Supplier Discount on a Price Protected Car which MSRP?
05-17-2014, 03:44 PM
#1
Burning Brakes
Thread Starter
Supplier Discount on a Price Protected Car which MSRP?
My car is built and on the way to the dealer as we speak. I went into to do the paperwork today and they said my supplier discount would be applied to the new MSRP not the price protected.
Facts of the sale.
1. I ordered the car on January 19th, 2014 so I was price protected.
2. The dealer agreed to give me supplier discount since it became available while I was waiting for my car to get built (Very Generous of them).
3. Now that the car is built the discount they are using is based off of the new MSRP not the pre price increase MSRP.
4. They are telling me the bottom line would be the same either way and the discounted price on the increased MSRP is what GM will allow on this program.
I have seen others here state that they were price protected and got the supplier discount on the pre-price increase price.
The discount for a 1LT Z51 on the new MSRP of 62,000 is around 5,600 dollars but they are saying that discount would be the same bottom line pre price increase.
This doesn't add up to me, the discount amounts to $2k Post price increase over what I originally was going to pay.
I am hoping someone who went through this can chime in with what it actually should be.
Example new MSRP $62,500 Supplier is $56,555 my price today.
Original MSRP $58,900 Supplier Price is $56,555
This is what their telling me...does this make any sense? Or do I just have to pay MSRP price increase with the current supplier discount?
Facts of the sale.
1. I ordered the car on January 19th, 2014 so I was price protected.
2. The dealer agreed to give me supplier discount since it became available while I was waiting for my car to get built (Very Generous of them).
3. Now that the car is built the discount they are using is based off of the new MSRP not the pre price increase MSRP.
4. They are telling me the bottom line would be the same either way and the discounted price on the increased MSRP is what GM will allow on this program.
I have seen others here state that they were price protected and got the supplier discount on the pre-price increase price.
The discount for a 1LT Z51 on the new MSRP of 62,000 is around 5,600 dollars but they are saying that discount would be the same bottom line pre price increase.
This doesn't add up to me, the discount amounts to $2k Post price increase over what I originally was going to pay.
I am hoping someone who went through this can chime in with what it actually should be.
Example new MSRP $62,500 Supplier is $56,555 my price today.
Original MSRP $58,900 Supplier Price is $56,555
This is what their telling me...does this make any sense? Or do I just have to pay MSRP price increase with the current supplier discount?
05-17-2014, 05:18 PM
#2
Burning Brakes
Do you have anything in writing?
The issue here is GM is doing the calculations with the new price.
The dealer would have to take the hit and probably does not want to do it.
The issue here is GM is doing the calculations with the new price.
The dealer would have to take the hit and probably does not want to do it.
05-17-2014, 05:29 PM
#3
Instructor
Do you have a copy of you GM Workbench order? My dealer emailed me a copy of mine when I ordered and it had the MSRP, Supplier, and Employee prices on it. This would be a good tool to use during negotiations.
I ordered my C7 on Jan. 9th Z51 2lt with a pre-price increase MSRP of $64815.00 and Supplier Discount price of $58920.60
My car was delivered after the price increase and had a MSRP of $68575 and supplier price of $62445
My dealer was awesome from start to finish and gave me the original supplier price.
I ordered my C7 on Jan. 9th Z51 2lt with a pre-price increase MSRP of $64815.00 and Supplier Discount price of $58920.60
My car was delivered after the price increase and had a MSRP of $68575 and supplier price of $62445
My dealer was awesome from start to finish and gave me the original supplier price.
05-17-2014, 05:32 PM
#4
The dealer does not take the hit but does have to do the paperwork otherwise does take the hit. Everything, including the window sicker, will reflect the new price but that does not mean a retail sold order is not price protected.
