By on December 18, 2012

It did not take a high degree of intellect when we recommended last week to wait for a better deal if you are in the market for a Chevy or GMC pick-up.  GM threw its vaunted  fiscal discipline in the wind and is piling cash on the hood  of trucks that are piling up on dealer lots.

GM, says the Freep, is

matching or beating discounts from rivals Ford and Chrysler, offering up to $9,000 off remaining 2012 models and close to $4,500 off 2013s. That, plus low interest rates, sweet lease deals and abundant financing, is good news for people in the market for a truck.”

We never put much credence in the story that truck armadas must be kept in reserve such as not to run out of them when GM switches over to its 2014 models.

At the end of November, Chevy dealers had more than 169,000 Silverados nationwide,138 days of supply. Ford had a 90-day supply of F-150s, and Chrysler had 106 days’ worth of Rams.

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66 Comments on “The Incentive Wars: GM Mounts All-Out Assault...”


  • avatar
    racebeer

    It’s not just the trucks. I was in my local Buick/GMC dealership this past Saturday geting the oil changed in the T/A (was a Pontiac/Buick/GMC dealer before the demise of the Indian …..), and you couldn’t stir people with a stick in the showroom. I’ve been going to this dealer for 20+ years, and I have never seen it that busy. I asked one of the salesguys what was going on, and he said they had both a GMC and Buick sale. The trucks were heavily discounted, and the Buick Verano had a $4500 discount on the base model, putting the out the door price at right around $19.2k …. AND a $195/month lease deal to boot. He said they had sold 18 Veranos in the past 2 days, and had only 3 left on the lot. I was still amazed at the showroom traffic on a lousy Minnesota winter day.

  • avatar
    MrWhopee

    With situation like these, why then the new GM trucks look almost exactly like the old one? If they were an unqualified success and they can’t keep them on the lot, I can understand, but since the current truck’s styling has gotten stale, why make the new one mimic the old one so closely? Do they really run out of ideas? Them grey winter weather up there in Detroit must be really affecting the stylist. Time to move the styling studio to California or somewhere sunny?

    • 0 avatar
      dolorean

      I would suppose, there’s only so many ways to design a truck. The argument is old, but GM needs to do away with GMC (for passenger truck purposes anyway) and do a serious re-think about the cheap and rather dull interior space of its trucks.

      • 0 avatar
        Acd

        GMC is a cash cow for General Motors. They fill up factory capacity and tend to have higher trasactional prices than their Chevy cousins and also keep a lot of Buick dealers viable. GMC is hugely profitable for GM.

    • 0 avatar
      philadlj

      We’ve seen what happens when Chevy truck stylists get “inspired” – we got the SSR – not bad looking from some angles, but totally useless as a truck.

  • avatar
    brettc

    Too bad that GM is doing the heavy discounting to “move the metal” yet again. Have they somehow forgotten about how they went bankrupt in the first place?

    With the crazy discounting, I wouldn’t be surprised if my father in law gets another new GM truck soon. (He seems to get a new one every couple years even though he has horrible credit and no money sense).

    • 0 avatar
      rodface

      I suppose the ol’ cloud-o’-debt doesn’t hang too low for some people, and they don’t mind living under it for their entire lives…

      • 0 avatar
        BigMeats

        I’d like to see what the correlation is between debt and obesity. Pretty strong, I’d guess.

        My rule is a truck ought to last as long as your furnace. Mine is on it’s second furnace so I’m pretty happy with it.

      • 0 avatar
        duffman13

        Bigmeats-

        That’s pretty good. My furnace is orignal to my house however, installed in ’73. That would have to be one hell of a truck to go 40 years doing work.

    • 0 avatar
      henkdevries

      Are you driving a Diesel brettc?

      On topic:
      When is it going to go wrong again with GM? All signals show nothing has changed.

      • 0 avatar
        sunridge place

        ‘All signals show nothing has changed’

        Did you read the article about lowering production on the new Malibu to meet demand or do you just like to make ‘Sky is Falling’ type comments?

        Old GM would have kept cranking them out.

        Good lord…GM meets the competition with aggressive incentives on an ancient truck platform for a year end closeout and the world is ending.

      • 0 avatar
        86SN2001

        Would you expect anything different around these parts Sunridge?

