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GM Overpricing Its Trucks?

Do you think GM is overpricing its trucks?

  • Yes

    Votes: 38 100.0%

  • No

    Votes: 0 0.0%
  • Total voters
    38
C

ColoradoAV

SM 2003
Full Member
Joined
Jun 11, 2002
Messages
1,424
Location
Littleton, CO
Make no doubt about it. ?For the most part, GM makes some great trucks. ?But it's alarming at least to me how fast their prices are going up. ?For example, the MSRP of a 2003 Avalanche equipped the same as mine is now $1500 higher than when we bought ours. ?Z71 Avs now start at over $36,000.

Most Tahoes and Suburbans are now priced well over $40,000 and depending on how they're equipped, Silverados seem overpriced.

One thing I can say is at least GM has been offering 0% financing and there are bigger discounts than there used to be. ?

I hope this makes sense to you. ?If the prices on Avs (and other GM vehicles) keeps going up, by the time we get rid of our Av in a few years, they might be too expensive. ?And when I am old enough, it could be even longer before I could ever afford one.

(BTW - Did anyone else notice that on those Avalanche illustrations on the main Av page on the Chevy site, the DRLs are AMBER ?;D?)
 
GM is inflating the price and giving it back in the form of rebates. The net cost is almost the same but the customer thinks that they are getting a great deal with 0% financing or a few thousand dollars back in rebate dollars.

The rebate also makes people buy a vehicle when they don't really need one because they want to get the rebate/deal before it expires. So people storm into a showroom and the sales people work late just to get the it under the deadline.... only to find out that the rebate has been extended for another month or two.

This "trick" seems to work because when they pour on the rebates, the trucks move out fast.


... it is working on me (anxiously waiting for the next big rebate and lining up to buy a truck that I don't really need ;)... but how can you resist!)
 
The Avalanche is out of the price range of a lot of folks.

Of course, I look around in my neighborhood and wonder how people who are 10-12 years younger than me can afford 2 new cars @ $40K each, a house, a place at the lake, a boat, etc. I guess some people like to be in debt better than I do!
 
i have been doing some browsing the last couple of weeks(mainly to show off my mods at dealership). the prices have definitely gone up. i had a Tahoe a couple of years back. from the looks of the prices today i will never be in one again. i have seen Tahoe's go for as much as $43-$44k without anything special on them.
i plan on taking real good care of the AV. i want this truck to be around for along time. i like it very much. so much that i have even went to look at the new '03 vehicles. i immediately fell in love with the Charcoal Grey Metallic color. but one look at the price, and i new GM was out of there mind. oh well. maybe they will come around.
 
The US auto industry sets artificial high sticker prices knowing that they will be heavily discounted with rebates and dealer discounts. ?You don?t have to be Roger Dawson to get a big discount on a big three made vehicle.

A few months back I was in Detroit on business and picked up a local paper for the flight back. ?They had an interview in it with Lutz and Ford. They both said rebates would continue to be part of the way they sold vehicles. ?This is not necessarily a bad thing.

Saturns sell at the sticker price, which they claim is the real selling price and is better because you don?t have to haggle with the dealer. ?Saturn dealers make 13 points off there cars, the highest margin in the US industry! ?The rest of the industry works on a much lower profit margin.
 
I think there is a huge difference between GM cost and what the dealer sells the truck for. I also think this difference varies widely throughout the country. I fiind it bizarre that I can get my truck at GMS just to find another person get the same truck cheaper and they don't even qualify for GMS. I don't know I just think it's all a scam!!
 
I agree with Powersurge. I've seen 2003's base models starting at $32k when the sticker on my '02 Z-66 was the same price. Not to mention that they have removed standard features and now made them options. I'm currious what base models are costing across the country.
 
Ok... I have to reply on this one.... I've been watching overall car/truck prices rise like crazy for the past 15 years. I blame the auto workers union. Before you flame me for this let me explain.... My grandfather worked for Ford and my cousin now works for Ford. (yes I'm from a Ford family and love my Avy) I will say that my Grandfather's job was saved a couple of times because of the union and my grandmother still receives benefits because of them, for that I am gratefull.
My cousin's employment has opened my eyes to some of thne things that really bother me. He works a 2nd or 3rd shift that runs from about 5pm till 2am (approx). He usually works Mon, Tues, and Wed nights and then sometimes on Sat or sunday night. If he works Sat or Sunday night he is payed overtime... just for being there. He probably only works 24 reg time hrs but is paid time and a half for the next 16. :8:
I don't blame him if I could get a deal like that i'd jump on it too, but you all know where the salary comes from.

