If GM is taking a hit with huge incentives and 0% financing now then they might offset this with huge increases in the cost of parts and labor in the future.

Even back in October 02 when I bought my wife a new Saturn Vue the finance guy said GM will be raising the prices of parts and labor siginifantly over the next year or so.

If they cant make any money off you on the front-side then they will have to do it on the back-side.

GM isnt in the car business just for fun.

 

While is could be a possibility, I've grown to take everything coming from dealership personell with a huge grain of salt.

Think about it... why would GM announce future parts pricing plans to a dealership finance guy?

And even if he heard it through the grapevine... I still don't put much stock in it.

 

He showed me the price differences and the % increase was the largest he as ever seen over the last 8 year of working there.

Maybe GM's going for the Bic razor way of selling (sell razors @ cost but charge alot for repacement blades) by basically moving the cars off the lots at any cost but make it up on service and repairs down the road.

The more Chevy's on the road the more Chevy's that will need parts and service later

 

Perhaps... not saying it is impossible, but I'm sure prices increase every year.

I think they'd shoot themselves in the foot if they went too far with that kind of move.

Just my .02 though.

 

It will be interesting to see how quality holds up if this is the case (make the parts break early to recoup cost?).

 

If quality and reliability were being dramatically improved, you'd figure they'd be extending the warranty on your average GM vehicle.

 

"Initial quality" is different then "long term reliability" and while I think GM vehicles quality has really improved overall they will have to charge more for service if people bring their car in less because they're made better.

 

Or charge more for the parts...

 

By the way, dealers have been complaining that their profits have been decreasing as newer cars require fewer trips to the dealer. This is not just GM dealers, either.

 

The carmakers must be doing something right if the dealers are complaining. Personally, I wish GM and the other manufacturers would run all of their franchisees out of business. It's time that cars were sold by direct sales.

The dealer franchise system has lead to tremendous abuses of the consumer, and it definitely needs to end. It probably won't as long as there are corrupt state legislators protecting dealers.

 

Dealerships have always made there money in the shop. More than two thirds.

 

That, and used cars.