How does the GM Supplier Discount work?

[dgraves]

here's a screen shot of what the window sticker looks like online. you can see the supplier price on this Silverado.

[ClevelandPlasma]

Usually it is about 9%-12%.........

I was thinking last night that I would not buy untill the weather broke in '08. No sence in buying a car to store in a garage :(

[Kimosen]

Originally Posted by Moose

One VERY important thing...DO NOT let the salesperson know you have that at the time you are negotiating. Wait until you get the best possible deal, and then let them know you have this discount.

It may not apply to all models either, re; Corvette, new Camaro...not sure.

I'm a sales consultant at a Chevrolet dealership, and I can tell you that this is actually largely pointless, and won't get you a better discount.

The GM supplier discount is a pre-negotiated price that's listed on the invoice of every car. The dealer is contractually obligated to sell the car at that price, and cannot change it one cent. If we sell the car for more, and we get audited by GM (which we do), we have to send out refund checks to our customers.

All this is basically the roundabout way of saying that the supplier discount is fixed, and listed on the invoice.

[ClevelandPlasma]

^^^^ That is what I was told by many dealers, however that is why I look for the best price for the trade !!

[Kimosen]

Originally Posted by ClevelandPlasma

^^^^ That is what I was told by many dealers, however that is why I look for the best price for the trade !!

This is definitely the way to go. If we are working supplier, it annoys us if there isn't a trade-in, because there's nothing we can do to change it. On that front, definitely make sure you're getting a good deal.

On a side note, don't tell a dealer what another dealer is giving you for your trade, it never helps. One, we figure you're lying, which you may or may not be doing, two, it cuts your knees out from under you if we were going to give you MORE than that. Now we'll only beat it by $250 or so.

[DILLIGAF]

as far as i know there are two different discounts, GM supplier, and GM Employee. unless im talking out my rear, and im just thinking of a deal that my company had worked out with local dealers which was less of a discount than i would get for using my grandfathers employee discount.

[deluke]

Originally Posted by Kimosen

I'm a sales consultant at a Chevrolet dealership, and I can tell you that this is actually largely pointless, and won't get you a better discount.

The GM supplier discount is a pre-negotiated price that's listed on the invoice of every car. The dealer is contractually obligated to sell the car at that price, and cannot change it one cent. If we sell the car for more, and we get audited by GM (which we do), we have to send out refund checks to our customers.

All this is basically the roundabout way of saying that the supplier discount is fixed, and listed on the invoice.

I agree it is figured out by GM. Also the Dealerships don't have to take the discount on a hot car. I didn't get my employee friend and Family on my 2007 Solstice GXP.

[Kept-a-rollin]

Originally Posted by Kimosen

I'm a sales consultant at a Chevrolet dealership, and I can tell you that this is actually largely pointless, and won't get you a better discount.

The GM supplier discount is a pre-negotiated price that's listed on the invoice of every car. The dealer is contractually obligated to sell the car at that price, and cannot change it one cent. If we sell the car for more, and we get audited by GM (which we do), we have to send out refund checks to our customers.

All this is basically the roundabout way of saying that the supplier discount is fixed, and listed on the invoice.

This info ... "The dealer is contractually obligated to sell the car at that price, and cannot change it one cent. If we sell the car for more, and we get audited by GM (which we do), we have to send out refund checks to our customers." ... is not consistent with what I've been told. I've been told dealers are not obligated to honor supplier pricing and most will not on a hot car like the Camaro. The 2LT RS I'm pricing for order is MSRP: $31,205; Supplier price: $30,099. This is $1,106 under MSRP but still $527 over invoice. I've spoken with 3 dealers and I don't think any of them will honor this price. Is there a difference in the dealer obligation to honor supplier pricing when it is a car on the lot vs. when you are placing an order? And does the dealer eat the entire $1,106 discount or does GM kick back on this somehow? Thanks for your help.