I have posted that price protected price is an item of negotiation because it is an item of negotiation. It is not automatic to the purchaser. If the delivering dealer files, it is a credit to the dealer, AND IT DOES NOT MAKE ANY DIFFERENCE IF THE CREDIT WAS PASSED ON TO THE CUSTOMER OR IF IT WAS NOT!!!!!!!!!!!!!!
So it comes to this: if your dealer believes you will ante up the $2000 or $3200 extra to make the deal happen, that us what will happen.
It is up to your skills as a negotiator to make the price protection work.
It will work, but if for you or for your dealer only you will have the answer.
Laborsmith
I have posted that price protected price is an item of negotiation because it is an item of negotiation. It is not automatic to the purchaser. If the delivering dealer files, it is a credit to the dealer, AND IT DOES NOT MAKE ANY DIFFERENCE IF THE CREDIT WAS PASSED ON TO THE CUSTOMER OR IF IT WAS NOT!!!!!!!!!!!!!!
So it comes to this: if your dealer believes you will ante up the $2000 or $3200 extra to make the deal happen, that us what will happen.
It is up to your skills as a negotiator to make the price protection work.
It will work, but if for you or for your dealer only you will have the answer.
Laborsmith
Last edited by laborsmith; 05-17-2014 at 06:07 PM. Reason: spelling
05-17-2014, 05:38 PM
#5
If this is a retail sold order, the dealer WILL be price protected and will not pay the new price unless the dealer is ignorant (and if so, is still in business?) or is wilfully forgoing profit.
If you are willing to accept something different, you have only yourself to blame but please do not suggest others to jump off the cliff with you just to prove solidarity.
Laborsmith
05-17-2014, 05:57 PM
#6
Burning Brakes
Thread Starter
They seemed unsure how the supplier discount worked with the price protected number. I am sure they have my original build sheet and the supplier price but I never got a copy of that.
I do have confirmation that I am price protected, and I do have confirmation that I am getting the supplier discount, the caveat is that they are giving me the supplier price on the new MSRP not the original MSRP I signed for. I am confident the supplier price at my original MSRP is more then $2k off as they are suggesting.
My feeling is that they are either
a. Unaware of how price protection and supplier pricing works (I hope that is it).
b. They figure I will pay the higher MSRP and take the supplier discount, they then will get their protection and the 3 grand back from GM, or meeting me about 1/2 way to what the best case scenario is for me.
I feel they should be straight up and say that is what they want to do, bu they are leaning on the fact that I am misinformed on how the supplier discount works and anything other than the invoice they have from GM is not the gospel and they will get jammed for the difference.
I do have confirmation that I am price protected, and I do have confirmation that I am getting the supplier discount, the caveat is that they are giving me the supplier price on the new MSRP not the original MSRP I signed for. I am confident the supplier price at my original MSRP is more then $2k off as they are suggesting.
My feeling is that they are either
a. Unaware of how price protection and supplier pricing works (I hope that is it).
b. They figure I will pay the higher MSRP and take the supplier discount, they then will get their protection and the 3 grand back from GM, or meeting me about 1/2 way to what the best case scenario is for me.
I feel they should be straight up and say that is what they want to do, bu they are leaning on the fact that I am misinformed on how the supplier discount works and anything other than the invoice they have from GM is not the gospel and they will get jammed for the difference.
05-17-2014, 06:00 PM
#7
Burning Brakes
Thread Starter
They seemed unsure how the supplier discount worked with the price protected number. I am sure they have my original build sheet and the supplier price but I never got a copy of that.
I do have confirmation that I am price protected, and I do have confirmation that I am getting the supplier discount, the caveat is that they are giving me the supplier price on the new MSRP not the original MSRP I signed for. I am confident the supplier price at my original MSRP is more then $2k off as they are suggesting.
My feeling is that they are either
a. Unaware of how price protection and supplier pricing works (I hope that is it).
b. They figure I will pay the higher MSRP and take the supplier discount, they then will get their protection and the 3 grand back from GM, or meeting me about 1/2 way to what the best case scenario is for me.