Sorry if I went on a rant but that really bugs me
 
FogHorn said:
Ok... I have to reply on this one.... I've been watching overall car/truck prices rise like crazy for the past 15 years. I blame the auto workers union. Before you flame me for this let me explain.... My grandfather worked for Ford and my cousin now works for Ford. (yes I'm from a Ford family and love my Avy) I will say that my Grandfather's job was saved a couple of times because of the union and my grandmother still receives benefits because of them, for that I am gratefull.
?My cousin's employment has opened my eyes to some of thne things that really bother me. He works a 2nd or 3rd shift that runs from about 5pm till 2am (approx). He usually works Mon, Tues, and Wed nights and then sometimes on Sat or sunday night. If he works Sat or Sunday night he is payed overtime... just for being there. He probably only works 24 reg time hrs but is paid time and a half for the next 16. ? ?:8:
?I don't blame him if I could get a deal like that i'd jump on it too, but you all know where the salary comes from.

?Sorry if I went on a rant but that really bugs me
Click to expand...

I'm sure the price of resources have also increased. Am I crazy to think that there are less iron reserves now then there was 25 years ago. Supply Theory suggests that as the supply decreases the price increases.

Keep in mind that when you buy a car you are not just buying all the metal, wires, rubber and plastic that makes up the vehicle but all the marketing, research, office supplies, employee retirement benefits, health care, executive bonuses, corpororate travel so on and so forth. Your vehicle purchase represents a very small fraction of the total cost to operate the company. From that paper clip some engineer is shooting with a rubber band to the computer paper being made into an airplane, all those costs are transferred to the price of a vehicle.

If any of those costs increase well so shall the cost of a car!!
 
True, but with more and more of "American made" cars and trucks being built in Mexico at a cheaper cost to the company you would think the savings would be passed on to the consumers. Plus, I don't know if the Mexican workers are union or not. My guess would be...no.
 
FogHorn said:
Ok... I have to reply on this one.... I've been watching overall car/truck prices rise like crazy for the past 15 years. I blame the auto workers union.
Click to expand...

You mean the Big Mexican Auto Workers Union? The one that built your AV? In Mexico! Maybe all those benefits the General didn't want to pay the American worker, and it not paying the Mexican worker, is the reason that the AV didn't cost you $60.000. You're getting off cheap or is it that the General is pocketing a lot more money at your expense and the workers expense. The choice you have it to not buy those big expensive automobiles, the choice the worker has it to not work or to take less for his family and leave more for the General. Decisions, Decisions.....


Roy :D:
 
FogHorn said:
Ok... I have to reply on this one.... I've been watching overall car/truck prices rise like crazy for the past 15 years. I blame the auto workers union. Before you flame me for this let me explain.... My grandfather worked for Ford and my cousin now works for Ford. (yes I'm from a Ford family and love my Avy) I will say that my Grandfather's job was saved a couple of times because of the union and my grandmother still receives benefits because of them, for that I am gratefull.
?My cousin's employment has opened my eyes to some of thne things that really bother me. He works a 2nd or 3rd shift that runs from about 5pm till 2am (approx). He usually works Mon, Tues, and Wed nights and then sometimes on Sat or sunday night. If he works Sat or Sunday night he is payed overtime... just for being there. He probably only works 24 reg time hrs but is paid time and a half for the next 16. ? ?:8:
?I don't blame him if I could get a deal like that i'd jump on it too, but you all know where the salary comes from.

?Sorry if I went on a rant but that really bugs me
Click to expand...

? ?If that is what you think then you are very misinformed! I retired 4 year ago from GM and was a union member for over 32 years. I know that there are lots of jokes these days about the union and how lazy the workers are. I can tell you that for the most part that is just what they are, JOKES. Most union workers are very hard working and honest, you will find a few like your cousin that will take advantage but isn't it that way in life generally?
? ?The Avalanche is built in Mexico and always has been. The workers there are little more than slave laborers and work for very low wages. There are no unions there. DO you think that the General lowered the price to reflect this? NO! They take the profits and give bonuses to the top dogs just like they always have done. When they pay a million $$ salery and all the big bonuses to the top executives that ?just make me sick to hear a dig like this on the union.
? ? If you understood that the union is responsible for most of the high standard of living that we all enjoy in this country I think you would rethink your position. The unions position has always been " a fair days pay for a fair days work" If your cousin & Grandfather took advantage of this, don't blame the union!
 
