The GM Authority mailbag receives a lot of questions, but one of the most common is a question about pricing strategies for Chevy’s pickups. Specifically, readers want to know why the Chevy Silverado is usually offered with substantial discounts, while the Chevy Colorado usually is not. The answer, as it turns out, is largely down to differences in market dynamics between these two popular trucks.
Chevy Silverado
Chevy Colorado
The Chevy Silverado, a full-size truck, runs on a much larger scale than the mid-size Chevy Colorado. During the 2023 calendar year, sales figures highlighted a stark contrast: the Silverado sold 555,148 units, dwarfing the Colorado’s 71,081 units sold during the same time period. This nearly eightfold difference underscores the Silverado’s position as a volume leader within Chevrolet’s lineup. A similar situation was recorded during the 2022 calendar year, during which Chevy sold 523,249 Silverado units, as compared to 89,197 Colorado units.
Sales Numbers - Chevy Trucks - 2023 - USA
| MODEL | YTD 23 / YTD 22 | YTD 23 | YTD 22 |
|---|---|---|---|
| SILVERADO | +6.10% | 555,148 | 523,249 |
| COLORADO | -20.31% | 71,081 | 89,197 |
| TOTAL | +2.25% | 626,229 | 612,446 |
Indeed, scale and volume are key factors influencing the pricing strategies implemented for the Chevy Silverado and Chevy Colorado. The Silverado’s high sales volume allows for significantly higher inventory levels, enabling GM to offer more aggressive discounts. The Silverado’s massive margins further underline this strategy.
What’s more the Colorado is currently seeing high demand and relatively short supply, reducing the need for discounts to boost sales. The Colorado’s competition is currently weaker as well, with limited inventory from rivals like the Ford Ranger and Toyota Tacoma, further reducing the pressure on GM to offer incentives.
Chevy Silverado
Chevy Colorado
Of course, that isn’t to say GM never offers discounts on the Colorado. Back in June of 2021, the previous-generation Chevy Colorado offered nearly $4,000 in incentives. However, such discounts are contingent on market conditions, such as cooled demand and increased inventory levels, which are not currently present for the Colorado.
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Comments
There is much more gross margin and production capacity on Silverado than Colorado. When Silverado days supply goes up GM can and will pile vash on the hood as needed. It really doesn’t cost much less to make a Colorado than a Silverado if both are comparably equipped.
I think this article misses a big point. Gm really wants to sell Full size trucks where the profits are staggering. The Colorado exists as many customers want a smaller truck for the size and potential economy .However GM never intends to sell the volume of midsize trucks that the market would bare as i suggest it would steal sales from the bigger Silverado. So Gm only has the capacity to build about 150,000 between the Mid size Chevy and GMC, where as they can produce 7 or 800,000 full size trucks. Therefore discounts will be rare on the mid size. GM can produce lots of FS and if they get too much inventory in some markets put a little short term cash on the hood , adjust production going forward and keep overall profits high.
They price the midsize close to FS and can sell all they make , so there is no incentive to build to the market demand say 200,000-250,000 as these extra sales would come to some degree as the expense of FS truck.
I just bought a new 24 Z71 and its a great upgrade over my 2016, but GM took away some features this year that my 2016 had and if you want those you have to get a FS, simple things like a power passenger seat (and i have the top interior with heated and cooled leather seats ), No folding rear seat back , etc etc, I knew these things among others were missing when i ordered, but i really like the truck for its size and refinement as well as the upgrades in power with the 2.7 and the 8 speed.
I could have gotten a FS for what i paid , but really like the Colorado for its size. Don’t get me wrong , so far i really like my 24 Colorado , but don’t expect to find any with cash on the hood, you will be lucky to get one without a dealer markup.
This whole strategy works for GM to keep profits high unlike what Ford is dealing with , but its not necessarily what the customer likes.
I realize the 1500 Silverado sells more than the more expensive 2500 & 3500 models. But why is Super-cruise only available on the cheaper 1500, and not on the more expensive 2500 & 3500 models? especially the 3500 dually since it is close to road lane lines with its wide body. It would be nice to be able to drive down the highway without having to worry about getting over the line on the back of the dually.
i tried to buy a colorado in march in canada price was not the issue ,the stop sale order, and lack of inventory, i couldnt even test drive one , so i was forced to but elsewhere
There a lot of businesses that will no longer even consider the colorado. Think of the utilities, they have (had) a ton of them. To take the step up depreciation (sec 179) the truck must have a gvwr of 6000 pounds and a 6 foot bed. The best colorados had the 2.8 diesel in them. I had a couple 36 MPG on the highway and you could tow without a huge sacrifice in mpg. Towed my tractor numerous times (6500 pounds) mileage dropped to 24 mpg. The 4 cylinder turbo doesnt even get that on the HWY
I wanted to get a Colorado when they were redesigned but the mark ups stopped me. Then I see the crazy discounts on a Silverado making it cheaper then a Colorado. I only want a 2.7 rwd crew cab, so a custom with locking diff is enough and close to $30k.
M.S.R.P difference Colo.=$53K Silverado = $73 K around base prices !
Most LT Silverado’s on the dealer lot with the 2.7 engine are around 54-55K with around 5K off or 50K. The Colorado LT’s in stock are around 45-46K with zero incentives. For a mere 4-5k more your getting a bigger, much more capable truck in the Silverado