GMS Discount vs Negotiation

[Wisdom]

I'm fairly new to the forum - and I'm trying to figure out what and how to buy! I've chosen the options that I want, it's now just a matter of finding the vehicle. Here's a good series of questions: (for me anyway!)

1) In the Houston area, most of the dealers are offering 6k off MSRP (plus another 2k off if you use the rebate) on the 2004's. What's the difference between those prices and the GMS discount prices? Is it better to negotiate or would the GMS discount be low enough that you'ld be getting a great deal anyway?

2) And does anyone know when the 0.0% and 1.9% financing offers end? Earlier this month Isaw that they were good until Jan 31st, but then I saw Feb 2nd, and a different website had it all the way out to the end of March.

3) Does the 0.0% and 1.9% offers apply only to in-stock vehicles, or can you order from the factory and still get the rates?

- Wisdom

 

[yellow_2002_germany]

If by GMS discount you mean the GM Family Plan you should be able to take the discount in addition to any negotiated price.

 

[Zippy]

"GMS" price is a non -negotiated selling price for GM employees, and their eligible relatives (such as the employee's spouse, son, daughter, etc.). General Motors determines the "GMS" price, and it is on the dealer invoice sheet. Most dealers are reluctant to show customers this price, BUT, eligible GM employees can see the "GMS" price on the invoice before buying a new GM vehicle. Keep in mind each dealership is not obliged to sell cars at GMS price since they are independently owned businesses.

GMS buyers usually are elibible to all other rebates, special financing, etc, in additiion to their GMS price.


Here's an actual example from a 2001 Z06:

MSRP= $47,855.00 (base car, without options)

INVOICE= $41,873.13 (base car, without options)

GMS= $41,289.98 (base car, without options)

As you can see GMS price is $6,565.02 less than MSRP.

Hope this helps!

Zippy

 

[Wisdom]

Thanks for the information, Zippy. My company qualifies for the GM Supplier benefit, but the HR department never sent back the paperwork to register with GM! So now I'm on Plan B. I'm trying to locate a vehicle that's obtainable within the GMS price range via negotiation - if I find the one then I'll do either the 0.0 or 1.9 offering. If I can't locate it, then it looks like I can still get a descent price using the GMS discount (of course I'm riding the HR troops to resolve their paperwork issue!) once the company completes their registration.

And my apologies for doing the newbie thing and using the wrong forum!

- Wisdom

 

[Erik S. Klein]

It's been a while since I could take advantage of this but from what I remember there were two GM discount plans for employees and family.

The first allowed you to get a car built at a predefined price which was typically 15% to 20% below MSRP. There was a table available for qualified buyers that had the percentage for various vehicles and option packages. Back when I worked for EDS (a GM subsidiary) the Vette was 18%/18% which allowed you to order one for a few bucks below MSRP.

The second plan was a flat rebate of 15% (I think. Maybe it was 10%?) of the MSRP on any car you bought at the best price you could negotiate. You could apply it to the purchase price or get the check sent to you.

When I used to shop with this plan I found it was best to just negotiate as if you had no discounts and get the best price you could. Then, just before signing the papers present your GM paperwork and sign over the rebate towards the down payment.

I once had a dealer actually add the discount back into the price of the car when he found out about it!

Good luck!

 

[Zippy]

Thanks for the information, Zippy. My company qualifies for the GM Supplier benefit, but the HR department never sent back the paperwork to register with GM! So now I'm on Plan B. I'm trying to locate a vehicle that's obtainable within the GMS price range via negotiation - if I find the one then I'll do either the 0.0 or 1.9 offering. If I can't locate it, then it looks like I can still get a descent price using the GMS discount (of course I'm riding the HR troops to resolve their paperwork issue!) once the company completes their registration.

And my apologies for doing the newbie thing and using the wrong forum!

- Wisdom

Wisdom: GM Supplier discount is NOT the same as GMS discount price. I don't understand or know why GM decided to make this so confusing!

GMS= Employee & eligible family member discount price. (Just like in my example in earlier reply)

GM Supplier= Discount for eligible employee of a company that "Supplies" parts and or equipment to General Motors.

The best discount (to my knowledge) is "GMS," price. Period. Not Gm supplier price.

Hope this helps!

Zippy (ex GM employee).

 

[Zippy]

It's been a while since I could take advantage of this but from what I remember there were two GM discount plans for employees and family.

The first allowed you to get a car built at a predefined price which was typically 15% to 20% below MSRP. There was a table available for qualified buyers that had the percentage for various vehicles and option packages. Back when I worked for EDS (a GM subsidiary) the Vette was 18%/18% which allowed you to order one for a few bucks below MSRP.