good grief, prices do keep going up. i did a "build your own" chevy avalanche on the GM website on 1/17/03 and the price came to $41,960
Today (2/15/03) I built the same truck and the price was $42,377.
Here is an example: :6:
January z71 package --> $878
Feb Z71 package --> $1045

This is sad, by the time I can order my truck (April 2004) the truck may be incredibly expensive! :eek:

 
The Oshawa truck assembly plant has been running 6 days a week on 3 shifts for years with every posible Sat scheualled. It is there most profitable truck plant. The little bit extra they pay for overtime on the weekend hardly eats into the Generals profit. Like some one said earlier..... it has been estimated that marketing alone comes in at 7 to10 k per vehical ... i kid you not...... Wages for the assembly worker In Canada The US or Mexico are hardly an issue when it comes to the cost of he vehical. They build cars with less people twice as fast as they did 10 years ago which amounts to huge savings..... That money goes straight into the big guy bonus fund and we all know how lucritive that fund is for those fellows.......My 2 cents

NatsCanAv
Proud CAW local 222 Member (y)
 
Beanman said:
Feb Z71 package ?--> $1045

This is sad, by the time I can order my truck (April 2004) the truck may be incredibly expensive! :eek:
Click to expand...

See, this is why I started this topic. That's about a 25% increase in the cost of the off road package from when our Av was new ???. This is getting ridiculous IMHO. It is getting sad, especially because it will be even longer before I can afford to get my OWN Av :6:. As mentioned before, the Av was made in Mexico by people just above the slave status so if the manufacturing costs are kept down, then we the consumers should benefit from it :8:. It could get to the point that if the Av is ever discontinued, it could be because a smaller amount of people could afford to buy one :6:.
 
I am glad I got my '02 when I did. Although I like some of the "new" features on the '03, it is not worth the extra $4k. The '02 base price alone rose 2 to 4k, and this is what the '03 starts at.
Dvd
 
CoAvZ71 said:
See, this is why I started this topic. ?That's about a 25% increase in the cost of the off road package from when our Av was new ???. ?This is getting ridiculous IMHO. ?It is getting sad, especially because it will be even longer before I can afford to get my OWN Av ?:6:. ?As mentioned before, the Av was made in Mexico by people just above the slave status so if the manufacturing costs are kept down, then we the consumers should benefit from it ?:8:. ?It could get to the point that if the Av is ever discontinued, it could be because a smaller amount of people could afford to buy one ?:6:.
Click to expand...

Just think how bad it would be for you, if you were making one of those AV's. How many Mexican AV assembly line workers can afford to buy an AV. I'll be willing to bet you none. With big business controlling the White House, the Senate, the House, corporate welfare (aka tax cuts) and big profits for big business, I would hate to see a "downturn in the economy".
Roy :D:
 
Hey, Is the AV really worth that hugh price? We are still shopping and that is a ton of money to spend for a vehicle. We like the av very much and can swing it, but it seems way overpriced.
Are dealers coming down to invoice often, and has anyone used consumer reports to help on the price, minus rebates and such?
 
Indy_Pacecar said:
?Hey, Is the AV really worth that hugh price? ?We are still shopping and that is a ton of money to spend for a vehicle. ?We like the av very much and can swing it, but it seems way overpriced. ?
Are dealers coming down to invoice often, and has anyone used consumer reports to help on the price, minus rebates and such?
Click to expand...

If you buy the truck you will LOVE it. If I had to put a limit on the amount I would spend on this truck it would be $40,000 USD. This of course is based on what I can afford but I really do not think the truck is worth that much more. I really believe the Ave is fairly priced. I just question how much price variation exists across the country. If you compare the Ave to the Yukon and Suburban you will see that it is much cheaper. I remember the Envoy fully loaded was a little more a month than the Avalanche fully loaded with the same amount of money down.

This was back in Oct of 2001.

Things may have changed alot since then though.

 
First off to answer IndyPacecar, I love this truck and will keep it a long time so the price seemed worth it to me.

Why are they expensive? Part of it too is large profit margins on SUV and the like. This is a popular segment and the car companies are cashing in on it so they will boost the margin to profit from it.

Also, as other people have mentioned here, the perq's for the executives in the company have risen. Look for the stats of the ratio of the highest paid to the lowest paid in a company and the ratio has become astronomical in the past 10 or so years. It has gotten out of hand for sure.
 
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