GM Responds To Inventory Glut; Adds Dealer Cash; Sweetens Lease Deals

[Perian]

Automotive News

December 7, 2012

Article Quotes:

DETROIT -- General Motors today is rolling out bigger discounts on full-sized pickups and other vehicles in an effort to slash bloated inventories, which are at their highest levels since before GM’s June 2009 bankruptcy.

A GM program that starts today and runs through Jan. 2 will allow dealers to add as much as $2,000 in customer cash to 2012 and 2013 Chevrolet Silverados and GMC Sierras, according to a memo sent to dealers.

GM also is sweetening lease deals on the Chevrolet Malibu, Cruze and Traverse. Enhanced down payment assistance on 24- or 27-month leases ranges from $1,450 on the 2013 Cruze to $2,420 on the 2013 Malibu Eco, the dealer memo says.

A GM spokesman wouldn’t discuss details of GM’s incentives but said the company will do what is necessary to "level the playing field" with rivals’ offers.

The incentive being rolled out today on all ’12 and ’13 Silverados and Sierras gives dealers discretion on how to spend the extra cash.

GM will award dealers “instant value certificates” worth $250 apiece. Dealers will receive two certificates for every five pickups they had on their lots on Monday. They can apply up to eight of the certificates, or $2,000 total, on any given pickup deal.

For example, a dealer with 100 pickups in his inventory will get 40 of the $250 certificates. That gives him an extra $10,000 to lubricate deals. The dealer could use as little as $250 per pickup sale or as much as $2,000.

A Chevy dealer in the Southeast who didn’t want his name used said that the extra cash should help dealers clear their lots.

“I’ll tell my guys that we’ve now got another $500 or $1,000 to play with, so let’s call back every customer who came through here in November looking at a truck,” the dealer said.

"The problem is, a bunch of them could be driving Fords or Rams already."

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2013 Chevy Malibu LS

Low-Mileage Lease for Qualified Lessees
$189/month 24 month lease.

$1,999 due at signing (after all offers). Includes security deposit.
Tax, title, license, dealer fees and optional equipment extra.
Mileage charge of $0.20 /mile over 24,000 miles.

Example based on survey. Each dealer sets own price. Your payments may vary. Payments are for a 2013 CHEVROLET Malibu w/LS with an MSRP of $23,150. 24 monthly payments total $4,536. Option to purchase at lease end for an amount to be determined at lease signing. Ally Bank must approve lease. Take delivery by 01-02-2013. Mileage charge of $0.20/mile over 24,000 miles. Lessee pays for maintenance, repair and excess wear. Payments may be higher in some states. Not available with other offers. Residency restrictions apply.

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2013 Chevy Cruze LS

Low-Mileage Lease for Qualified Lessees
$149/month 24 month lease.

$2,100 due at signing (after all offers). Includes security deposit.
Tax, title, license, dealer fees and optional equipment extra.
Mileage charge of $0.20 /mile over 24,000 miles.

Example based on survey. Each dealer sets own price. Your payments may vary. Payments are for a 2013 CHEVROLET Cruze w/automatic transmission & Preferred equipment group with an MSRP of $19,020. 24 monthly payments total $3,576. Option to purchase at lease end for an amount to be determined at lease signing. Ally Bank must approve lease. Take delivery by 01-02-2013. Mileage charge of $0.20/mile over 24,000 miles. Lessee pays for maintenance, repair and excess wear. Payments may be higher in some states. Not available with other offers. Residency restrictions apply.

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2013 Chevy Traverse

Low-Mileage Lease for Qualified Lessees
$259/month 24 month lease.

$2,919 due at signing (after all offers). Includes security deposit.
Tax, title, license, dealer fees and optional equipment extra.
Mileage charge of $0.20 /mile over 24,000 miles.

