General Motors is looking to simplify its vehicle incentive programs after receiving complaints from dealerships.
According to Automotive News, GM dealers have frequently complained about the complex nature of the automaker’s vehicle incentive programs. Some incentives will only be available to customers in certain parts of the country or on certain vehicle models and trims, so while it may have many different incentives in place at one time, many customers won’t qualify for any of them.
AN also spoke to dealers who reported receiving conflicting details on incentive programs. For example, they may receive a memo indicating an incentive is valid on certain models, while another may come through indicating it is actually trim-specific.
“We tried to be as simple as possible,” Steve Hill, GM’s vice president of U.S. sales, service and marketing, told AN. “Candidly, we probably have a lot more work to do, but I think the dealers gave us a lot of credit for trying to simplify and make it easier to do business.”
One Chevrolet dealer said they “almost have to interrogate,” the customer to find out which incentives apply to them, as personal information such as their ZIP code can determine if they qualify for an incentive. Some incentives are also only available to current GM owners or lessees of certain models from certain model years.
Price fluctuations can be a problem, as well. A vehicle may fluctuate in price by up to $10,000 between days due to incentives, leaving the customer confused and perhaps distrusting of the dealership. When the price shifts so dramatically, the customer may think that is the dealership’s profit margin, when in reality it’s the OEM’s. This can cause the sale to break down further down the line, as the customer may believe they are being swindled.
GM revised its incentive strategy for January by reducing the number of different incentives it offered. It also stopped offering VIN-specific incentives, using model or trim-based programs only. Most dealers would probably agree the industry has a long way to go with regard to simplifying its rebate programs, but experts AN spoke to indicate GM’s recent changes have been a step in the right direction.
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Source: Automotive News
Comments
These programs have been confusing and disappointing for a long time.
You read through things and what sounded good turns out to be a discount that is nearly impossible to qualify for.
I had one dealer advertise a great price on a Malibu in 08. We got there and each and every discount they offered I did not qualify for. I was not happy with GM but more frustrated for the dealer who advertised it like that was the full rebate to all.
Now on my last two GMC models the incentives were full and clear with no confusion. What was on the window was what they discounted off making it a great deal. No bickering over price.
Dealers definitely need as much help as they can get. When you are advertising an incentive on a Silverado that clearly says $1,000 Equinox cash back, it sounds like GM is confusing the crap out of these dealers.
I have had a 35 year career in the auto business with Olds and Gmc. I can remember pre incentive days. We sold vehicles just fine. Fast forward till today and myriad of confusing and difficult to work with incentives that frustrate and upset both dealer staff and consumers. I have an acronym KISS…Keep it Simple Stupid.. not politically correct but necessary today. I wonder what the future is going to look like??? It seems given the choice complexity most always wins over simplicity. I have one question Why? Customers need to contact Gm and voice their displeasure and dissatisfaction with the complexity of modern car purchasing. Gm has made an effort here at the first of the year to simplify incentives a little bit. We will see how long it lasts before some ivory tower Gm employee who has never worked a car deal in his or her life revert back to the good old bad days of incentive mayhem.
I would not trust the dealers, when rebates are high some will give you MSRP – rebates and think they are giving you a great deal while others “internet” prices beat them out based on rebates you qualify for and that can vary last time I was in the market they varied about $3500 depending on what dealer I talked to,and after the deal is done they can claim rebates from the manufacturer they”forgot” to give you. SLIPPERY
Google the video when car dealers attack
GM needs to lower the MSRP and do away with all the confusion. Remember keep it simple.
I know of many buyers that switched brands because of poor incentives , these buyers will not be back if GM does not fix this and what I think they will not
My G.M. dealer friend says it’s incentive/rebate mayhem! State Motor Vehicle law says all like dealers vehicle cost must be equal, i.e., the same yet G.M. incentives favor larger dealerships and are designed to cut out smaller dealers. He says, ” Try to explain to a longtime customer why you can’t match a price!” G.M. even went so far as to charge him a fee of $100 per incentive to process!!
Almost as bad chevrolet silverado lease 239.00 a month if you have a lease from a non gm what the hell happen to loyalty