Is the GM employee discount really the bottom line?

I thought Saabs were great cars. They just became too corporate GM at the end due to the bean counters. GM didn’t market or position them well either.

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Im purchasing a 2018 XT5 that was a service shuttle with 2000 miles. Being sold as new. It was $42,745. It comes with a total of $12,184 dollars in incentives. I told them about me being qualified or the Gm Family discount. Told me he would honor it but didn’t have an exact amount on the savings as I didn’t have a number yet…Any guesses on savings… I’m happy at 30K from a 42.7k vehicle but hey a discount is a discount. (sister was a 30 year employee).

Any update on this?

Still waiting on Number from my sister. Dealer said car will be ready to pick up Monday, but I have a setback. Hope I dont lose the deal. Cancer surgery got scheduled for Monday in Phoneix, I live in Kingman and have to go to Vegas to get it. So I cant get there till Thursday due to required rest after the surgery…dang.

Looking at the GM family website, a base XT5 has an MSRP of $42690 and an employee discounted price of $38924.74. You then get all of the incentives as well. So since you have $12184 in incentives I calculate that you could get a new one for around $30k plus taxes and tags etc.

Dealers can also discount the employee price below the stock price to get you a better deal.

For that used car with 2k miles I’d have them discount even more.

The salesman sounded positive that it was going to be a reasonable amount. I guess a few grand more…2…maybe 2.5. He said he was shooting for 27,900 for me. Plus taxes of course…Probably out the door at 30K ish…fingers crossed.

If it were me, I would push back on that price to get them lower. Be nice about it but be firm.

MSRP was $42745.00. .I got 12184.00 and then $4000.00 family discount. So $42745.00 -$ 16184.00= $26561.00. He said $25,900 so I guess I got a few more dollars off somewhere…Anyway I think I should be happy. The wife sure is.

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Dude that’s a killer deal. $26k for an XT5?! You did real good!

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If it were me I would buy a brand-new (unused) model for the $26561. A $660 discount isn’t enough (for me) to buy the loaner-car.

Good luck with surgery and congrats on the car

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I’d really like to know what happens behind the scenes with the Supplier/Employee/Family/College discounts that GM gives.

I can’t get an explanation of the math anywhere. Are these programs in the end a flat incentive to the dealer direct from GM? I understand the actual number is based on the particular unit. What I don’t understand is where the discount comes from.

I’d like to think that if I show up with a discount code, the effective invoice and MSRP drops and I negotiate from there. I realize not all incentives stack the the discount, but if I negotiate a $3000 discount, then drop in with “oh I have a student code that gets me $3500 off of MSRP”, then why wouldn’t my price automatically drop to -$6500?

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Original price was $42,745.00. After discount I only paid $25,900. No one can come close to this deal…it was 16,000.00 off. Not 600.

So far I have received several dealer quotes on GMC loaners up to ~5% additional off GMS price. I have been asking for an additional 10% off below GMS price for a total discount of 18%.

So there is definitely still meat on the bone after GMS, especially since it’s only the 8th of the month. My personal strategy is to make contact early/mid month, see who is worth dealing with and is straightforward, then push hard to close something at the end of the month.

The $660 difference was the difference between what your deal is and the (GMS price for an unused unit less incentives). A brand new unit would get a GMS discount of around $4k. Add that to the other incentives of $12k and total discount on new unit is $16k.

I didn’t say I had GMS until they showed me there offer. I already calculated what I wanted. It was 4K below GMS, they didn’t bite, but we agreed to 1k below GMS including incentives.

Did this! Dealer gave a great deal. Called it the dealer discount. I said can you explain the dealer discount. He said it was a discount the dealer gave to everyone so that they had the best rates around.

I then announced that I also had a GM Discount and based on what other dealers were offering off the loan asked him to please apply the 8% discount to the deal and I would come in and sign the paperwork.

He said that GM employee discounts are off MSRP and that he can’t negotiate anything below the GM Pricing. He sent a new quote that was $600 less than his original quote that everyone that buys through them pays and said looks like your better off taking the GM discount.

I said I understand that the GM discount is just a percentage off and that I wanted the percentage off what they offer the car for on their website, which was our initial deal and he said no. It don’t work that way. I have to go one way or the other but couldn’t get both discounts.

So basically using the GM discount only raised the advertised price back up to MSRP and then they discounted from there only saving $600 less than their original advertised price.

I tried negotiating a price with a seperate dealer and git the same exact story. So I guess based on what I’m being told. You may be better off not using GM employee discounts.

I feel I probably could have done better than $600 off their advertised price without the discount. After they found out about discount. They wouldn’t even negotiate after that.

Where GMS really helps is that you get the lowest pricing plus incentives available only to employees. For example, my Silverado had an additional $4000 employee only incentive.

I just ordered a 2020 Sierra Denali 3500. I am getting $800 under invoice price plus $4250 rebate. Is that a good price. Coming to around $10k off a MRSP of $82000.

Alright. I’m getting mad reading all these comments from people that don’t know what they’re talking about and are trying to toot their own negotiating horn.
I used to work at 2 different dealerships. One a Ford, one a GM. In both instances, the employee AND supplier discounts worked the same way. Whoever qualified for the discount would obtain a number from the manufacturer. GMS, GSU, A-Plan, X-Plan, whatever you wanna call it. Ford dealer employees get D-Plan. It all works the same way. IF the deal is structured using one of these numbers, the price is the price. That’s the price. Period.

Think about it. If a dealership uses (redeems) one of these numbers, say, a GM employee number, and the price on the deal is NOT the specific, predetermined GMS price on the invoice, the dealership risks losing their franchise. Yes, they run the risk of no longer being able to sell GM products. No dealership would ever do that in order to close someone, I promise. So yes, the price is the price.

Now, important to note, that means the SALE PRICE of the vehicle is fixed. What is not fixed is the trade in value and finance charge (which, by the way, is where dealerships make all their money these days). They can make whatever number they want for those.

The way employee pricing works is that when the dealership sells you a vehicle, they get paid for whatever the sale price of the vehicle was in full (yes, usually below what they paid for the vehicle from the manufacturer). Whether that is from you paying cash, or leasing through a bank, or financing through a bank. The dealership always gets paid in full at the moment of sale. Then, when they “redeem” an employee number, they get reimbursed additional money from the manufacturer.

SO, you will never ever ever be able to negotiate below employee pricing, if you are in fact using an employee number. Now, is it possible to forgo the employee discount and negotiate below this price on your own? Yea, sure. But I worked at the aforementioned dealerships a total of about 6 years, and only saw that situation once, specifically with Ford, when they would offer bonuses to the dealership for hitting certain numbers of units. In those cases, with, say, $200,000 bonus on the line, we would literally be almost GIVING cars away in order to hit those numbers. But, don’t get excited, as far as I know they stopped that practice circa 2016 or so.

TL;DR
The only way you’re going to negotiate on an employee deal is on the trade in value. If you’re leasing, that’s the price. The price is the price is the price is the price. The dealership can get in big trouble if they don’t follow the rules.

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