GM Raises Rebates To $5,000

[nsap]

DETROIT -- General Motors, raising the ante in Detroit's brutal price war, said on Wednesday it was raising the cash rebates on most of its 2003 and 2004 model year vehicles to $5,000.

The rebates on many of GM cars and trucks, including its popular SUVs, minivans and pickups, had previously been set at $4,500.

GM has called most of the shots in the industry's profit-gouging incentives war since the attacks on Sept. 11, 2001.

GM said its $5,000 cash-back offer, billed as an "owner loyalty program," applied only to current owners of its vehicles. For new customers it said it would continue to offer hefty discounts as well, along with a variety of interest-free loan programs.



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[ponchoman49]

I don't understand GM and Ford's strategy with these rebates. They keep raising prices(now a monthly event) and then pour on slightly bigger rebates to make themselves look like heroes! Yet here is Chrysler, Hyundai, Kia and several Japanese car manufacturers who haven't raised prices since september of 03 when the 04's debuted. And they are now all offering rebates and discounts. Am I missing something?

[Ming]

I was shocked today to see a Buick Rainier on the lot selling for almost 40 grand. Then I remembered that it has 5000 dollars of rebates on it, plus GM card 1500 bucks....6500 baby.

I'd prefer Buick sold it optioned out for what it is worth: 33,000 tops.

[treekiller]

Keep in mind these rebates help the majority of customers that either have $0.00 down payment or are "upside down" in their trades.. I'm in sales and 90% of all the customers need these rebates to make the deals approachable by the banks. now on the flip side it destroys the resale value and keeps these customers in a negative equity situation. it does however sell new cars. and that's what GM needs.

Just my $0.02

Jeff (treekiller) Lloyd

[sheithappens]

It's all a big numbers game. As the rebates rise so do the sticker prices. You aren't saving anymore money by waiting for larger rebates when the sticker price just went up the same amount. GM's new truck msrp prices are laughable at best. For the true value of a car or truck just ask the dealer what it's worth 3 months later. GM's resale value is PEANUTS. Never buy one with the intent of not driving the wheels off of it or selling it at a loss. It just isn't realistic. That's why MOST people who own a new car or truck are upside down on them. The resales suck they depreciate so fast.

[tgagneguam]

It's funny to see this bit of news posted on GMInsidenews's News Ticker section; it sits four slots above a story about Wagoner's proclamation of better GM finances. Although I understand his point about strengthening cash flow from global auto operations (Europe is improving, and Asia-Pacific continues further in the black), I also understand that $5,000 rebates will not bring GM closer to its elusive 5% profit margin goal, either.

[Dizzer]

Rebates.....Disgusting. By the way, I used them to purchase a brand new Trailblazer 2 days ago. Total reduction OFF DEALER INVOICE (rebates, GMCard, loyalty) was $5400.
Yeah, those rebates.....they're the worst!

[MelvinJ]

Actually, since these deals supercede the regular rebates, and aren't available with employee discounts (for those of us that qualify), it's not exactly a huge increase in what was being offered before in most cases. Maybe $500 more in most cases, although I think it's a big jump for the Malibu - $1500 up to $3000 now.

[jfnz24]

Is there any GM site that corraborates these rebates?

[Askani]

It is all a matter of perception. GM knows that the large rebate number motivates people to go to the dealers to check out the cars. Once the salesman tells you how much you are saving, it's hard to pass up. Who in this world is gonna feel cheated when you tell them that they are saving $5K. If GM starts to feel this isn't working, I wouldn't be surprised if say for Buick and GMC, they start advertising new lower MSRP's. They lower the price and remove the rebate and it will have the same effect on the bottom line, while providing dealers with another tool to bring people into showrooms.

[saabman]

Does anyone know if a Saab counts as a GM car for the purposes of the GM Owner Loyalty Cash Incentive?

That would help put me into a new Rendezvous sooner than later.

[doh]

Originally posted by treekiller@Jun 3 2004, 12:34 AM
Keep in mind these rebates help the majority of customers that either have $0.00 down payment or are "upside down" in their trades..    I'm in sales and 90% of all the customers need these rebates to make the deals approachable by the banks.  now on the flip side it destroys the resale value and keeps these customers in a negative equity situation. it does however sell new cars. and that's what GM needs.

Just my $0.02

Jeff (treekiller) Lloyd

I am in the business as well and the reason these customers are upside down in thier trades is because of all the rebates.

Whose is going to pay you$550\m at7-8% for a used 2002 when they can drive a new 2004 for 500-600\m with a warranty?

Sorry you did touch on that

I really don't believe that it motivates anyone anymore because it's been out for so long and the longer you wait the better it gets.