WTF is with "incentives"?

"Snuze: Needs another Swede" (markg)
07/27/2018 at 00:32 • Filed to: None

Mrs. Snuze crashed her Lexus RX330 a couple weeks ago . Thankfully no one was hurt, but the Lexus was total ed. We got a pretty good chunk of change back from insurance, despite it being 14 years old. So we’re looking for a new vehicle, and as everyone knows, I’m a big GM guy. I fell in love with the new GMC Terrain. I really had to push to get the Mrs. to try one, but once she did she was amazed at how nice it was. Her words during the test drive were “I can’t believe how nice this is! I thought GMC only made crappy work trucks”. And I really am hoping we can get one, it’s super nice, especially with the 2.0L Ecotec Turbo engine.

Anyways, the one we test drove was good but didn’t have quite all the features we were looking for. So I poke around online and I find a really nice Denali listed online for $34,322 vs. a window sticker of $43,300. So I go check it out and g et talking to the sales guy. The $34,322 price is based on all possible GM incentives and rebates... none of which I qualify for. They will still hook me up by selling it to me at their “invoice” though, which is $40k. I pretty much told them to GTFAC.

I mean really, let me get this straight, GM has all this extra money built into the price of the vehicle that they can give away, but only if they feel like it based on some nebulous criteria, like I *DIDN’T* own one of their vehicles previously? Give me a break.

I gave the dealer a piece of my mind and told him to call if he can meet my number. Otherwise we’re buying a new car Saturday. I think Oppo will approve of our other choice.

DISCUSSION (25)

Just Jeepin' > Snuze: Needs another Swede
07/27/2018 at 00:51

I don’t much care that their incentives are stupidly unreachable , but I’d be irate if I drove someplace only to find out they wouldn’t honor their online price.

My bird IS the word > Snuze: Needs another Swede
07/27/2018 at 00:55

I got six grand in incentives on my ford. Royally fucked my salesman though.

Longtime Lurker > Snuze: Needs another Swede
07/27/2018 at 01:06

When I bought my Ranger I got every incentive they had listed online and then some-more they didn’t.

Snuze: Needs another Swede > My bird IS the word
07/27/2018 at 01:08

I actually cross shopped an Edge - the Mrs. wasn’t feeling well that evening so I went by myself to see if it was even worth taking her back to look at. The salesman had me test drive a loaded SEL with the 3.5L V6 and it wasn’t bad. Honestly I don’t think it felt as nice as the Terrain, but it really wasn’t bad. But the best part is he took me back afterwards and gave me the numbers right up front: $4 1,570 MSRP dropped to $32,659, and with 0% APR for 72 months.

That was another thing, the salesman said that the GMC 0% APR is exclusive of other offers, meaning I either take the discounts (which I don’t qualify for) or get 0% but not both. I wrote him back tonight and told him that my wife and I talked about it and we wanted the online price AND the 0% APR. If he can’t do that don’t bother me, and we’ll take out business elsewhere. I also e-mailed another local dealer that had a similarly equipped car and basically told them I tried to deal with their competitor, gave them the deal and said meet or beat that if you want my business. Guess we shall see what happens.

Snuze: Needs another Swede > Just Jeepin'
07/27/2018 at 01:11

I was only slightly mad because they are only like 5 miles from my work. Then again in DC traffic that meant over 30 minutes.

And that’s the thing, the internet price is just the price plus the unreachable incentives, and they throw that up online to attract attention. There ought to be some kind of law against that. Also, as a consumer, I’d rather go buy a $43,300 MSRP car and *surprise*, you qualify for a bunch of incentives and we are going to knock a few grand off, rath er than go to buy a $34k car and find out it’s really $43k .

Snuze: Needs another Swede > Longtime Lurker
07/27/2018 at 01:13

That’s awesome!

themanwithsauce - has as many vehicles as job titles > Snuze: Needs another Swede
07/27/2018 at 01:23

I got the incentives and then some for my FoST but I went back to a guy I knew. The new dealers I tried to work with gave me maximum run around and I won’t go to anyone else now since they decided that I just have 3 hours to sit around and wait for them to make a quote.

Snuze: Needs another Swede > themanwithsauce - has as many vehicles as job titles
07/27/2018 at 01:28

I used to have a really great guy who did Chevys. I bought my Cobalt and Cruze from him, and he sold my Aunt a Sonic , and Father In Law a Volt. There’s a guy who my dad has done a ton of business with so I thought he might be good, but so far he’s been rather un-helpful.

