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My Dealer Says (10/10/08) GM is limiting pricing to no less than MSRP

Was at my Chevy Dealer again last night working the sales manager to hopefully work with me on pricing when ordering opens up.
He said once he gets his allotment he would be better able to deal with me. I just got off the phone with him and he says his allotment for the 1st model run year is 21.
HE further says MSRP is the lowest they would go, and it was not up to them, it was a decision by GM.
I thought I’d throw this out to you all for comment. I can understand if he’s only getting in 21 for the whole year, why they might not discount (they have an arrangement with COSTO for special member pricing BTW) , but I was surprised to hear them say this was a decision by GM? Does GM have such control over the dealers?

I’d been popping my head in routinely building a relationship, and they claim to be the largest in the Washington DC region, with the largest corvette sales for an even larger area.
Should I go in and plop down a deposit? Is this the best I might hope for?

I don't know .. I didn't think it worked that way though. I mean they have a cost to buy the car from GM and can sell if for whatever they want? I don't see where it would matter to GM how low a dealership would go? ..

What do I know though .. I could be way off here ..

Crowley

Quote:

Originally Posted by Crowley (Post 152236)

hey Crowley, I know this is off topic so i apologize in advance, but you have the same 135i that I do! color and everything...lol Ok well sorry for thet..

Carry on....:thumbup:

Get ready - there are those who SAY MSRP OR LESS.....and then there's those who are....Now the TRUE COLORS will start to come out!

With the funky pre-order system in place, some seem to be thinking the car is now rare and hard to get.

GM has no ability to tell the dealerships how to sell cars. All they can do is set the MSRP(Manufacturer SUGGESTED Retail Price). The dealer your so "in" with is lying to you.

A dealer can sell a car for $1.00, they will just be taking a large loss. The dealer could also sell the same car for $1,000,000.00. AND GM could do absolutly ZERO about it.

GM sells the cars to a dealer. The dealer in turn sells them to us.

Patrick; also off-topic but do you have any more info you could share on the Costco member pricing? Is it exclusive to that dealer or across the board?

Your dealer is practicing self preservation. As in, he's trying to blame GM when it really is just him being greedy.

Quote:

HE further says MSRP is the lowest they would go, and it was not up to them, it was a decision by GM.

"Would" being the operative word there. "Could" would imply that they was nothing they could do about about it. "Would" says it was their decision.

Federal franchise laws prevent auto manufacturers from controlling prices at the franchise dealer level. They can suggest a price but they can not dictate the final sales price. Most states have laws in place that also prevent manufacturers from selling direct to consumers and also prevents them from owning franchises directly.

your dealer is lying in to you, as simple as that.

Quote:

Originally Posted by SimC33 (Post 152239)

hey Crowley, I know this is off topic so i apologize in advance, but you have the same 135i that I do! color and everything...lol Ok well sorry for thet..

Carry on....:thumbup:

WOW, i test drove the 135i (blk w/ blk n red interior) loooved the car but a bit out of my price range brand new:cry:

now onto the Camaro:headbang:

Quote:

Originally Posted by SimC33 (Post 152239)

hey Crowley, I know this is off topic so i apologize in advance, but you have the same 135i that I do! color and everything...lol Ok well sorry for thet..

Carry on....:thumbup:

Cool .. do you post on 1addicts? ..

Ok .. back to topic . .. LOL

Quote:

Originally Posted by Crowley (Post 152393)

Cool .. do you post on 1addicts? ..

Ok .. back to topic . .. LOL

Yes sir...been on there for quite a while!

NOW....back to topic.... :laugh:

I have read elsewhere that franchise laws prevent GM from telling their dealers what they have to sell the car for...hence MSRP

Quote:

Originally Posted by playhard67 (Post 152403)

I have read elsewhere that franchise laws prevent GM from telling their dealers what they have to sell the car for...hence MSRP

M anufacturers S uggested R etail P rice

Your dealer is telling fibbs

http://web.camaross.com/forums/showp...17&postcount=6

Quote:

Originally Posted by Fbodfather (Post 4164917)

You are, for the most part, correct.

GM or any other manufacturer is strictly prohibited from telling a dealer what he/she can or cannot sell a car for... It's called anti-trust and the United States Government takes it very seriously. When a GM employee is hired as a 'field' contact, there is a stack of papers he/she must sign. (and I DO mean a stack!) One of them is called the "Discount House Decree" from wayyyyyyyyy back in the early 50s. We cannot -- under any circumstances, tell a dealer what they can charge for a car. Shortly after that decision, the Monroney law was passed that requires that all new vehicles have a window sticker that plainly spells out the MSRP of the vehicle. (thus the term 'monroney label')

Now.......fine, you say......just don't give the dealer any more cars! Wrong again. That is called "mal-distribution' -- and again, the manufacturer is strictly prohibited from "cutting a dealer off" -- so to speak. We must have a distribution system in place that allocates product and it must withstand court scrutiny...............for instance: You might go into a small Chevy dealer --- or Honda dealer, for that matter -- and give him/her a deposit on a hot selling model. (think Z06) The dealer gets product allocated to him based on sales history. Not TOTAL sales history, but history on that particular vehicle line. (in cases of a brand new nameplate, the allocation is usually a blend of one or more existing vehicle lines balanced with a market study) --I digress. In the case of Corvette, we provide dealers with a letter that tells them how many Corvettes they will receive in a given timeframe. If the dealer takes 15 sold orders -- and he/she is only going to get 5-- there are going to be 10 very upset customers....and here's the clincher----we can't tell you "well, he's only getting 5, but go to "Dealer B" 'cause he's getting 24!" -- 'cause that's against the law as well.

So you see, my friends........this isn't necessarily an easy business! Further, I can see that Dodge and Chevy are going to have problems meeting demand for the Challenger and Camaro -- and that in two years, we will, in some cases, be highly criticized on this very site -- 'cause someone isn't getting their Challenger or Camaro in a 'timely' manner.

(And NOW you know why I have such little hair left!)