: Price increase?????



Stoney4
03-29-09, 12:23 PM
I currently have a crystal red/ light titanium CTS-V (order NHBCNZ) sitting on the dock ready to ship. This car has all options except sueded trim. My dealer just gave me the invoice and it shows a large increase to invoice price. The MSRP is $70,190. This is an increase of $255 since last month. The invoice price (minus advertising) is $65,101. This is an increase of $1,562 since last month. All options seem to have gone up $50-170 and the the invoice shows a gas guzzler tax of $2,600! All of these prices are based on Edmunds pricing 2/24/2009.

Scott, Tony, anyone else notice this increase and what caused it to go up so much? It's a bummer to have this increase so soon to receiving my car.

:crying:

OldDrummer55
03-29-09, 02:36 PM
My dealer told me I was protected against any and all price increases once I made my deposit/placed my order.

The latest order documentation relfects the following factory to dealer wholesale invoice price increases for a V2 with my options: 09 CTS-V - $1421.55; Recaros - $170; Sunroof - $45;

I've noticed different prices on various documents they've sent me, and when I questioned it they told me "not to worry about it, as it's just "GM" documentation." I don't know what that means, but I told them our agreed price at time of order was $60,749.50 + tax off the lot and I wouldn't pay anything higher.

poor-sha
03-29-09, 03:16 PM
I have an agreement at GMS with my dealer but I am going to be really cheesed off if I have to pay an additional $1500 because it took so darn long to build the car.

OldDrummer55
03-29-09, 03:57 PM
I have an agreement at GMS with my dealer but I am going to be really cheesed off if I have to pay an additional $1500 because it took so darn long to build the car.

Did you agree to the set GMS price at time of order, or GMS price at time of delivery?

Krug Ford
03-29-09, 09:26 PM
If it was tagged as a SRE and had your name on it you have price protection. What dealer did you order it from? Ask to talk to the GM if the sales guy don't help you.

poor-sha
03-30-09, 07:32 AM
If it was tagged as a SRE and had your name on it you have price protection. What dealer did you order it from? Ask to talk to the GM if the sales guy don't help you.

Thanks Scott. I've seen the order sheet and it was ordered as already sold and had my name on it. The car has been shipped but there still is no price in the system for it so that's what's making me nervous.

I bought from a local dealer and so far they've been good to deal with. I wanted to try to support the local guy but I really appreciate all you do to help this forum (can you tell I fell bad :) ).

Krug Ford
03-30-09, 09:47 AM
All they have to to is submit for credit..
It will be ok..

vperl
03-30-09, 04:36 PM
Did you agree to the set GMS price at time of order, or GMS price at time of delivery?

((((((((((((((((((((((((((((((((((((((((((((((

Olde, with nothing but lint in my pocket, you have to tell me about
an increase, just tap your bud, Ms. speaker on the shoulder and asker for a senate discount. Or your gunna drop her off early.

BTW, when is you bird arriving to pick me up Wednesday ?

IRONDOG
03-30-09, 04:42 PM
Tony or Scott, was there a price increase or not? If so, how much. Please advise forum members. Thanks.

Krug Ford
03-30-09, 04:49 PM
There was one a little bit ago not lately.

Cadillac Tony
03-30-09, 05:08 PM
Effective March 25th, DFC (destination freight charge) increased from $775 to $825. There have been no other price changes to options on the CTS-V between now and the last price schedule, which was released February 18th.

Stoney4
03-30-09, 05:36 PM
Tony,

On 2/22/09 Both Edmunds and GM had the base invoice at $53,326. Today it is $54,475. That is more than a small increase! The base MSRP only went up $255. All options went up between $40-$170. Why did GM increase invoice much more than MSRP? This is a big deal to those of us who agreed to purchase the car based on invoice!

Paul

Cadillac Tony
03-30-09, 05:41 PM
The official price schedule from GM has been showing $54,475 since February 18th. Sounds like another case of Edmunds giving customers false expectations and creating problems for Dealers by taking forever to update their information.

Krug Ford
03-30-09, 05:42 PM
Effective March 25th, DFC (destination freight charge) increased from $775 to $825. There have been no other price changes to options on the CTS-V between now and the last price schedule, which was released February 18th.
I didn't see the freight change on my cars yet because my were invoiced prior.

