Quote:
Originally Posted by laborsmith
GMS (Employee Pricing) Authorized sales are audited and if the dealer violates the terms there are sanctions, which include GM being reimbursed, the dealer losing allocation, and if the employee is in violation, the employee loses the right to do a GMS purchase for at least one year.
The dealer can sell at GMS pricing and not use an Authorization but will not be getting the subsidy. That generally means taking a loss on the sale. There may be a good reason from the dealer point of view to do such a sale, but if done too often, at what point does that dealer go out of business?
Laborsmith
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Depending on the situation I think some dealers may be willing to lose some money on some Camaros and make money on higher volume Malibus and Silverados. They lose some money on a few customers then make some money by lowballing a trade, etc. on somebody else and make 5k profit selling it off the lot. Also, we are only talking pure discount not all the other services the dealer can make money on like financing, extended warranties and hopefully you will have you car services there over its life.
How much real profit is in a 45k Camaro? I would not be surprised if GM makes 12-15k per car. I think I read Ford makes about 13k per F-150, GM 12k per Silverado.