I feel they should be straight up and say that is what they want to do, bu they are leaning on the fact that I am misinformed on how the supplier discount works and anything other than the invoice they have from GM is not the gospel and they will get jammed for the difference.
I do have confirmation that I am price protected, and I do have confirmation that I am getting the supplier discount, the caveat is that they are giving me the supplier price on the new MSRP not the original MSRP I signed for. I am confident the supplier price at my original MSRP is more then $2k off as they are suggesting.
My feeling is that they are either
a. Unaware of how price protection and supplier pricing works (I hope that is it).
b. They figure I will pay the higher MSRP and take the supplier discount, they then will get their protection and the 3 grand back from GM, or meeting me about 1/2 way to what the best case scenario is for me.
I feel they should be straight up and say that is what they want to do, bu they are leaning on the fact that I am misinformed on how the supplier discount works and anything other than the invoice they have from GM is not the gospel and they will get jammed for the difference.
05-17-2014, 06:46 PM
#9
One piece of information you did not provide was the initial negotiated price back in January, before supplier pricing even came in to the scenario. Do you have that initial negotiated price in writing and was that figure higher or lower than $56,555?
When you say, "The discount for a 1LT Z51 on the new MSRP of 62,000 is around 5,600 dollars" are you quoting the supplier pricing?
When you say, "The discount for a 1LT Z51 on the new MSRP of 62,000 is around 5,600 dollars" are you quoting the supplier pricing?
Last edited by RedC7AZ; 05-17-2014 at 06:57 PM.
05-17-2014, 07:01 PM
#10
Burning Brakes
Thread Starter
One piece of information you did not provide was the initial negotiated price back in January, before supplier pricing even came in to the scenario. Do you have that initial negotiated price in writing and was that figure higher or lower than $56,555?
When you say, "The discount for a 1LT Z51 on the new MSRP of 62,000 is around 5,600 dollars" are you quoting the supplier pricing?
When you say, "The discount for a 1LT Z51 on the new MSRP of 62,000 is around 5,600 dollars" are you quoting the supplier pricing?
05-18-2014, 12:35 AM
#11
Instructor
Member Since: Feb 2014
Location: Lake Orion Michigan
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I ordered a 1LT Z51 from Les Stanford at list price in February.
GMS (Employee) pricing was offered before my car was built.
Les Stanford gave me GMS AND the $3,200 price protection.
List Price on sticker: $63,030.00
My Cost (plus sales tax) $52,513.77
My total savings were just over $10,500.00
Note: Employee discount is larger than Supplier discount, but you definitely are entitled to BOTH your discount AND price protection!
The dealer has NOTHING to gain by screwing you on the "price protection." That money can only be credited to the Original Person who ordered the car pre-price increase. GM will NOT credit the money if your car reverts to dealer stock or if ANYONE else buys it.
If your dealer is balking about giving you both discounts, I can only think of two reasons:
1) They are ignorant on how the programs work.
2) They failed to place your order before the price increase, and are trying to cover themselves.
Best of Luck.....................Art
Reference your concern [in post #6] that the dealer may be trying to "pocket" your $3,200 discount. That sounds like "Fraud" to me (against GM). It would be very easy to document, and I suspect that GM would drop on them like a ton of bricks! They would soon be selling Fiats and not worrying about Corvette allocations.
GMS (Employee) pricing was offered before my car was built.
Les Stanford gave me GMS AND the $3,200 price protection.
List Price on sticker: $63,030.00
My Cost (plus sales tax) $52,513.77
My total savings were just over $10,500.00
Note: Employee discount is larger than Supplier discount, but you definitely are entitled to BOTH your discount AND price protection!
The dealer has NOTHING to gain by screwing you on the "price protection." That money can only be credited to the Original Person who ordered the car pre-price increase. GM will NOT credit the money if your car reverts to dealer stock or if ANYONE else buys it.
