Shocking Reality
Race Director
Joined: May 2008
Posts: 11,983
Likes: 14
Correct me if I am wrong but most of us can not just walk in and pay cash for a new Vette. We need a loan, there is the rub. They are not giving loans out all that easy. Maybe if GM kept GMAC they might be better off.
Racer
Joined: Feb 2008
Posts: 308
Likes: 0
So regardless, expect your car to plummet in value. Could be today, could be next week, could be next year...it's going to happen soon.
Burning Brakes
Joined: May 2008
Posts: 1,005
Likes: 1
From: Ottawa Ontario
Selling off the inventory, even at at loss, creates the need to manufacture new ones and keeps the entire supply chain, employed.
At some point, this has to happen in a down turn, we need to spend our way out...
Melting Slicks
Joined: Apr 2003
Posts: 2,588
Likes: 44
From: Gods Country WI
We were looking at a "brand new" 2007 LMB vert this weekend. New as in never being titled although the owner of the stealership has been driving it since arrival. The car "only" has 10K miles on it. Their price.......$49,999. 
I hope they sit on it till the C7's come out.
I hope they sit on it till the C7's come out.
Team Owner
Joined: Dec 2003
Posts: 57,408
Likes: 164
From: queensbury ny
The AUTO business is suffering intensely right now.No one brand is immune from anything.It's magnified 10x if you are a Ford,Chrysler or GM dealer.They can't sell anything without dropping their drawers in a decent economy,never mind what's going on now!!
Burning Brakes
Joined: Dec 2006
Posts: 1,225
Likes: 1
From: Lexington KY
I may be mistaken here, but I do not think you can count unsold vehicles sitting on dealer lots as GM assets. Dealers purchase these vehicles from GM hence GM no longer owns them; they are owned by the dealer (or the dealer's bank). Owning GM does not mean owning all dealer inventory.
Team Owner
Joined: Aug 2006
Posts: 57,804
Likes: 1
From: Portrichey FL
St. Jude Donor '13
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Safety Car
Joined: Feb 2007
Posts: 4,939
Likes: 448
From: CHOCOWINITY NC
I'm sorry, but a dealer stupid enough to still have an '07 on hand that he's been paying interest on for almost 2 years deserves to be insulted. Chances are he's been insulting his customers with inflated pricing rather than making a good business decision and cutting it loose.
The Forum dealers DO NOT fall into this category..
The Forum dealers DO NOT fall into this category..
...better get used to it! Buyers Market baby!
Drifting
Joined: Nov 2005
Posts: 1,643
Likes: 60
From: West Michigan
2025 c3 ('74-'82) of the Year Finalist - Unmodified
I'm sorry, but a dealer stupid enough to still have an '07 on hand that he's been paying interest on for almost 2 years deserves to be insulted. Chances are he's been insulting his customers with inflated pricing rather than making a good business decision and cutting it loose.
The Forum dealers DO NOT fall into this category..
The Forum dealers DO NOT fall into this category..
Safety Car
Joined: Feb 2007
Posts: 4,939
Likes: 448
From: CHOCOWINITY NC
Former Vendor
Joined: Jun 2007
Posts: 6,752
Likes: 53
From: Redwood City CA
Aparently you never checked with a forum dealer since most of us are selling at or below cost.
Race Director
Joined: Oct 2004
Posts: 10,089
Likes: 13
I may be mistaken here, but I do not think you can count unsold vehicles sitting on dealer lots as GM assets. Dealers purchase these vehicles from GM hence GM no longer owns them; they are owned by the dealer (or the dealer's bank). Owning GM does not mean owning all dealer inventory.
This puts a new light on GM's claims that it wants to reduce the number of GM dealers. What soundly managed company tries to reduce the number of its customers?
Race Director
Joined: Oct 2004
Posts: 10,089
Likes: 13
The dealer has to arrange financing for any car he buys from the manufacturer, few dealers have enough cash on hand to simply pay off cars as they are purchased from the manufacturer. Like the dealer's own customers, financing is usually required. That lender may be GMAC in some cases, but most larger car dealerships have arrangements with other lenders, banks, vendors of commercial paper, revolving lines of credit, etc, at better rates than GMAC offers. GMAC primarily does lending on retail sales.
Burning Brakes
Joined: Feb 2006
Posts: 782
Likes: 0
You are correct. GM doesn't push Corvettes out onto dealer lots on speculation. Every Corvette is sold before it is built. Dealers are the buyers. GM doesn't do retail, dealers are their only customers. Let me repeat that, dealers are GM's only auto customers.
This puts a new light on GM's claims that it wants to reduce the number of GM dealers. What soundly managed company tries to reduce the number of its customers?
This puts a new light on GM's claims that it wants to reduce the number of GM dealers. What soundly managed company tries to reduce the number of its customers?