        I just wish GM offered the 6.2 in a reg. cab short box version of the Silverado. I’d go out today and find me a 2012…

    • 0 avatar
      probert

      That isn’t how they went bankrupt in the first place.

  • avatar
    bumpy ii

    It’s the last half of December. Year-end numbers must be met, or somebody’s getting moved to the office next to the toilet vent.

    • 0 avatar
      CJinSD

      They achieved their goal, which was fluffing their financials prior to the election. Remember how they moved forward their reporting to put the sale(to the dealers) of all these unwanted trucks and Malibus into the public record for Obama’s use? Now they’re going to pour money into moving metal that was ‘sold’ before the election while cutting production. This was a success for the regime, but is a billboard announcing that GM’s resurgence is a farce.

      • 0 avatar
        sunridge place

        GM released 2012 Q2 earnings on August 2nd.
        GM released 2012 Q1 earnings on May 3rd.

        How was releasing them on Oct 31st more than a day or two off from what they have done all year?

        They typically release them about 30 days after the end of the quarter.

        Should they have released them on Saturday November 3rd to satisfy you? Would that have made it better? Should they have waited until after election day? Then, your conspiracy brain would have exploded and you would have been screaming that they were hiding something.

        Good lord.

      • 0 avatar
        CJinSD

        GM hadn’t announced Q3 results in October for 6 years, but they broadcast that they were going to do it this time to set the stage for their funny numbers to be in the Obama narrative in time to fool the easily fooled. Maybe you can’t put two and two together to see what is going on when GM fluffs their numbers with acres of vehicles sitting on dealers’ lots that will hurt their future profitability and then picks the ideal window to release their illusion of health to serve their crony in chief, but I’ll take facts over your spin.

      • 0 avatar
        sunridge place

        Whatever…then we should expect terrible earnings for Q4 coming around Feb 1.

        With all this fluffing that you know about and the conspiracy to move up the annoucement to influence the elections, please tell us how big the losses will be when Q4 earnings come out?

      • 0 avatar
        corntrollio

        If one had argued that the numbers should have been released on Nov 1 because Aug 2 and May 3 are both Thursdays, at least that would be logical, but that wouldn’t have satisfied the BS conspiracy theories.

      • 0 avatar
        DrunkenDonuts

        Funny. I lived in a swing state, and I did not see ONE commercial related to GM by any party. I saw a million other BS commercials, but none about GM. Heck, there was a pro Chrysler ad by Clint Eastwood during the Superbowl, which made Republicans very mad, but then he decided to go to the RNC to talk to an empty chair.

        Anyway, I need to go find my tinfoil hat before December 21st. That’s when the Reptilian overlords inside Obama’s cabinet take over and install the NWO and take away all of our guns. I’m really worried about that.

      • 0 avatar
        jsal56

        I am with you CJinSD, we are going down in a big way and the liberals will be right next to us on the ride.

        I am hoping the Reps vote present on everything and drape the debacle around the Dems necks.

    • 0 avatar
      cdakost

      CJinSD,

      Romney lost fair and square. Get over it and pick a better candidate for 2016.

  • avatar
    marjanmm

    TTAC recently reported the margins on full size trucks are enormous which means they can discount probably even more.

  • avatar
    gslippy

    Well, they have to do it, both for year-end numbers, but to purge inventory. The error was in building too much stock, and that decision has occurred repeatedly over many months’ time.

    • 0 avatar
      sunridge place

      GM is about 10% higher than they wanted to be with truck inventory. Quit following the ‘crisis’ mentality. Read the article…they are ‘meeting’ the competition….and, in some cases, beating the competition on truck rebates. Should they shrivel up….stop building or offering competitive rebates on trucks?

      Ram started building the 2013 Ram in Sept 2012….in November 2012, 90% of their sales are still the 2012MY. What’s up with that?

      • 0 avatar
        mikey

        I see it as a huge plus for those in the market for a truck. As far as going up to your eyeballs in debt? Its a matter of personal choice. Its not for me but, if sombody is willing to go in that deep, and if GM won’t make a deal. I’m sure the Ford and Ram dealers will roll out the welcome mat.

      • 0 avatar
        gslippy

        @sunridge place: “Meeting the competition” via ultra-deep discounts is not a winning strategy. They shouldn’t have built so many trucks; now they’re just giving away margin to move the metal. Like I said, they have to do it now.

