Unique question about GM supplier discount

[Arch]

Hey there,

I know theres been lots of questioning as to what dealerships are honoring this, what seems to be, optional discount.

and heres mine.

I work for Nucor steel. When I first went in to order I let my salesman know of this, and inquired about the GMS discount we are supposed to get on GM vehicles. I get the spiel about how the Camaro is different due to the fact that availability is limited and they will sell through their allotment pretty much no matter what this year. (which is about 10-12 cars according to them) Due to this they decided they will not be offering the GMS discount on the Camaro. I was ok with this.

Today, reading the weekly newsletter at work, our General Manager wrote that NUCOR is responsible for FORTY (40) percent of the steel that goes in
-THE- 2010 Chevy Camaro. Reading this made me furious. I now truly believe I deserve some kind of discount due to the fact that I work damn hard in being part of the process that american steel gets created.

I plan on going in this Friday to bring this to their attention. All I really want from them is to be able to trade my '99 Camry in towards my new Camaro for a decent price. Yea it has some paint missing on the bumper but its a '99 with only 80,000 miles on it that has otherwise been kept up and maintained mechanically. They originally offered 2500-3000 on it. I just want 4000.

Am I being reasonable? What do you guys think?

[my2010camaross]

i think so. i plan on doing something to that effect with my dealer. i was noticing your dates. i went to 3000 on the same date.

[songsj]

When it comes to trading a car in you need to realize the most you will ever get is
wholesale plus discount for your trade in. example

Wholesale price of your car 3000.00
Cash discount on new car = 1000.00

Total trade in value = 4000.00

Sucks but this is how it works

[Arch]

Thats not the point. I'm sure it hurts their bottom line more to give a GMS discount on it than it does to give me more on my trade-in

[RPO F55]

Just a minor correction but GMS is the GM employee discount, very different from GM Supplier which is 4.5% above the GMS price.

On the topic you brought up - getting a supplier discount is a privilege, not a right of passage. It is not owed to you or any supplier employee. Also, dealers are not bound to offer it on cars such as camaro which is in very low supply against huge demand.

You are not being reasonable expecting a dealer to accept the nominal profit that a supplier deal brings when the market for these cars is so hot right now. Be fair.

[MacMulkin]

Arch,

I just sent you a PM about the GM Supplier discount.

Ron

[IROCanSS]

Originally Posted by Arch

Thats not the point. I'm sure it hurts their bottom line more to give a GMS discount on it than it does to give me more on my trade-in

I may be wrong but I don't think this is true. GMS is employee pricing and is I believe less than invoice. I think GM makes up the difference or sells that particular car to the dealer for less than invoice. There is all kinds of paperwork involved with selling GMS so like I said I think the dealer get a "deal" on the car from GM.

With that said the trade is all the dealer. If they give you more for your trade, thats money out of their pocket, always, regardless of what they sell you the car for. Now they could agree to sell you at GMS, which on my order is about $2700 off MSRP ($36,000 -vs- $33,300), they could basically give you $1300 for your car and you'd still "feel" as if you bought the car at MSRP and got $4000... That would be a win-win, but I bet they make more off MSRP than GMS. GMS is probably a break even for the dealer, all they "make" is the hold back money and maybe a small perfcentage. They make a couple thousand on MSRP.

Everyone knows the money is in used cars anyhow, not new. They are going to give me $27,500 for a PERFECT, low mileage C6, black, M6 then wash it and turn around and sell it for clean retail which is like $33,000... Can't make that on a new car, unless you gouge, which we all know has been done!

[my2010camaross]

Originally Posted by RPO F55

Just a minor correction but GMS is the GM employee discount, very different from GM Supplier which is 4.5% above the GMS price.

On the topic you brought up - getting a supplier discount is a privilege, not a right of passage. It is not owed to you or any supplier employee. Also, dealers are not bound to offer it on cars such as camaro which is in very low supply against huge demand.

You are not being reasonable expecting a dealer to accept the nominal profit that a supplier deal brings when the market for these cars is so hot right now. Be fair.

He stated all this all ready. And some companies are indeed affiliated with the gms (employee discount) I know this because I worked for one.

