GM Is Offering Price Protection On Sold Customer Orders

GM has implemented a Price Protection policy that will shield new sold orders from having price hikes applied to them, according to a recent report from CarsDirect.

The automaker sent a bulletin to dealerships recently indicating that it will offer GM Price Protection on all new sold orders from its Buick, Chevy, Cadillac and GMC brands – even for high-end models like the Chevy Corvette. This policy will ensure GM dealers honor the agreed-upon price of the vehicle when the sold order was registered and will not apply a price increase between when the order is placed and when the vehicle is delivered.

Vehicles often undergo minor price increases throughout a given model year, like the recent price changes applied to GM’s full-size truck lineup, for example. Without a price protection policy in place, a customer may place an order for a vehicle at a certain price and then discover the price of the vehicle has been raised when they go to take delivery. This may be a larger problem in 2022 than in years previous, as supply chain disruptions, inflation and other factors have forced automakers to raise the prices of certain vehicles this year more than they otherwise might have.

To qualify for GM Price Protection, the production date of the vehicle must be on or after the effective date of the price increase. If the vehicle was already built when the price increase was applied, the customer will have to pay the uprated price. Additionally, the name of the customer who ordered the vehicle must match the name of the customer who takes delivery of the vehicle at the dealership in order for the protection to be valid.

GM offers Incentive Protection on 2021 and 2022 models that are financed at non-promotional rates, as well, according to CarsDirect. This allows a customer to receive a credit towards their purchase if a promotional incentive is lower at the time of delivery versus the time they placed the new sold order. While GM Price Protection can be applied to performance models like the Chevy Corvette, Incentive Protection cannot.

GM’s rivals over at Ford also price protection if the vehicle’s price increases between the time of order and when the vehicle is invoiced. Similarly, FCA offers price protection for the agreed purchase price between when the order is placed and delivery, just like GM.

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Sam McEachern: Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

View Comments (20)

  • "To qualify for GM Price Protection, the production date of the vehicle must be on or after the effective date of the price increase. If the vehicle was already built when the price increase was applied, the customer will have to pay the uprated price."

    I think this is incorrect this says a ordered and produced vehicle is not protect while an ordered and not produced vehicle is not. Here's what is says on CarsDirect.

    "The production date, or build date, of the vehicle, must be on or after the effective date of the price increase. The dealer must submit the sold order to GM within one business day of the price increase. The vehicle must be delivered immediately to the customer who placed the order. That is, the name of the customer who ordered the vehicle must match the name of the customer who receives the vehicle."

    This says it does NOT penalized an already built car. That car will leave the factory with the MSRP sticker at the time of production.

    • I agree, the article is inaccurate. It's simpler to say that you get to choose the better price between the MSRP at the time of order and whatever MSRP GM applies to the actual vehicle invoice/window sticker.

  • Looks like all this does is make sure that the MSRP that is stated when ordered will be the MSRP (or sticker price) when the vehicle is built.

    It does not seem to address the tens of thousands of dollars that dealers tack on for market adjustments etc. Unless GM makes changes to their dealership agreements to penalize those dealerships, it will just keep on happening.

  • I'm a little confused by this announcement, as it was something GM always did. I use to be a fleet manager, and GM always honored the MSRP on the date of the order, not the MSRP at the time of delivery.

    • I think this all revolves around Ford's commercial airing that says they will honor the sticker price at time of order for vehicles. Those ads started about a week or so ago. Just typical GM reactionary announcements.

  • I'm interested to know whether this includes any price bump from an ordered vehicle not being delivered in the original model year ordered (e.g. I ordered a 2022 suburban in December that likely will become a 2023 suburban order - am I still going to be able to get the stated 2022 price or will I have to pay whatever price hike they apply to the 2023 MY)?.

    • yes, this is what Ford advertised in the last week or so. You can order your vehicle, and if it takes 6 months or 18 months to build it, you get the original pricing. Except Ford also goes on to state that if the vehicle is being sold for a lesser amount or has incentives at the time of delivery, you will pay that lower price.

      • I don't believe GM's policy extends across different MY's. Outstanding orders will be canceled, and you start again. That's because there can be significant changes between MY, e.g. different features or a whole new generation of car. Corvette orders frequently encounter this.

        Also, it's stated in the article, GM will also honor the better incentives between the date of order and delivery, with the exception of financing-based ones that change due to interest rates.

        • I’d agree Sam. You’re required to create a new order if they can’t deliver the year you ordered. So new pricing could occur. Not much you can do about it. Maybe the dealer will negotiate a price reduction.

          Keep in mind, there could be upsides to this as well. I’m expecting to have to change my Sierra order to a 2023. Hopefully if that’s necessary, I’ll get some added features or something. Regardless, not worth worrying about. If it’s a major issue, I shouldn’t worry about getting a new truck now.

          • Good point on the technically creating a new order; it'd be nice if GM followed Ford's tack in this.

            Though given that the '22 MY cutoff is coming up soon (I believe) and dealerships will have to re-tool the new orders for '23, how are they going to know what to price the new orders at until the '23 MY has been announced (likely no announcement till June or July on any changes and expected pricing)?

            Anyone have any experience with this from the '21 to ''22 model years? Will they just leave the price blank until the new MSRP is released?

          • The 22 MY order books will shut down and 23 MY will open up. This will occur prior to production change over.

            You’ll have to go in and compile a new 23 MY order and pick options all over again. Supposed to retain place in line despite the change over in MY.

  • Buyer Beware! Some unscrupulous dealers do not honor all the rules of the GM employee/retiree purchase plan. I was a victim who learned the hard way.

  • I'm glad GM is doing this. One of the reasons that makes GM one of my favorite car companies is that they offer better cars at lower prices than competitors.

  • I received a new 2022 gmc sierra denali 1500 ultimate. Price went up 2,400.00 from when I ordered it! I had a reservation in Nov. Ordered it Jan 27 (accepted) and received ot on April 30. Dealer would not honor the price when ordered. Stated GM has burned them before and not reimbursed them. So they would not do it. BS

    • It Seems that you too were a victim of another unscrupulous dealer. But with shut down of Pontiac and Saturn dealers, there was such a dealer backlash, GM has had to change many policies making it easier for dealers to make more profit. GM even raised the price of chassis manuals 10 fold in an effort to force owners of GM cars and trucks to go for dealers for repair and service work.

  • Does anyone know when GMC did a price increase for the 2022 GMC HD? My dealership claims that GMC did 3 price increases since January. I ordered in February and my vehicle was built the week of 5/8/22. The window sticker went up $1000 and my dealership is saying tough shit on the price difference. My dealership claims GMC doesn't notify them when they do a price increase? Well, how do they know GMC has had 3 price increases since January if they haven't been notified?

  • Well my dealer here in MI just got around GM Price Protection rules I had a retail sold order in early may on a C8. I found out this month my order cancelled due a mistake the dealership admitted to. Now they are re-entering the order and said that price protection is now gone since the order is past the cut off date.

    Well it wasn't that way until they made the mistake. I have been saving and working towards a decent downpayment on this car, I have had this car on order since last september, finally had a order number and its all gone now. Is there any help or contact at Chevrolet that can review what has happened?

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