Incentives?

[ahurst]

I have a dealer telling me there are incentives/rebates equaling $5,000 on '04 Yukons.

I can only find $3,000 + $1,000 --

Anyone know what this dealer is talking about?

[Tony Denali]

You should be able to walk in there and talk them down at least 5-7 K off the sticker. WITHOUT incentives

[ahurst]

Thanks! I was hoping for $5,000 off invoice.

[Tony Denali]

$5000.00 off of invoice or msrp?

[ahurst]

Yes, I was totaling invoice price, subtracting $5,000 in incentives and then making the offer at that amount. I will not mess with holdback, but would settle for $500 over the initial offer.

[Tony Denali]

Base invoice price including destination charge for a GMC YUKON TK15706 4WD Wagon 4D is $33,765.75.

And for the GMC YUKON TC15706 2WD Wagon 4D is 31,403.25.

Tack another 4-5K for the MSRP. But if your talking 4-5K off of the invoice price, then your talking a hell of a deal.

BUT, I'm willing to bet your dealer is reffering to incentives off of MSRP.

[ahurst]

I was looking at a Yukon SLT w/ 1SD package, 2nd row captains, DVD (no moonroof) and 17" wheels.

I was offering $32k.

Why would the incentives only refer to MSRP - the price of the Yukon for the dealer drops because of the incentives. You always begin negotiations at invoice AFTER deducting incentives/rebates/ etc.

[Vroom2]

"Invoice" is a relative term anyway. I love negotiating, and have learned that if you're reasonable, have decent timing, and aren't after a vehicle that is hot (i.e. that the dealer can sell at or near MSRP) than you can do very well for yourself. Dealers are in business to move vehicles - they won't take a loss, obviously, but they will weigh volume against high margins.

I bought mine from a family friend who happens to be the GM at a local dealer. I mention this because he doesn't order standard wheelbase Yukons with second-row captain's chairs because he can't move them. This may work in your favor. $32k sounds a little low, but that's strictly subjective. Good luck!

Take care,
Jerry

[ahurst]

Supply is not a concern here - most dealers have SLT's with 2nd row chairs. DVD is harder to find.

But invoice is not relative - you can find it all over the internet. What is harder to find is the regional or market-specific incentives that are not advertised by the manufacturer.

I know $3,000 + $1,000 is good through 6/1/04. Also, a $500 discount on DVD package. And the GM card discount.

But there must be another $1,000 or so discount for local dealers around here and that is what I am trying find out.

[denalio34ceo]

There is a $5,000 cash incentive for the Yukon XL/Suburban models. There could be an additional $1,000 for the shorter models but as you mentioned, it may be specific to a certain region. It could be a "new GMC owner" incentive. Last year's was $500.

Why wouldn't you want to try and negotiate some of their holdback? Dealer would greatly give you 5% above cost (invoice less holdback) and they could live on 3% above cost. Would you consider a Tahoe over the Yukon? There is more bargaining power in the Tahoe because of it's supply.

In purchasing you truck, try the "fax attack." If you know exactly what you're looking for, fax an offer to all the dealers you're willing to drive to and sit back and wait for the phone to ring. The Chevy and GMC sites will have fax numbers/emails to all the dealers in the area. Usually, the fax is sitting in the sales manager's office. You'll be amazed.

I was able to contact over 40 dealers through fax/email. It came down to three. The best deal was from a dealer just 5 miles away. He cut into his holdback. He had the truck prepped and ready to go. I spent less than an hour filling out the paperwork. They added free oil changes and I was able to negotiate the cost of an extended warranty.

GMC is 2 for 2 with me. Had a great experience buying my '94 Jimmy from them.

Good luck in your search.

[ahurst]

Thanks Denalio -- I never thought about trying to get into the holdback. I have emailed several dealers but have not included an offer yet. I thought holdback was 3% (of MSRP). Is it 5%?

Originally Posted by denalio34ceo

There is a $5,000 cash incentive for the Yukon XL/Suburban models. There could be an additional $1,000 for the shorter models but as you mentioned, it may be specific to a certain region. It could be a "new GMC owner" incentive. Last year's was $500.

Why wouldn't you want to try and negotiate some of their holdback? Dealer would greatly give you 5% above cost (invoice less holdback) and they could live on 3% above cost. Would you consider a Tahoe over the Yukon? There is more bargaining power in the Tahoe because of it's supply.

In purchasing you truck, try the "fax attack." If you know exactly what you're looking for, fax an offer to all the dealers you're willing to drive to and sit back and wait for the phone to ring. The Chevy and GMC sites will have fax numbers/emails to all the dealers in the area. Usually, the fax is sitting in the sales manager's office. You'll be amazed.

I was able to contact over 40 dealers through fax/email. It came down to three. The best deal was from a dealer just 5 miles away. He cut into his holdback. He had the truck prepped and ready to go. I spent less than an hour filling out the paperwork. They added free oil changes and I was able to negotiate the cost of an extended warranty.

GMC is 2 for 2 with me. Had a great experience buying my '94 Jimmy from them.

Good luck in your search.

[denalio34ceo]

Holdback for American cars is 3% of MSRP and 2% for foreign cars. My suggestion is to offer 3 to 5% above actual dealer cost. (Actual dealer costs = Invoice minus Holdback).

[ahurst]

Ah, I see - thanks!

Originally Posted by denalio34ceo

Holdback for American cars is 3% of MSRP and 2% for foreign cars. My suggestion is to offer 3 to 5% above actual dealer cost. (Actual dealer costs = Invoice minus Holdback).

[Vroom2]

Fellas,

I wouldn't make this up. Invoice is RELATIVE. If you don't believe me, talk to someone in the business. The more you buy, the cheaper they get. Along with holdback, don't forget about flooring. Dealers buy their inventory without spending any cash out of pocket. The sooner they sell the vehicle, the longer they have to use the other guy's money.

Take care,
Jerry

[ahurst]

Yes, but holdback I can calculate. Other than watching the rotation of stock on the lot, how can I know how soon the vehicle arrived at the dealer?

Originally Posted by Vroom2

Fellas,

I wouldn't make this up. Invoice is RELATIVE. If you don't believe me, talk to someone in the business. The more you buy, the cheaper they get. Along with holdback, don't forget about flooring. Dealers buy their inventory without spending any cash out of pocket. The sooner they sell the vehicle, the longer they have to use the other guy's money.

Take care,
Jerry