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What does dealer get for a Supplier sale?

16690 Views 26 Replies 14 Participants Last post by  Ateupjoe
Say a dealer won't sell off MSRP but will take the GM Supplier Certificate. Why? This would seem to indicate either full reimbursement or perhaps being put first in line for another Vette. What does the dealer get?
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I can speak from experience on trucks anyway. I have purchased four in the last two years. There was a time recently when the dealer had ivc certificates available internally to apply on any purchase he wanted to. I believe G.M. internally told the dealer how many of the certificates they could use on each individual vehicle. It seemed like it changed monthly with the incentives also on the application rate available.. I got the maximum on one truck which was 6 certificates at a value of 500 dollars each which worked in concert with the best negotiated deal and my G.M. card points. If I remember correctly that was about 14000 off msrp on 43,000. I don't imagine G.M. would allow these to be used on a stingray purchase because of shear demand. I am going to mention it when I pick mine up in two weeks though and see how far I get with it though.
So I tried to negotiate with a major corvette dealer after stating I had a supplier certificate to get near supplier price but being able to use gm card earnings. Zero response after asking to switch from supplier certificate. It is almost like GM has told them to not do it. So MSRP or supplier certificate, nothing in between. In fact due to the lack of civility to respond to a simple inquiry, I would not buy from this dealership.
A dealer ends up making about 5% in an employee or supplier sale vs. about 12% on a full MSRP sale, this is inclusive of all incentives and hold back. The dealership makes exactly the same on an Employee or Supplier deal but a salesman will see a difference because hold back is usually never calculated in the salesman's compensation.

There's been a lot of FUD online about these programs but they really aren't that complicated. Here's a sample invoice (mine). I'll explain the numbers.

View attachment 10797

Here are the important numbers on that invoice:

TOTAL 66980.00 (MSRP) 61761.58 (Invoice, as seen on most Internet pricing sites)
TOTAL LESS HOLDBACK AND APPROX WHOLESALE FINANCE CREDIT 58927.03 (this is ultimately what the car costs the dealer when all is said and done)

On a full MSRP deal the dealer will make ~66980.00 - 58927.03 = $8052.97 + any other fees they charge.

Now, here's how to calculate what the car will cost you under the program and how much the dealer makes vs. a full MSRP deal

Employee Plan:
Your Cost = $58530.73
Dealer Cost = $58927.03
Dealer Incentives = $3716.53 (EMPINC on the invoice)
Net to dealer = 58530.73 - 58927.03 + 3716.53 = $3320.23

Supplier Plan:
Your Cost = $60921.80
Dealer Cost = $58927.03
Dealer Incentive = $1325.46 (SUPINC on the invoice)
Net to dealer = 60921.80 - 58927.03 + 1325.46 = $3320.23

So, to boil it down, a dealer can make $8052.97 (12%) on a full MSRP deal and $3320.23 (5%) on either of the GM programs.

NOTE: Many of the numbers here have to be "earned" by the dealership and are only returned if they meet certain sales goals. What I put here is only a guide so you can understand what a dealer is facing and why many don't participate in the programs.

Isn't the Invoice $50,050, your picture shows $51,870.

Has this changed? I doubt the invoice price went down since 2014..
It's a Z51 so higher price

base MSRP 53,000 Z51 4,000 $57,000.00 MSRP
Isn't the Invoice $50,050, your picture shows $51,870.

Has this changed? I doubt the invoice price went down since 2014..
It's a Z51 so higher price

base MSRP 53,000 Z51 4,000 $57,000.00 MSRP
Yes, it's a Z51 but it's also a 2014 which had a lower Z51 option price since the performance exhaust was separate. That printout is the official invoice for that car at that point in time (29 May, 2014), those are the numbers.
Great thread explaining the Employee and supplier pricing. I am able to get employee pricing, so this helps a lot. I'm guessing that once 2016 pricing is released then the Employee and Supplier prices will be also set, right?

I've found it best to be upfront and tell the dealer that you're looking for Employee pricing when I was shopping around. Some are very eager to say they do, and some you never hear from again once you ask!!
I am waiting for the day when someone uses GM reward points to pay for an entire Stingray or Z06!!! Now that would be a deal!

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