Stoney4
03-30-09, 07:19 PM
Tony,

Edmunds may be a few days late, but it is usually right on the money. I guess it's a dealers worst nightmare in the hands of someone who knows about the car business. Go back and look at the invoice prices of cars you sold in Dec. and Jan. and compare them to the prices today. The invoice prices have increased 4.5 times more than the MSRP has increased. All I know is the invoice of my car went up $1562 since early Feb, while MSRP only went up $255. Can anyone explain why the large difference?

Cadillac Tony
03-31-09, 10:19 AM
I don't mind Edmunds at all, since a lot of customers think our invoice is a lot lower than it really is. The problem I have is when Edmunds keeps the old invoice price from December up on their site until March, and causes problems like the one you're having. You expected to get the car at last year's invoice, even though Cadillac has been cutting our profit margins by raising invoice while keeping MSRP relatively low.

It's common practice. Manufacturers give us more markup right out of the gate to reward Dealers who presell new models (allowing us to make a bit more profit) and encourage us to order them, but then creep the invoice up and up over the next few months. I've warned here before for the people on the fence to get the cars now, because the V6 CTS has gone up over $5,000 since it was introduced a year ago. The same thing is happening to the V now.

If your Dealer placed the order before the price increase on February 18th as SRE (sold unit) with your name on it, you pay the old price and your Dealer can submit for reimbursement. If they didn't put your name on the order or tagged the order as a "stock unit", you get stuck paying the new price.

Stoney4
03-31-09, 10:32 AM
Tony,

Thanks for the explanation! Finally some sense to this increase. Mine was a sold order, but placed on 2/24/2009. I guess it sucks for dealers also since it cuts into your profit margin.

wahala
03-31-09, 12:04 PM
I ordered mine in early January, and it is now on the truck. The invoice from the dealer is the same as I agreed to in January, no surprises.

OldDrummer55
04-01-09, 11:49 PM
If your Dealer placed the order before the price increase on February 18th as SRE (sold unit) with your name on it, you pay the old price and your Dealer can submit for reimbursement. If they didn't put your name on the order or tagged the order as a "stock unit", you get stuck paying the new price.

Tony, how many price increases have occurred since production began last year? Two or three? I recall one in Dec 20 something 08, and then another one effective Mar 25th, 09. I wasn't aware of a Feb 18th increase.

On another note, if a customer agrees to purchase/order a vehicle for "price X," shouldn't the dealership hold to that agreement even if GM posts a price increase prior to delivery? Thanks.

Cadillac Tony
04-02-09, 05:35 PM
Prices have increased twice since start of production- once on December 22nd, and once on February 18th. As usual, Dealers are getting it the worst. MSRP has only gone up $655, but invoice has increased $1,500. Also, MSRP for options has been unchanged since inception, but Dealer invoice on options has increased. We now make less on a sale at any price over invoice, plus have less room to discount for our customers. :annoyed:

Concerning a Dealer's reaction to a price increase, it very rarely comes into play. 99% of sales are "in stock" units, so we start negotiating with the invoice we have in hand. In the event of an ordered car, you're price protected once the order is placed. The only time a Dealer would have to eat the price increase is if they neglected to mark your vehicle SOLD when they ordered it and attach your name to the order.

OldDrummer55
04-02-09, 06:40 PM
Prices have increased twice since start of production- once on December 22nd, and once on February 18th. As usual, Dealers are getting it the worst. MSRP has only gone up $655, but invoice has increased $1,500. Also, MSRP for options has been unchanged since inception, but Dealer invoice on options has increased. We now make less on a sale at any price over invoice, plus have less room to discount for our customers. :annoyed:

Concerning a Dealer's reaction to a price increase, it very rarely comes into play. 99% of sales are "in stock" units, so we start negotiating with the invoice we have in hand. In the event of an ordered car, you're price protected once the order is placed. The only time a Dealer would have to eat the price increase is if they neglected to mark your vehicle SOLD when they ordered it and attach your name to the order.

Thank you for taking the time to explain this to us. How does GM expect you guys to stay in business if they keep chipping away at your profit margin? :hmm:

Cadillac Tony
04-02-09, 07:15 PM
Meh, it's been happening for years. I'm so used to it that it almost doesn't annoy me anymore.