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Discussion Starter #10
what gets me is if the car companies are doing so bad, why is it still business as usual? Notice NONE of the cars have gone on a real sale. Sure 3k here and there and financing deals on selet models. But have the auto makers really slashed prices to move all the back stock. NOPE. GM and dodge would rather eat them then sell them at a steep discount.
 

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GM is still selling plenty of cars and trucks- the problem is profit. Heck- everyone made a big deal about Toyota squeezing out GM for the #1 spot last year, but look at the YTD sales by manufacturer for this year. GM has outsold Toyota so far this year by 50,000 vehicles- not bad considering everything going on in the economy (and of course, the media doesn't report that :bigroll:).

When they were selling two million units a year it was easy to overcome the legacy costs and bad investments, but now that sales have dropped off their profits just aren't big enough. Piling on incentive costs on top of their current expenses would only make the situation worse. Also, incentives really only exist to move excess inventory. Once the restructuring is done and GM's vehicle production is scaled back to a level that more closely mirrors the public demand for cars, expect to see the big incentives dry up.
 

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Discussion Starter #12
it's usually $$ off and a high interest rate OR low interest rate (a score of 780 to qualify) and no $ discounts. Either way they get the same money in the end. How about $10k off AND 0.0% (600 to qualify). They would move just about every unit. I would actually trade my Denali in for an Escallade
 

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Discussion Starter #13
not beating u up Tony. It's a GM thing. Big thing they need to worry about is backlash. I love my GMs but don't and won't trade them or buy new. I am in the majority that says " I don't need to" and if big $$ cuts don't exist I probably will hang on to what I have that much longer. Every other retail chain has had to cut prices to the bone to survive except the ones getting bailed out. They are still prices as usual.
 

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It's cool man- I enjoy chatting with someone on here a lot more after I've actually spoken to them on the phone, so I don't take any offense at all. :thumbsup: Don't get me wrong either- I'd love for them to offer both so I could grab an 09 V cheap, but I don't see how it's possible. Losing money to artificially inflate their sales is part of what got them in their current position to begin with.

When a manufacturer gives you 0%, they're just paying the rate for you. Someone, somewhere, is making the rate- it's just not being paid by you.

Using the current YTD sales figures of 170,000 GM vehicles, let's assume that they gave an average of $2,500 in rebates to each buyer (probably more in reality, but let's assume). That's $425 million in expenses. Now figure that the average cost of interest on a 60 month loan is $4,500 (again- being conservative here). Multiply that by 170,000 units and you've got $765 million. Add the two together, and GM would spend approximately $1.2 BILLION dollars in a 4 month period (that's $3.6 billion per year) just in incentives. I don't know how much they make per car, but without calculating any other costs such as employee salaries, advertising, etc, they'd need to be making $7,000 profit per car just to break even with those incentives.

I don't see it happening.
 

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Discussion Starter #15
neither do I. I understand maximizing profit on hot sellers V's, Z06 etc. But for the acres of G5's and Vibes sitting in fields you would think they would do what they could to JUST recoup manufacturing cost to break even on the unit. GM not make a dime and let the dealer make 500. The savings to a buyer would incredible.
 
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