[Diggs]

I am in deep negotiations with a couple of dealers to trade our '04 Ultra Violet for an '05 6 speed Aqua Blur. The trade in price of ours is the sticking point.

I was talking with a General Manager and he said that dealers do not get holdback when they do a GMS sale. I wanted to call BS but was not sure if he was telling me the truth or not. He said the dealer buys the truck just like normal and then GM reimburses the difference from the GMS price to the invoice price. He was saying they make nothing on the sale so he needed to make it up on our trade in.

I am leaning away from that dealer because I have dealt with a few others and no one ever gave me that line.

Hopefully someone can clear this up once and for all.

Diggs

 

[Bill Scott]

Gms

If you're talking about the GM supplier discount program I think it's a pretty straight foreward deal, something like 2% over dealer invoice. The dealer still gets his prep fee and probably a volume rebate at the end of the year. Your best bet is to find out what the invoice is and decide what you are comfortable with. You're right they will try to clip you on your trade if they can, as on a true GMS deal they don't make as much as they would like.Not that they wouldn't like to steal your trade otherwise.

GOOD LUCK

 

[Brownhornet]

I am in deep negotiations with a couple of dealers to trade our '04 Ultra Violet for an '05 6 speed Aqua Blur. The trade in price of ours is the sticking point.

I was talking with a General Manager and he said that dealers do not get holdback when they do a GMS sale. I wanted to call BS but was not sure if he was telling me the truth or not. He said the dealer buys the truck just like normal and then GM reimburses the difference from the GMS price to the invoice price. He was saying they make nothing on the sale so he needed to make it up on our trade in.

I am leaning away from that dealer because I have dealt with a few others and no one ever gave me that line.

Hopefully someone can clear this up once and for all.

Diggs

Please don't say it is so. You are not getting reed of E-Ore. Now piglet will have no one to play with.

Good Luck. I have wanted to trade my 03 for a 05 but with the bad trade in value. I have decided to keep it.

Let me know what dealer you went to. Maybe they might convince me to trade up also.

 

[Toy Truck]

Gms

A couple years ago the dealer got a check from GM for 5% of the sticker (MSRP) when he delivered a GMS or GMO vehicle. Make certain that you find out if there are any rebates available because you are entitled to those too. GM's been trimming a lot of programs back but I'm not aware of any changes to this one.

 

[Marc NY]

GMS Vs Supplier Vs Invoice

... I was talking with a General Manager and he said that dealers do not get holdback when they do a GMS sale. I wanted to call BS but was not sure if he was telling me the truth or not. He said the dealer buys the truck just like normal and then GM reimburses the difference from the GMS price to the invoice price. He was saying they make nothing on the sale so he needed to make it up on our trade in.
I am leaning away from that dealer because I have dealt with a few others and no one ever gave me that line. Hopefully someone can clear this up once and for all. Diggs

HI Diggs,
Your dealer was correct when he said he doesn't get a "hold-back" when he sells a vehicle at GMS, however that is where it ends. The dealer makes 5% off of MSRP and not the difference from GMS price to the invoice price. He said they make nothing on the sale... if that is the case perhaps he is willing to give back to the buyer all of his 5% GMS profit?

So here is the scoop:

• GMS (GM Employee Price) Dealer gets 5% of the MSRP.
• Supplier Discount = 4% over GMS pricing.
• If dealer sells the vehicle just for "Invoice" only or over invoice- then yes, there is a Hold Back involved.

... You're right they will try to clip you on your trade if they can... GOOD LUCK

Dealers have to factor in any extra costs or lost of revenue on their trade-ins. You have to remember that the dealer will most likely be stuck with your vehicle for awhile. There are costs involved with selling a used vehicle like prep and any touch-ups/ repairs have to be factored in. Then there is over head, interest on his money tied up and of course a sales commission too. Out of all that he has try to guess what the market will be when he sells your vehicle and then try to make a profit to boot. It is a matter of how much "risk" he is willing to take on too.

 

[Guest]

well put.

 

[Diggs]

Well...

Please don't say it is so. You are not getting reed of E-Ore. Now piglet will have no one to play with.

Good Luck. I have wanted to trade my 03 for a 05 but with the bad trade in value. I have decided to keep it.

Let me know what dealer you went to. Maybe they might convince me to trade up also.

We're planning to get rid of a purple Eeyore and replace it with an Aqua Blur Eeyore.

I'll let you know about dealers after we close the deal.

Diggs

 

[Diggs]

Thanks a bunch

HI Diggs,
Your dealer was correct when he said he doesn't get a "hold-back" when he sells a vehicle at GMS, however that is where it ends. The dealer makes 5% off of MSRP and not the difference from GMS price to the invoice price. He said they make nothing on the sale... if that is the case perhaps he is willing to give back to the buyer all of his 5% GMS profit?

So here is the scoop:

• GMS (GM Employee Price) Dealer gets 5% of the MSRP.
• Supplier Discount = 4% over GMS pricing.
• If dealer sells the vehicle just for "Invoice" only or over invoice- then yes, there is a Hold Back involved.

Dealers have to factor in any extra costs or lost of revenue on their trade-ins. You have to remember that the dealer will most likely be stuck with your vehicle for awhile. There are costs involved with selling a used vehicle like prep and any touch-ups/ repairs have to be factored in. Then there is over head, interest on his money tied up and of course a sales commission too. Out of all that he has try to guess what the market will be when he sells your vehicle and then try to make a profit to boot. It is a matter of how much "risk" he is willing to take on too.

Thanks so much Marc. That is exactly what I was looking for. If we go with the truck I am leaning to now, I'll be sure to take it by to show Mr. General Manager and remind him that lying to potential customers is not a good thing.

Diggs

 

[kgoodwin]

Another problem you have is that the '04's are not selling. Dealers in Houston are advertising $9K discounts.