The second plan was a flat rebate of 15% (I think. Maybe it was 10%?) of the MSRP on any car you bought at the best price you could negotiate. You could apply it to the purchase price or get the check sent to you.

When I used to shop with this plan I found it was best to just negotiate as if you had no discounts and get the best price you could. Then, just before signing the papers present your GM paperwork and sign over the rebate towards the down payment.

I once had a dealer actually add the discount back into the price of the car when he found out about it!

Good luck!

Mr. Klein: I worked for GM for over 19 years, and bought many cars during that time, usually one or two per a year. At that time they had "GMO" price, and GMS price. The GMO price was the best discount. With gMO the employee ordered a new car and paid GMO price when vehicle arrived at the dealership. For example, on my new 1984 Corvette, using GMO, I received 20% off MSRP. Excellent program, but no longer exists on Corvette.

The GMS price was for the employee when they bought a new GM vehicle "out of stock," or in other words, sitting on the dealer lot, in stock.

Nowadays:

I no longer work for GM, but until recently was eligible (thru a relative) for GMS price on Corvettes. However, the dealer does NOT have to sell a Corvette at GMS price, and most do not. They are independently owned businesses and are not obligated by GM to sell cars at GMS price.

If anyone here needs help in finding a Corvette at GMS price, I may be able to help, since some dealer's are currently selling Vettes at GMS price to anybody...they're doing this to help clear their inventory before the C6 goes into production, and help increase their allocation of new C6 Vettes. PM me if your interested.

Hope this helps!

Zippy

mrzippy@ameritech.net

 

[Zippy]

It's been a while since I could take advantage of this but from what I remember there were two GM discount plans for employees and family.

The first allowed you to get a car built at a predefined price which was typically 15% to 20% below MSRP. There was a table available for qualified buyers that had the percentage for various vehicles and option packages. Back when I worked for EDS (a GM subsidiary) the Vette was 18%/18% which allowed you to order one for a few bucks below MSRP.

The second plan was a flat rebate of 15% (I think. Maybe it was 10%?) of the MSRP on any car you bought at the best price you could negotiate. You could apply it to the purchase price or get the check sent to you.

When I used to shop with this plan I found it was best to just negotiate as if you had no discounts and get the best price you could. Then, just before signing the papers present your GM paperwork and sign over the rebate towards the down payment.

I once had a dealer actually add the discount back into the price of the car when he found out about it!

Good luck!

Mr. Klein: I worked for GM for over 19 years, and bought many cars during that time, usually one or two per a year. At that time they had "GMO" price, and GMS price. The GMO price was the best discount. With gMO the employee ordered a new car and paid GMO price when vehicle arrived at the dealership. For example, on my new 1984 Corvette, using GMO, I received 20% off MSRP. Excellent program, but no longer exists on Corvette.

The GMS price was for the employee when they bought a new GM vehicle "out of stock," or in other words, sitting on the dealer lot, in stock.

Nowadays:

I no longer work for GM, but until recently was eligible (thru a relative) for GMS price on Corvettes. However, the dealer does NOT have to sell a Corvette at GMS price, and most do not. They are independently owned businesses and are not obligated by GM to sell cars at GMS price.

If anyone here needs help in finding a Corvette at GMS price, I may be able to help, since some dealer's are currently selling Vettes at GMS price to anybody...they're doing this to help clear their inventory before the C6 goes into production, and help increase their allocation of new C6 Vettes. PM me if your interested.

Hope this helps!

Zippy

mrzippy@ameritech.net

 

[6shark9]

Old "Option 1" = 15% off base price 18% off options when ordering

Old "Option 2" = 5% off the best negotiated price, off the lot

These no longer exist

Option 1 became "Option A" used when ordering (have not used yet)

Option 2 became "Option B" used when buying dealer stock. Set price on invoice.

In Ohio the salesman always asked if you got a discount, in Calif, I had to explain what the discount was. Salesman never heard of it. Not too many GM employees out here. It was about 15-20 % off sticker AND the rebate was $2500 but as a discount eligible buyer my rebate was also increased. Used "B" on a truck in Nov 02 on an 2003. Today Bluebook retail is still $2,000 over what I paid for the new truck. Just recently,.. dealer will give me $300 less than I paid for it new, on a trade in (and I drove it 14 months). Couldn't do that in Ohio, where 50% of the population get the discount.

