I wish these discounts would've come sooner. I just bought an 05 Silverado that had been on the dealer's lot for 345 days.

 

According to Automotive News this week, the number one company in terms of incentive dollars right now is...............







.................DCX!

at over $3,900 a car.

The low rate financing or zero rate financing.........along with "lease deals" are incentives......pure and simple.

 

I should also mention that when we announced the price cuts, the sales nearly skidded to a halt in places like New York........where about 60 percent of the business is leasing or SmartBuy.........so we went to work applying some money behind the curtain to offer the public an attractive lease offer.

(hint: that's an incentive)

 

Can you explain something that I have never totally understood?

How are "incentive dollars" for leases made known to the public?

The way the standard rebates are explained to me... they don't apply to leases, only purchases. Yet, I can never seem to find "lease rebates" shown anywhere.

Or am I totally off base, here?

 

s

 

well, in some cases, the retail rebate IS available...just depends on the offer. However, most lease specials are "behind the curtain." Let's assume that the residual on a brand X sedan is 42% at the end of the lease....and the calculated lease payment on the car is -- say $346. To get it to $299, the manufacturer supports the residual and/or the lease rate....to get it down to $299. So....there's actually an incentive involved....but the customer never sees it.

I should also say that this is not at the benevolence of the bank/GMAC/etc........rather, the individual 'brand' ..i.e. Impala Team funds the lease.

 

A co-worker of mine just bought a new F-150. With all the discounts, rebates etc, he got a $3,800.00 reduction in the price.
Just FYI...

 

Thats a good idea, that way you can better control the flow of those incentives.

 

Hmmph... I'm getting ready to go SmartBuy an Impy SS in about a month... would that mean that the price I see on line (Monthly payments) could actually be lower? Or does this invisible system apply to the website payment calculator too?

 

Intersting info! Especially the stuff about the individual brand funding the lease.

I wish there was a way to better shop what's "on sale" lease-wise, though.

Especially in my area, where half the dealer advetise GMS procing because of Lordstown.... it makes it very difficult to see what is going on. Since you have all kind of different pricing flying around.

If the lease programs were layed out as straight forward as the purchasing rebates, it's be a lot more consumer-friendly, IMO. It'd be nice to have them listed on the webpages with the rebates.... but, I suppose they are "behind the curtain" for a reason, even if I dont' know/agree with it.

The fact that sometimes the purchasing rebates applies and sometimes it doesn't, muddies the water even further.

 

The rebates are pretty upfront on our websites....meaning cash back that is....as to whether it applies to leases or not. In many cases, they do not because the lease contribution is usually sizable.......


As to the individual brands being charged for incentive money...it makes sense. We would meet every month and discuss (with finanical peeps) our grounded stock......what was in production.....current sales rate.....and where inventory would be (at the current sales rate) in one/two/three months out. Based on all of that, you have some choices:

>if the stock keeps growing, you'd better be doing something to move the iron or the plant idles for a period of time.........

(when the plant idles, all hell breaks loose in terms of money.......)

 

Maybe I'm totally missing it, but this is where I generally look to check on the current offers for Chevrolet:

http://www.chevrolet.com/specialoffe...=north_central

I don't really see anything that signifies if it is applicable to a lease or a buy, or both...??? Just that it's a "cash allowance" or and alternative APR offer that would only apply to a buy.

The only GM website that even really mentions leases on a regular basis, that I have found, is Cadillac... and even then the offers they show tend to be a lot higher than those I see in the local news paper.

 

ahhh! i know what they are doing...

all the vehicles prior to invoicing of January 11th stilll have the old sticker price, they also have cash back to dealerships... for example, a crew cab truck say the vehicle had 2500 profit, well there is also a nice 2100$ profit that the dealership will receive should the vehicle be sold prior to march 31st... that doesnt count hold back or anything else...

GM is just going to be forcing these extra amounts to be applied toward the sticker... i dont really care myself...

but i hope what every they do it generates large amounts of traffic and generates extra business... thats the bottom line...

but GM has learned that they cant cut their throat next year with todays incentives...

they cant focus on price but value... to demonstrate to the people that if they buy a chevy, no matter when they buy it they will always receive the great value that has made the brand americas number 1 choice!

 

i think leasing is way better for the manufacture then the consumer purchasing... the car must be returned in 3-5 years for a new one... generally... makes for a higher turn over on cars, while consumers can afford higher priced vehicles