April incentives???

[TVelar]

I saw on i think it was GM's site that it was $6500 for Denali's, but like someone mentioned, it usually takes a couple of days for everything to sync up online and through the dealers.

 

This may be a tactic to get people to just buy the new vehicles now thinking that the rebate hasnt changed before they drop it again after the 7th.

[aware3218]

I was hoping they would pull out all the stops to try to move some trucks during a crisis.  I am not sure how they can even think about decreasing incentives on the 8th.  But I agree, I think they have it listed as taking delivery by the 7th in order to buy them some time to come up with a new strategy.

[CP312]

I was thinking they may do something crazy but now I’m not so sure. Of the trucks I was looking at 2 weeks ago, a fair amount of the inventory is gone. With the plants shut down they may not doing much more but who knows.


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[msaul37]

it very well could be a tactic while they wait, or could be a regularly scheduled break. from the pattern the last few months, the prices go up the first day, the 'take delivery date' is still later in the month, then the prices drop later in the day or the next day. but with the fact the take delivery date is just next week.. they might keep the listed prices until then.

[AJS2294]

I’m thinking the week delay is to let them run figures from all of Q1 and decide how aggressive they need to be. Assuming the follow the usual reporting schedule they have a Q1 earnings call at the end of the month which is probably going to be bleak considering even last years Q1 numbers were poor even without a global pandemic. If they can get a few wins in the next few weeks it spurs some hope with investors. I don’t think rebates + financing offers are far off 

[PPK]

If i were guessing the GM sites show have reduced incentives to buy "straight" from them, but dealers still have last month's incentives to encourage sales for them

[aware3218]

15 minutes ago, AJS2294 said:

decide how aggressive they need to be

Or, perhaps decide how aggressive they can afford to be...

[AJS2294]

9 minutes ago, aware3218 said:

Or, perhaps decide how aggressive they can afford to be...

Cash is king, cars sitting on lots/in yards are just inventory. Selling them would be the number one priority to regain any kind of profitability.

[TRKLGND]

14 minutes ago, AJS2294 said:

Cash is king, cars sitting on lots/in yards are just inventory. Selling them would be the number one priority to regain any kind of profitability.

Actually, cash is no longer king in the car sales business.  Financing is where the dealer makes the bulk of their profit.  If you plan on paying cash or if you have your own financing already worked out, DO NOT let the dealer know that.  You will get a better price on the vehicle if they think you are financing with them.

That being said, 0% changes the game.  The only money the dealer will make on the car is the sales/trade-in.   I'm not sure why anyone would pay cash for a vehicle when they qualify for 0% financing.  Invest your cash and use theirs for free.  Understand that things in the investment market are not normal right now with all the COVID craziness.

[AJS2294]

13 minutes ago, paracutin said:

Actually, cash is no longer king in the car sales business.  Financing is where the dealer makes the bulk of their profit.  If you plan on paying cash or if you have your own financing already worked out, DO NOT let the dealer know that.  You will get a better price on the vehicle if they think you are financing with them.

That being said, 0% changes the game.  The only money the dealer will make on the car is the sales/trade-in.   I'm not sure why anyone would pay cash for a vehicle when they qualify for 0% financing.  Invest your cash and use theirs for free.  Understand that things in the investment market are not normal right now with all the COVID craziness.

I wasn’t talking in terms of car sales. I was speaking in bottom line for PNL statements for a business. In manufacturing inventory on the books is a negative. You don’t register a profit unless you sell. All indicators are that GM need to sell. Meaning, we should see offers increase through following weeks/months.
 

In regards to current offers, it’s in your best interest to calculate cost of the loan vs cost savings. Right now, it’s not unheard of to get sub 2% interest rates that cost much less that the perceived savings in rebates over the life of a loan. Example; with any decent credit you can finance up to $55,000 @ 3.75% over 72 months and pay less overall using rebates than no rebates and 0%.

Edited April 1, 2020 by AJS2294

[TRKLGND]

Just now, AJS2294 said:

I wasn’t talking in terms of car sales. I was speaking in bottom line for PNL statements for a business. In manufacturing inventory on the books is a negative. You don’t register a profit unless you sell. 

Yes.  Correct.  I misunderstood where you were coming from.

[f8l vnm]

where is 20-25% off Msrp ? 

[CP312]

where is 20-25% off Msrp ? 

Everywhere...


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[TRKLGND]

6 minutes ago, AJS2294 said:

Right now, it’s not unheard of to get sub 2% interest rates that cost much less that the perceiving savings in rebates over the life of a loan. Example; with any decent credit you can finance up to $55,000 @ 3.75% and pay less overall using rebates than no rebates and 0%.

The saving are not perceived.  They actually exist.  Depending on your individual circumstances low interest financing may be better for you or it may not.  The math will tell the story.

[AJS2294]

20 minutes ago, paracutin said:

The saving are not perceived.  They actually exist.  Depending on your individual circumstances low interest financing may be better for you or it may not.  The math will tell the story.

With current interest rates, it’s unlikely anyone is going to save money on trucks if you’re financing below $55,000 OTD. There are some killer rates to be had at credit unions right now. But yes, doing the math and knowing your numbers is critical. 

Edited April 1, 2020 by AJS2294