      • 0 avatar
        sunridge place

        You don’t know much about the truck business and truck incentives.

        Even blind loyalists to a brand of trucks will wait for a deal…then you have the folks who aren’t 100% Ford/Chevy/Ram who shop and compare.

        Like I said, GM has about 10% more inventory than they wanted to now…they are going to need to sell some more and they increased their incentives to the level of the competition so they can get some of their blind loyalists to come out of the woodwork and make a deal and get a chance at some of the tire-kickers who won’t look at them with X Cash back or whatever.

        Even with 10k-14k margin to play with, you would have chosen to build conservatively and sit back with lower inventory and lower rebates and lower sales. Fine.

        That is a wise strategy for any other segment besides trucks.

        After December when each OEM will sell an ungodly amount of trucks, there will be a clearer picture of inventory. And, after 4Q earnings come out and you see that they are not spiraling uncontrollably towards losses in North America maybe you will stop.

      • 0 avatar
        probert

        Oh if there’s a squeek of small goings on at GM – or a Union thing – these boys will commence squealing – I set my watch by it.

        No one’s said “Pelosi mobile” yet – maybe spell check doesn’t include Pelosi.

        Apparently in magic world “behind the gates” cars are extruded from a pony’s ass and a rich person never got a free ride. And if it’s good enough for a chinese child it should be good enough for you.

  • avatar
    jaje

    I normally don’t buy or lease a pickup from the dealer as you still have to pay more up front. Instead I wait for great deals on http://www.swapalease.com or http://www.leasetrader.com and take over someone’s lease that has at least 2 years left and the lessee’s often put incentives on top of it (such as paying the credit app fee with the lessor or a 1 way plane ticket to come pick it up and drive it home). The last 2 deals I got was an ’08 Silvy LS Ext Cab 2wd w/ 5.3 v8 and Nav package for $220 a month lease including taxes and a ’05 Silvy 2500 work truck std cab with plow package, 6.0 v8, truck cap for $195 / mo lease including taxes. I did not have to pay out of pocket for anything and then no sales tax when I registered with the DMV. Trucks had warranty coverage throughout my time owning them and even better the original lessee forfeits the security deposit as I replaced them and I would get that at lease end (basically a free month’s lease payment). You have to really look through the deals as there are a lot of bad lease deals people take and are trying to get out of as well.

    • 0 avatar
      CJinSD

      Were the trucks leased as used vehicles by the people who listed them on the lease broker websites? Those monthly rates seem awful low. How did they get there? I see ads for $149 a month new Dodge Darts every day, but they’re half the price of 3/4 ton pickups and require $2,698 down.

      • 0 avatar
        jaje

        The ’08 was actually leased by a GM employee (their discount level) and the ’05 was another the lessee put down $5k at the time of the lease to pay down the lease residual! As said incredible deals – I would have done it again but I could not find a great deal on a diesel suv (wanted the much better mpg when towing) – an ’07 Grand Cherokee with the daimler benz 3.0 CRD in it.

      • 0 avatar
        CJinSD

        How has upkeep been on the CRD? I looked at Car and Driver’s short take on 2007 JGC CRD. The performance looked good to me. They didn’t explain the 17 mpg they saw, but maybe they didn’t drive it much more than at the track.

      • 0 avatar
        jaje

        There are some issues with it but jeepforums has a lot of great info. First off is the pre turbo intake tube that leaks at the turbo ($80 and its easy to do yourself) – also the engine has the CCV that burns off gasses but also allows oil into the intake which can lead to EGR failure, swirl motor failure and puts oil in the intercooler. You can clean the EGR every other year, vent it to a catch can to the atmosphere or back into the intake tube. The swirl motor doesn’t do much and can be fixed with a < $1 resistor!

        Best of all with a $700 tune / reflash you can delete the EGR and swirl motor issues and best of all it bumps up power from 250 hp to 315 hp and 376 ft lbs to 465 ft lbs. It also adds about 2-3 better mpg as the tune eliminates several fuel injection pulses that do nothing other than quiet the engine so it doesn't sound so much like a diesel. There is also a hot tune that bumps it up to almost 500 ft lbs. The tune can also get rid of the torque limit in 1st / 2nd gears which makes the CRD break all 4 wheels loose! With the eco tune and eliminate the torque limit in 1st / 2nd gears it lowers the 1/4 mile time down from high 15's to low 14's.

