Supplier Discount

[Bvs999]

I have been told that there are a number of dealers that are currently not honoring supplier discounts (and don’t have to).  I don’t qualify, so have no dog in the fight, but just curious how much of the discount the dealers have to eat vs. how much does GM actually take on.

 

 

[elcamino]

fyi - Supplier and employee discounts etc are a fixed amount on the invoice and are non-negotiable, it is what it is and can't be changed.  Depending how the vehicle is configured determines the supplier price like the final sticker price.  And like you said, dealers are NOT obligated to honor those prices because every dealer is an independent business and can sell for the price they determine is fair market value.   But those who are able to buy for those prices should not expect a high trade-in as the dealer has less margin to work with. 

 

Generally speaking, supplier pricing is higher the dealer invoice but less the MSRP.  Employee prices is below dealer invoice and less the supplier.