Re: Blame For Declining Silverado Sales: Complicate Incentives?

One dealer in the Southeast said he lost a customer in early May who wanted a gold Buick Enclave and didn't understand why it cost $4,600 more than an otherwise identical white one on the same lot. "It's just like shooting craps at the casino," said the dealer, who asked to remain anonymous when discussing the program. "I couldn't sell them the gold one as cheap as I could the white one, so he left confused. He said, 'I don't understand.' The only difference was the color and the VIN number."

You get 20% off as long as you take the year old $75,000 pink pickup truck with vinyl bench seats, 2WD and hubcaps at the rear of the dealer lot.

Perhaps GM has made the correct move here...but note these "Bonus Tag" programs continue at Buick and GMC.

Which pickup truck manufacturer will have the guts to bring list prices to more realistic selling point levels? $10,000+ off the inflated sticker price looks like a great deal on a big truck, until you realize that most of the savings (here in New York for example) are subject to sales tax.



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Re: Blame For Declining Silverado Sales: Complicate Incentives?

You get 20% off as long as you take the year old $75,000 pink pickup truck with vinyl bench seats, 2WD and hubcaps at the rear of the dealer lot.

Perhaps GM has made the correct move here...but note these "Bonus Tag" programs continue at Buick and GMC.

Which pickup truck manufacturer will have the guts to bring list prices to more realistic selling point levels? $10,000+ off the inflated sticker price looks like a great deal on a big truck, until you realize that most of the savings (here in New York for example) are subject to sales tax.

Yup, it's why Im going used and saving the headache of these ridiculous sticker prices.



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Re: Blame For Declining Silverado Sales: Complicate Incentives?

A co-worker got caught-up in this 'game' recently, he doesn't shop dealers, he goes to "His Chevy Store" anyway his Silverado lease was up, and they were pushing him towards a "A bright blue that looked like a toy in a cartoon" (to him).

Even though it was more expensive than a more traditional, simpler one he wanted (chrome bumpers, etc.), it was $75/month cheaper a month to lease, that was basically his only option at that price-point. He left pissed, the next day he turn in his lease and going to drive his Saturn Sky all the time now, for the time being. He's now open to other makes and looking at Ram's and F150's..................

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

A co-worker got caught-up in this 'game' recently, he doesn't shop dealers, he goes to "His Chevy Store" anyway his Silverado lease was up, and they were pushing him towards a "A bright blue that looked like a toy in a cartoon" (to him).

Even though it was more expensive than a more traditional, simpler one he wanted (chrome bumpers, etc.), it was $75/month cheaper a month to lease, that was basically his only option at that price-point. He left pissed, the next day he turn in his lease and going to drive his Saturn Sky all the time now, for the time being. He's now open to other makes and looking at Ram's and F150's..................

That is the best decision your friend could've ever made.

Seriously. Don't lease your cars.

 

Price. You can get a ram for 5k less and 0 percent. Makes the discount about twice as much if you finance. Ford is somewhere in between.

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

Things can't be convoluted to the point the DISCOUNT is the baffling part, let alone picking the right model.

"Bonus tags" seemed like a great idea for some, but then it does turn into only on certain oddball cars, people shopping all over to find an old age bonus tag one...etc, etc.

At the end of the day, discounts are there, but they get confusing sometimes to the point a dealer or manufacturer can barely track what they're doing, let alone Joe, Bob, Don, Mary, or Beth who just want "a gold Enclave" and see prices of the same car $4000 different on the same lot.

GM trucks and SUV's have gotten so extremely over inflated in regards to pricing (how is a base 2wd Suburban with cloth bench now $55k...), but only to build in discount room. Weird market, dictates weird tactics, but this needs to be simplified.

Want to sell more? Fix the MSRP's to more normalcy, and if you're discounting one, you're discounting them all. Have old age units? Then give a specific extra $500-1000 bonus on those. Not percentages, or bizarre combinations.

This is one issue...

"The Silverado not selling because" is not the price. All full size trucks are crazily priced. It's that they're old school and out classed, from the start, and didn't move the "cool I want that!" needle at all, unfortunately. Shame, as other gens have done so well.

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

Things can't be convoluted to the point the DISCOUNT is the baffling part, let alone picking the right model.

"Bonus tags" seemed like a great idea for some, but then it does turn into only on certain oddball cars, people shopping all over to find an old age bonus tag one...etc, etc.

At the end of the day, discounts are there, but they get confusing sometimes to the point a dealer or manufacturer can barely track what they're doing, let alone Joe, Bob, Don, Mary, or Beth who just want "a gold Enclave" and see prices of the same car $4000 different on the same lot.

