GMS question
Safety Car
Joined: Jun 2002
Posts: 4,730
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From: Northern VA
Cruise-In 7-8-9-10-11-12 Veteran
Wounded Warrior Escort '11
St. Jude Donor '05-'06-'07-'08-'09-'10-'11-'12
GM Supplier Deal
The impression I got from my dealer when I purchased my '05 Coupe in December '04 was that he was making money as GM cuts a new, lower cost invoice to him. He seemed to indicate that his profit was on/about $2K when the deal was finalized.
Don't know for sure, but there was no variance between what he sold me and what was published as GM Supplier Discount pricing. Of course, since he was located in Montana and the snow was "horns deep on a large bison" might have had a bearing on his willingness to accept the deal.
The deal itself was real smooth and I took delivery at the NCM on 3 March and have 13,000+ happy miles since then.
Don't know for sure, but there was no variance between what he sold me and what was published as GM Supplier Discount pricing. Of course, since he was located in Montana and the snow was "horns deep on a large bison" might have had a bearing on his willingness to accept the deal.
The deal itself was real smooth and I took delivery at the NCM on 3 March and have 13,000+ happy miles since then.
Last edited by GentleBen; May 3, 2006 at 03:27 PM.
Moderator
Joined: Feb 2006
Posts: 39,077
Likes: 17,935
From: DFW Area TX
On 01-25-2005 Ken Fichtner posted the following information on GMS, GM Supplier and GMID dealer profits.
"The rebates to the dealer are calculated as:
Employee, MSRP less Destination x 5%
Supplier, Net dealer cost less Destination x 2%"
These rebates are in addition to the holdback which is 3% of the MSRP less Destination.
"The rebates to the dealer are calculated as:
Employee, MSRP less Destination x 5%
Supplier, Net dealer cost less Destination x 2%"
These rebates are in addition to the holdback which is 3% of the MSRP less Destination.
Melting Slicks
Joined: Apr 2005
Posts: 3,216
Likes: 4
From: ---Phoenix, AZ --- Boiler Up, Hammer Down!
Originally Posted by shurite44
That is a lot higher than I would have guessed. If I am crunching the number correctly the dealer made 4500 on my GMS purchase.
Le Mans Master
Joined: Sep 2004
Posts: 7,027
Likes: 6
From: Shiloh Ohio
Originally Posted by Purdue94
4500 seems awfully high? Unless your car was 90k or you purchased two at GMS that is not quite right. My dealer mentioned that he would receive about 2650 from GM. My MSRP was around 53K and I purchases using GMS not supplier. Which sounds about right 53k x 5% = Approx 2650.
These rebates are in addition to the holdback which is 3% of the MSRP less Destination.
I don't really care but if this is true my sales guy lied to me. He told me they don't make anything on GMS unless there is a holdback fee.