Example based on survey. Each dealer sets own price. Your payments may vary. Payments are for a 2013 CHEVROLET Traverse 2WD w/LS Preferred Equipment Group with an MSRP of $31,335. 24 monthly payments total $6,216. Option to purchase at lease end for an amount to be determined at lease signing. Ally Bank must approve lease. Take delivery by 01-02-2013. Mileage charge of $0.20/mile over 24,000 miles. Lessee pays for maintenance, repair and excess wear. Payments may be higher in some states. Not available with other offers. Residency restrictions apply.

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2013 Chevy Corvette

$3000 Bonus For Current Covette Owners

Ultra Low-Mileage Lease for Qualified Lessees
$599/month 39 month lease.

$1,459 due at signing (after all offers). Includes security deposit.
Tax, title, license, dealer fees and optional equipment extra.
Mileage charge of $0.20 /mile over 32,500 miles.

Example based on survey. Each dealer sets own price. Your payments may vary. Payments are for a 2013 CHEVROLET Corvette with an MSRP of $50,575. 39 monthly payments total $23,361. Option to purchase at lease end for an amount to be determined at lease signing. plus $350 or turn in vehicle and pay $395 termination fee. Lessor must approve lease. Take delivery by 01-02-2013. Mileage charge of $0.20/mile over 32,500 miles. Lessee pays for maintenance, repair and excess wear. Payments may be higher in some states. Not available with other offers. Residency restrictions apply.

[62Lincoln]

Same old GM.

[Perian]

If the conquest incentive still applies to the Malibu lease as shown above, well...Merry Christmas from GM.

[steve333]

Make better and more reliable vehicles and GM wouldn't have to do this

[KingElvis]

In Chicago, they're offering a mighty tempting lease on the Camaro LS - $259/month and $800 due at signing IIRC. Leases with lots of money due at signing are, IMO, a rippoff. You're basically just renting the car so the down payment is just a front loaded $ transfer. Also it's a 12,000 mile lease so you don't have to worry about taking long car trips. Where else can you get 323hp for this kind of money?

[Rocket 88]

GM should use 'sign and drive' to move product. Nothing makes the buying decision easier then not having to hand over cash except for title, plates and taxes.

[majicbz07]

Make better and more reliable vehicles and GM wouldn't have to do this

I'll even add better control of production output for each vehicle.

[richmond2000]

there is nothing new here as
"A" the trucks are OLD and about to be replaced + the new one is about to be shown so pushing down inventories B4 the showing of the new and better(hopefully)
truck

"B" Christmas is usually a hard sell season so the deals get piled on every year @ every brand

[cbennie2]

Make better and more reliable vehicles and GM wouldn't have to do this

Wow....really....

That is such an informative post....

[blowngtp]

Lease may work if you are in the NE. The suck in the South where nothing is really close. Lets see. I will lease your car to help get my inventory down on paper. Dont really enjoy the car and return to dealer in ~ 2 year with <24K miles. Did I miss anything.

The miles needs to be more generous or you just making GM books look good or for that fact any other.

[62Lincoln]

there is nothing new here as
"A" the trucks are OLD and about to be replaced + the new one is about to be shown so pushing down inventories B4 the showing of the new and better(hopefully)
truck

"B" Christmas is usually a hard sell season so the deals get piled on every year @ every brand

You are correct, nothing new here. GM overbuilt without regard to actual sales, so they booked the revenue and now they are selling down the inventory. Now they will have to cut back on production in early 2013 to correct the overbuilding, and lose revenue in the process. Just like the old GM. Nothing new here.

[Joe in T.O.]

And they said they weren't going to do this....

[silvergoat2k6]

And they said they weren't going to do this....

Yeah, and my last wife said she'd be with me forever too...words are pretty much meaningless these days.

[Evo69]

Make better and more reliable vehicles and GM wouldn't have to do this

Really? Their vehicles are running up into consumer resistance because of high pricing. Predicted this ever since the Cruze was released, then the Malibu came in brutally priced in my opinion. What they should do is control production to match demand. They already are idling some plants, they will use these new lease deals to clear off some extra inventory.

[megeebee]

Same old GM.

Have you checked the other automakers? GM has actually been slow to do this of late.