figure out the lease payments? I know other things can change the actual monthly payment on a lease but the starting point is always the purchase price of the car.
G
Tron
Bill
A couple of questions:
1) how does one know what the GM employee price is, and 2) how does this compare to the price one can get by negotiating from the price the dealer paid?
Thanks,
NTaylor
GM subsidizes the dealer to complete such a deal and no dealer that I know of would come anywhere near the price since there is essentially no profit margin in it unless they get the GM subsidy.
if you are a serious buyer. The GM employee,
and GM supplier prices are on it ! But be
aware the dealer DOES not have to do it.
Especially a HOT model such as a CTS, Vette
z06................geo
Invoice MSRP TMV®
Regional Base Price $31,673 $36,229 $32,897
Color Adjustment - - -$42
Optional Equipment $185 $215 $193
Destination Charge $745 $745 $745
Total $32,603 $37,189 $33,793
www.carsdirect.com
you can pick your vehicle, see invoice, etc, etc. I just priced out a tahoe, and with the 1g rebate, its $100 above invoice. BTW, you can print these pages out and a local dealer will usually sell it for that price as long as the zip is the same. In anycase, gives you a good idea as to how much someone in your area is willing to sell it for. I used the carsdirect.com as my baseline when I bought my truck, and got it for about 400 below carsdirect.com pricing. Lotso negotiating. The nice thing about the GMO plan is that you dont have to negotiate. I have the Ford X plan as an option, but I know I can get a better price by negotiating and waiting for the right rebates... =o)
When you get the GM Supplier Discount paperwork, it comes with a couple of examples of GM cars priced at MSRP, then priced with the GM Supplier discount. Simple math reveals the discount to be about 8.2%. It's not as good as GM Employee price, but it's better than TMV (though not below invoice).
The problem with the GM Supplier Discount program is that it is completely optional for dealers to participate. Why? GM does not reimburse the dealers for the difference, unlike the GM Employee discount, which is under invoice.
So while a dealership might give you the car at GM Supplier price for "goodwill", they are really reticent about giving the discount for popular cars. Finding a Chevy dealership willing to give that discount for a Corvette is like finding Osama. In my case, I wanted a Cadillac CTS, which is another hot car. The dealership compromised and priced the car within $300 of the GM Supplier Price. I still saved over $1000 over Edmunds' TMV and I was a very happy camper.
I ended up with a new Deville instead. Thats
ok too.....No dealer in my syracuse NY area
would do a GM employee discount on CTS !
They DO NOT have to do it ! I found that out
last year when the full size GM HD 4x4 excab
pickups came out! Dealer said YOU gotta WAIT!
Caddy dealer called me last week and said...We
have your black CTS waiting, GM discount OK!~
I said DUH...remember I bought a 02 Deville
3 wks ago from a different dealer? He says
why elsewhere? 3500 trade or 6000 trade at
the other dealer. Wonder why? lol.......geo
BTW: Both the GMS and GM supplier prices are
right on the invoice ! Ask the dealer to see
them ! If they won't show the invoice to you
RUN don't walk ! Also ask about advertising
fees. GM employees DO NOT have to pay them.
Not sure about on GM Supplier deals tho !
to same dealer 3900 trade...Other dealer where
we bought the Caddy... 6200 trade ! Guess
where he bought ?
Dad when back to the first dealer and said
see ya lost out on 2 new car sales. Have a
great day he says !..............geo
It used to be easier to find out what the employee price of a particular vehicle. You just took the MSRP and deducted a certain percentage off the base price and another percentage off MSRP for all the options. A few years ago, they stopped doing that and had everyone go to the dealer to get the official price for employee/supplier.
sonjaab is correct, too. Employee pricing does not allow the dealer to charge for doc fees as this is rebated back to the dealer from GM. Don't know about supplier doc fees, though. All the terms should be spelled out in the paperwork you give to the dealer. Look at the paperwork closely to see what is/isn't included.
Probably the main advantage to the supplier discount is you walk in, pick a vehicle, show the dealer your supplier paperwork and the deal is finished. I doubt you'll save much more (if any) by going through the tedious negotiation process to get to the same price (if you can).
my moms GM employee discount. Limit is 6
per model year. 4 others bought with uncles
employee dis.
ON the adv. fees...They are waived on GM
employee deals..Not sure about supplier
deals !
About the doc. fee tho....In Syracuse NY
area the doc. fee was 20 bucks. I have
been told by other GM dealers on these
threads the dealer CANNOT charge doc fees
on GM employee deals. I asked on the last
2 vehicle purchases and the salesman said
different! I am not gonna argue over 20
bucks ! Everyone is happy with their new
GMs and the excellent deals they got!
...........geo
That said, I've bought 3 cars via GMS and 2 via GMO (all Pontiacs, btw). Sales people were courteous and helpful considering they didn't make much money on the sale.
Don't consider you flippant at all given those facts.
xcab 4x4 we browsed GM buypower. Your
dea;er didn't have one. You guys had a 4
cyl no v-6. Fox swapped a
Trailblazer for one from East Syr. chevy. Salesman said the
holdback was bigger on the Blazer and the
other dealer wanted it bad. So they would
make extra $$$$. And you know east syr.
chevy is FAMOUS for standard mop and glow
pkg. on all new cars! We got it for free !
