Why doesn't GM just do away with all incentives? I'm always hearing about someone who went into to buy a car, but got all these incentives...red tag sale, various rebates, cash back, GM card, family discounts, etc...and them getting thousands off of the MSRP, sometimes well beyound 5k back.
Why can't GM just get rid of ALL that stuff.
I guarantee that would sell their cars.

 

They're trying to do that. Towards the end of last year GM lowered the MSRP's on cars and trucks (named Value Pricing) and started easing out of rebates. IIRC the only vehicles with big rebates now are the GMT800 trucks, everything else is near, or under, $1000.

 

GM Card is totally different. It's based on the points you earn by spending on the credit card. Like frequent flyer miles, or any other rewards card. It a totally different animal.

As for the other stuff... I'm holding out for some good lease incentives on probably either an Impala SS or a CTS over the next 5 months or so.

I have time... I can wait...


So... in my case..... the lack of incentives is directly affecting my move by having me NOT buying/leasing.

 

Yes, because you KNOW that GM will do it again. How do you know? Because GM did a press release before that they were gonna quit doing them...and they started right back up.

How much did the MSRP get knocked down? Because some of what I'm hearing from people are pretty crazy. Like 10k off of a 35k vehicle or 7k off a 30k.

Personally, I will never buy from GM unless I'm friends with someone that works for the dealer, that is selling it to me. There are too many ways for me to get screwed out of a good price, and because, like you hinted at, I won't know if they will release incentives the next month...However, my mom does work for Toyota...the Corolla's i've leased have worked just fine, the dealer has been excellent, and I know I won't get screwed out of a couple grand.

 

Pretty much right on the money.

Here's the thing with this... yes, the MSRP's are lower... in some cases a lot lower. The problem is... the transaction prices did NOT lower.

So..... the rebates used to lower the actual transaction price... while the lower sticker prices are just that... lower sticker prices.

I agree it takes away a lot of the scary sticker shock that was probably turning away customers... but the deals are not near as good.

So.... "I'll bide my time" as C. Montgomery Burns would say.

 

Since I've heard about the whole agenda to eliminate rebates and stick with more realistic MSRPs I have to say I just haven't seen much progress
There's still a ton of rebates/offers out there.
http://www.gm.com/automotive/vehicle...sumer_IOU.html

 

I watch GM's rebates almost daily... and have for a few years now. (I know, sad... but I'm in front of the computer all day at work)

Anyway, trust me they are MUCH lower. $500-$1000 are basically available from any manufacturer.

The GMT-800 rebates are still high, because they want to clear them out (SUV's) and keep them mving until the 900's come (trucks)

For example... Impala had rebates as high as $3000 and I think $4000. It now has $500.

 

I see what you mean...So do dealers have to accept rebates when a customer brings it up?
To me the way GM has rebates is like a shell shuffle game. You just can't pick up a car for $XX,XXX....If they did that, it'd be a ton easier. I'd also be more likely to buy from them because I know exactly the amount I need to save up to. But they never will, because if they did, they wouldn't need a middle man (dealers) to con the average Joe out of a few extra grand.

 

Well, the main difference is this:

Scenario A. Rebates with higher MSRP: MSRP for the vehicle is $35,000. You negotiate it down to $31,000. Then take an additional $3500 off for the rebate for a transaction price of $27,500.

Scenario B. Lowered MSRP, no rebate: MSRP for that same vehcile is now $32,500. You negotiate down, but you still only negotiate down to the same amount... $31,000. Now there are no rebates, or say a small $500 rebate even, and your transaction price is $30,500....

That's a big difference.

Yes, the same vehicle appears cheaper with the MSRP dropped by $2500... but you end up paying in the end.

 

But the dealer has to take the rebates right?

 

In most cases, yes, because the rebates are "Factory to Customer" rebates.

I some cases, the rebates are "Factory to Dealer" rebates, so they don't HAVE to share (if I understand this right), but they usually do if you know about it.

 

They didnt seem THAT extreme to me.

Anyone with good credit would hopefully opt for the low APR over the rebate...

I know I certainly would.

 

I didn't expect to see Mr Burns when I entered this forum today.

 

Anyone here know if those rebates, like the 3500 off the GMT-800 Silverado ext cab, for example, can be applied to leases as well?

 

Generally not.

This is the frustrating part with GM's rebate programs, because I almost always lease daily drivers.

It's almost impossible to find good/current information on lease rebates and incentives for GM.

Scott has said a few times on this board that the information is put right on the corporate and/or divisioonal websites, but I can't find it anywhere. Very frustrating.