GM discount and Factory Invoice?

Question

I am looking into a new car and am wondering
When a dealer sells a car to a person with a GM discount, does that lower the Dealers factory invoice for the car? Or does the Factory invoice stay the same and the dealer just make less money off the car? I am wondering becaues I want to know how much leway I have in negotiating with the car sales man.

Answer 1

The actual invoice does not change and as stated, there is no negotiating involved, except for the amount of your trade, if applicable. In addition, to help clarify for GM, you actually get all dealer rebates, such as dealer cash or old inventory bonus cash(in most cases). The discount is a privilege, not a right and dealerships can refuse the discount, which happens often on new vehicle which are hot and hard to keep in stock.

Once the transaction is complete, dealerships will get paid back a pre-determined amount based on the vehicle sold, as long as it was legit. I hope this helps you, and Good Luck,

Answer 2

If you are purchasing at GM Employee price you have no room to negotiate. If a GM dealer sells a vehicle for less than the GM Employee price they are in breach of contract. If a person who is eligible for GM price pushes for a discount below the GM price they can lose there Employee Purchase benefits.

The other answer is the dealer gets a kick back from GM when looking at a GM invoice you will see a line that say's MEMO: $__________. That designates the money to be received by the dealer after the vehicle is sold to an Eligible GM Employee. That amount reflects 5%of the GM Employee Purchase price.

So, Initially the dealer shows a loss for the sale then you factor in the 5% money and it all works out.

To Structure a GM Employee Deal:

On Invoice GMS:
Less Trade
Plus Tax
Less Rebates
Max Dealer Fee on GM Employee = 75.00

Now if you are not GMS and are not supplying the dealer with GMS # they are probably pulling you in under the friends and family program where you get GM Supplier Price. Supplier price is usually with in 100.00 of invoice and the dealer only gets 2%

Answer 3

Not sure what you mean by a "GM discount". Do you mean an employee or "friends & family" type discount? These are flat rate discounts that cannot be negotiated. The invoice does not change -- the dealer basically makes a flat, set fee. That's why it's a voluntary program and not all GM dealers participate, as there is a limited profit from these deals. Also, the discount is not available on all models (specialty cars and hot new models are typically excluded).

Answer 4

The dealer is gets paid back for any rebates offered by the Mfg.

Answer 5

if you are gms you cannot negotiate on selling price! if you have a trade in thats where you negotiate. its a pretty cut-and-dry deal.