GM discount is a great deal

 

[Wisdom]

Thanks for the additional info Zippy and 6shark9! At 1300 earlier today I started negotiating with a local dealership for a Torch Red coupe with magnetic ride control, 3.15 axle, and glass panel. Ended up buying it for 43.8k. It also has the 12 cd changer, highly polished wheels, and 1SB package. Closed the deal around 1800, so it took 5 hours of haggling and trade-off discussions to get where we were both happy. I REALLY LIKE THIS CAR! Even more so now that I've put 37 miles on it!

- Wisdom

 

[vettenuts]

My daughter just ordered a GMC Envoy yesterday at the GM "Supplier" price. The GMS price was for employees. The dealer has been excellent and has showed us the invoice, GMS and GM Supplier prices on several vehicles. There are also rules that both the purchaser and the dealer must abide by, and yes it is a voluntary program. However, we have not found a dealer that wasn't willing to provide the GM discounts. It may be because sales are currently slow right now.


Have you tried contacting some of the bigger dealers who advertise? They can arrange a courtesy delivery but that may tick off your local dealer. I couldn't get a good deal on my 02 locally, and one dealer wouldn't mark off a single dollar off of MSRP. I told him I was leaving and going to Kerbeck, he told me to have a good trip. Pathetic, but Kerbeck got an immediate sale as I had just sold my 90 and was a ready and willing buyer when I walked into their showroom.

 

[rsimoes]

I just bought my 2004 Z06 from Kerbeck with the GMS price. The entire system has changed. You can see more details on www.gmfamilyfirst.com

I got 15.1% off the sticker price. Ordering would have been the same price. They no longer give a percentage, now each vehicle has a "GMS price" and a "GM Supplier price" (the GMS price is cheaper).

However, Kerbeck is now giving such huge discounts that all this is a moot point. They'll also ship it to you.

Check it out: www.kerbeck.com

 

[realtor]

A dealer should show you (right on the invoice) the GM Supplier price. The rebate applies as well so thats another 2K off. Financing rates and rebates on ordered vehicles is pure guesswork. You will get whatever rebate/finance rate that is available on the day of delivery, not the date you order.

 

[Mike Mercury]

They are ... not obligated by GM to sell cars at GMS price.

Not quite exactly complete. They are required to sell GMS on most models. On some models, dealer GMS participation is optional; Corvette being one of them.

 

[Edmond]

I would think that the bigger dealers would offer the GMS on the Corvette's because they're trying to move as much C5 stock out as possible to make room and receive a larger allotment of C6's right?

 

[rsimoes]

Right now, that's true. . .that's how I got mine, but in 99, they were not willing to do it. . .

 

[Fishman]

Something else to consider...

And as I recall... the money you save through any GM plan is considered 'taxable income'. At least that's what I remember from a few years ago... someone correct me if I'm wrong here.

 

[rsimoes]

And as I recall... the money you save through any GM plan is considered 'taxable income'. At least that's what I remember from a few years ago... someone correct me if I'm wrong here.

I never heard of that. . . why would that be? If I negociated a price on the car on my own, that would not be taxable income, I nevr got any money, it wasn't an investment, it was just a discount on a purchase price that I paid tax on. . .

Doesn't seem to make sense. . .

Do you have a tax accountant that can answer that?

 

[Fishman]

Straight from my companies intranet site regarding the GM purchase program:
________________________________________
"Tax Ramifications

For U.S. employees only, using the discount on purchased and leased vehicles will continue to be deemed taxable fringe benefits. 5% of the MSRP will continue to be subject to U.S. federal, FICA, and state and city tax withholdings where applicable.

For active employees, [the company] will withhold applicable deductions over four consecutive pay periods following notification of the purchase of the vehicle. This taxable amount will be reflected in the employee's taxable income as reported on the W-2 Form.

For eligible family members, purchases will be considered a taxable fringe benefit to the employee and appropriate withholding will be made from the employee's paycheck as stated above.

Eligible retired, surviving spouses and deceased employees' family members will receive a 1099 Form reporting the taxable benefit."
_________________________________________________

Not sure it's the same everywhere, but I remember them deducting money from my checks for a few months.

 

[fdxpilot]

I would think that the bigger dealers would offer the GMS on the Corvette's because they're trying to move as much C5 stock out as possible to make room and receive a larger allotment of C6's right?

You'd think so, but most dealers sell so few vettes, and can get some sucker to pay MSRP or more for the ones they do. The big vette dealers who have huge allocations (Kerbeck, Maxie Price, etc.), can usually get close to GMS for anyone, and frequently advertise GMS to eligible buyers. If you check the various forums for associated dealers, you'll find 7-9K off right now, which is as good or better that GMS.