CRider > Snuze: Needs another Swede
07/27/2018 at 02:50

Is your other choice a Mustang GT?

Svend > Snuze: Needs another Swede
07/27/2018 at 02:59

Your dealerships sounds crazy to me.

They over rice things, even price gouge on cars that may be a good seller, etc...

Here they give you the OT R (On The Road price), which includes the first year road fund licence, registration, etc... but it’s easy to talk money off it if your emergency services/military, a return buyer, they were in a good mood, etc...

We got 20% off the price of our car, most of it was already being given to us before I even asked for a discount.

FSI > Snuze: Needs another Swede
07/27/2018 at 04:26

Seems like they don’t want your business.

My ( limited) dealership experience was actually quite good. The salesman of my Audi was super polite and made sure I was 100% satisfied with the buying process and the car. He even stayed longer at work to let me test drive my car and explained a lot. Couldn’t negotiate much off the asking price but the car got a new service, TÜV and other small bits and bobs.

Sovande > Snuze: Needs another Swede
07/27/2018 at 05:48

What’s the residual value of a GMC Terrain in few years? I only ask because you said you got a decent chunk of money from your 14 year old Lexus. I'd be inclined to look at those again. Good luck with the dealership games!

JQJ213- Now With An Extra Cylinder! > Snuze: Needs another Swede
07/27/2018 at 06:07

Theres a local Nissan dealer here that p ulls that stuff too.. you basically have to be a recent college grad who is also a veteran. It also needs to be your first car purchase but you need Nissan loyalty. It's also a cash price but you have to finance through Nissan Financial...

boxrocket > Snuze: Needs another Swede
07/27/2018 at 07:04

Is the terrain the one that looks like a surprised cow, or a surprised deer?

True fact: Even though I work less than a mile from a GMC dealership and next door to a Chevy dealership , I’ve seen more new XC40s and CX-5s than I have terrains and equinoxes on the road.

Stapleface > Snuze: Needs another Swede
07/27/2018 at 07:09

I don’t know this dealer specifically, but when I was car shopping most of the dealerships did list somewhere in the description that the price is with all the incentives. Not that this makes it any better, as they’re still wasting your time with an artificially low price.

As for how to get a deal on this particular car, have you looked up that specific car on Cargurus ? Often times it’ll tell you how long the car has been there. That might give you some negotiating leverage if they’re looking to move aged inventory.

merged-5876237249235911857-hrw8uc > Snuze: Needs another Swede
07/27/2018 at 07:24

Yeah, the advertised prices are typically screwy like that. But if they really want to make the sale, they can make it work.

I do t even step foot in a dealership until I have a quote via email. Unless I truly don’t know what I want yet. But then I’m upfront about that as well and arrange a test drive. After I have my criteria ironed out, it’s back to the emails. If they can’t figure out how to get me a quote via email, without that “come on in to see...” BS, then screw em. The dealers that have their shit together can make it happen, and it works great. Get a quote, go in and test drive again, and sign paperwork for the agreed price. About an hour at the dealership and it’s done. Or, in the case of our pacifica purchase. They brought the van to us and we signed paperwork in the kitchen.

The dealers that understand how to work in the online and text environment are where it’s at. I’ve had great experiences at a Dodge dealer, a couple Honda dealers, Chrysler, and an Audi dealer. Heck, the Honda guy texted me back on a Sunday night when I was just checking inventory and texted expecting them to get back the next business day, but nope, we started chatting right then and I had a test drive setup for the next week. He was truly a great salesman, no pressure, here’s the numbers and all that. I was actually a bit disappointed we didn’t buy a Honda. But we went the Pacifica route.

So there are enough dealers out there that know how to work it, and don’t be afraid to cast your net a bit wider and see what you get. Especially if you know exactly what you’re looking for.

Good luck.

hike > Snuze: Needs another Swede
07/27/2018 at 08:12

I always recommend avoiding dealers that advertise a price that nobody qualifies for. It usually includes incentives for military veterans who just graduate college who also have a competitive product and are a loyal customer. So maybe that one former veteran who owns two cars, is trading them both, but also just went back to school and got a degree.

SilentButNotReallyDeadly...killed by G/O Media > Snuze: Needs another Swede
07/27/2018 at 08:15

Clearly buying a vehicle in the US is very different from what we experience in Oz...