GM trucks and SUV's have gotten so extremely over inflated in regards to pricing (how is a base 2wd Suburban with cloth bench now $55k...), but only to build in discount room. Weird market, dictates weird tactics, but this needs to be simplified.

Want to sell more? Fix the MSRP's to more normalcy, and if you're discounting one, you're discounting them all. Have old age units? Then give a specific extra $500-1000 bonus on those. Not percentages, or bizarre combinations.

This is one issue...

"The Silverado not selling because" is not the price. All full size trucks are crazily priced. It's that they're old school and out classed, from the start, and didn't move the "cool I want that!" needle at all, unfortunately. Shame, as other gens have done so well.

The "Bonus Tag" started out as a the "old inventory" (dating program) basically gave dealers a little extra help on units, that for whatever reason weren't selling, hadn't sold yet.

[I actually bought my 1999 Sierra under this program; it had the 4.8L (vs. the 5.3L) and was a harder sell, the 4.8L V8 was ~$800 cheaper than the 5.3L so with the added discount, it was $1,500 cheaper than one with a 5.3L, the 4.8L was fine for my use(s) and that was at a time when there was none to very small rebates of any kind]

Anyway this was good, but then left higher-volume Dealer, or Dealers that didn't order a bunch of incorrectly-optioned vehicles out in the cold, they had no old trucks to get the extra cash. The program really worked well, so then GM expanded it and started building it into advertising campaigns more-and-more, and allowing Dealers to put the tags on basically what they wanted.

Now GM advertises it so much; when a Dealer has a poor selection, it almost turns into a "bait and switch" effect............

"Oh, sorry the one in the ad, just sold yesturday"

or

"The only trucks we have with bonus tag are 2WD, Double-Cab, W/T with 8' box that a contractor backed out of, do you want white one or a white one?"


Boiled-down; too much of a good thing...........

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

Truck guys are a different breed, I know a lot of friends who still hold the "Government Motors" bailout against Chevy - it sent a lot of business to Ram. Hopefully the re-design and a better marketing campaign help but it's going to take a long time to get some people back.

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

Truck guys are a different breed, I know a lot of friends who still hold the "Government Motors" bailout against Chevy - it sent a lot of business to Ram. Hopefully the re-design and a better marketing campaign help but it's going to take a long time to get some people back.

My dad is in that same bunch and has stated he got his Ford just because GM had to be bailed out.

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

It's about time! I've grown weary trying to locate bonus tag vehicles to get the best deal.

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

There is no problem, part of GM'S greater plan.
Just ask them, lower sales and higher ATP is the goal.

All the other buyers are ignorant of a better product.
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.psst, is that the PC answer around here??

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

There is no problem, part of GM'S greater plan.
Just ask them, lower sales and higher ATP is the goal.

All the other buyers are ignorant of a better product.
.
.
.
.psst, is that the PC answer around here??

There is the possibility that offering less product for more money comes across as "gouging" to some buyers.

(or that the things not available matter to some buyers?)

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

Now GM advertises it so much; when a Dealer has a poor selection, it almost turns into a "bait and switch" effect............

"Oh, sorry the one in the ad, just sold yesturday"

or

"The only trucks we have with bonus tag are 2WD, Double-Cab, W/T with 8' box that a contractor backed out of, do you want white one or a white one?"


Boiled-down; too much of a good thing...........

GM/Ford and FCA is famous for National Advertising of a Vehicle, that NO Self Respecting Dealer would stock anyways. So yes, you do get Floor Traffic, looking for the $28000, Crew Cab 4x4, you know like the Picture shows.

No one reads the "2wd Super Cab 4.3L V6, No AC, plus Destination/Air tax/PDI"

So we are suppose to up sell from a Nonexistent, vehicle. That only draws out the Price Shopper from 3 States over.

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

right now RAM in Winnipeg is having a "truck-my-life" sale every RAM 25% OFF and NISSAN is 5500 OF ALL TITANS (believe NOT XD) and another 4500 IF YOU OWN a different brand Pick Up (trade NOT required)
and Ford is almost always 8500 OFF with NO ads beyond dealer ones and F150's around town with 8500 OFF stickers on them

simple and straight forward at least from the "surface" and NONE of this Pink single cab W/T stuff

 

Indeed the entire "bonus tag" gimmick is a farce.

When I shopping for a Malibu back in March GM had just started the "tag" promo for the 'Bu. Virtually no cars were tagged at any dealership near me (was looking for a Premier model in particular). I found one Premier that was tagged at a dealer I'd never heard of, 100 mi. from my home. I found the identical car at a local dealer but it wasn't tagged. Color me baffled why the same car was discounted at one dealer but not at another.

