When my girlfriend bought her 1st new car back in 2001 (before I knew her), the dealer tricked her big time.

They told her that because her credit wasn't the greatest, that she'd have to buy an extended warranty for an extra $1,300.

When I happened to look at her paperwork 3 years later, I asked her about it. She didn't even know she got charged for it.

That is not only deceitful, it's illegal in N.Y.

And BM, in regards to your "dealers will have to be innovative". I think you mean they will have to be more of a con artist than they already are.

 

And here's an article that everyone should read.

It's very long, but it gives good insight into a car salesperson's world.

http://www.edmunds.com/advice/buying...2/article.html


Enjoy!

 

Yeah, a friend of mine got the same "bad credit = must buy extended warranty as well." I sell cars, and I have NEVER heard of such a twisted, backhanded, deceitful way of padding your bottom line! I told him not to do it, and he did it anyways, saying "they won't sell me the car otherwise." The kid was too stupid to go find another dealer, so in the end I guess he got what he deserved.

Am I the only person on this board that can't believe Buickman already has 250 posts? Or thinks that 10 deliveries in one day is impossible? Unless your hucking the keys at your customers from 40 yards on the way to the next one, that doesn't happen in reality...EVER.

And yes, dealers will have to be more asinine to the public if GM goes to a one-price policy. Why? Customers like it too much. It makes it too easy for them. Remember, we're GM dealers...

We HAVE to screw it up somehow. If we didn't, we just wouldn't be the same. And doing things the same way is what has kept GM #1...I mean, its still working, right???

Or not...

 

No, we don't. BUT.....employees are eligible for rebates as well on top of the employee price. We dropped the retail incentive somewhat........further, the number Guy refers to is 'across the board' cost of rebates.....looking at the total incentive cost divided by the number of cars retailed......

As to 'fixed' pricing......that's a very touchy subject in terms of legalities. Saturn does have 'no haggle' pricing....but the dealer can still make the decision as to what price he'll sell the car.....

I'm not an attorney, but I think there would be a problem with the Justice Department in terms of 'price fixing' if we told dealers "this is the price you will sell our cars for in the long term."

Keep a couple of things in mind when thinking about the action GM took with this program:

>It kept plants running. The costs to idle a plant for even one week are staggering.........TRULY staggering.

>It got 'fannies in seats'....a lot of conquest business.......it brought people in who would not have normally walked into a GM dealer to look for a new car.....the onus is on us to make sure we keep 'em happy and they come back for their next car or truck

>It clears the 2005 inventory.....dealers aren't about to order 2006s in any number until their inventory of 2005s are reduced......

Is it the perfect plan? No, but I have yet to see the perfect plan.

I know this: There are some happy dealers......and more importantly, happy customers out there because of this program.

 

That article is pretty good. But unless you experience it first hand you'll never understand. Anything that you think makes sense, doesn't make sense in the world of selling cars. The avg salesman is in the business for a few years tops. Any longer than that stay away, there is a reason they are still doing that job.

 

So they were giving them away? I guess that's why on average it cost them less to move them than it did the month before. Do you even try to make sense BM?

 

That's the beauty of the program.

It's "voluntary"... just like the 55mph speed limit was "voluntary."


"The next war will be won by EXECUTION, not PLANS."
George S. Patton

The program is a sterling example of execution. The customers have spoken, they want this program. They don't want to haggle, they don't want dealers trying to sell worthless warranties and extraneous crap.

In truth, the program makes the dealers concentrate on what they should have been concentrating on all along - service.

GM is a MANUFACTURING industry, which is why anybody at GM who reads Jack Welch's books needs to be deprogrammed... dealerships are a SERVICE industry. I think it'll finally help dealerships understand what they're really there for - to make the customer's experience in owning a car as pleasant as possible, and get a reasonable profit for doing so.

 

I actually laughed out loud when I read the thing about "personally delivering 10 vehicles today".


10 x $1500 = $15,000.... from one NON-salesman alone (he is general manager).... ya, if this is the case, the guy has real good reason to be crying about the promotion.

 

Jason, your just not being innovative enough. You mean you didnt know about that?

 

If ,like GM says, most people in the US somehow work for or depend upong GM they should make it standard. They should leave it in place. Everyone in the US is a GM employee and they care about every customer. Thats maerketing but it also would build loyalty.

 

I think the advatage to this program was the low advertised sticker price. I loved how they put the Employee price on the window. Usually GM's high MSRPs scare people away.( even thought you get rebates).

I wish I could just order a car on the Internet and have it delivered to my house. I know exactly what I want and what I want to pay.

 

It would be even better if we could just order "factory direct", and cut out the middleman!

 

Amen, and do a factory pickup like they do with the Vette.

 

Add to the fact that I have been aprehensive on a new car desicion for a while. My baby is running too many miles on my daily commute and the house needs one more vehicle. I've been seriously considering a Cobalt sedan or the G6. This new pricing dropped the LT sedan (nicely equipped) to 16.5K approx. I'm going to test drive one with my father tomorrow.

In all honesty.. i've stayed away from the rebate game because of the dealers...

 

With all due respect to Lew and any other car salespeople that read these boards, I discovered long ago I'm too honest to make a true killing at selling cars. That's why my primary job is underwriting for a commercial bank

Not all dealers are out to screw people, but a ton of them are. I can't name many dealerships besides my own that I would even THINK about working at. And as the smaller guys like us keep getting bought out, its going to get harder and harder to buy a car. I loathe even the THOUGHT of buying a car that I didn't sell to myself (all but the Z28 I sold myself ), because after being in the business for 5 years, I get way too agitated way too quick when a dealership is trying to take me for a ride.

I guess I want dealers to treat me the way I treat my own customers, and it never happens.