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What does GM & Dealership make (profit) for each new truck sold&#3


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I was told by the dealerships that the Chevy Silverado Regular Cab is a dying breed. They do not sell too many and a lot of them are sold to companies for service such as a Tire Fair, deliveries, contractors etc. as mainly a work truck. They do not stock too many on the lot and a lot of the regular cabs are with only a few options. They gear it to the areas where the dealership is located. There is less profit to be made on regular cabs. Toyota full size regular cab is offered with very minimum options.

They dealership claims about 60% plus of the trucks sold are crew cabs and the double cabs take the next lion's share on all the trucks being sold. I read that a good fairly equipment crew cab - GM makes anywhere from $10,000 to $15,000 plus profit on each truck. This is on trucks ranging from $37,000 to $50,000 plus. I am not sure if this includes dealership profit etc.

 

Does anyone know what GM and dealers makes on profit per each new truck without a trade in? What is the profit margin to stay in business etc.?

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A friend of mine who sold cars a couple of years back after college told me, the ideal % rate a dealer looks for when seling a car is 3-5%. With the whole Invoice pricing, most if not all dealers will make ther % by selling at invoice and not dipping into holdback$$. Most dealers belong to a larger network of a parent company...so volume is the key.

 

I read that too, that GM makes the most profit per vehicle sold and can make anywhere between $5K-$10K per sale on every Silverado and Sierra. A lot of people put stock into how many trucks are sold or who sold the most trucks for the Model Year....but if GM sells less vehicles, but makes more money per vechicle thus making more money selling their trucks than Ford, do you think they're worried about selling 30K less trucks if they're making more money? One thig that is true...it's all about the bottom line.

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I do know that the chevy silverado is gm's biggest profit maker. I remember this past summer they were giving rebates in the 8,000 dollar range on the 2013's and i am sure were still making money on them.

 

Pm you are right. :( The regular cab is a dying breed and only makes up 10 percent of gm truck sales and like you said most are work trucks.When I ordered mine they only had 2 reg cab work trucks on the lot and about 50 crew and double cabs. I do know that gm doesnt plan to offer a regular cab in the colorado and canyon coming out later this year.

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The Toyota Tacoma will not be making a regular cab for 2015. Outside vendors are making fewer items for a for full size regular cab. Chevy did not have the chrome handles for the 2014 regular cab. I called GM to buy them direct and they told me they were not available. They felt most of the regular pickup trucks were sold as work trucks and most of these owners didn’t want the chrome handles. They didn’t see a strong demand but didn’t deny they would offer it later. I noticed GM put additional items in regular cab that used to be options to get the price up on regular cabs. Selling a double cab GM could get $3,000 to $4,000 (plus) more and a crew cab $7,500 to $8,500 (plus) more. If the regular cabs is only at 10% production and drops any lower, I don’t see the regular cab lasting too much long to give GM the profit they need to operate this line.

 

Even this site you mostly see crew and double cabs.

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I am still waiting on weather tech to make the window vent visors for the regular cab :( . The biggest complaint I have for GM is no 6.2 option in the regular cab . I am sure it is the fact they want you to spend the extra 4,000 to 6,000 to get the double and crew cabs.

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I am waiting for the same with Weather Tech. I was wondering if the front doors on the double and crew crews are different than the regular cab? GM already has it set up to get work trucks in double and crew cabs. It depends what the big three do to determine what is going to happen to the regular cab.

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The doors on the regular cab are different then on the crew and double cabs. I called weather tech and they do plan on making them . The regular cab was the last of the 3 to get built so we have to wait the longest. If you go on their website and give them your email they will notify you when they are available .

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Thank you. The truck has been out a long time and it seem to be a low priority on their part.

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3-5% is pretty accurate for what the dealer makes on retail sales. National fleets & rentals are much less.

 

GM, I have no idea... it may look like they make $8-$10,000 per copy on paper, I've never seen that stat and I'm a GM dealer... but keep in mind that they spend a boatload on R&D, marketing & advertising, pensions & benefits, recalls, etc... so that profit pays for those sorts of things.

 

Regular cab, you're right, it is a slowly declining breed. I usually try to stock just 1 and it takes on average a good 140 days to sell.

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A regular cab truck with a long bed really makes sense when used as a work truck. It is rare to see a regular cab pickup with trim above the work truck level. Do they even offer one with the LTZ trim?

 

I almost bought a new 1989 Silverado regular cab years ago. It was a stepside model, white with tan bucket seats, 350 engine, and 5 speed manual transmission. Power windows, A/C, cruise, all for $ 12k.

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The 2014 Toyota Tundra only has one model that is a regular cab with long bed with minimum options.

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The big question is what the big three and Toyota are going to do with the regular cabs. If one company does away with regular cabs, they could lose (10% of their customers) to other companies. 10% from three companies is 30% plus Toyota's share. If all three do away with it than they could easily push to double cab as the work truck. Just like they are doing on Colorado etc.. The options on regular cabs are definitely being cut back.

 

Keeping a line running for less than 10% might not be worth while. But the last one still doing regular cabs could get new additional customers to make it worth while. A lot of people don't need a bigger cab especially if they are on a tight budget. So it is still a tough decision to make. Based on the above information I do not doubt all the trucks companies are seriously reviewing this matter. It will only come down to how much money could be made.

 

This is going to be interesting to see what happens.

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No LTZ trim in a regular cab. The highest level in a regular cab is the LT2 with the Z71 package. You can't even get a sliding window in the regular cab anymore.

I like the 2WT because it gives me the items I need and within my budget. I would like to get the back- up camera but I would have to go into the 1LT ($2,880) (2LT more money) plus convenience package ($1,130) plus tax. You do get some nice options with 1LT package but I do not need most of the items. If I add the same options I have in my truck, the cost would have increased approximately to $7,000 to $7,500 plus tax on the 1LT. Even with rebates etc., you still pay more money.

 

Chevy does offer a nice (reasonable package) with the 1WT or 2WT. I just like the more chrome and OnStar on the 2WT. I have to stay within budget. I usually have to work with less to look like it has more. The after-market or GM accessories do add on addition money to custom your truck per your preference. By doing my own customizing, I save money on my town taxes and get the additional work completed very reasonable. The town taxes your vehicle on what you pay the dealership. It is better to customize after the purchase and on your own. Just get the options that are no available after the purchase. I also save about $2,200 on the price of the truck buying it the end of September and before the prices went up in early October 2013. Other packages like LTZ would be more money. Some of these options work better in the bigger trucks. I.E.- seat only got back so far in a regular cab etc.. The money can easily add up.

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