GMS - Dealers Participating

[trm0002]

Originally Posted by City Chevrolet

This is not true and here is an example:

GMS: 31012.53
SUPPLR: 32401.34
MRM: 33915.00
MEMO 1508.25
GSU: 439.80

That is taken from an invoice on an Impala SS. GM Employee is $31,012 from a $33,915 MSRP and the dealer gets the Memo money back of $1,508.25.

The dealer would lose $1403 to sell it at Employee price less the advertising (Only if a true GM Employee)

To sell at Supplier price the dealer get MUCH less. It would be about the same as selling it at invoice price plus I believe like 1% of advertising.

Let us all keep in mind that without a dealer making some money there is no dealer to bring your car back to, no free oil changes, no loyalty discounts, and a good chance that with less dealers = less compition = more money out of consumers pocket and many more drawbacks. All for about $20 per month on a 60 month term. ( Yes I am devils advocate here as I am on the other side looking out )

Just throwing this out there for those concerned about the wellfare of those who have families and work at dealerships and all.

Other than that, shoot I sell 90% of my cars at invoice now as it is, I personally sometimes don't even know how dealerships can keep up right now.. oh, that's right, they are not!

Regardless of all of this, I am a consumer too and I am always for a good deal and hope everyone can get one with some ease, I just would not want that deal at the expense of someones job.

That's not quite fair. Just to be clear, they lose that much vs. selling to someone at MSRP. They don't lose (total deal loss) $1403 by selling the car.

[City Chevrolet]

Originally Posted by trm0002

That's not quite fair. Just to be clear, they lose that much vs. selling to someone at MSRP. They don't lose (total deal loss) $1403 by selling the car.

Yes, it was posted that selling at GMS or Supplier was as good as selling at MSRP to the dealer, that is in fact false and what I was posting to.

[Alaska Chony69]

I have never heard of MEMO money what is that... is it the same as hold back..

[live2well]

IMO dealers should give it to the ones who qualify for it. They earned it. In the grand scheme of things I believe that the folks who are entitled to it are a small percent of the actual total of car buyers out there. Therefore there should be no reason for dealers not to give it to their deserving customers. Dealers who deny the customers who qualify are basically cutting their own throats. This is the same customer who is going to tell everyone they know that the dealership wouldnt even honor the discount that they or their family member earned. So the dealer who doesnt honor the GMS/GMU is very short sighted because they will get the quick dollor but will lose the long term customer and referrals.

[trm0002]

Originally Posted by Alaska Chony69

I have never heard of MEMO money what is that... is it the same as hold back..

Hold back is NEVER listed anywhere. MEMO money apparently is a rebate given to the dealer by GM because of how low they have to (if they choose to at all) sell the car to an employee. JMO

[trm0002]

Originally Posted by live2well

IMO dealers should give it to the ones who qualify for it. They earned it. In the grand scheme of things I believe that the folks who are entitled to it are a small percent of the actual total of car buyers out there. Therefore there should be no reason for dealers not to give it to their deserving customers. Dealers who deny the customers who qualify are basically cutting their own throats. This is the same customer who is going to tell everyone they know that the dealership wouldnt even honor the discount that they or their family member earned. So the dealer who doesnt honor the GMS/GMU is very short sighted because they will get the quick dollor but will lose the long term customer and referrals.

IMO everyone here who says dealers should honor it are full of it because you all know damn well you wouldn't (initially on this vehicle) if it was your dealership. I wouldn't. Call me a prick if you want. It would be like sitting in the bed of your pickup and throwing money out over the tailgate. Later in the model year, sure.

[Alaska Chony69]

so a dealer that sells at Employee pricing would get both the MEMO and hold back (3% of MSRP for GM according to Edmunds). So you are looking at somewhere around $2500 profit on a 2SS/RS.... How bad is that

[trm0002]

Originally Posted by Alaska Chony69

so a dealer that sells at Employee pricing would get both the MEMO and hold back (3% of MSRP for GM according to Edmunds). So you are looking at somewhere around $2500 profit on a 2SS/RS.... How bad is that

I can't believe I'm backing the dealers on this...just this initial launch

But anyways, even I never consider holdback when bargaining because that is the money that is used for things like mortgage/rent, lighting, heat, a/c, interest on floorplan (car stock)... operating expenses.