The entire promotion is confusing at best, at worst it really can repel customers.

 

Discounting and adding other incentives to a pre-inflated price seems to work for most people.

 

I prefer an honest price and none of this discounting. However, JC Penny tried honest pricing and failed miserably, seems like we like the illusion of a deal. As a result I think GM needs to keep the discounts.

 

We had this issue several times at our dealership. The customer didn't understand why we only had "select" models with discounts and every time you try and explain it's only for certain inventory people start becoming angry. Thank god they are simplifying this for the dealerships.

 

I posted this a while back (last year?) when we looked at an Encore. I figured out the incentives, but it was as frustating as could be.

The Encore had some cash back for everyone. You could use your GM Card if you had it. I THINK some GM card holders had a bonus top-off type offer, but some others didn't get it (seemed random as to who got it.) Conquest bonus cash added if you were trading in a competitive lease....but not a loyalty lease. NO cash at all if you were buying it outright, but there may have been a financing incentive. Then, there was a HUGE bonus cash additional offer on some of the vehicles on the lot...it didn't matter if they were the same year or not...but it depended on how long a particular vehicle was in the dealerships inventory. Both vehicles could be the same model year, same trim..but if one was on the lot a little longer it may have an incentive, while others didn't.

It doens't just apply to GM trucks...it works with some cars and crossovers...and it has been going on for a while.

 

I am OK when 2 years ago it was "OLD inventory blow out sale and when gone the SALE IS GONE"
but to keep it around and NOT have a clear "this is OLD STOCK" promo is its failure

FORD USED TO BE BAD for advertising "A-Z plan ONLY with VERY GOOD financing ETC" to get the ADVERTISED price/ deal

 

This is just one example of how complex, convoluted, and confusing the companies have made the process of buying a new vehicle. I'm still driving my truck three years after I planned on trading it in because of how much I want to avoid doing any business with a car dealer. Not just GM, but all of them. They're not in the car selling business anymore. They just use the car to sell you financing, or to turn you into a perpetual lease customer. The paperwork has also gotten so involved that you're not even sure what you've OKed, or not. Basically, if you have the money, and just want to buy a certain vehicle, the dealerships want nothing to do with you.

 

Yeah it's comical after you make the actual deal on the vehicle all the crap they try selling you after. First it's the actual finance rate or lease rate. Then it's selling the extra warranties. Then it's signing you on for Onstar or wifi or XM radio etc. Then it's additional paint sealants and gap protection etc. Suddenly your monthly payment of 425.00 swells to over 500 and they are laughing all the way to the bank.

 

The Bonus Tag Program was likely a factor but seriously doubt it covers it all.

Also think a big part of that has to do with how the dumber and or less scrupulous Dealers handled it - but I digress.

At least equally important is how stiff GM has been about 2017 discount compared to virtually all others - especially perhaps with the 1500s.

 

The answer for the declining share can be seen at the bottom end of the market.

Look at what $30K buys for a Silvy vs. all the others. For that price you get a 2wd V6 two door LS, while, especially with Ram, you are getting substantially 'more truck' - 4wd and or, higher trim level and quad cab. Even the new titan has asking prices that are way below Silvy.

I think this is also linked to the Colorado being the 'entry' truck as well. People see they get a nicer looking, better equipped Colo for the same $.

 

This.

It's not about price, it's about value.

For $56,900 (not exact, but close) MSRP, I got an F-150 with push button start, bigger fuel tank, Panoramic sunroof, rear HVAC vents and the largest Crew Cab in the full - size class.

My $54,000 MSRP Silverado doesn't have any of those things as an OPTION.

Yes, I got a better deal on my Silverado; but only because it was a leftover '16 demo. If I'd have bought one of the '17s I was looking at, it would have been the same price as the F-150.

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

I would say Job#1 reason for sales decline is those ads that show the Chibby aluminum bed getting a bunch of holes punched in it when they drop a dozer-load of easily-impressed airheads into it.

Those Ford ads really hurt! :frankie:

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

In Feb 2017 I came across a ad on Facebook, "New Silverado, $19,995", So For that price I was assuming it had a A/C delete, Bed delete and no headlights, And so I called, it was a SCSB W/T, With A/C, I was interested, but of course that price leader was already sold, I asked for another like it, But all he had left price wise was a New SCSB LS, which adds the Chrome Package, Pwr Windows, Pwr/Heated mirrors, 7” MyLink Stereo with 6 speakers, Keyless Entry, ETC. Cash price $20,500 before any trade was involved (MSRP was $30,700), thats 34% off MSRP, was cheaper than some of the used Standard cabs with equal equipment, So I jumped on that like a Crow on a Cheeto.