[jrboyd_1980]

Originally Posted by Moose

My brother receives this on several makes of vehicles, including 'The Big Three'. (lucky ba@tard)

I've only gone with him once a few years back when he was ordering a vehicle. One VERY important thing...DO NOT let the salesperson know you have that at the time you are negotiating. Wait until you get the best possible deal, and then let them know you have this discount.

In my brothers case, I believe they issue him a certificate which he presents at the dealership.

It may not apply to all models either, re; Corvette, new Camaro...not sure.

Just saw this post and know its a little late. It doesn't matter how good of a deal you negotiate, the Supplier Discount will be lower. Dealerships don't have the room to give you the Supplier Discount and much more dealer discounts. Dealers only get 3% of invoice back for GSU (supplier discounts) which you are talking like 1000 dollars

[linton23]

Originally Posted by Kept-a-rollin

This info ... "The dealer is contractually obligated to sell the car at that price, and cannot change it one cent. If we sell the car for more, and we get audited by GM (which we do), we have to send out refund checks to our customers." ... is not consistent with what I've been told. I've been told dealers are not obligated to honor supplier pricing and most will not on a hot car like the Camaro. The 2LT RS I'm pricing for order is MSRP: $31,205; Supplier price: $30,099. This is $1,106 under MSRP but still $527 over invoice. I've spoken with 3 dealers and I don't think any of them will honor this price. Is there a difference in the dealer obligation to honor supplier pricing when it is a car on the lot vs. when you are placing an order? And does the dealer eat the entire $1,106 discount or does GM kick back on this somehow? Thanks for your help.

On a Supplier deal we do not have to take it its our car and its our choice if we would like to accept the deal. My dealer has always been willing to do it except on High demand cars and trucks. I just sold our 2SS camaro at supplier because it was on the lot for 2 weeks. GM does compensate us 2% for doing supplier deals so in many cases for us its better than an normal deal. If you want to do supplier tell the dealer up front or after its up to you but understand this once you tell the dealer suppler there is not much room to haggle. With many dealers in IMR programs for advertising now we are seeing many invoices that have an invoice price higher than supplier price this would be another reason why some will trun it down. One of the funniest things we have happen in our dealership is when someone comes in to haggle a price we get done and then they say oh by the way I have a supplier discount how much more do you take off? I get to say oh well the supplier price is $XXX over the deal we made I would be happy to raise the price if you like. If anyone comes to our store that gets supplier I pull the invoice I show the customer and we figure the tax tag and rebates up do the deal that easy. Do not expect retail for your trade in because we have do that price on the deal we can not do better than ACV ( actual cash value) on your trade many customers get upset at this. The customers that do supplier all the time know this and are not to upset. The ones that come in and go to one store get sticker price lees trade then come here remember the supplier discount then see $2000 or so difference in what they are shown for the trade and go balistic.

[CamaroScotty]

<~~~~Never was a game playing dealer. We said back in July 2008 we would honor ALL DISCOUNTS....not just now when the cars are becoming a little more available. High demand or not, you've EARNED IT. I've even HELPED people get the credit union discount to save them money. Part of being a Camaro Enthusiast instead of just being another salesman. I can't wait until Camaro-tober!

[pglover19]

Originally Posted by CamaroScotty

<~~~~Never was a game playing dealer. We said back in July 2008 we would honor ALL DISCOUNTS....not just now when the cars are becoming a little more available. High demand or not, you've EARNED IT. I've even HELPED people get the credit union discount to save them money. Part of being a Camaro Enthusiast instead of just being another salesman. I can't wait until Camaro-tober!

Is the $250 credit union discount still available for the month of September?

[linton23]

Originally Posted by pglover19

Is the $250 credit union discount still available for the month of September?

No they droped that when the supplier price for everyone porgram ended they had to give customers a reson to use the credit union program insted of just the supplier program.

[skuttduck]

Originally Posted by Kahlis

Alright,.. so who has a company code?

Do you really want a company code? Easy enough, as I work for Michigan State University and they have it posted on a public website.

http://hr.msu.edu/recognition/perks.htm