Price Games: GM Drops Impala List By $1000 - GM Cuts Impala Rebate By $1000

[Perian]

Does that headline make any sense?

If you drop the list by $1000 and then cut the rebate back by $1000 - I'm sorry, but what changed?

Another example: All of a sudden the Cobalt two and four door models have different pricing and no rebates.

What's really going on here?

Source: Rebate and pricing information were taken from www.gmbuypower.com

[5 watt]

In reality nothing changed, but reality is meaningless. They are trying to simplify there pricing by kicking the rebate habit. This will mostly help in side by side comparisons witch rarely include rebates. Plus you could potently pay less in sales tax and you’re your paper losses for deprecation will be less. Remember the ultimate goal is to increase transaction prices.

[93typhoon]

Think of the millions of $ GM can save by not having to advertise the rebate of moment!

[godsthere]

Chevy Cobalt, 48 month loan @ 6.5%


Saturn Ion 2, 48 month loan @ 0%

Saturn had its price cut back when the 2006 models came out. Now chevy has cut its prices but why is there such a large difference in borrowing costs?

[worr]

Originally Posted by Perian

If you drop the list by $1000 and then cut the rebate back by $1000 - I'm sorry, but what changed?

I wouldn't say that. Since so few people pay MSRP anyhow...you are just meeting them where they nomrally purchase a car and then taking away the rebate. Net effect is the customer is paying more than he would normally pay.

BTW...the previous rebate was $500 that is since the red tag sale.

I was going to purchase a new Impala in the coming months...but now I just saw my price go up substantially! No, I wont be buying in on this plan.

Maybe new car shoppers don't haggle as much as me or others here, but I see a net loss for those who do their homework. This is a nod toward the more impulsive buyer...and it may work. I hope it doesn't for my own sake.

[Perian]

Originally Posted by worr

BTW...the previous rebate was $500 that is since the red tag sale.

I don't know where you live, but here in the Northeast, the Impala rebate was $1000 for purchases, and $500 for those who leased.

[worr]

Originally Posted by Perian

I don't know where you live

North Central.

Regardless, the net effect for me is a substantial price increase. I was negotiating at invoice and waiting for new incentives. I would still buy at invoice, but now without a rebate...so Chevy would get 1,000 more in cash from me than in the previous scenario. Did the value go up that much in this climate?

I don't think so. Dodge isn't playing these games, however....so now the Charger R/T is back on the boards.

Let me know if I got something wrong here.

[Dead Dude]

I don't know if theres something wrong with the pricing your describing, but theres a symptom you described and thats why GM has to make these moves.

Originally Posted by worr

I was negotiating at invoice and waiting for new incentives. I would still buy at invoice, but now without a rebate...

Unfortunately, it creates a transition period when shifting from this markdown mentality to sticker price where people relying on the old system get lost much like yourself.

[BigBadBflo]

Has invoice not dropped also?

The whole point is it is a big stupid game to start with. Hanging around waiting to see when GMs next big sceme is coming about so you can buy. Only to have a bigger price slash a couple months latter and on next year's models. If everyone was paying a fair price for the cars, there would be no games at all.

Its similar to those supermarkets that mark everything up, only to have carzy buy-one get-one sales every week to bring prices back in line where they should be from the start. I just choose to go to the store with fair consistant low prices and buy what I want. Not waiting around to see what will be buy-one-get-one next week so I can buy it for minimal savings over the other store that has it low enough to begin with. Why shop chicken at $4.50/lb only to buy-one-get-one it every month, when I can just go to another store and get it at $2.20/lb anytime and not have to wait or worry.....

[goblue]

Originally Posted by worr

North Central.

Regardless, the net effect for me is a substantial price increase. I was negotiating at invoice and waiting for new incentives. I would still buy at invoice, but now without a rebate...so Chevy would get 1,000 more in cash from me than in the previous scenario. Did the value go up that much in this climate?

I don't think so. Dodge isn't playing these games, however....so now the Charger R/T is back on the boards.

Let me know if I got something wrong here.

You got something wrong. The invoice price dropped too. You should pay the exact same amount for the car. If you were going to pay invoice, you still will, it will be 1K less, and you'll get a tax savings as well if your state calculates tax prior to rebates.

GM's research showed they were getting nailed by buyers who shop third party sites that don't update for incentives. Also, it helps resale from this point forward b/c though the rebates weren't obvious - they were easy to find, so the used car pricing people knew what the cars sold for. That will stay the same, but what changed is the whole "fire sale - we're cutting prices b/c we're selling garbage routine"

[worr]

Originally Posted by goblue

You got something wrong. The invoice price dropped too.

I must have missed the fine print.

I stand corrected. So it is basicaly a wash then....back to square one.

Nope...just checked they raised some other prices. So it is a tish higher on invoice.

[Perian]

Here's another interesting example:

2006 Cobalt SS Sedan - January 10th: List $ 18,790 w/$1000 rebate. Net equals $ 17,790.

2006 Cobalt SS Sedan - January 11th: List $ 18,685 w/No Rebate. Net equals $ 18,685.

This should really get Cobalt sales moving...

Source: www.gmbuypower.com

[Minnow101]

I just went the the Chevy.com site and did some pricing on a couple of models we were considering. I can't see where the bottom line has changed very much at all. It's not going to take long for the buying public to see through this scam. They will still expect big $$ discounts off of MSRP.

[b4z]

My understanding is that invoice did not change.
Can someone direct me to a link with invoice pricing?

[FamilyTruckster]

The fact is that they still have to make money on the sale of a car. They can only go so low. It's better in the long term to get rid of the incentives and drop sitckers. For most people the first stop is the internet. They see sticker. The lower the sticker the better chance they'll visit a dealer. Plus GM didn't say they were gonna lower ALL the prices.

Nothing changed here in Canada. Some rates went up, some went down. The stickers remain the same.