StanNH

I may have a GMS "friends" certificate this week and just called my dealer about honoring it.

First, they will honor it although, according to my salesman, they are not obligated to. He said it's more like a courtesy delivery than an actual sale. He also said the dealer has no real margin to work with on a GMS sale, and is only re-imbursed for his advertising allowance. It does, however, count as a retail sale and does count towards his Corvette allocations.

I actually felt guilty when I got off the phone. Is a GMS sale really that tight for a dealer? If true, it sounds like a very unprofitable sale. Do the forum dealers who are advertising "GMS for all" simply work off their "documentation" fees?

1FUNC5

If you've ever seen an actual invoice, on the right hand side there is an amount listed as "MEMO" This is the amount the dealer gets in return for a gm supplier or true GMS deal.
Steven

ufaj26

Stan,

I use one of these each year myself. My understanding is that there is still a little profit left for the dealer I also believe they still get their hold back as well.. At my dealership I also do not have to pay the doc fee since I am using the certificate. One of our members down this way is an ex employee of GM and will probably respond to this thread when he sees it.

Don't feel too bad you deserve your best deal. I know you're getting excited about your new arrival!!!

08C6Z51

I have bought dozens of Gm cars through the years with the GMS discount. I have never noticed a difference or disinterest in the sale when they found out I was using GMS (except at one dealer who was totally disinterested in selling me a new Corvette a few months ago). I gave him what he wanted and walked away and about 20-30 minutes later was buying the Vette at a neighboring dealer (and) did not pay the outlandish doc fee.

I assume the dealership makes a decent profit on the GMS sale.

not08crmanymore

not much left after GMS.You're getting a good deal,the sales guy is getting A "MINI" as it's known in the business and that's that.No mystery here.

nmerhaut

Bought mine on EBAY for GMS last year. After flying to pick it up and driving home, the internet salesman called me because there was an error in the GMS number which he needed corrected because they would get $2200-2500 back from GM. His words. Of course I read him the correct numbers. FWIW.

Bobz08C6

Believe me the dealer is not doing you a "favor" by honoring the GMS certificate. No need to feel guilty. If you look at the memo field GM is paying the dealer a fair amount to deliver the car. Usually more than he would make on a open deal. I think my dealer made $1,250 on my Silverado a few years ago. He doesn't even have to "sell" the car. He just has to deliver it. The dealer also gets the holdback from GM. You get the advantage of the best price, no doc fees or other unnecessary add ons and you can take advantage of any rebates and other GM offers without affecting the dealers profit.

jschindler

Lot's of interesting information here. If it's a true GMS deal - meaning the dealer has a certificate to turn in and get reimbursed, they make more on GMS than they do on a typical deal in todays market. They make about 5%.

RUBYREDVET

How can one get a "GMS" certificate? Are they good on an '09. Do they have to be used within a certain time period?

427-Z06

They make enough - in fact more than they would on a straight deal that is negotiated in a hard market sometimes. I have even been able to negotiate an added discount on top equal to half of holdback. They aren't suppossed to do that but - sometimes they need the sale.

jeffjob

Memo on my invoice shows 2921.25 with a total MSRP of 61425.00.

I have heard the 5% as well.

JoesC5

You have to get the GMS number from a GM employee. You will have to give the employee your ZIP and DOB. I believe the promotion going on now expires 8-19-08. I was able to get a number from a fellow CF member who is a GM employee and purchased a 09 Z06 last week. Lucky for me, my local dealer had just got in a 09 Z06 in the color and options I wanted. I've never really figured out if you have to take delivery of the car before the expiration date of the promotion or if you can sign the contract before the expiration and take delivery later.

Bobz08C6

This month GM is offering a promotion whereby any active GM employee can give away a GMS cert to anyone. Other than this special promotion the GMS is normally limited to employees, retirees, and family members. There is a time limitation. You should be ready to buy before you take a cert from someone.

https://www.gmfamilyfirst.com/GMEMP/...7_discount.pdf

RUBYREDVET

I'm expecting my '09 around the end of August/early Sept. Don't know if I can use a certificate now for that time period. Maybe they will extend the program and I'll try to find a cert.
Thanks

StanNH

According to the current offer, you have to take delivery by 8/19. My car is being built this week and may not arrive until the last week of August. That would be great if I miss it by a week.

I wonder if they have any provisions for cars in transit?

AORoads

hmmm, Stan, that's kind of odd. Sounds like they want to cut off the program via the "in-service" date. Something like buying it off the lot.

Of course, on an ordered car, so many things can delay the 'take delivery' of the vehicle. Maybe your dealer can individually modify this for ordered cars. I mean, if the car's built and waiting for a truck, or already in transit....sounds to me like a bought vehicle.

Then again, that might be the rub: when did the buyer actually plunk down all the money? Usually, it's at the dealer when the car is bought, or taken delivery.

jeffjob

Stan;

I would check with your dealer. They may have a way to make it happen.

Jeff...

z51vett

Without going into all the details a supplier price is about 250 to 400 under invoice and they still make money. On employee pricing they are paid a percent of list less dest. to sell to employee. Than their is hold back and true dealer cost is under employee pricing.
z51vett

Bobz08C6

The GM employee price GMS includes destination.

z51vett

That is correct but to figure the moneys paid to dealers it is deducted out to figure the percent paid to dealers. That is why the poster who said is car listed for a certain dollar amount came up with the wrong answer deduct the dest figure it that way, it will be correct.
z51vett