        I don't have the tune yet – getting it done but also with a DPF delete option which also helps power and mpg. I currently get mid 20's at 60-65 mph in the brick on the highway and 20's combined. I'm not a tail gater or one who follows the pack – normally I go slower and leave stopping room and would rather maintain momentum (not stop or have to use my brakes). For comparison the Hemi Jeep of the same get around 18 mpg highway and 11-12 city. The CRD just does so much better in a heavy vehicle than a gas engine.

  • avatar
    th009

    Those F-series and RAM inventories are none too small, either.

    • 0 avatar
      mikey

      Right….So GM has got to reach to get the buyer. Isn’t that what the free market is all about?

      Competition is a bonus for the consumer.

      • 0 avatar
        Zackman

        Hey Mikey, the incentives worked for me! Something like 7K off my 2012 Impala LTZ!

        However I would have LOVED to get a bit more if I had an employee discount, about 2K more.

      • 0 avatar
        mikey

        @Zackman…. My point exatly. You got the car you wanted, at a great price. I hope the Impala is working out for you. I had no complaints at all with my 09.

      • 0 avatar
        mikey

        As far as employee discounts go. Its great when your buying. However when you live in a the heart of GM country,resale can be a bit of a hardship. I got top dollar for my mint 09 LTZ Impala. I still took a big hit.

        Thats life.

      • 0 avatar
        bumpy ii

        That is one of the perils of shopping at the company store. At least you didn’t get paid entirely in scrip, so you theoretically had some choice in the matter.

  • avatar
    ponchoman49

    Every Dodge and Ford dealer I have passed by has an impossible numbers of truck inventory hogging up the entire front and second rows so GM isn’t alone. Heck I even saw a Toyota dealer with no less than three brand new 2011 Tundras and loads of 2012′s littered all over the place.

  • avatar
    mikey

    In Southern Ontario, every dealer, all makes, is jammed with trucks. Regular gas is 1.17 a litre {4.50 U.S.} down from $1.25 a week ago. Maybe that will move some trucks?

  • avatar
    xflowgolf

    why do people call the GM truck platform “an ancient truck platform”?

    When I look back, the squarebody C/K trucks were around from ’73-’87 (~15 year run), the next gen CK’s from ’88-’98 (10+ year run), the GMT800 Silverado’s from ’99-’06 (~7 years) with the replacement GMT900′s in place from ’07 – current. It’s only 5 years old on a complete body overhaul. Most of the previous generations saw a mid-cycle refresh with a new front fascia/interior gussied up… and that’s about what I would’ve expected GM to do with these trucks now. I honestly wasn’t expecting a 100% new truck until ~2016 or so. I’m not a GM apologist, but I think the “ancient” label is unfair.

    Why doesn’t Ford get slaughtered for this? Yes the F150 was refreshed a year or two more recently than GM, but the Superdutys have been built around the same basic truck since ’99. The ’08 restyle fooled a lot of people as it had a big shiny front end, but look close and it’s the same cab/doors/bed 10+ full years later with some shiny new mirrors and taillights bolted on. I can’t tell if they updated the door/bedside stampings in the ’11+ restyle, but they look the same to me still (13+ years later) Does it get a pass because it’s a 3/4 ton?

    • 0 avatar
      86er

      “Ancient” is typical B&B hyperbole, but it is true that the truck market is getting much more competitive than it was in the days when they built my 96 Sierra 1/2 ton.

      The cycle is now more in line with passenger cars, and because a lot of truck sales are to retail buyers, some of whom are buying their first truck to haul an RV, for example, they expect all the latest electronic and convenience doodads they had in their sedan or sport utility.

      One thing that does complicate the superficial discussion of platform updates is that in the truck market they might do a major chassis update in a year when they only do a mid-cycle type refresh to the body. Prime example is these 2014 GMs will have the same bones as their 2013 antecedents, but with new bodies and many new suspension components and powertrain. A frame update will probably come later, as it did with the 2500 and 3500 GMs in 2008, a year after getting the GMT-900 body.

    • 0 avatar
      sunridge place

      I used the word ‘ancient’ in comparison to its half-ton competitors Ford and Ram.