Anyway on to confusing rebates, A coworker asked me to find him that same deal now, (May 2017), But $24,900 W/T, and $25,900 LS is the closest I can find now for brand new trucks. Salesman told me that rebate details change a bit every month, I said but it can’t be 5K difference from Feb to May, he said it does change that much from month to month.

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

In Feb 2017 I came across a ad on Facebook, "New Silverado, $19,995", So For that price I was assuming it had a A/C delete, Bed delete and no headlights, And so I called, it was a SCSB W/T, With A/C, I was interested, but of course that price leader was already sold, I asked for another like it, But all he had left price wise was a New SCSB LS, which adds the Chrome Package, Pwr Windows, Pwr/Heated mirrors, 7” MyLink Stereo with 6 speakers, Keyless Entry, ETC. Cash price $20,500 before any trade was involved (MSRP was $30,700), thats 34% off MSRP, was cheaper than some of the used Standard cabs with equal equipment, So I jumped on that like a Crow on a Cheeto.

Anyway on to confusing rebates, A coworker asked me to find him that same deal now, (May 2017), But $24,900 W/T, and $25,900 LS is the closest I can find now for brand new trucks. Salesman told me that rebate details change a bit every month, I said but it can’t be 5K difference from Feb to May, he said it does change that much from month to month.

My rule of thumb is 20% off MSRP is where to start. It cuts through the arithmetic.

 

Nothing a new design inside and out won't fix.
The truck just isn't very appealing looking, GM needs to actually put in some effort.
Compared to the RAM, which looks like Dodge actually gives 2 craps about their product

 

Perhaps there is a sizable portion of Chevy buyers that simply don't like the current front end styling?
Perhaps they like a simple, clean look and are turned off that Chevy seems to be chasing Ford and Toyota to see who can add odd lines, chrome and bulges everywhere.

To me I'm perplexed how Chevy could have gotten the front of the Colorado, Tahoe and Suburban so right could get the front of the Silverado so wrong.

 

Maybe if they fixed mine (and the others') transmissions we'd buy more. I'm not trading mine in until they fix mine, and they have refused to do anything.

 

Also, the incentives are garbage. When I ordered mine, I got $4500 worth of incentives off of supplier pricing. Currently, its $500 off. Same month... 2 years ago.

 

Chevy had a quiet program in May that allowed dealers to use the Bonus Tag savings on all Cruzes, not just the two or three oldest cars on the lot. This led to a friend buying a Cruze hatch as it made the shopping simple.

He was always flabbergasted that he couldn't find a good Cruze deal, but I could for him by searching around the internet for an hour. He almost bought a Civic EX-T with Honda Sensing as the price was the price, no convoluted discount mumbo jumbo. What saved the sale for Chevy was that Honda dealers don't order many cars with the safety package. Of over 1000 Civic EX or EX-T trim models within 30 miles of us, only 23 had the sensing systems.

What did my friend Larry learn from this - Honda is better at providing clear pricing, but Chevy dealers are better at ordering a wide range of options on cars on the lot - not just ordering cars for value price shoppers.

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

Some of the GM dealers are offering 20% off the Sierra 1/2 ton and 30% off "select" vehicles like the Tahoe. Customers are also being offered 5 thousand over KBB for their trade, 2010 or newer. These dealers still have new 2016 trucks with ten thousand off sticker. I have not heard of anyone getting the private internet incentive when you do a "build", I used to get a $1500 prospect but not lately. I wonder how many "yuan" or for those who prefer the formal term "renminbi" would you get discounted in China ?

 

Re: Blame For Declining Silverado Sales: Complicate Incentives?

Customers are also being offered 5 thousand over KBB for their trade, 2010 or newer.

Most used car managers don't use Kelly Blue Book for anything. Banks use KBB. Dealers use Black Book™ and look at their local auction sheets so as not to be buried themselves. And they're not above "snatching" a trade-in (offering substantially under value).

If people you know are getting substantially over value, there's some over-allowance going on, coming out of the new car gross.

 

For June, Chevy is switching to a strategy of giving uniform discounts on certain trim levels, including 17 percent off all LT versions of the 2016 and 2017 light-duty Silverado, a spokesman said today.

Chevy officials hope the new messaging will be simpler for dealers to communicate and for customers to understand than the tags, which were allocated each month to dealers, who then assigned them to individual vehicles.

So will we see June as a huge truck month where GM tries to sell the house down?

I wonder how quickly GM can turn this around......