Quadradeuce > Snuze: Needs another Swede
07/27/2018 at 09:17

The new terrain is very nice. Fun fact: you can get it in a diesel. I only know that because the showroom model at my local GMC dealer is a diesel.

nermal > Snuze: Needs another Swede
07/27/2018 at 09:41

Dealers do that because it works. It’s basically the ole’ bait-n-switch routine.

Advertise a price online that only .001% of consumers actually qualify for. Get the customer in the door, and switch them to a different vehicle or a higher price.

The number of people they sell something to as a result is higher than the number of people that get pissed off and go somewhere else.

OmerCarrothers333 > Snuze: Needs another Swede
07/27/2018 at 10:38

Your comment had me thinkng about the King of the Hill episode where Hank realizes he wasn’t getting a good deal on any of the cars he bought over the years at a local car lot.

My bird IS the word > Snuze: Needs another Swede
07/27/2018 at 10:46

I know you like GM, but I don't. Maybe its the dealer though.

Snuze: Needs another Swede > Stapleface
07/27/2018 at 22:10

Actually, Mrs. Snuze and I did, and it’s been there 3 months. That seems like an eternity to me. But then again, the dealership (who shares a name with a great American author, who’s seminal work rhymes with “The Great Fatsby” lol) is a multi brand conglomerate. They are huge in the region (then again we live in the DC area, there are a half dozen “huge” dealers here, no room for the small guy) and can afford to sit on a “bait & switch” car to keep on the lot because it gets traffic in the door and helps make sales.

I think me, as an individual, and sort of us Jalops in general, are the minority in that we kind of get the game and know, or at least try, to play it. I was talking with a coworker today about all this and her thought is that the art of haggling is lost in this day and age, so dealers, especially a big one like this, is content to sit and wait because for every person like me who wants to come in and haggle, there are 10 people who look on Carvana or Car Guru or something like that and see someone who got a “deal” that’s $1k under MSRP and think thats a “deal”, and then go “negotiate” for the same and perpetuate the myth of the deal, which ultimately work in the dealers favor.

That said, my dad often reminiscences about how much he loved to “beat a dealers balls off”. He also used to do fleet buying for the largest commercial/industrial contractor in the US (back in the 80s), so he was buying at least a dozen trucks a month. His advice was “go for 20% off, right off the bat”. I’ve tried that tactic with a few dealers and got basically nothing. Maybe companies, even GM, don’t have that much built in a car’s profits a nymore. It used to be you bought a foreign car if you wanted quality, and an american car if you wanted price. Maybe American companies are trying to adopt the Japanese model now? I dunno.

Snuze: Needs another Swede > My bird IS the word
07/27/2018 at 22:16

I don’t know, maybe, or maybe it’s price. Tbh, what it boils down to is that I drove the Edge and Terrain, and I think the Terrain is overall nicer, but the Edge is cheaper. I mean, it’s close, it’s not like the Terrain is basically a half price Mercedes and the Ford is an over-priced Kia. They are so close in terms of quality, I just find the GM a little nicer.

That said, I also want a “little nicer” price. I can get the Ford for slightly under $33k. I think the GMC is a little better, but not $5k to 10k better. If I could get a Terrain I wanted for $35k, I’d buy it in a heartbeat.

And the dealer makes a difference. I’ve talked to basically 4 GM dealers. Two are huge “mega dealers” in the DC area, one is a smaller guy, and the 4th owns a tiny GMC dealer on the eastern shore of Maryland. So far he’s been the most honest. The other small guy seems like he can “make a deal” but I don’t think he’s going to end up where I want to be. The mega dealers don’t give a shit if you buy or not cause I’m sure someone will come along and buy it.

Snuze: Needs another Swede > merged-5876237249235911857-hrw8uc
07/27/2018 at 22:21

You’re right, and that’s what I’m trying to do. Mrs. Snuze, however, is somewhat difficult. I love her, I really do, but sometimes she makes me crazy. She’s never had a car payment, let along had to buy a car. Her folks bought her first car, and later gave her the Lexus in exchange for her first car.

I, on the other hand, and a bit of a car buying veteran. But I’m also a “car guy” so I get very passionate about it. I love the Terrain, and I love GM. I’m an unabashed fanboy and am okay with that. But of course we’re married so now it’s not “ my money” but “our money” so I need to get the deal, and convince her it’s worth it.

I’m going to reach out to a few more dealers and see if someone can make a deal. Otherwise we’re going with our second choice. But, and I feel like a desperate ex to say this, I want to give them (GM) one more chance to make it work.