If your dealer is balking about giving you both discounts, I can only think of two reasons:
1) They are ignorant on how the programs work.
2) They failed to place your order before the price increase, and are trying to cover themselves.
Best of Luck.....................Art
Reference your concern [in post #6] that the dealer may be trying to "pocket" your $3,200 discount. That sounds like "Fraud" to me (against GM). It would be very easy to document, and I suspect that GM would drop on them like a ton of bricks! They would soon be selling Fiats and not worrying about Corvette allocations.
Last edited by Art-2008; 05-18-2014 at 02:17 AM.
05-18-2014, 09:26 AM
#12
Burning Brakes
Thread Starter
I ordered a 1LT Z51 from Les Stanford at list price in February.
GMS (Employee) pricing was offered before my car was built.
Les Stanford gave me GMS AND the $3,200 price protection.
List Price on sticker: $63,030.00
My Cost (plus sales tax) $52,513.77
My total savings were just over $10,500.00
Note: Employee discount is larger than Supplier discount, but you definitely are entitled to BOTH your discount AND price protection!
The dealer has NOTHING to gain by screwing you on the "price protection." That money can only be credited to the Original Person who ordered the car pre-price increase. GM will NOT credit the money if your car reverts to dealer stock or if ANYONE else buys it.
If your dealer is balking about giving you both discounts, I can only think of two reasons:
1) They are ignorant on how the programs work.
2) They failed to place your order before the price increase, and are trying to cover themselves.
Best of Luck.....................Art
Reference your concern [in post #6] that the dealer may be trying to "pocket" your $3,200 discount. That sounds like "Fraud" to me (against GM). It would be very easy to document, and I suspect that GM would drop on them like a ton of bricks! They would soon be selling Fiats and not worrying about Corvette allocations.
GMS (Employee) pricing was offered before my car was built.
Les Stanford gave me GMS AND the $3,200 price protection.
List Price on sticker: $63,030.00
My Cost (plus sales tax) $52,513.77
My total savings were just over $10,500.00
Note: Employee discount is larger than Supplier discount, but you definitely are entitled to BOTH your discount AND price protection!
The dealer has NOTHING to gain by screwing you on the "price protection." That money can only be credited to the Original Person who ordered the car pre-price increase. GM will NOT credit the money if your car reverts to dealer stock or if ANYONE else buys it.
If your dealer is balking about giving you both discounts, I can only think of two reasons:
1) They are ignorant on how the programs work.
2) They failed to place your order before the price increase, and are trying to cover themselves.
Best of Luck.....................Art
Reference your concern [in post #6] that the dealer may be trying to "pocket" your $3,200 discount. That sounds like "Fraud" to me (against GM). It would be very easy to document, and I suspect that GM would drop on them like a ton of bricks! They would soon be selling Fiats and not worrying about Corvette allocations.
05-18-2014, 09:34 AM
#13
Thanks for the feedback, this is very helpful and almost identical to my circumstance. It was getting to be a circular arguement so I had to leave the dealership and go back and find out the truth. Even GM Customer service agreed with me on my position, so I am not sure what they are doing.
05-18-2014, 01:59 PM
#14
Burning Brakes
Thread Starter
IMHO it's painfully obvious what they are doing, they are either grossly incompetent and have no concept of the price protection policy or they are trying to generate about $2900 more profit on the deal by applying for the rebate after you close the deal. If they are ever audited on the supplier program they should get hammered but I'll bet they are willing to take the chance.
The other issues that makes this hard is that they keep coming up with reasons why it isn't valid i.e. the discount came after I ordered the car, no supplier price existed before I ordered the car so they have no idea what it could be. Yet we pulled up a car that was ordered in Nov sitting on a dealers lot with supplier pricing and the formula worked out. Others on the board here have clearly stated the opposite of what they are telling me. Hopefully they will come to their senses tomorrow or I will be going to the GM and or Owner to get this settled.