Take that out of the equation and what do you have left? $1400? Now pay commission to the salesman. Pay the office staff. Pay to fill the car with gas before delivery. Pay to prep the car...

The only way to make up discounts is on major volume and that just isn't obviously happening right now.

[City Chevrolet]

Originally Posted by trm0002

Hold back is NEVER listed anywhere. MEMO money apparently is a rebate given to the dealer by GM because of how low they have to (if they choose to at all) sell the car to an employee. JMO

Two things wrong in the last few posts. Yes, H/B is listed on the invoice.


Second is the dealer DOES NOT get both holdback and memo, just memo and advertising as I stated. I do not believe I missed anything there.


I do applaud you few who understand that profit is not a dirty word and understand that someone spent 'Millions' on a dealership and did not do it to give away as many cars as possible to those who want invoice or below..

[Alaska Chony69]

Profit is not a dirty word, but also remember most for most dealers sales are not there only income.. My dealer up here charges $100 shop rate for maintenance... Just how much do you think they are paying there mechanics..

Plus we are not talking about giving this to all buyers. Just the ones that qualify... Plus i would venture to guess that there is less time spend on a GMS purchase that someone negotiating from MSRP.

Like I said earlier, I have bought 10 -15 vehicles with GMS pricing and the saleman and management i have dealt with have been fantastic, even though the profit was not there.

One last point.... someone sells me this Camaro at GMS and they will have my business and anyone else i can convince business for years to come... That equates to more sales and more money in the long run.

[trm0002]

Originally Posted by City Chevrolet

Two things wrong in the last few posts. Yes, H/B is listed on the invoice.


Second is the dealer DOES NOT get both holdback and memo, just memo and advertising as I stated. I do not believe I missed anything there.


I do applaud you few who understand that profit is not a dirty word and understand that someone spent 'Millions' on a dealership and did not do it to give away as many cars as possible to those who want invoice or below..

I've never seen it (maybe I'm not supposed to?). In any case, people should know, if I'm correct, that your holdback decreases each month since it's used for floorplan. If you sell a car that just rolled in off a truck, then yes, in this case it's theoretically the full 3%. After 30 days, it's 2%, etc...

[live2well]

Originally Posted by trm0002

IMO everyone here who says dealers should honor it are full of it because you all know damn well you wouldn't (initially on this vehicle) if it was your dealership. I wouldn't. Call me a prick if you want. It would be like sitting in the bed of your pickup and throwing money out over the tailgate. Later in the model year, sure.

No disrespect intended but, if I were a dealer I would honor what ever discount the customer was entitled to. Why? Because that is the honest/right thing to do. Also word of mouth works wonders for business. The customer who gets what he is supposed to get will speak highly of my dealership to others therefore I will have more customers. The one who doesnt will find out later that he didnt get what he was supposed to get and then not only tell others about how I cheated him but wont come back to my shop to have repairs and up keep done on his vehicle because he will think I am gonna cheat him there too.

I think a lot of dealers dont think long term but are trying to get a quick buck. That is not how to run a successful, long standing business. That is not an opinion but fact.

[trm0002]

Originally Posted by live2well

No disrespect intended but, if I were a dealer I would honor what ever discount the customer was entitled to. Why? Because that is the honest/right thing to do. Also word of mouth works wonders for business. The customer who gets what he is supposed to get will speak highly of my dealership to others therefore I will have more customers. The one who doesnt will find out later that he didnt get what he was supposed to get and then not only tell others about how I cheated him but wont come back to my shop to have repairs and up keep done on his vehicle because he will think I am gonna cheat him there too.

I think a lot of dealers dont think long term but are trying to get a quick buck. That is not how to run a successful, long standing business. That is not an opinion but fact.

No disrespect taken (I'm not a dealer so I guess I don't care either way ) but in any case, what's wrong with the dealer making his money while he can? The opportunities in today's market place are few and far between. I agree with you that the dealers should honor GMS/GSU; just not initially.

[LS 1st gen]

This issue shouldn't be as controversial as we're making it. If a dealership wants to honor GM discounts then that's their business. Nobody is going to force them to, just like no one is going force a customer to find the best possible deal. I know I'll be searching for the best deal I can get. A dealership that can make a fair deal will earn my businesss.