Just another Right Wing myth debunked

[Pandora]

I'm glad you spend the time with the kids & sports. That's a very important thing and very fulfilling. You know I'm into that coaching stuff.

I'm not positive if that conquest cash discount comes back to the dealer from GM or if that's just the recommended markdown from the up front dealer profit (but I think GM rebates it to the dealer). It would have been $1000 off if I had been trading in any GM vehicle on a new GM vehicle. Seems they reward you even more if you stay brand loyal.

I know the $2000 GM credit card points discount comes straight from GM as a discount that the dealer pays for that particular car. So it's just like the dealer paid $2000 less for that vehicle.

Here's something a lot of people don't know. The window sticker price on a new car is a marked up price but not nearly as much as people think. Usually only about $1500 on a say a $25,000 car. Usually you can get $500 to $1000 knocked off the sticker price.

So you wonder... then how does a big car dealer with all of it's overhead stay in business making only $500 to $1000 on a lot of it's car sales? Two ways. One... they usually only give you rough wholesale on your trade in (and most people have a trade in). That allows them to usually make 2, 3 sometimes even 4 thousand off of your trade in. Plus Auto dealers get "back end money" from the manufacturer. It's the manufacturer that's got the generous profit margin. They are the one marking up every part as a car goes together not the dealer.

To induce volume sales a dealer might get say a thousand (maybe more) per vehicle sold in a certain month period. That's why they say you can sometimes get a little better deal the last day of the month.

Yep I paid $1900 and $300 some odd dollars in tax for a brand new SUV. (when buy new you only have to pay tax on the difference between your trade and the new car price. When you buy used you have to pay tax on the entire price of the used car you are buying regardless of trade in.

So sometimes you can actually save money buying new... in comparison to buying a high priced used car. That $300 tax I paid would have been like $1500 tax had I bought a used car that cost the same amount as the new one.

That sure is a nice looking SUV


Why I was asking about the 500 dollar rebate is that gm is government owned now right? so did the government give you the 500 dollars? Its confusing when we the people AKA the government is in the car business and I want to know if I am giving rebates to GM cars because I like FORD better

the $2000 GM credit card points are like cash you earned. Just like frequent flyer mile points. Its not really a credit from them as much as it is points you earned from spending on your GM card. Its just the 500 credit from GM that has me worried that I, a tax payer might be giving out credit for one kind of car over another...


I am still in shock of how little you paid for it, I would go buy a new car if you went with me You could get me a good deal.

 

[top gun]

That sure is a nice looking SUV


Why I was asking about the 500 dollar rebate is that gm is government owned now right? so did the government give you the 500 dollars? Its confusing when we the people AKA the government is in the car business and I want to know if I am giving rebates to GM cars because I like FORD better

the $2000 GM credit card points are like cash you earned. Just like frequent flyer mile points. Its not really a credit from them as much as it is points you earned from spending on your GM card. Its just the 500 credit from GM that has me worried that I, a tax payer might be giving out credit for one kind of car over another...


I am still in shock of how little you paid for it, I would go buy a new car if you went with me You could get me a good deal.

The "conquest cash" is just a normal part of the horse trading in the car business. It's been called many things over the years but it's simply a manufacture rebate to it's dealers. It's a sales promotion.

So don't worry it has nothing to do with taxpayer money except for the fact GM in selling more cars will be able to pay it's government loan back even quicker.

It will go like this. First the loan will be paid back. Then with GM out of debt the governments stake will either be bought up by the private market or GM will start buying it back itself just like any other stock buy back. This happens all the time.

As far as car shopping I do get asked to work the deals for people a lot. Owning body shops in the past and having a friend with his own 50 car inventory used car lot I can most always get a better than normal deal. If not I just walk away and keep looking.

In the last year I helped my next door neighbor (the guy in the Buckeye fan video) a car and one of the girl's at work an SUV.

If we lived closer together I'd be more than happy to go out and help you shop. If you ever have any questions I'll at least look stuff up for you and give you some numbers you should be getting for both your trade and the newer car you want.