GM rebates and getting a good deal

[Ronda93]

I'm thinking about a new truck. Chevy Colorado. GM is running some specials, $4,500 cash allowance or 0% financing and a GM Bonus.

http://www.chevrolet.com/specialoffers/south_central.jsp

I dislike car lots more than the dentist's office so I'm going to start with the DIS community.... what does this mean?

Do I get to make my best deal and take off $4,500? Do I get to make my best deal and get the financing and a check for $1,500? Or does everything have to stay at the MSRP?

I'm sure there many with recent car buying experience who can shed some light on the process.

Thanks,
Ronda

 

[BillSears]

Here is my experience from last year with buying a new GM car:

I was in the market for a new car and was just browsing. I started off at my local no hassle dealership. Every car has the price on the windshield. It's the price period. No barginning, no padding costs, nothing but the price. The cost in the case you're talking about would have been $18,500 for the car I bought. Then you'd either subtract the $4,500 or the $1,500 depending on which incentive you took. I also got a $1,000 incentive for owing a GM car. So when all was said and done I got the new car for $13,000 a darn good deal. They were very straightforward about the pricing, very easy to deal with and overall a pleasurable experience.

Now to contrast this. That same day before I bought my car I went to a different dealership to compare prices before I commited myself to the first deal. These guys were slime. They kept saying how they'd match any deal I had previously gotten. Not only that but since they didn't have any 2003s that matched the other dealerships car they would do it in a 2004. They asked me how much I was going to pay and I told them $13,000. THey asked me how much I was going to put down, I told them $4,000. After spending about 1 1/2 hours finding a car, having the salesman talk to his boss, filling out some preliminary paperwork and such they we so happy to be able to match the $13,000 price. It was pretty easy. They started with $22,500, subtracted $4,500 and $1,000 for the rebates then subsracted my $4,000 downpayment and got $13,000. After all of that I had to explain to these idiots that the $13,000 was the price of the other car, not the price after I put down $4,000. So after working this hard to get the price to $17,000 and acting like they were losing money onthe deal they "reworked" the numbers again and managed to get it as low as $15,000. After spending 2 hours in that place they were still $2,000 higher and they couldn't understand why I wasn't buying thier car.

I'm sorry to have gone on for so long. I guess what I'm really trying to say is find a good honest dealer and buy from them. Some dealers will "juggle" the numbers making it look like you've got a good deal when you really don't. Just compare the final price to you when deciding who you will be buying from.

 

[Ronda93]

Thanks Bill. This is just what I was looking for. What a difference the dealership can make.

Anyone else?

 

[JKanownik]

Edmunds.com quotes an average $28,330 MSRP and $25,639 invoice. Depending on the dealer you will pay somewhere between the two. The $4,500 is taken off of that. You only need to put $1,000 down for the $4,500 off to be a better deal than the 0% financing (assuming you have good credit and get a interest rate lower than 6%), so I would definitely take the $4,500.

If I was you I would price out my vehicle on Edmunds.com at invoice, take off the rebate and then add 3% (or the TMV that Edmunds calculates, whichever is lower). Figure out what the total price would then be and also figure out the monthly payment at 5%, 5.5% and 6% interest rates (or, you may want to go to your bank or credit union and see what rate they can offer you and just use that one). Most dealers will accept 3% over invoice (so, if they give you a hard time on the price just go to another dealership) and if you know what the monthly payments are ahead of time for varying interest rates then there's no chance that the dealer will screw you over by adding in extras or fudging with the interest rate when preparing your loan.

If you don't have great credit the entire dynamic changes. At that point finding a dealer that can get you the best interest rate might outweigh a difference in the price.

-Josh

 

[beattyfamily]

The $4500 is a competely different issue from what price you can talk them down too. Once you talk them down to a price you think is fair, then they take the $4500 off of that. Those bonues are usually coming from the factory and have nothing to do with the dealer, but of course, the dealer will try and make you think otherwise.

I would go to Edmunds and figure out what the fair price is and then you'd go in and negociate to approx that price and THEN you'd tell them to take the $4500 off. They will try and tell you they can't do that but they CAN!

 

[mudnuri]

We've bought too many new cars from GM to list, but this is how we do it.

1st- when we go to the dealership, I already know the invoice price- that is the price the dealer paid for the car...

I WONT pay higher than that price if I'm buying a new car (versus leasing)....

I NEVER tell them if I'm trading, financing or paying cash...they dont need this info to give me their bottom line.

I get them down as low as they will go- and this may or may not already include rebates- I NEVER mention rebates until they've given me their bottom number. Then I'll say "and I assume this does NOT include rebates?"...ha!

I get in writing- what this includes- for us in our last purchase- DH's 01 Crew Cab Silverado- it was the price, rhino lined bed liner installed by dealer, and 4 oil changes (being a diesel these run about $100 each)...

THEN.....I go home......yes- I go home..

I call the dealer the next day and talk to the salesman, and make an appt to bring down my trade, if I have one. This way, they're not padding their selling price, with my trade value. They've already given me the selling price...

DH's pickup- mentioned above, stickered for 48,500 and we paid, after rebates (slim at that time!) and knocking off msrp just over 38,000... The diesel engine- is a BIG ticket item, and added 6500 to our msrp of the base truck. Basically I got my diesel engine, and then some for nothing!...

hope this helps

ALSO- unless you have A+ credit you WONT get 0% with GMAC....so go with the rebates!

Brandy