GM Announces SUV Incentives
Yesterday, we (and that includes Chrysler's Jim Press) predicted post-Black Tuesday light truck fire sales. This is how they start for GM, focusing on loyal GM customers, trying to get them out of their negative equity hole (a.k.a. backwards or under water). Interestingly, the deal include those "low profile" two-mode hybrid SUVs…
• Chevrolet — Tahoe (nonhybrid) or Suburban: $2,000 customer cash + $4,000 owner loyalty bonus cash = $6,000 total cash.
Tahoe (hybrid): $0 customer cash + $4,000 owner loyalty bonus cash = $4,000 total cash.
Silverado or Avalanche: $2,000 customer cash + $3,000 owner loyalty bonus cash = $5,000 total cash.
• GMC — Yukon: $2,000 customer cash + $4,000 owner loyalty bonus cash = $6,000 total cash.
Yukon (hybrid): $0 customer cash + $4,000 owner loyalty bonus cash = $4,000 total cash.
Sierra: $2,000 customer cash + $3,000 owner loyalty bonus cash = $5,000 total cash.
• Cadillac — Escalade: $2,000 customer cash + $2,000 bonus cash + $2,000 owner loyalty bonus cash = $6,000 total cash.
More by Robert Farago
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What I don't understand is what the "Loyalty cash" part is supposed to encourage... A stripped + AC long bed, regular cab V6 Silverado would be a great work truck at $15K. Or is it just that GM has decided that they can only sell to suckers who've bought GM products in the past?
I think loyalty cash has some merit. First, GM's new car customers are still some of their best customers. It may be robbing Peter to pay Paul, but a little sweetener to get them into the dealership a few months early isn't a bad idea. Second, loyalty cash helps GM customers overcome the bad depreciation they experienced. A spoonful of sugar may help them rationalize yet another idiotic financial move. Lastly, car buyers, on average, aren't all that bright. Any gimmick helps.
I'm considering an SUV for the wife - buy when everyone else is selling. I'm looking more at a Grand Cherokee - resale value on them is in freefall right now. Not to mention, in a few years with the new CAFE requirements the only vehicles available with be little crackerboxes with a supercomputer needed to keep it running.
A client of mine got a quote on the fair market value of a used SUV (the exact model escapes me) last month. 14,000 was the quoted price. She gets another quote this month. 8000. Six thousand in depreciation in a months time. Dealers won't accept them as trade ins. I wouldn't touch an SUV with YOUR 10 foot pole. At this rate they are going to worth their weight in scrap metal by the end of the year.