      Current generation will be seven years old by the time the 14′s come out next summer….not five.

      Current generation debuted in 2006 calendar year and next generation will come out in 2013 calendar year.

  • avatar
    swc7916

    I just looked at the GMC and Chevolet website and I don’t see these tremendous discount offers. When I purchsed my 2008 GMC 2500HD Durmax truck on an end-of-the-year deal they were offering “Red Tag” pricing and massive discounts. The “Red Tag” price was $4,600 off of MSRP and GM offered $6000 off if you financed through GMAC or $10,000 off if you purchased in cash. I ended up paying $36,400 a truck that listed for over $50,000. If they were offering deals like that again I would certainly consider trading for a new one.

    • 0 avatar
      sunridge place

      That’s because there aren’t big rebates on the HD’s. Nor can you get a huge rebate on lower end half-tons.

      There is some big $$ is on the heavily contented half-tons with the All Star Edition, Texas Edition etc. There’s also 0% for 60 months plus $2000 on the 2013 Silverado’s if you trade in a 1999 or newer vehicle.

      The amount of hysteria over about 4k on the hood of a truck is laughable. I imagine all the OEM’s love the free advertising as its largely business as usual with the rebate amounts this time of year for trucks.

    • 0 avatar
      APaGttH

      And you won’t.

      The biggest cash on the hood from a Chevy or GMC truck is $4500. That is for a 1500 series extended cab and only if you don’t take the special financing offer. It is the second lowest cash incentive of all the OEMs (including Toyota). Only Honda has smaller rebates, offering only 0.9% and 1.9% financing on the Ridgeline.

      The story is inaccurate at best — if Bob’s House of Trucks In Bumblescum, Missouri sold his friend a GMC 1500 for a $9,000 discount, of course this is representative of a national trend and an “all out assault,” by GM.

      Funny thing is, I thought dealers ultimately set their own price. Isn’t what REALLY matters at the end of the day when you look at performance and stock price, which as a shareholder of GM by proxy is what I really care about — isn’t having the smallest amount of cash on the hood oh I don’t know — a good thing???

    • 0 avatar
      dodobreeder

      The deals are at the dealers, not the GM website. The dealers are loaded down with GM trucks and want to move them.

      In the Palm Springs/Indio/Yucca Valley/Twentynine Palms (California) area where I reside you can get some pretty damn good deals on GM trucks, if you want one.

      What the dealers have done is paint the sell price in huge numerals on the windshields and they are decent prices. And they are trying to move all that iron prior to Jan 2013.

      I didn’t stop by to check the trucks out myself because I never was a GM man, but my son-in-law just bought a 2013 four-door Sierra from one of those dealers and it was well below $30,000, out the door, everything included.

      He chose to trade in his old Silverado and then pay the difference without financing it. The dealership didn’t like that so he didn’t get all of the discounts you get with financing and b/c.

      But if you really want great deals on pickup trucks, Texas is the place to be. I just got back from road trip to Port Arthur and all along the I-10 corridor dealers are displaying acres and acres of brand new unsold trucks, all makes and models.

      Regardless of what you decide to buy, this may be a good time if you have to watch your finances and want to save some money on a new truck.

  • avatar
    dash riprock

    matching or beating discounts from rivals Ford and Chrysler…..

    This amounts to an all out assault? Spin much?

    Other people have mentioned what they see as a decline in the editorial quality of this site, I have to agree. I first started coming to this site years ago during the GM death watch series. I was shorting GM(and Ford) stock at the time and was googling the terms GM and Bankruptcy looking for more sources of analysis. Farago definitely had some strong opinions that I could either tolerate or not(not a fan of his new venture at all). What I always did see was substantive arguments to his points. He aggresively deconstructed the spin from manufacturers and presented facts. He did not cause me to short stock, but his research did allow me to feel more secure in my investment decisions.

    Now at TTAC, in my opinion we see numbers and opinions that coincide with the editors views presented with no analysis. Quite often the commentators easily pick out the weaknesses that would have never gotten beyond previous editors. I no longer have any investments, long or short, in automotive manufacturers. If I did, this site would no longer be seen as a source of hard information.

    a shame really, will return for lang and schreiber who always seem to entertain

  • avatar
    mfgreen40

    big meats– my car is 20 yrs old but my NG furnace is over 40 yrs old. the furnace is a little thirsty, but I have not spent one penny in repairs other than 3 new belts changed as preventive maint. If cars were only this good!

