Dodge Jumping On Bandwagon - EMPLOYEE PRICE FOR EVERYONE!!

[Matt400]

The wife and I was all ready to order a new Jeep Liberty CRD, now comes this deal and we are even more ready until we found that we can't order a CRD in CA!!

yet another reason to move. .



Anyway looks like we need to find a used one with 7500 on it, probably ain't gonna happen any time soon.

 

[BRayls]

I think this is a bad deal. It destroys the used car market. GM has beat to death all it's owners trying to trade up. I watched the value of my Tahoe fall like a rock. Punn intended. It is market driven. The actual difference in price from July 5 to 6 will be little because of the change in rebates, but the public perceives this huge differnece and used values drop quick.

I know your right about that, prices will fall. so used buyers be ready. :{ going to be some sad traders or sellers. non qualifiers would be viper, 300, and magnums,06's.

 

[rbattelle]

GM Is Killing The Domestic Vehicle Market

Can "domestic" auto makers possibly be any more shortsighted?



In the aftermath of 9/11 GM jacks up their MSRP's, increases rebates to ridiculous levels, and offers 0% APR. Result: the average domestic buyer feels they must get near-0% APR and huge rebates. People are willing to wait out the manufacturers when incentives are low, and MSRP is essentially a meaningless number now. Profits suffer.



4 years later here we are with GM now offering "employee pricing". So now domestic buyers will begin to feel that they are entitled to employee discounts, 0% APR, and huge rebates. And they will wait out the market until they get them.



The ploy worked for GM (as did 0% APR and huge rebates, at first). June was a record sales month and DC and Ford are following suit. Later on, GM will be back to <25% market share (and dropping like a rock) and complaining that they're not making any money again.



How short-sighted must you be to decide that offering huge expensive gimmicks (this gimmick is predicted to be the single most costly campaign ever launched by GM) to prop up sales for a few months is good for your long-term bottom line?



GM pretty much makes me sick at this point. I feel sorry for the dealerships, who are increasingly the whipping-boy for unprofitable manufacturers.



Imagine this: a car company that focuses on making good quality cars at a resonable price with reasonably priced marketing and designs that people actually want to own. And a fair, equitable health care and retirement system that doesn't put the company right out of profitability. Imagine.



Rant over.



-Ryan

 

[Regcabguy]

Can "domestic" auto makers possibly be any more shortsighted?



In the aftermath of 9/11 GM jacks up their MSRP's, increases rebates to ridiculous levels, and offers 0% APR. Result: the average domestic buyer feels they must get near-0% APR and huge rebates. People are willing to wait out the manufacturers when incentives are low, and MSRP is essentially a meaningless number now. Profits suffer.



4 years later here we are with GM now offering "employee pricing". So now domestic buyers will begin to feel that they are entitled to employee discounts, 0% APR, and huge rebates. And they will wait out the market until they get them.



The ploy worked for GM (as did 0% APR and huge rebates, at first). June was a record sales month and DC and Ford are following suit. Later on, GM will be back to <25% market share (and dropping like a rock) and complaining that they're not making any money again.



How short-sighted must you be to decide that offering huge expensive gimmicks (this gimmick is predicted to be the single most costly campaign ever launched by GM) to prop up sales for a few months is good for your long-term bottom line?



GM pretty much makes me sick at this point. I feel sorry for the dealerships, who are increasingly the whipping-boy for unprofitable manufacturers.



Imagine this: a car company that focuses on making good quality cars at a resonable price with reasonably priced marketing and designs that people actually want to own. And a fair, equitable health care and retirement system that doesn't put the company right out of profitability. Imagine.



Rant over.



-Ryan

 

[Regcabguy]

Oops,hit the wrong key! Good rant Ryan, I've voiced the same sentiment many times. Less gimmicks and with the savings produce a slightly overbuilt and well researched vehicle that minimizes warranty repairs and guarantees repeat customers. Dream on!

 

[Vaughn MacKenzie]

So has anyone done a price comparison of invoice versus Employee Discount pricing? Got a friend interested in switching from a 6-liter GMC gasser for pulling his large 5-er.



