We all know that pickups are great cash cows for GM, whether it be the Chevrolet Silverado or GMC Sierra. In order to augment those sales figures even more, cash incentives have become a big part of the process, and for lack of better words, have spoiled truck buyers. But is this all coming to an end? Well, things are at least beginning to change.
We’re firm believers that a vehicle should sell itself, and not require major discounts to put it in your garage. The full-size log haulers never really seemed to call for these discounts, but no one complains about keeping money in the bank, right?Considering record sales figures (thanks to the new generation of trucks), GM realizes that there isn’t much need to continue on with these massive (up to $6,000) discounts. According to reports, these discounts will be “shunned.”
U.S. sales and operations VP Kurt McNeil says, “Our dealers have transitioned to selling the deal on the old truck to selling the value on the new trucks.” These new actions are being done to help the future of GM, not only by increasing profit per unit, but to also help with resale value. To clarify, spokesman Jim Cain said that GM will keep cash incentives around “just enough to drive demand but not so much as to hurt resale value, profitability, etc.”
Meanwhile, the aging truck offerings from Ram and Ford remain heavily discounted.
Comments
Well this well and truly SUCKS. When I ordered my Denali there were rebates of up to 3000 dollars…..one of the main reasons I went ahead and took the risk to buy a truck I’d never even sat in or test drove. My truck is supposed to be here in December….if my incentives are drastically reduced….I might rethink my overall purchase. I’m not asking for the crazy discounts given the ’13’s, just keep consistent with what you started. I should be ok as December is traditionally a good month to purchase a new vehicle due precisely to the rebates!
I’m glad someone at GM cares about residuals. It’s about time they did something to make their vehicles worth more over time.
Historically, American car and truck residuals were garbage. Right now, I can hit up a local used car dealers site and find endless pages of Dodges, Chevs, as well as Hyundai’s, Mitsu’. Nearly all of them are 2-3 years old, 20K-50K kms, and in relatively good condition.
Conversely, the used section of a local Honda dealer will have 4-6 year old Civics and Fits with 60K-90K kms selling for at or slightly more than what the independent used dealer had. I realized that it was because Honda didn’t put and incentives on the cars. If they did, it was for small things like winter tires and oil changes; not chrome trim, vinyl appliques, and vent visors in addition to $3000.
Now I know Honda does not sell trucks (per se), but there is no reason for GM to deliberately shoot themselves in the foot by making their vehicles deprecate faster while it’s still on the dealers floor. The quote “selling the deal on the old truck to selling the value on the new truck” is very telling, and I hope it reflects the nature of business at GM in the future.
My brother bought his Sierra crew 4×4 new. Discounts? $7000 + $1000 GM loyalty + $1000 military discount + $3000 cash for clunkers. $12,000 total.
With all those savings he still went ahead and got the lame duck 4.8L because he couldn’t wait 2 weeks to get a 5.3L optioned that same. Older siblings, I tell ya!
Way to go GM. You just raised the prices $1500 on over priced trucks now you cut back on the incentives. That’s going to help Ford and Dodge.
WOW this is a dissapointment. First you put out a mediocre truck that is just catching up to the competition. And then you decide that it is worth more than everybody elses. Ford and Ram are licking their chops right now.
orderd my truck in october still not in production, so msrp went up rebates are down and event gm loyalty discount gone so
looks like santa will be a F150. is gm doent not care about being loyal and causing the taxpayer bailed them out and investors
hold the common stock were wiped out, its time to change folks