    • 0 avatar
      chaparral

      “A little thirsty” usually equals “gulps down enough extra natural gas to pay for its more efficient replacement in two years – so who cares that the new furnaces only last five?” – or, better yet “would pay for its total replacement by a solar thermal system with a big, big tank and collector fast enough that it really should be required by local governments”

      • 0 avatar
        Dynasty

        “A little thirsty” usually equals “gulps down enough extra natural gas to pay for its more efficient replacement in two years?”

        My NG furnace is 50 plus years old. Assuming it is 60% efficient, I’d save less than 200 a year on gas with an 80% efficient unit.

        It would take a longer time, in gas savings, to cover the cost of a $3K new unit that will need to be replaced in ten to 12 years. Or have large sums of money put into repairs.

        Here’s hoping my heat exchanger doesn’t crack!

      • 0 avatar
        rpn453

        52-year-old Coleman NG furnace here. I’d probably save $200 a year with a $6k high efficiency furnace. Not worth it.

        My girlfriend junked her perfectly good 40-year-old furnace a few years ago to be “eco-friendly” by installing a $7k high efficiency furnace. What a waste. She hasn’t noticed any obvious difference in energy consumption. At most, I figure she’s saving about $100 a year on her $800 annual bill, considering that about $300 goes to fixed charges and hot water usage. Plus, the installers left her gate open and her dog escaped, costing her about $10k for the care and multiple surgeries he needed after getting hit by a car.

    • 0 avatar
      28-Cars-Later

      I’d say you’ve done very well on the furnace, hopefully it keeps paying dividends for a few quarters more.

  • avatar
    oboylepr

    Believe it or not Mikey, got gas from the local First Nation owned gas station last Friday for .99c/litre! Almost nobody on the reserve drives a car, they all have big ass trucks.

  • avatar
    APaGttH

    And so it continues.

    Ford has $6000 in cash on the hood (when you read the fine print)

    http://www.ford.com/trucks/f150/2012/incentives/

    The $7500 figure is achieved by package discounts, which is just funny money math anyway – so to keep it to real, leafy greeny money coming from the manufacturer, lets keep it all honest.

    Toyota has up to $5000 in cash on the hood of a Tundra right now (funny, no mention of that – source from toyota.com based on redirect to zip of 77070, Houston, Texas)

    http://www.gulfstates.buyatoyota.com/

    Chrysler has up to $7200 in cash on the hood or Ram Trucks (source, ramtrucks.com)

    But here is what two minutes of web searching reveals – guess, according to their websites has the LEAST amount of cash on the hood?

    Yup – Chevrolet – $4500, look it up yourself:

    http://www.chevrolet.com/tools/currentoffers/results.do

    OK, OK, so let me check GMC. Maybe they have a ton of money on the hood. Nope. $4500 on a 1500 Extended Cab – just like it’s Chevy twin.

    So GM has thrown all fiscal caution to the wind, putting the least amount of money on the hood (including Toyota) on their fullsize trucks.

    Ya, smarty pants, you didn’t check Nissan!

    OK – Nissan – they have $6,350 cash on the hood of a Titan in the Houston, Texas area.

    http://www.choosenissan.com/houston-area/titan/

    But, but, but, HONDA! They have a truck, that Ridgeline thing!

    OK, yup, you got me. Honda is showing more fiscal restraint than GM – they have no cash on the hood of the Ridgeline.

    I get that we are requoting from another source – but the ACTUALLY INCENTIVES from the manufacturer are the smallest from Honda, then GM. Even Toyota has more cash on the hood.

    For those who found this hard to follow:

    Ram 1500: $7200 cash on the hood
    Nissan Titan: $6350 cash on the hood
    Ford F-150: $6000 cash on the hood
    Toyota Tundra: $5000 cash on the hood
    Chevrolet 1500: $4500 cash on the hood
    GMC 1500: $4500 cash on the hood
    Honda Ridgeline: $0 cash on the hood

    Yup – that GM is sure doing an awful job. To get to the figures above I did not include things like USAA buyer discount, college grad cash, educator, police, fire, or other public servant bonus cash, or any other dealer programs geared toward narrow groups. Not all discounts apply to all models. To get the maximum GM discount you need to go extended cab. To get the maximum Ford discount you need to go extended cab XLT. To get the maximum Toyota discount you need to go crew cab, etc. etc.

