2022 Yukon Denali: Dealer Markup?

[Quark]

Every dealer I've talked to is motivated to take an order some want a down payment some don't. No way those orders can be filled.

 

[Polo08816]

Every dealer I've talked to is motivated to take an order some want a down payment some don't. No way those orders can be filled.

Those orders will be filled. The only question is when.

 

[firsttimetahoe]

Those orders will be filled. The only question is when.

This is where I get slightly confused.

Does having more orders on standby give dealers a leg up on future allocations? Or is it simply based on sales? Let’s say you have 2 dealers. They each get an allocation of 10 Tahoes per month.

Dealer 1 has 120 custom buil orders for a Tahoe. They can prefill their next 12 months worth of allocations. They’re ordering cars exactly to match what the customer wants.

Dealer 2 takes no custom orders. GM just assigns them 10 Tahoes a month based on their own configurations. The dealer sells these vehicles to customers once they find out the configuration is finalized and customers claim these vehicles before they hit the lot.

So both dealers sell all of their cars pretty much immediately. But does the dealer who has a list of custom orders get more future allocations from GM?

 

[Polo08816]

This is where I get slightly confused.

Does having more orders on standby give dealers a leg up on future allocations? Or is it simply based on sales? Let’s say you have 2 dealers. They each get an allocation of 10 Tahoes per month.

Dealer 1 has 120 custom buil orders for a Tahoe. They can prefill their next 12 months worth of allocations. They’re ordering cars exactly to match what the customer wants.

Dealer 2 takes no custom orders. GM just assigns them 10 Tahoes a month based on their own configurations. The dealer sells these vehicles to customers once they find out the configuration is finalized and customers claim these vehicles before they hit the lot.

So both dealers sell all of their cars pretty much immediately. But does the dealer who has a list of custom orders get more future allocations from GM?

My guess is that it would but what I'm less sure of is how soon would GM increase its allocations.

Also, a dealer that sells more volume may qualify for a larger holdback %. So maybe these dealers that are close to reaching the next tier.

 

[Quark]

Those orders will be filled. The only question is when.

They can only build so many 2022's from what you say it is automatically rolled into the next model year if not filled.

 

[GoHeels]

The “must finance or lease through their vendors” is a little shady. Sure we don’t charge you over MSRP but we’ll make a huge profit charging you several points in interest over what you realistically can get anywhere else lol

Financing in-house is where dealerships make all of their money.

Imagine your car gets there and the best rate they can give you is like 5-6%

If a dealership requires you to finance through them, just ask about minimum finance amounts & early pre-payment penalty.

It happened to us and luckily the dealership essentially matched my credit union (1.99% for 5 years vs 2.02% for 6).

In our case, there was no min finance amount but a 6-mo pre-payment penalty. My CU would also refi a car at their new rate (higher rate for used) as long as it was under X miles. Don't remember the specifics but it was generous and a non-issue for us. Had the dealership given me a stupid rate, I would have just refi'd the car after 6 months.

Do your homework, know the rates you can get elsewhere, then compare to what the dealership offers. If you don't do your homework, you are guaranteed to get taken advantage of.

 

[firsttimetahoe]

Do your homework, know the rates you can get elsewhere, then compare to what the dealership offers. If you don't do your homework, you are guaranteed to get taken advantage of.

Honestly the thought of refinancing never came to my mind.....but even in this scenario doing your homework and knowing what rate you qualify elsewhere is meaningless if you have to use their lenders. Most dealer's will try to match what you can get elsewhere because you can always go elsewhere to finance.

But once you sign a document stating you must use their lenders, you're kinda screwed. Also, after waiting months and months for your custom car to finally arrive...they know you're going to be more inclined to just swallow it and just sign...rather then walk.

 

[GoHeels]

I would argue its not meaningless regardless. You should always know what you can get outside of the dealership before speaking with them. You'll know if they are being competitive or sticking it to you and you can use that to determine whether to proceed. It's also very valuable to compare across various dealerships.

Dealership 1 = $70k MSRP, dealer finance 6% interest for 5 years = $81,197.77
Dealership 2 = $70k MSRP + $5k market adjustment, bank of choice 2% interest for 5 years = $78,874.92

I totally agree right now dealerships have a take it or leave it mentality, but that doesn't mean you don't do your homework.

 

[Polo08816]

https://gmauthority.com/blog/2022/04/gmc-yukon-discounts-incentives-offers-deals-april-2022/

• Featured Finance Offer:
  • 2022 Yukon/Yukon XL
    • 0 percent APR financing for 36 months
    • For very well-qualified buyers
    • Must finance with GM Financial

...not that it's easy to find a Yukon/Yukon XL right now.

 

[firsttimetahoe]

I would argue its not meaningless regardless. You should always know what you can get outside of the dealership before speaking with them. You'll know if they are being competitive or sticking it to you and you can use that to determine whether to proceed. It's also very valuable to compare across various dealerships.

Dealership 1 = $70k MSRP, dealer finance 6% interest for 5 years = $81,197.77
Dealership 2 = $70k MSRP + $5k market adjustment, bank of choice 2% interest for 5 years = $78,874.92

I totally agree right now dealerships have a take it or leave it mentality, but that doesn't mean you don't do your homework.

I don't trust car dealers. And you don't start running credit and seeing what rate you qualify for until you're about to sign. So they can tell you one thing when you place your order and it no longer applies when it comes to signing months later. And usually you don't even talk financing and rates with your salesman....they pass you to the financing guy. And he plays dumb about whatever it is your salesman may have told you.

When you're given a "take it or leave it" offer from a dealer, they can give you a whole list of reasons why their rate they say you qualify for isn't as low as what you're pre-qualified for at a dozen other banks. And they don't care because you already signed a contract saying you can't use those banks.

They'll have no problem selling that car to the next guy or girl. But now you just wasted maybe 3-4 months waiting for a car that you're no longer going to buy. And now you have to start the process again. Have fun!