Dealer cost for HD?

p-wizzy · June 10, 2003

Does anybody know the approximate dealer cost for a 2003 2500HD D/A Crew Cab 4X4 Short bed LT? Or how you can figure it?

org · June 10, 2003

Go to WWW.kellybluebook.com and check it out. You can build it and get MSRP and dealer invoice and other info. I've used them for reference for several new vehicles and found their information to be accurate almost to the dollar.

Charlie in TX · June 10, 2003

The dealer cost is 3 to 4 % of MSRP less than the 'invoice' quoted in kbb.

martyb · June 10, 2003

I have a GMC on the lot, SLT package CC/SB 4x4, really loaded up. The MSRP is $46235 Invoice is $41074. That is an example, you can divide the invoice by the MSRP to get a percentage (in this case .8883746) but you can get mighty close using 11% in most cases.

c5hd · June 10, 2003

2003 2500HD D/A Crew Cab 4X4 Short bed LT

That is exactly what I just got. MSRP was $47500, dealer told me invoice was $42,500. That sounds just like what martyb stated.

The only option I don't have is the DVD entertainment console.

New Truck

Huntaholic · June 11, 2003

Dealer wont normally negotiate on it, but I believe there is also a $850 "dealer holdback" on these trucks right now.

p-wizzy · June 11, 2003

Thanks for the info guys.

awdvkd · June 11, 2003

If you take full listed, subtract the destination and shipping then subtract 18%. That will give you dealer cost. Then you have to add the destination and shipping back in. That is GM cost. There is also 4% hold back, but stealers usually will not touch that until the end of the year. I have an uncle who is a big shot for GM and I have used this formula for years. I believe the percentage is about 10-12% for passenger vehicles. I usually can get them down to about 12-13% when I buy a truck! Good luck!!

LARSONEM · June 11, 2003

Go to Yahoo and select autos. This site runs Chrome Data software which is the same as what gets used in a GM dealership. This matched exactly the price sheet my dealer gave me (I buy at invoice through a dealer my dad worked at for many years). Unfortunately, GM had a price increase after I ordered my 2500HD LT CC D/A, so the cost ended up being about $150 more for the truck, but the options stayed the same. What the site doesn't necessarily reflect is the dealer advertising coop fee, generally $100-$150. It doesn't have the dealer holdback on it either, which most dealers aren't going to figure into the bargain anyway (that is their profit in the case of selling at invoice and they only get it at specific times during the year for all vehicles sold).

wolfie · June 13, 2003

There's a lot more profit than the holdback when a dealer sells at invoice... I happed to see the dealer write down what he was going to pay for the truck he located for me... it was a little over $25,000 invoice was 27,200 and sticker was a little over $30,000 and i paid $27,000 or $200 under invoice....

martyb · June 13, 2003

Wolfie,

That may or may not be true depending on if there are dealer incentives on a particular vehicle. Contrary to common speculation, dealers do pay invoice for the vehicle. Holdback is payed at a later date (usually at the end of each quarter, but it depends on the manufacturer) as a means to help a dealer "floorplan" or finance the vehicles on his lot. If a vehicle has been on the lot a long time, the interest charges will eat away all the holdback and maybe more on that vehicle. IF there are dealer rebates in effect, the dealer can give them up or keep them as profit.

$200 under on a truck is a good deal.

wolfie · June 15, 2003

Wouldn't the dealer pay the GMS price? and this dealer does a very large truck volume so I expect they get discounts for that too... even before all the truck pricing sites were around this dealer has alwas sold at invoice or $50 over but they always charge another $100 charge for paperwork and usually charge the advertizing fee... so my getting it $200 under was still a little over... but still a very good deal.... I doubt i would have got that kind of deal on diesel at that time though...

Huntaholic · June 15, 2003

GMS invoice price is 4% above employee price. Both of these are less than invoice.

martyb · June 16, 2003

GMS and Employee, (as well as Ford's X,A,D plans) are subsidized programs where the dealer essentially gets paid a commission for selling the vehicle. In these cases the commission is paid to the dealer somewhat like a dealer rebate (i.e. we get the money after the vehicle is sold and all the paperwork is submitted to GM). Incentives change from region to region so the dealer may get extra money for selling specific vehicles or volume bonuses, but always in "rebate" form.

Dealers still pay invoice for the vehicles. The reason for this is so all dealers pay the same amount for the same vehicles. Larger dealers might take a volume bonus in lieu of more profit on each of the cars/trucks they sell. This allows smaller dealers to remain competitive because they are not a disadvantage due to lower volume.