It cost GM $3729 average to move a vehicle in May.

It costs them $3714 in June!

Verdict:
The employee discount program is actually $15 cheaper per vehicle to GM, yet increased market share from 25% to 30%!

The number 1 reason why customers like the idea?
ONE PRICE WITH NO NEGOTIATIONS!

Here's the full article:
http://news.yahoo.com/s/usatoday/200...NlYwMlJVRPUCUl

 

Even if GM LOST money on the deal, it was worth it just to get people into the showrooms, and get the critical butt-to-seat contact...

Just my opinion though. Glad to see it helped them. Now if they can only learn their lesson from it...

 

I dont think extending it would be a good idea. Sure in the short run its going to increase market share and get people to come in. But in the long run it will hurt resale value (which already isnt great on a lot of GM cars) and people will hold off buying a car until they can get these ridiculous rebates again. I think this will end up biting GM in the *** int he long run... i can only hope im wrong

 

The employee discount is a great idea and it will most likely will stay until all the 05's are sold off to make room for 06's.

 

It's a fantastic idea, and I hope GM strongly considers a move to no haggle pricing across the board permanently.

The only way it would get counter-acted is is other manufacturers follow suit... but even if they do, all the cards are on the table pricing-wise, so over-inflated MSRP's and the like would be a thing of the past, and you can actually see, plain as day, how every vehicle compares.

It's win/win all around... no matter what happens as far as the compition following or not.

 

They should just do this with their pricing, dealerships make money from selling the car, not off of their mark ups and what not. And keep the price fixed.

God it would make life so simple just to go to a dealership and buy a car with the price on the window, knowing that everyone else is paying the same. Buying a car is a pain in the *** these days. GM looks really attractive to a buyer when buying a car becomes so simple.

And because of the market economy's supply and demand prices may need to change sometimes. Well then GM can just change the price.

 

I'm laughing all the way to the bank I made $75/hr last Saturday when I sold 2 cars in one day...I am not complaining

Conversely, the job I got an MBA for currently pays me less than $30/hr. Again, I'm not complaining Here's to hoping GM card extends my bonus coupon!!!! I lost $500 today because I hadn't sold my GP yet to buy the GXP. Grrrrr....

 

Another vote for "bring the fixed pricing."

What a competitive advantage! If people had to haggle everywhere but GM dealers . . . wow, just wow.

You know what's right. Do it, GM.

 

GM did finally come up with a plan to "give" them away, since they couldn't "sell" them. Granted it moved product, I delivered 10 myself today. Problem is, it goes against the natural market forces and will never hold regardless of what GM rules. Dealers are a very innovative sort and will find methods of increasing profitability on hot products.
Shopping the trade will become the norm and values will continue to slide. End result, this attempt at communism will fall like the Berlin Wall.

 

Yes real innovative like marking up cars 3 to 10 k above their MSRP then find that one sucker who will buy one and the rest of the "hot product" languishes on the lot until they cant sell them period. GTO ring a bell?

Yes dealers are real innovative.. innovative at using markups, deceit, and other tricks to inflate the price beyond its means and making the car buying experience more painful than passing a kidney stone.

Thats my opinion of most dealers, not all of them. However out of all the dealerships in my area the only one I will buy from next time is Red Shoe Chevrolet. All the others can kiss my butt with their **** poor customer experience.

The Employee Discount was great, I wish GM would go with Fixed pricing or "No Haggling" like Saturn is setup. This would be great for the customer and make them feel less like a calf going to the slaughter when walking onto a lot.

 

What would happen to the housing market if everyone had to pay the same listed price? Not all dealers are unethical. Those that are will skirt the GMS one way or another. Negotiating is not inherently evil or destructive. It's simply balancing supply and demand. Anyone who feels otherwise needs a refresher course in basic economics.

 

The housing comparision is almost pointless.

Except for cookie-cutter houses in a development (and even these generally vary), no two are totally identical... and a non-new house is a used house... and like cars, a favorite dealer line is... no 2 used cars are exactly the same.

A new car CAN be 100% identical to another, however.

Hopefully GM will make this move to no haggle pricing. There's a REASON Saturn always has stellar customer satisfcation ratings.

The market is showing this is what the consumer WANTS.

 

The average person goes to a dealer "knowing" he is gonna get screwed. Regardles of the reality, that is the perception. Take away that perception, and people will be happier. GM proved that in June. "Innovative" dealers that add $1,500 "paint protection packages" are part of the reason people hate shopping for cars.

 

So GM charges MORE for a new car for their own employees than they do for Joe Public?

 

That $1500 paint protection is usually the deal maker believe it or not. Take a guess why.