[Arch]

GMS - GM supplier sorry for the confusion, I didn't know GMS meant the GM employee pricing. I'm just talking the GM supplier discount (which is probably around $1000-2000 on this car)

Huge demand? The V6 they did get in still hasn't sold. And if I'm not mistaken they haven't even sold through their allotment yet.

I just want you to put yourself in my shoes. I work in the steel industry, we've been hit as just about as hard as the rest of the manufacturing jobs in the nation. We're currently running at 50% production. Yes I can still afford the car due to my financial well being and responsibility in matters to do with credit/investments, but it ain't exactly the best of times.

My company's steel makes up a large portion of this car. Honestly, I'm asking for the discount in a way where it shouldn't hurt the dealer in any way, they should be able to sell my used car for what they pay me for it, if not more.

I didn't say I was owed the discount or that they were bound to it and just not giving me it, nor did I mean to imply it. I just feel that personally working in the struggling manufacturing industry that helps bring the pieces that make this car what it is together, that yea I deserve a little more.

[songsj]

Another thing to look at from the dealer's perspective is if they don't sell your car they will take it to an auction and all they will get is wholsale. No profit at all. That is why most dealers stick so close to wholesale price on trade ins.

[Arch]

To add one more thing, I'm not looking to screw over my dealer, I know the Camaro is one of the only hot items they have going for them right now. It's just after learning how much of the steel Nucor makes that goes into the new car that I'm buying and the idea of me not getting some sort of added incentive for buying this car irks me. We work damn hard in the steel industry.. sorry if it seems like I'm asking for a lot but I'm really not.

[rolnslo]

No offense but it doesn't really matter who you work for or how much they contribute to the Camaro. The GM Supplier Discount program rules are very clear that it is up to the individual dealers to decide if they want to participate in the program or not. GM does not force them to participate, nor should they. This is a discount program not an incentive program.

If you don't like the idea of paying MSRP for this car, then you'll need to just be patient and buy one in a year or two when they are more readily available and dealers won't feel the need to make as much money on each sale.

[tjd24]

I tired to negotiate with either the GM Supplier discount or the GM Credit Union discount (same discount just different programs) - as indicated the Dealer is under no obligation to honor the discount and they didn't budge. I got MSRP less my GM Card earnings (which wouldn't have been applicable had they honored either discount but would've left $1,034 earning available for a future purchase (providing GM / HSBC doesn't pull the 5% earnings card program in restructuring).

As for trade-in I didn't want to deal with a private sale and knew the Dealer would hold all the cards. Most use Galves http://www.galves.com/ which is available to consumers for day ($4.95), weekly ($8.95) or other fee-based access. My 2007 Camry Hybrid with 41,000 miles "clean" was on Galves for $15,450 which my Dealer eventually agree to -- be careful to press for inclusion of all the options eg Leather, Moonroof, Navigation etc as the Dealers tend to look at the base model for determining their trade-in value - once I pressed I got those included for an additional $1,450 over their first offer of $14,000. Kelley Blue Book, NADA and Edmunds all had the trade-in value much higher but the Dealer's don't consider those values only Galves.

I did see my former Camry Hybrid on the Dealer's lot last night listed for $21,995 - given 2009 Camry Hybrids are priced to move I doubt anyone will pay that - I know the Dealer needs to make his profit just interesting to see what its listed for... For those thinking - huh? from a Camry Hybrid to a Camaro, I would've bought the Camaro 2 years ago had it been available so I went momentarily "green" - after a week plus in the Camaro I don't miss it except at the pump but knew that was reality of a car in our class...

My view - the programs/trade-in all go toward a bottom-line for a "fair deal" for both parties (remembering "fair" is where you get funnel cakes). Given its limited availability Dealers will not package discounts or programs unless they have to move some "steel" for cash flow or allocation demands.

[SicSix6]

Supplier discount is based on whatever the rep from your company and GM agreed upon. For instance FEDEX has a supplier discount with GM. To obtain the discount you need an initial number provided by your employer. you go online to the gmsupplier.com, this will give you a number to give to the dealer. From the site you can also price the car you want with the options you want.