    In reality all of the above have significantly less cash on the hoods than the maximum examples above. Dealer discounts above factory incentives will of course vary from dealer to dealer. A check on Truecar shows the average Silverado is selling at about a $2900 discount – well WELL below the hyped up story of $9000 deals.

    Research people – research.

    • 0 avatar
      ajla

      I’m not sure where you are seeing the $2900 on TrueCar for the Silverado. Local and national avg paid numbers look much higher.

      And the $5000 on the Tundra only applies to a rare, high-priced 2012 Special Edition truck, not the usual Tundra. Normal trim 2012s have $3000, 2013s have $2500.

      Anyway, the issue isn’t GM’s publicized incentive number, it is the amount that GM dealers are suddenly willing to discount their truck inventory. It is not just one guy in the middle of nowhere offering $9000 discounts.

      I don’t know how it is in Texas, but in Central Florida GM places are absolutely offering the biggest discounts right now. There are ways to get prices down beyond openly throwing money on the hood of individual vehicles.

      Dealers are not just willing to lose money on a sale so something is going on behind the scenes.

      • 0 avatar
        ajla

        Buickman sells GMC stuff, maybe he’ll show up to shed some light on the situation.

      • 0 avatar
        APaGttH

        …And the $5000 on the Tundra only applies to a rare, high-priced 2012 Special Edition truck, not the usual Tundra. Normal trim 2012s have $3000, 2013s have $2500…

        Gee, go back and reread what I wrote…

        …Not all discounts apply to all models. To get the maximum GM discount you need to go extended cab. To get the maximum Ford discount you need to go extended cab XLT. To get the maximum Toyota discount you need to go crew cab, etc. etc…

        Here is the link:

        http://www.truecar.com/prices-new/chevrolet/silverado-1500-pricing/2012/

        Zip Code is 77070. Houston, Texas. Average paid, $20,333 – average MSRP is $23,190.

        You do the math. I don’t have the time to play with options, bed styles, to twist the numbers into something to prove a point. But a 2WD LT Extended Cab, which is going to be far more common, doesn’t even come close to the $9000 figure.

        Average paid is $27198 and the average MSRP is $32,495. Discount of $5,297 – still not near $9,000 and you won’t get $4,500 in rebates on this model.

        Still misses the point of the cash on the hood. If the Ford dealer has $6000 on the hood and then discounts the price $3000 on an Ecoboost F-150, what is the Chevrolet dealer supposed to do with a GMT900 Silverado?

  • avatar
    rnc

    “Research people – research”: Means nothing what so ever unless a great deal of facts not made available to the general public can be distilled and applied. GM does have one huge advantage right now, roughly $2 billion a Qtr in interest payments have disappeared, so why they are putting the least amount on the hood (corporate wise), what are the dealers paying for the trucks that are passed on to the customer (shadow cash on the hood, especially the 2012′s). The other half of the equation is the lack of GMAC, GM doesn’t get the interest $ and any time they finance below market rates they have to make a NPV transfer to Ally or whoever else is financing (shadow cash on the hood, they sure aren’t going to advertise because it has a double whammy impact). These are the things we don’t see, shareholders don’t see. GM needs to use that extra $8 billion/yr and get Opel and thier pensions in order (if either is possible). and they have a short time to do it, even after having $30 billion in debt erased Ford is the healthier of the two (think about that).

    And I want GM to survive, I got to take about a 3-4 mile test drive in a Volt this weekend (lady at station, we started talking about it (had 5 year old with me), car is solid, not a cruze and I have to admit it was really cool going 55 mph and no engine, she says about once a month she visits her sister so the engine will run because she worrys about water in the gas and the engine just sitting long term, don’t know if either is justified. Still don’t understand why there isn’t a small turbo engine with a two speed transmission b/t it and the generator, better yet, make a supercharger/alternator(just spins the alternator at engine speed) that can charge the batteries while generator runs car. but after riding in the car, if GM sticks with it and uses continuous improvment, scale (costs) and efficiencies, it has a bright future (especially in large trucks if they can get it right, and by right I mean opposite of two-mode system).


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