Old Nov 20, 2005 | 04:06 PM
  #27  
falcon's Avatar
falcon
Junior Member
 
Joined: Dec 2002
Posts: 6
Likes: 0
From: Somers
Default

Originally Posted by fastball
I think one vastly overlooked point is that GM is trying to slash it's sticker prices and increase other incentives to sell their cars. And it's becoming the only way they can actually move a vehicle off the lot - the lure of thousands off an already inflated stickerprice. And the cars they build which actually are close to sticker in value, however few there are (Corvette, GTO, Solstice) are kept in short supply. In the past, it's always been a common and, well, rather smart idea to lowball an offer for most any GM vehicle because the sticker was inflated. Long, arduous haggling was always more prevalent in any domestic dealer than an import dealer.

Conversely, Honda and Toyota need minimal if any incentive to move their product. People shopping those brands (myself included) go to the dealer knowing exactly what they want - model, trim level, color, options/accessories, and price. They have done extensive research, and pretty much have come to make an educated offer. One that ensures some savings off sticker, but isn't a lowball figure because they understand they won't get it for some massive discount. In other words, the car they are looking at sells itself, and they don't need to talk to a salesman about it
" Already inflated sticker price" I really don't think thats the case, true they lured a ton of customers in with the employee pricing deal, but at what cost, they lost 1.6 billion dollars for the quarter I believe. GM needs to get closer to to sticker to start making money. As soon as there are no incentives out there, the cars pile up at the dealers. GM has many, many serious problems to deal with. They needed to start working on these problems when their market share started drifting down years ago. But they didn't, now I actually think that bankruptcy is a real possibility because or it.
Reply