LOL....But we were charged 20 bucks doc.
fee tho...............geo
We talked about model, color, etc. He said he'd be happy to do a search, and would also be happy to try and show us an example of the GMS price, but warned us that the sales mgr would probably balk at the request. He took us in and introduced us to the mgr, who quickly jumped into a speach about how he has the biggest inventory, the envy of the area, blah, blah...he was very flippant, told us that he would not sell a Crew Cab or a Duramax w/ GMS. We saved him additional time and breath and walked. We totally respect their choice to not deal the high demand/high margin vehicles. We're now thinking about maxing the GMCard in the next 22 months @ $3500 and using it w/ GMS to get a different vehicle - - after, of course, we have bought the new Ford SuperDuty.
NTaylor
I kept the old black one. Used like 3500
bucks off my 02 Caddy. Along with GMS.
Something like they are cutting the amt.
you can amass in a certain time period.
With the old or new GM cards!
Just got a flyer this month with my bill.
Will have to reread again !..geo
NT
My hope of hopes, being a Pontiac fan (even though I own Chryslers now), is the new GP will fill the bill for a performance sedan.
The GTP I owned had to be the performance sedan bargain when it first came out in the late '90s. Now, the bar has been raised via the competion. I'm anxious to see how the new GP GTP turns out.
call them and ask. Good thing I used all
my GM card points up ! I bought a 01 truck
last year. So 3 or so winters down the road
when I trade the truck ( Use for snowplowing
so I dump em' before warranty expires.) The
Caddy I keep for 5-6 years 100k miles.
I will see what the "NEW" program holds for
me............geo
BTW: When I bought my 01 truck last year if
I had the NEW GM card max I could use was
$1500 bucks...My old black one I used $2000
But here is another question. I have a 2002 Tahoe with only 2200 miles on it and I want to order a similar 2003 Tahoe. I buy a new GM vehicle every 6 months, but would rather not go through the hassle of selling the vehicle outright. I can buy from any dealer, but the local dealers (understandably) won't quote a trade in value on my 2002 unless I sign a deal to order the 2003. Any suggestions on how to get a trade in value (at least a range) from a dealer without comitting to another vehicle.
Car_man
Host
Smart Shoppers / FWI Message Boards
the employee discount plan to GMS only recently.
GMS price is right on the invoice anyway !
NO price difference if you order or take from
dealer stock ! Have your client take the sponsors
SS# to www.gmfamilyfirst.com
Then they can see for themselves that you are
not trying any funny business with them ! Also
remind them that GM employee discount plans
they will pay NO adv fees either ! Not sure
about GM supplier deals tho......geo
BTW: My family has bought 10 new GMs this year
with mom and uncles GM discount !!!!
I've bought 3 cars under GMS/GMO as my brother-in-law is a retired GM engineer. Great deals. I can't believe that they want to negotiate the GMS price...?????
GMS price also does away with doc fees (if that hasn't changed over the last couple of years, too)
I watch the employee deals fairly closely over the years and have bought a few for myself and family members. What I have noticed is that the employee price has been getting higher over the years.
It used to be that the price we got was generally the invoice price minus about 4 percent. Now as a previous poster wrote our price is at invoice.
We used to also get an additional year-end model year clearance discount of 5 percent of of list in October of the model year. This was in addition to any available incentives.
Now GM will take away the coupling of the GM credit card rebate points with an employee sale.
I have bought GM cars in the past because of the exceptional employee price. I don't believe this will be the case in the future. I could probably walk into any GM dealership and bargain with them on a car to within a few hundred dollars of invoice price.
So I guess my discount is now worth only a few hundred dollars. This is not enough to keep me buying GM cars. And the loss of the GM credit card discount makes it even worse.
I read somewhere that GM sells about 10 percent of it's cars to employees and suppliers. Maybe GM needs to rethink the (Big) discount they offer employees.
of the new Gms this year. Some of the dealer
guys on the smart shopper thread told me the
dealer is NOT supposed to charge DOC on GM
emp. deals. I questioned them and they let
us say "played dumb". But it was only 20
bucks for them to run around to the DMV !
When I bought my 01 GM truck GMO price was only
like $380? cheaper than GMS. ....geo
I grab the invoice, he is a supplier. I show him supplier price and he notices that it is $28 higher than invoice. He decides he will be paying invoice and we will throw in about $350 worth of extras. Furthermore we will be "running his trade thru the books" for his tax benefit.
I am about to crumple up the up sheet and go have a cigarette but decide to desk the deal anyways. Unknown to the customer we have $500 dealer cash on this vehicle. We also have a $500 consumer rebate that he has not mentioned yet. I explain to the manager that this guy wants all this AND 10% off all parts and labor in the future.
After we get done chuckling to ourselves we look at the deal and it is doable. I am debating on if I even want this guy as a customer.
Now, if he had stuck with his supplier paperwork we would have not charged him the $20 for the doc fee, that brings the difference to $8. We also would have to disclose the $500 dealer cash. We did give him the $500 rebate. So after it was all said and done this guy cost himself about $150 trying to save $28.
The day we deliver the vehicle GM comes out with a $250 rebate for all GMS and supplier deals. The bottom line is this guy cost himself $400 trying to save $28. He did end up being a VERY likeable guy and bought me a dozen Titleist golf balls.
I will most likely be flamed for this post but with this guy the only way we could have done the deal is the way we did it. If he came in and was supplier and wanted $350 worth of extras I would of launched him inside of 10 seconds, no questions asked. I am sure the customer thinks he got an AWESOME deal. I am happy he is my customer.