Decent deal or no?

[sickk23]

I think I remember reading somewhere GM makes almost $10,000 on each SUV they sell

Last I read about this topic, it was $15-20k per SUV.

 

[Illnasty]

What do you guys think.....

2017 LT
Sun, entertainment, and destination package
Luxury package
22" rims

Msrp is 66,525

She says the best she can do is 62k with 0% for 72.

That's right around what I paid for my 2016 Denali without the 0% though. I think it's good but could be better

 

[15YUKON]

Last I read about this topic, it was $15-20k per SUV.

Well there you go, whatever their margin is it is ridiculous. Full Size SUVs are GROSSLY OVERPRICED these days so I like to be very aggressive in knocking off every single dollar. You should be able to get $10,000 off list if you negotiate hard and play ball discounts help like friends and family check to see if you can get them.

 

[MajorJakkov]

Last I read about this topic, it was $15-20k per SUV.

the manufacturing cost + R&D cost from GM is likely in the $37-42k area, dealer has to make a little money as well but a SUV selling for north of $70k could easily be worth a profit in excess of $20k

in the case of a denali or premier package SUV, the cost of manufacturing that vehicle is only a little higher than manufacturing the lowest end base model. the only real additional cost is the increase in price for a 'higher quality trim piece' and the cost of changing the manufacturing equipment over to install that piece instead of the base model piece. the real problem is that we're stupid enough to pay $20-30k more for a SUV that looks a little different but is essentially the same in GM's eyes.

 

[cardude2000]

the manufacturing cost + R&D cost from GM is likely in the $37-42k area, dealer has to make a little money as well but a SUV selling for north of $70k could easily be worth a profit in excess of $20k

in the case of a denali or premier package SUV, the cost of manufacturing that vehicle is only a little higher than manufacturing the lowest end base model. the only real additional cost is the increase in price for a 'higher quality trim piece' and the cost of changing the manufacturing equipment over to install that piece instead of the base model piece. the real problem is that we're stupid enough to pay $20-30k more for a SUV that looks a little different but is essentially the same in GM's eyes.

While generally accurate the denali/esky 'trims' include different engines, transmissions and suspensions. Literally the 3 most expensive aspects of a vehicle.

 

[MajorJakkov]

While generally accurate the denali/esky 'trims' include different engines, transmissions and suspensions. Literally the 3 most expensive aspects of a vehicle.

i certainly agree, i'm definitely not saying i'm correct. i was looking at it more like the items you mentioned are used over several different vehicles (denalis, escalades, tahoes, silverados, sierras) and something like the magnetic ride suspension was pioneered for the performance vehicles like the camaro and corvette. i know there are different electronics involved with higher technology parts like mag ride, but the cost of purchasing normal suspension parts vs mag ride parts when manufacturing a vehicle is not going to be $1 vs $2000 if that makes sense. i know the dealership would like for the consumer to believe that is the case but it really is not.

when you look broadly at what GM does, the high cost items are developed and used over a wide range of vehicles so i would be willing to bet the cost of manufacturing a vehicle with those items is much lower than you might expect. it is also in GM's favor that all of the large SUVs and pickups are essentially the same design with some differences in outwardly appearance. all of that adds up to vehicles that have a fairly standard cost of manufacturing, yet wide price differences at the point of sale.

i guess i'm rambling, my point to the OP is that they should not feel like getting $4k off the MSRP is a real win. i've read a few different threads on this site where people have gotten $15k+ off of the MSRP. while it does depend on the trim level, it is definitely possible. GM and the dealerships make truckloads of money on the large SUVs even when youre getting the deal of a lifetime.

 

[jac1304]

Looking at prices...78k Msrp to posted sale price of 69k...(without negotiations) they are still making money at 69k and if it sells for 66k.. they are still making money.. the true cost keeps going down because the infrastructure to make these vehicles is the same.

 

[cardude2000]

i certainly agree, i'm definitely not saying i'm correct. i was looking at it more like the items you mentioned are used over several different vehicles (denalis, escalades, tahoes, silverados, sierras) and something like the magnetic ride suspension was pioneered for the performance vehicles like the camaro and corvette. i know there are different electronics involved with higher technology parts like mag ride, but the cost of purchasing normal suspension parts vs mag ride parts when manufacturing a vehicle is not going to be $1 vs $2000 if that makes sense. i know the dealership would like for the consumer to believe that is the case but it really is not.

when you look broadly at what GM does, the high cost items are developed and used over a wide range of vehicles so i would be willing to bet the cost of manufacturing a vehicle with those items is much lower than you might expect. it is also in GM's favor that all of the large SUVs and pickups are essentially the same design with some differences in outwardly appearance. all of that adds up to vehicles that have a fairly standard cost of manufacturing, yet wide price differences at the point of sale.

i guess i'm rambling, my point to the OP is that they should not feel like getting $4k off the MSRP is a real win. i've read a few different threads on this site where people have gotten $15k+ off of the MSRP. while it does depend on the trim level, it is definitely possible. GM and the dealerships make truckloads of money on the large SUVs even when youre getting the deal of a lifetime.

I hear you. I guess I think the real screw jobs are when they are selling a base tahoe for $47K and a dressed up Yukon for $65K with the same engine, transmission and suspension.

Thats ~$20K for, essentially, window dressing.

 

[2011SSVHOE]

the real problem is that we're stupid enough to pay $20-30k more for a SUV that looks a little different but is essentially the same in GM's eyes.

that's why I bought a SSV versus a Loaded unit. at the end of the day it gets me from point a to point b

While generally accurate the denali/esky 'trims' include different engines, transmissions and suspensions. Literally the 3 most expensive aspects of a vehicle.

Also Remember they buy this stuff in bulk It may only be a few dollars difference. What's the difference between the 5.3 and the 6.2 block? casting is going to be the same price. all your sensors and the like are mostly the same and made in China or Mexico.

Remember when , Automatic, power steering, power brakes, A/C, power windows, tilt wheel, power locks and AM/FM stereo were all options? GM and Ford made a fortune on that shit, now it's all standard equipment , because it's most likely cheaper to design and manufacture one standard way. I also remember when you could order a vehicle ala carte, now it's option package A, B or C ( aka LS, LT, LTZ or Premier whatever)

 

[cardude2000]

that's why I bought a SSV versus a Loaded unit. at the end of the day it gets me from point a to point b



Also Remember they buy this stuff in bulk It may only be a few dollars difference. What's the difference between the 5.3 and the 6.2 block? casting is going to be the same price. all your sensors and the like are mostly the same and made in China or Mexico.

Remember when , Automatic, power steering, power brakes, A/C, power windows, tilt wheel, power locks and AM/FM stereo were all options? GM and Ford made a fortune on that shit, now it's all standard equipment , because it's most likely cheaper to design and manufacture one standard way. I also remember when you could order a vehicle ala carte, now it's option package A, B or C ( aka LS, LT, LTZ or Premier whatever)

No doubt. But at least when you pay $20K more and get a better trans, suspension and engine if 'feels' more 'worth it'.

To pay $20K more and just get shinier bits it feels more like a screw job IMO.