Vaughn

 

[Tomeygun]

So has anyone done a price comparison of invoice versus Employee Discount pricing? Got a friend interested in switching from a 6-liter GMC gasser for pulling his large 5-er.



Vaughn

About 5% under invoice...

 

[RGardner]

The 5% under invoice cost is including all rebates?

 

[Tomeygun]

The 5% under invoice cost is including all rebates?

5% under invoice and then minus rebates...



No kidding, erveryone in the whole USA can buy like they work at the Chrysler plant right down the street from me...

 

[Vaughn MacKenzie]

That will knock some bucks off the sticker price. So then the question is how good are the rebates.

 

[RustyJC]

5% under invoice and then minus rebates...



No kidding, erveryone in the whole USA can buy like they work at the Chrysler plant right down the street from me...

Assuming that an individual has a trade-in, how much has the bottom-right-hand corner really changed? Since these "employee pricing" promotions are depressing the used vehicle market, are the deals really better by the time an individual trades in or sells his/her current truck than they were before?



Just curious.....



Rusty

 

[Tomeygun]

That will knock some bucks off the sticker price. So then the question is how good are the rebates.

Well, they did fall off a bit... About $500. The deal is still better now, and also now everyone knows they got the best deal they could... So that is nice



But you are right, they did back off the rebates a bit to make up for it

 

[BRayls]

Assuming that an individual has a trade-in, how much has the bottom-right-hand corner really changed? Since these "employee pricing" promotions are depressing the used vehicle market, are the deals really better by the time an individual trades in or sells his/her current truck than they were before?



Just curious.....



Rusty

do you think that when buying at the wholesale price you should get retail for the trade? think about one thing the dealer is in it to make money. do you work for free? I do not. then again ,if I choose to trade I know that the trade will be lower than if I sell outright. key word choose. one thing diesel guys can worry less about resale will still be there one word, demand. the more options you get the better the deal on the ep pricing.

 

[LDobie]

It's a joke really, aimed at the rank and file uneducated buyer. With all the resources available, you can come very close to calculating the invoice price yourself at home and then deal from there. With this under invoice deal, isn't that just beating the hell out of the dealer by taking away their upfront profit?? AND the rebates go down?? So the manufacturers are making MORE and the dealers are making LESS and the consumer pays about the same?? Sounds great for the manufacturers but tough on the dealer; no wonder they love trade ins and used sales. Oh yeah, then the corporate bean counters beat them up over not moving enough new product... its a tough business all the way around.

 

[Jeff Knight]

You can go on the dodge web site and build a truck. It will give you the MSRP and the employee discount price underneath. Jeff

 

[Vaughn MacKenzie]

You can go on the dodge web site and build a truck. It will give you the MSRP and the employee discount price underneath. Jeff

Yep, and the price ends up being higher than what you could have gotten one for from Tomeygun or Dishman Dodge last month.

 

[PHeadings]

Did you really think they were giving these away for pennies on the dollar? Next GM will offer Dealer Owner Price for everyone and they will still come!

 

[sag2]

On an employee purchase DC pays the dealer 6% of net invoice. On a $30,000 deal that is $1,800 gross profit to the dealer. It might hurt some dealers, but I suspect most will be happy with the deal. They have an option to not play in the program, but would be stupid to not play.

 

[RustyJC]

do you think that when buying at the wholesale price you should get retail for the trade?

Did I say that? I don't think so. I'm just asking if the trade-in allowance has dropped in direct proportion to the price of the new vehicle so that the bottom right hand corner (the only number that matters) doesn't change. You'll notice that question hasn't been answered.



It looks great on a TV ad to say that employee pricing is $9000 off MSRP, but if the final deal for those of us who already own a truck is just about the same as before employee pricing, then it's all fluff.



Rusty

 

[Tomeygun]

Yep, and the price ends up being higher than what you could have gotten one for from Tomeygun or Dishman Dodge last month.

All and all, most of the deals are way better than what you guys have told me that your local dealer usually does



But it is about the same as I do all the time